Uniting Risk Professionals World Wide Professional Risk Managers’ International Association Global Event Series February 2008 Credit Risk A survey on credit.

Slides:

Advertisements

Similar presentations

Introduction To Credit Derivatives Stephen P. D Arcy and Xinyan Zhao.

Advertisements

1 ACI Annual Audit Committee Survey - Global M A R K E T I N G & C O M M U N I C A T I O N S R E S E A R C H Charles Garbowski Research February 21, 2006.

1 How a SIV Works Investors invest in the SIV in exchange for interest payments.

Financial Risk Management of Insurance Enterprises Collateralized Debt Obligations (CDOs)

1 Global Real Estate Valuation Policy Update: the European Perspective The principle: the EU Treaty does not provide the European institutions with direct.

Chapter Ten Financial Crisis. Introduction From 2007 to mid-2009, global financial markets and systems have been in the grip of the worst financial crisis.

Introduction to Fixed Income Securities Fixed Income Securities MB 77.

1 Global Trends in Asset Servicing – Extending Beyond the Traditional Custody Model Presentation to: Atlantic Connection Date: July 13, 2011 FOR LIMITED.

HONG KONG MONETARY AUTHORITY Management Costs for the Investment of the Exchange Fund Presentation to the Legislative Council Panel on Financial Affairs.

UPDATE OF GUIDELINES FOR PUBLIC DEBT MANAGEMENT Sudarshan Gooptu Sector Manager PREM Economic Policy and Debt, World Bank MDB Meetings, Washington DC May.

Change the colour scheme: Go to the Design tab Select the Colors drop-down menu from the Themes group From the Custom menu, choose SS&C 2015 set If you.

Goal of This Presentation What is an Investment Bank? What are the opportunities? Learning more about the business What is an Investment Bank? What are.

Overview of Financial Statement Analysis Chapter 1.

Chapter 2. Financial Intermediaries & Financial Innovation

Financial Intermediation and Innovation

Morningstar June 2008 Richard Quin - Director, Credit Suisse

Greg Tanzer Secretary General IOSCO Presentation to staff of the IFSRA Dublin, 24 April 2008 Global Markets and the Recent Turmoil: Lessons Learned Presentation.

Cass – ESSEC Conference Business models in banking by François Longin Department of Finance, ESSEC Cass Business School , London December 2, 2009.

Asdfasdf Global Markets Summer Associate Program Company Deutsche Bank is a global financial services leader - an undisputed presence in the major markets.

+ Basel lll Summary “ Making Great Ideas Become Reality”

Investment Basics Clench Fraud Trust Investment Workshop October 24, 2011 Jeff Frketich, CFA.

1 Charles Garbowski Senior Director Research March 16, 2007 R E S E A R C H K P M G L L P ACI Second Annual Global Audit Committee Survey.

Chapter 15 Conflicts of Interest in the Financial Industry.

IAS/IFRS Insurers and IAS / IFRS Frank Helsloot (AXA Group Belgium) Luxembourg 23 February 2005 ALACConference.

19-1 Financial Markets and Investment Strategies Chapter 19.

CFA Institute Centre - Update Kurt Schacht, CFA – Managing Director CFA Institute Centre for Financial Market Integrity September 2007.

Dynamic Portfolio Management Process-Observations from the Crisis Ivan Marcotte Bank of America Global Portfolio Strategies Executive February 28, 2013.

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter Fifteen The Management of Capital.

FINANCIAL SERVICES RISK MANAGEMENT Implications of Subprime Mortgage Crisis for Basel II Risk Models and the Potential Impact on Securitizations Peter.

Uniting Risk Professionals World Wide Professional Risk Managers’ International Association Global Event Series February 2008 Credit Risk.

1 Data Requirements For Assessing the Health of Systemically Important Financial Institutions (SIFIs) for IMF-FSB Users Conference Washington, D. C., July.

© Natixis 2006 The Subprime Credit Crisis of 2007 Michel Crouhy Head of Research and Development NATIXIS Corporate and Investment Bank.

1 Chapter 01 Introduction to Financial Management McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

New Ideas About the Distribution Phase Integrating Retirement Income & DC Plan Design Institutional Investor Institute Corporate Funds Roundtable March.

International Financial Regulatory Reforms: Are We on the Right Track? Patrick Leblond CERIUM Summer School June 30, 2010.

Chapter 10: Innovation and Structure in Banking and Finance Chapter Objectives Explain why bankers and other financiers innovate. Explain how widespread.

16 Investment Analysis and Portfolio Management First Canadian Edition

1 Challenges and Opportunities from Financial Globalization for Fund Managers and Policy Makers in the Asia-Pacific Region Presentation by Mr. Takatoshi.

Rick Watson Managing Director and Head of the European Securitisation Forum +44 (0) Prospects for Securitisation.

1 Financial Markets and Institutions Power Point Lecture Notes By Joseph F. Greco, Ph.D. College of Business and Economics California State University,

INSTITUTE OF INTERNATIONAL BANKERS SEMINAR ON REGULATORY EXAMINATION, RISK MANAGEMENT AND COMPLIANCE ISSUES OCTOBER 29-30, 2007 The Definition of Subprime:

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. CHAPTER 1 Investments - Background and Issues.

1 Lecture 19: Evolution of banking industry in the U.S. Mishkin Ch 10 – part A page

FIRMA National Conference New Orleans 2009 FAS 157 Michael Daly VP Risk Management and Quality Control Union Bank of California.

WAISC September 19, 2012 The Evolution of and Industry.

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. CHAPTER 1 Investments - Background and Issues.

A Importância da Governança Corporativa para os Mercados Emergentes Renato de L. Grandmont Head, Global Corporate Governance Research.

CHAPTER Three The Management Of Capital. Tasks Performed By Capital Provides a Cushion Against Risk of Failure Provides Funds to Help Institutions Get.

1 Lectures 21 Banking Industry: Structure and Competition.

HIDDEN DESCRIPTION SLIDE — NOT TO BE SHOWN TO THE PUBLIC Basics of Mutual Fund Investing Catalogue code: B18 Full presentation or module? Presentation.

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Investments - Background and Issues.

INDIRECT INVESTMENT - MUTUAL FUNDS Dr. BALAMURUGAN MUTHURAMAN Chapter

© Copyright Allianz IIS Redefining the industry: Regulation, Risk & Global Strategy July 9, 2007 Berlin Helmut Perlet, Allianz SE The Emergence of Solvency.

1 Simon Schilder Ogier September 2009 Role, Regulation and Structuring of Offshore Funds in the Current Market Environment.

1 v07 ACSDA Corporate Actions David Hands Director Corporate Action Data Manager Product Management 27 October, 2005.

Role of Financial Markets and Institutions

Briefing to the Legislative Council Panel on Financial Affairs 5 November 2001 HONG KONG MONETARY AUTHORITY.

1 FINANCIAL SUPERVISION: MEASURING UP TO GLOBAL STANDARDS Lee Jang-Yung Assistant Governor Financial Supervisory Service.

Conflicts of Interest in the Financial Industry

The Investment Environment

An Introduction to the Standards

Overview of Market Participants and Financial Innovation

Interest Rate Risk Chapter 9

Investments - Background and Issues

Investments - Background and Issues

Banking Industry: Structure and Competition

Banking Industry: Structure and Competition

Global Brexit barometer 2018

Presentation transcript:

Uniting Risk Professionals World Wide Professional Risk Managers’ International Association Global Event Series February 2008 Credit Risk A survey on credit risk management trends followed by 30 events held across the globe

Uniting Risk Professionals World Wide Survey Breakdown  Respondents were globally spread; 456 from EMEA, 341 from the Americas & 256 from Asia Pacific. They were spread very evenly by Role. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% BankersConsultants / Vendors RegulatorsAcademics and Others EMEAAmericasAsia Pacific

Uniting Risk Professionals World Wide Which credit-related activity is most relevant to you? Bankers & Consultants/Vendors Only

Uniting Risk Professionals World Wide Is the use of credit derivatives and the CDO market a valid market- efficient way of redistributing risk?

Uniting Risk Professionals World Wide Are alternative valuation methods needed for the structured credit markets?  A point to note being that Regulators had a higher % of NO votes – 16.3%.

Uniting Risk Professionals World Wide What is your opinion on the usage of structured products in the future?  A higher proportion (29.4%) of Regulators said the usage of structured products would decrease.

Uniting Risk Professionals World Wide What will be the impact of regulation on the use of structured products?

Uniting Risk Professionals World Wide Are asset-backed securities supported by sub-prime mortgages understood by investors?

Uniting Risk Professionals World Wide Are the ratings produced by the credit rating agencies a valid method of calculating credit risk-weightings?  Regulators were more likely to choose no but with no alternative (57.1%) compared to Bankers (46.7%) & Consultants (41.5%) whereas Consultants were more likely to say no and specify an alternative (36.8%) compared to Bankers (23.3%) & Regulators (20.4%).  Asia Pacific had the highest % of YES votes (34.9%) and made the lowest % of alternative suggestions (15.7%)

Uniting Risk Professionals World Wide These were the alternative approaches to using rating agencies suggested by respondents: Change the Models - approach and inputs, include spread and volatility, improve accuracy, calibration and predictive power Combine Internal and External Rating Establish / Strengthen Internal Ratings & Models Regulatory structure for subprime / CDO / structured products Strengthen risk management practices / due diligence Stress testing Improve Governance of Rating Agencies Assess effectiveness of rating agencies Increased Competition for Rating Agencies Increased disclosures by Rating Agencies Multiple ratings Pay for ratings Reduce conflict of interest in ratings Separate rating for different risk types Separate rating agency for Hedge Funds

Uniting Risk Professionals World Wide As the rating agency fees are paid by the security issuer, does the rating agency owe a fiduciary liability to potential investors in those securities?

Uniting Risk Professionals World Wide Has the Sub-prime Crisis reduced confidence in the rating agencies’ ability to rate complex asset-backed products?

Uniting Risk Professionals World Wide What do you believe is the future of the rating agencies?

Uniting Risk Professionals World Wide PRMIA keeps its members up to date On February 21, the Washington DC Chapter of PRMIA, joined by partners, the CFA Institute, discussed credit risk and the Basel II accord in the wake of the collapse of the market for subprime structured assets Panel I: Portfolio Diversification: Will all bank portfolios look alike under Basel II? Panel II: Credit Risk: The role of external ratings under Basel II Links to the audio recordings are at "A very frank exchange of views occurred today. This can only help risk practitioners better understand the tough conditions in the markets.” PRMIA DC Chapter Regional Director Christopher Whalen

Uniting Risk Professionals World Wide Professional Risk Managers’ International Association Global Event Series February 2008 Credit Risk (Copies of the details of the survey are in your packs. For electronic copies please contact