New solutions

The structured credit market has had to respond to sharply deteriorating credit quality with structural enhancements and new innovation. Despite record numbers of downgrades, demand for structured credit remains robust. Mark Pelham reports.

credit-may02-cover-gif
Today it seems hardly a week goes by without the announcement of the launch of a new clutch of CDO and structured credit products, each, it seems, offering a new twist or unique selling point. This is not the usual marketing smoke and mirrors – structures are rapidly evolving in a variety of ways, though some of that development is in response to negative factors: concerns over losses, demand for improved risk/reward profiles, lack of diversification in the underlying assets and poor performance

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here