Increased scrutiny by the Japanese regulator on securitisation investments is forcing banks to reduce their allocation to the US market for collateralised loan obligations, potentially contributing to wider spreads on senior AAA tranches.
A new capital adequacy law, which was introduced by the Japan Financial Services Agency (FSA) at the end of March, has imposed criteria that Japanese banks and other credit institutions (plus some securities companies) must meet on their holdings of CLOs.
- Libor leaders: how seven firms are tackling the transition
- Libor leaders: ABP crafts blueprint for corporate Libor switch
- Warrants issuers battle algo predators in Hong Kong
- Libor replacement: a modelling framework for in-arrears term rates
- Swaps data: a new era of competition in interest rate futures