#special purpose credit programs – Page 2 – Federal Financial Analytics

FedFin: Risk-On CRT for a Risk-Off Market?

Arezou Rafikian2023-03-02T10:38:46-05:00April 21st, 2022|The Vault|

In our last CRT analysis, we looked at transaction viability under the Basel IV rewrite set for rapid release once key Fed nominees are finally confirmed. Now, we turn to another viability consideration: the extent to which CRT can thrive in spite of these capital obstacles and accomplish a vital purpose spelled out in a recent Urban Institute report: enhance equitable finance as FHFA demands. In short, we hope so, but it won’t be easy.

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Daily022222

Arezou Rafikian2023-04-04T15:32:15-04:00February 22nd, 2022|2- Daily Briefing|

CFPB Reiterates Need for Small-Business ECOA Reporting

The CFPB has reiterated its plans to quickly enact new rules requiring small-business lender reporting (see FSM Report FAIRLEND7), asserting that demographic and pricing data are necessary to ensure fair credit to otherwise under-served small businesses. T

G20 Ministerial Frets re Central Banks, CBDC, Climate, NBFIs

Perhaps the most interesting aspect of the G20 finance ministerial communiqué is the new assertion that crafting effective exit strategies is not only critical to sustained and stable macroeconomic growth, but also to central-bank “credibility.” We have been tracking growing concerns about central-bank credibility, and its relation to central-bank independence in connection with work related to Karen Petrou’s book.

FSB Looks for New Distressed-Debt Options Ahead of Lots More Debt

The FSB has issued a new discussion paper seeking ways to exit widespread forbearance and central-bank programs during the pandemic that have increased the likelihood that highly-indebted corporate borrowers will experience severe distress as interest rates rise. Although these concerns are particularly acute in the EU, where “zombie” borrowers have been a major market presence since 2008, they are also a growing concern in the U.S. and elsewhere due to the sharp run-up in highly leveraged corporate finance along with the sharp growth in private-capital structures.

Agencies Give All-Clear for Special Credit

The banking agencies, CFPB, FHFA, NCUA, and the Departments of Justice and HUD today issued a statement on special-purpose credit programs.

Daily022222.pdf…