Tuesday 7th July 2015
NEWS TICKER, TUESDAY, JULY 7TH: Moody's Investors Service (Moody's) has assigned definitive B2 rating to the €400m senior secured notes issued by Senvion Holding GmbH and guaranteed, among others, by Rapid TopCo GmbH, following a review of the final bond documentation. The corporate family rating (CFR) of B1 and the probability of default rating (PDR) of B1-PD of Rapid TopCo GmbH remain unchanged. The outlook on all the ratings is stable. - Interactive Data, a provider of fixed-income evaluated pricing, will provide hourly snaps from its continuous evaluated pricing feed to Algomi Honeycomb (Algomi). Interactive Data will provide evaluated prices to the Honeycomb platform for high-yield and investment-grade US and European corporate bonds. The data will be available to help Algomi buy-side clients to achieve increased pre-trade transparency and price discovery. “Our goal is to give our clients the ability to access pre-trade price data which can be used to help facilitate trades in increasingly illiquid markets,” said Usman Khan, Chief technology officer and co-founder of Algomi. “Our Honeycomb buy-side clients will have access to Interactive Data’s evaluated prices as an important additional reference point that can be considered when comparing dealer bid and offer levels for execution,” he adds. Interactive Data’s continuous evaluated pricing launched in 2014 against a backdrop of a fast-evolving fixed income market structure characterized by shrinking dealer inventories, reduced liquidity, and a changing broker/dealer landscape. The continued shift to electronic trading platforms requires a supply of independent, high-quality data that allows users to assess quote quality and enhance price discovery, in the absence of traditional protocols. Continuous evaluated pricing facilitates this activity. The provision by Interactive Data of fixed-income evaluated pricing to Algomi is another deal in a succession of agreements with electronic trading and software platforms. - Federated Investors, Inc (NYSE: FII), will report financial and operating results for the quarter ended June 30th after the market closeson Thursday, July 23rd. A conference call for investors and analysts will be held at 9am Eastern on Friday, July 24th. President and chief executive officer J Christopher Donahue and chief financial officer Thomas R Donahue will host the call - Zapp today announces that Barclays has joined the financial institutions, retailers, billers and payment providers offering ‘Pay by Bank app’ mobile payments to consumers. Barclays also plans to offer ‘Pay by Bank app’ payments to customers via their existing mobile banking app later this year. Security first Pay by Bank app transactions are protected by a consumer’s existing bank app security - Singapore Exchange (SGX) reported growth in securities, derivatives and commodities activities in June. Traded value was $25bn, up 20% year on year and up 8% month on month, while daily average value was $1.2bn up 20% from a year earlier and up 8% from a month earlier. ETF trading also rose 30% from a year earlier to $237m while trading of STI stocks accounted for 68% of total trading versus 51% a year earlier. A total 37 bonds raising $12bn were listed in on SGX compared with 45 issues raising $21bn a year earlier - Following a recent Morningstar Analyst Ratings Meeting, Morningstar has moved the Kames UK Equity fund to a Morningstar Analyst Rating of Bronze. The fund was previously rated Silver. Although the fund has a strong long term track record under the current manager, Stephen Adams, returns over the medium term versus peers have been weaker. In addition, the manager has recently taken on additional responsibilities within the group, having been promoted to head of equities. Adams has passed some UK team responsibilities to his colleague Philip Howarth, but has additional non-UK equity responsibilities in his new role. Concerns over these two issues have resulted in the rating change - The Straits Times Index (STI) ended 9.79 points or 0.29% lower to 3332.94, taking the year-to-date performance to -0.96%. The top active stocks today were UOB, which declined 0.47%, Singtel, which gained 0.47%, DBS, which gained0.05%, Global Logistic, which declined 0.40% and CapitaLand, with a 0.57% fall. The FTSE ST Mid Cap Index declined 0.45%, while the FTSE ST Small Cap Index declined0.68% - Moody's Investors Service today upgraded Europcar Groupe S.A.'s (Europcar or the company) corporate family rating (CFR) to B1 from B3 and probability of default rating (PDR) to B1-PD from B3-PD. Concurrently, Moody's changed the instrument rating on the €475m senior notes due 2022, the obligations of which have been transferred to the company from Europcar Notes Limited after the completion of Europcar Groupe S.A.'s initial public offering (IPO), to definitive B3 from provisional (P)B3 and upgraded EC Finance Plc's instrument rating on the €350m senior secured notes due 2021 to B2 from B3. The outlook on the ratings is stable - CACEIS Bank Luxembourg – London Branch has received regulatory approval to provide depositary services to alternative investment funds. This enables the CACEIS group to provide a full range of depositary and custody services to alternative investment fund managers operating in the UK market. CACEIS has a long history of servicing UK clients, and with this approval, will be able to directly support these clients in their home market.

Latest Video

Blog

Regulatory Update

Lessons from an Industry Titan: Jamie Dimon’s Testimony

Friday, 15 June 2012 Written by 
Lessons from an Industry Titan: Jamie Dimon’s Testimony This week, J.P. Morgan Chase’s CEO, the highly regarded Jamie Dimon, testified before the US Senate banking committee regarding the failures of its Chief Investment Office (CIO), the group responsible for certain well-publicized losses. We thought his testimony provided more than a few lessons on governance matters and the state of the world generally. Here they are: http://www.ftseglobalmarkets.com/

This week, J.P. Morgan Chase’s CEO, the highly regarded Jamie Dimon, testified before the US Senate banking committee regarding the failures of its Chief Investment Office (CIO), the group responsible for certain well-publicized losses. We thought his testimony provided more than a few lessons on governance matters and the state of the world generally. Here they are:

"[W]e are still reviewing the facts...”

Lesson: Never speak out publicly in a definitive way until you fully know the facts.  You will not fully know the facts for months.



"...I will explain everything I can to the extent possible."

Lesson: Even for Dimon, transparency matters.

"CIO's strategy...was poorly conceived and vetted.  The strategy was not carefully analyzed or subjected to rigorous stress testing.... CIO's traders did not have the requisite understanding of the risks they took.”

Lesson: Didn’t we learn this lesson in 2008? Back then we learned that some strategies had assumptions that seemed poorly founded in retrospect. This was particularly true about the behavior of the mortgage markets and their derivatives.  Guess the lesson is that most people never learn this lesson. Before a system or strategy is implemented, and periodically thereafter, management (including the board) should ask the probing questions. Make no assumptions on this score.

"Personnel in key control roles in CIO were in transition and risk control functions were generally ineffective in challenging the judgment of CIO's trading personnel.”

Lesson: The press reported that the CIO’s then-current chief risk officer began to internally express his concerns about London office trading strategies last year. This past January, he was replaced as the head of risk by a former trader who, at least according to the press reports, had no prior risk management experience. This lesson relates to human nature: it's very hard to appreciate someone who has a different point of view. Watch out – he may be right.

"Risk Committee structures and processes in CIO were not as formal or robust as they should have been.”

Lesson: Assessments have to be substantive, robust, and “real”, and be tested and documented regularly as assumptions and/or reality changes. Structure, process and formality may not protect you from all losses, but they can provide a protective shield that will hopefully mitigate them. Be sure to build your protective shield. 

 

Deborah Prutzman

Deborah Prutzman is the founder and CEO of The Regulatory Fundamentals Group (RFG), a New York-based firm that designs and implements business and risk solutions for alternative asset managers and institutional investors. RFG's senior-led team employs a robust suite of tools, including practical alerts on new and potential industry developments and its powerful RFG Pathfinder® knowledge management platform which simplifies the challenges of operating in a regulated environment.  To learn more about The Regulatory Fundamentals Group call (212) 537-4058, email a representative at Information@RegFG.com or visit RegFG.com

Related News

Related Articles

Related Blogs

Related Videos

Current IssueSpecial Report

Tweets by @DataLend

DataLend is a global securities finance market data provider covering 42,000+ unique securities globally with a total on-loan value of more than $1.8 trillion.

What do our tweets mean? See: http://bit.ly/18YlGjP