LSTA’s Post

Reorienting capital flows towards transition activities requires innovative thinking. My colleague Gemma Lawrence-Pardew will be joining a panel at the upcoming City & Financial Global conference on Making the UK a Global Hub for Transition Finance, taking place on 10th October. Gemma will be discussing how we can scale up transition finance through innovation in the market, and will explain the vital role that the loan market has to play in channelling capital towards transition. Do reach out if you will be there - we would love to speak with you to hear your views on how we can accelerate the global transition! #transitionfinance, #loans, #sustainablefinance

Join us in London on April 16th at Linklaters for an insightful panel discussion on the intersection of Article 9 funds, ABS and sustainable finance! 🌱 As of July 2023, MSCI reported that 63% of Article 9 funds weren't fully aligned with the EU Taxonomy. This raises critical questions about sustainable investment definitions and the availability of PAI indicator data, leaving many firms grappling with compliance challenges. What are SFDR regulations achieving, and how can firms accurately report to investors amid this ambiguity? Our esteemed panelists will delve into these pressing issues and more: Sanhita Athalye, CFA, Deutsche Bank Luca Bertalot, EMF-ECBC (European Mortgage Federation - European Covered Bond Council) Raza Naeem, Linklaters We'll explore the role of sector-focused securitisation in achieving alignment, discuss the broader framework of EU policy, and examine the potential impact of the CSRD on improving governance practices. Don't miss this opportunity to gain valuable insights and network with industry experts. Register now to secure your spot! https://lnkd.in/exVtcCX5

Read this week's insights from CFA Institute Research and Policy Center #finfluencers #compliance #younginvestors #IAASB Ignacio Ramirez Moreno, CFA https://lnkd.in/epXaT-GP

We are delighted to share with you an interview with Caroline Phillips, Partner and Head of Capital Debt, Slaughter and May. In the interview, Caroline discusses: ➡️ The main challenges that need to be overcome in scaling up both labelled and general corporate financing to the levels needed for the transition ➡️ The key legal considerations for companies looking to issue transition-linked financial products ➡️ What companies should be aware of in terms of disclosure requirements, compliance, and risk management ➡️ What distinguishes green bonds from sustainability-linked bonds and loans and how companies can ensure transparency and accountability when issuing these labelled products ➡️ Whether the regulatory frameworks around labelled products could be improved ➡️ How the EU Green Bond Standard will impact the global sustainable finance market ➡️ How effective third-party verification is ➡️ The pros and cons of using labelled products vs general corporate financing for Slaughter and May's transition needs Watch the interview in full: https://lnkd.in/e2_5QRme Caroline will be speaking at our upcoming event Making the UK a Global Hub for Transition Finance, in London on 10th October 2024. ✨ Sponsored by A&O Shearman, Loan Market Association (LMA), Munich Re and Slaughter and May✨ #TransitionFinance #GreenBonds #Disclosure

We updated our paper "The past, present, and future of low-risk corporate bonds", co-authored with Frederik Muskens. 📣 We investigate whether systematic credit risk is priced in the cross-section of corporate bonds. 📣 Recent academic studies on corporate bonds neglect at least one of two challenges specific to corporate bonds. We demonstrate how these challenges bias conclusions about the pricing of risk. 💡 We introduce two novel measures of systematic credit risk, "present" risk and "future" risk, that are not plagued by these biases. 💡 We find that risk is priced when observed through the lens of "past" risk but that "present" and "future" risk premia are indistinguishable from zero. This is strong evidence of a low-risk anomaly for credits. 💡 Finally, we address the question: what drives this low-risk effect? We find that it is most likely driven by investors’ leverage constraints and their procyclical ‘reaching for yield’ behavior. Read more in the paper: https://lnkd.in/eMcm9qhw

📊 ESMA: Consultation on Amendments to the Credit Rating Agencies Regulatory Framework 🇪🇺 The European Securities and Markets Authority (ESMA) launched a consultation on April 2nd regarding potential amendments to Commission Delegated Regulation (EU) No 447/2012 and Annex I of the Credit Rating Agencies Regulation (CRAR). Key points of the consultation: 🔹 Objective: • Assess and potentially enhance the regulatory framework for credit rating agencies. 🔹 Challenges: • Ensure a credible and transparent assessment of credit risks. • Boost investor confidence and financial market stability. 🔹 Implications: • The amendments could impact how credit rating agencies operate and how credit risks are evaluated. For more information and to participate in the consultation: https://lnkd.in/eSSJnZEa #ESMA #CreditRatingAgencies #Regulation #FinancialMarkets #EU #CRAR

The latest Global Corporate Credits on the Cusp Monitor shows that Fitch's global corporate portfolio improved for the first time following eight consecutive quarters of deterioration between 2Q22 and 2Q24. #Upgrades to investment grade outnumbered #downgrades to speculative grade by four to zero over the past three months ended August. Our lists include 27 potential #fallenangels and 16 potential #risingstars, representing USD208 billion and USD90 billion in aggregate debt, respectively. Read more: https://ow.ly/mfGJ50TjXiN #FitchRatings #CorporateFinance

Pleased to share our February edition of regulatory updates in the past month impacting firms providing investment services. As always do not hesitate to get in touch if you would like a conversation on any of the topics covered. Richard Barnwell Leigh Treacy (nee Wormald) Mads Hannibal Sandi Dosanjh #fca #regulation

Just out: #RegulatoryUpdate from BDO UK LLP, certainly relevant for all #AssetManagers or #InvestmentFirms doing business or being present in the #UnitedKingdom. Very happy to facilitate a conversation with Leigh Treacy (nee Wormald) and team... #FinancialServices #HighTouchAdvisory BDO Global Financial Services

Last year marked an important milestone in the review of the sustainable finance regulatory framework. Not only was the review of the #SFDR RTS (Level 2) initiated, but the foundational requirements under the SFDR (Level 1) also underwent comprehensive scrutiny. Désirée Doenges, ALFI Senior Vice President Legal, wrote an article about our work on sustainable finance. If you're interested in this topic, enjoy the read! 👉 https://lnkd.in/ef-2Eu5r #ALFIAnnualReport2024 #FundIndustryNews