SCI's 3rd ANNUAL
CAPITAL RELIEF TRADES SEMINAR

10 October 2017, London

INTRODUCTION

The conclusion of the European trilogue negotiations has provided clarity regarding the CRR, but uncertainties remain over how regulatory proposals will impact the risk transfer market going forward.

SCI’s Capital Relief Trades Seminar provides an in-depth exploration of regulatory developments across the sector, including the treatment of synthetics under the STS framework. The event also focuses on the evolving investor landscape, structuring considerations and issuance trends, as well as the latest asset classes and jurisdictions to emerge.

This event will bring together Issuers, Investors, Broker-Dealers, Regulators and Law firms

 

 

KINDLY HOSTED BY OUR LEAD SPONSOR

  


 



 



WITH THANKS TO THE FOLLOWING EVENT SPONSORS

 






       

 

               

 

 



 

 

 

 

                        

      


 


                               

 

 

 

    



 

  




      
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SPEAKERS

Contributing speakers at this seminar to date include:
 
Jessica Littlewood, Clifford Chance
Kaiko Kakalia, Chorus Capital
Kaelyn Abrell, ArrowMark Partners
Juan Grana, Nomura
Jeroen Batema, OSIS
Molly Whitehouse, Mariner Capital
Giuliano Giovannetti, Arch Mortgage Insurance
Alan McNamara, Bank of Ireland
David Moffitt, JC Flowers
Himesh Shah, Christofferson Robb
Robert Bradbury, StormHarbour
Jeremy Bradley, Lloyds
Claude Brown, ReedSmith
Francesco Dissera, StormHarbour
Daniela Francovicchio, European Investment Fund
Matthias Korn, Caplantic
Nick Stainthorpe, ReedSmith

 

LOCATION

Reed Smith, 20 Primrose St, London EC2A 2RS


 

REGISTRATION & BONUS

The Delegate Rate is currently discounted by 25%. Delegates will also receive SCI's in-depth 24-page CRT research report as a complimentary addition

Pay £558.75 (+vat) instead of £745

Enter the discount code CRT17jump when prompted

CLICK HERE TO REGISTER

 

SPEAKING & SPONSORSHIP

Speaking: To nominate yourself or a colleague to speak click here

Sponsorship: To request sponsorship packages click here



 


 

AGENDA


11.30 REGISTRATION


12.00 - 12.50 REGULATORY OVERVIEW

The conclusion of the European trilogue negotiations has provided clarity over the CRR, but many regulatory uncertainties remain, such as how standardised risk-weight floor proposals will impact the capital relief trades market. Other regulatory shifts that may change the dynamics of the sector include proposals for reducing IRB variability, the adoption of the slotting approach, changes to expected loss accounting under IFRS 9 and the definition of NPL/NPE exposures. How are issuers equipping themselves to address these operational hurdles and to ensure that the capital benefit and efficiency of their risk transfer trades continues? Has the supervisory formula been tested under enough scenarios? Given the emphasis on strong drafting and processes, is the potential conflict of interest with banks bringing their own deals a concern? What are best practices in terms of verification of losses?


12.50 - 1.20 Networking


1.20 - 2.40 CRTs and STS
Synthetic SME transactions will be included in the simple, transparent and standardised securitisation framework. How are STS eligibility requirements likely to impact the quality, structuring and pricing of capital relief trades, as well as who is able/willing to participate in them? Will standardised banks benefit from the STS framework or will the data requirements be too onerous? From the perspective of rating agencies and third-party data providers, which metrics would be appropriate under the STS framework and how are portfolio assessments expected to change? Is the inclusion of synthetic SME trades in the STS framework likely to have a knock-on impact on the broader CRT market? 


2.40 - 3.00 Networking



3.00 - 3.50 INVESTOR LANDSCAPE
A number of large asset managers and hedge funds have exited the capital relief trade space as returns have decreased. At the same time, the STS negotiations have increased awareness of the product among other investors, while the ability of banks to offer financing has facilitated access to the sector. How has the investor base evolved and will the entrance of unfunded credit protection providers, like insurers, change the investment landscape? Which barriers to entry remain for investors and how should they address them? Is the secondary market continuing to evolve and add value for investors, and how does this impact pricing?

3.50 - 4.20 Networking


4.20 - 5.10 STRUCTURING CONSIDERATIONS

The experience of protection buyers and sellers varies across Europe, in terms of how different transaction features are applicable in each jurisdiction. What are best practices in terms of structuring to balance significant risk transfer requirements with the needs of both issuers and investors? Which factors affect the decision to execute on a synthetic or true sale basis, and are balance sheet relief trades facilitating access for less sophisticated banks? Are the EBA’s SRT guidelines likely to increase standardisation across the sector in terms of structuring? How is the increasing use of calls affecting structuring and takeout considerations?


5.10 - 6.00 THE FUTURE OF THE CRT MARKET

Capital relief trade volumes were muted in 1H17, compared to the heavy issuance seen in 2H16. Is issuance likely to pick up following the completion of the trilogue negotiations, and how will the introduction of the new securitisation regulations in 2018 affect volumes and the quality of transactions? Which new trends across geographies and asset classes are emerging? Are mortgage trades – whether synthetic or true sale – the next hot area to develop? Which other (non-regulatory) developments could change the dynamics of the market?


18:00 - 19:30: COCKTAILS 
 

 

TESTIMONIALS

Delegate feedback from SCI Capital Relief Trades Seminar, London 2016:


As an issuer, the event is a good opportunity to meet investors, who could then invest in our future issuances. It is also a good opportunity to connect with other issuers to discuss challenges we face and potential solutions. JL, BMO

 

It is a well thought out event that covers pretty much all the relevant aspects of CRT transactions. I also liked the networking sessions which connected investors, issuers and others. RC, IFC

 

The event is a valuable gathering of CRT trades issuers, advisors and investors sharing experience on this product. As a bank, using CRT trades for capital benefits, we face the same question as others on regulation and internal approval. Best practice and experience sharing is very useful. Meeting investors wishes in order to get the best execution is a top priority. Knowing their expectations and capacity is therefore valuable.….. having a SEC representative in the panel is interesting, it allows for transparency the market needs and to best address regulators’ concern in general. MC, BNP Paribas

 

The CRT seminar was excellent. I came away thinking that CRT "is NOT just another regulatory arbitrage fad" ... but that the insights shown in properly structuring solutions to properly recapitalize banks after the credit crunch got me thinking of mechanisms that could be critical in building a new, shareholder value-creating, global banking industry of tomorrow. All speakers were knowledgeable and approachable. It was one of the best events I've been to in years. EJ, Tempus Advisors

 

It was very helpful to meet some of the other key players in this space and hear first-hand how they navigated some of the difficulties in completing transactions. I like the panel format and the give and take among participants; the representatives were all very knowledgeable and impressive. TK, Sandler O'Neill + Partners

 

Great gathering of banks, arrangers and investors.  Speakers were very forthcoming. GG, BNP Paribas

 

"I thoroughly enjoyed the conference and appreciated that there is finally a dedicated Risk/Capital Relief seminar. It was good to have an event which specifically focusses on risk transfer transactions solely. The balance between investors and issuers was good. Very good to hear and see investors at the same table and hear they common vies on the market as it stands. The networking is I think the most important aspect of this event, so appreciated the frequent break-outs enabling to catch up with almost all participants." SO, Rabobank

 

"We got exposure to the Reg Cap market which is very private in nature, and allowing us to network with various market participants was very helpful. Further, the content covered by the panel was quite technical and detail, which is very useful as well." TS, Barclays

 

"Was a good occasion to meet other market participants and interesting to get their perspective on market trends." VM, Nomura

 

"What was important from my side was that the event covered all aspects of CRT transactions from regulation, to structuring considerations, pricing and finally opportunities and relative value so there was no section missing as such." KK, Santander 

 

"The event was very useful and well-organised. The most important aspect is the insight from market practitioners, and therefore the panel format was very effective." GA, BNP Paribas 

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