The recent surge in gold prices is reshaping the dynamics of gold loans, leading lenders to reevaluate collateral and borrowers to strategize their loan repayment or retention.
A clarification of capital rules by the Federal Reserve may encourage U.S. banks to transfer more of the risk in their loan portfolios to investors, potentially letting them free up capital. The Federal Reserve on Thursday clarified rules around capital treatment of a type of structured debt which involves the sale of credit-linked notes that carry the risk of losses on U.S. bank loan portfolios to investors. In these debt trades, U.S. banks issue credit-linked notes tied to the performance of a collection of loans or other financial exposures, and sell those to investors, letting them lower their risk-weighted assets, according to the Fed's Q&A.
On August 24, 2023, the U.S. Court of Appeals for the Second Circuit in Kirschner1 unanimously held that notes evidencing syndicated loans2 do not plausibly qualify as "securities" covered.
The US bond market is on the verge of a meltdown that will send government debt costs spiraling and lift benchmark mortgage rates to 8%, according to one expert.
July 10, 2023- Board of Governors of the Federal Reserve System (Federal Reserve) Vice Chair for Supervision Michael S. Barr gave a speech at the Bipartisan Policy Center entitle.