Tim has covered the insurance industry in various capacities since joining SNL Financial in 1999. Currently, he authors the annual US P&C Market Report, containing an historical overview and projections of industry results for key lines of business. He also writes regular weekly columns and periodic research covering topics that include P&C and life industry financials, M&A activity and various strategic developments impacting the insurance sector.
Tim also is a frequent speaker and moderator at SNL Knowledge Center programs on various insurance industry topics.
Previously, Tim served as writer and editor for various SNL publications, including the SNL Insurance Daily and Insurance Investor.
He is a graduate of the University of Virginia.
Prior to joining Standard & Poor’s in 2005, Tracy was an insurance broker at AON Risk Services. Her responsibilities included client relationship management and insurance placements for middle market, healthcare and Japan based clients.
Tracy holds a B.A. from Brandeis University with a double major in Economics and Health, Law and Society interdisciplinary program. Tracy acquired a New York Property & Casualty Insurance Brokerage License during her tenure at AON.
James Elder is a Director in the Corporate and Financial Institutions Segment at S&P Capital IQ. His current responsibilities involve development of strategic solutions for the market. Jim focuses on the financial community through the publication of research related to credit professionals, the development of analytic methodologies and the application of innovative solutions to market problems. He has presented on topics ranging from municipal finance and corporate credit analysis to valuation methodologies at numerous industry conferences and webinars.
Jim’s twelve years of industry experience include positions in asset management, financial guaranty and structured finance. Prior to joining Standard & Poor’s in 2007, he has worked at J.P. Morgan and XL Capital Assurance.
Jim holds an M.B.A in finance from New York University’s Stern School of Management. Jim graduated with bachelor degrees in Computer Science and Management from Rensselaer Polytechnic Institute.
EFRAG Short Discussion Series – The Statement of Cash Flows: issues for Financial Institutions
|EFRAG has published a paper in the Short Discussion Series. This paper discusses the relevance of the Statement of Cash Flows for financial institutions and investigates alternatives that could either supplement or replace the information currently portrayed by these entities in the Statement of Cash Flows.|
|The EFRAG Short Discussion Series addresses topical and problematic issues with the aim of helping the IASB to address ways to improve financial reporting after having stimulated debate among European constituents and beyond.
The paper discusses how the nature of the business activities of financial institutions may affect the relevance of the statement of cash flows as required by IAS 7 Statement of Cash Flows and discusses two alternatives for these entities:
a) To replace the statement of cash flows with other disclosures; or
b) To modify some of the requirements in IAS 7.
Views of constituents are welcomed and requested by 31 March 2016. EFRAG notes that this period is longer than the period normally provided in other Discussion Papers. However, EFRAG is aware that there are a number of issues that will require the attention of European constituents in the coming months, especially the Exposure Draft Conceptual Framework for Financial Reporting, the IFRS Foundation Review, the IASB Agenda Consultation, the forthcoming standard on leases and the finalisation of the Insurance project. During the comment period, EFRAG also wants to gather information from users and preparers in order to build with them proposals after evaluating the alternatives presented in the Discussion Paper.
|Document : EFRAG_SDS_The_Statement_of_Cash_Flows_Issues_for_Financial_Institutions.pdf|
The asset quality of banks is an important indicator of their financial health; it also reflects the efficacy of their credit risk management and recovery environment. Asset quality is measured as NPAs (Non-Performing Assets). click here to see video
The breadth and depth of index-based tools offers creative ways for advisors to construct asset allocations. Today, the wide availability of index products lets advisors focus more directly on deriving alpha from the asset allocation mix.
Join S&P DJI and three innovative practitioners as we discuss their first-hand accounts of:
• How index-based portfolio management affords the opportunity to focus on high-value client services, such as individualized planning and matching risk tolerance and time horizon with appropriate investment vehicles
• Innovations in indices and products across the asset class spectrum that can help to simplify and optimize allocations
• Unique risk-management techniques that help validate the value-add of the in-person, holistic advisor
Todd D. Green, CFA, Chief Investment Officer, Alesco Advisors
Jerry A. Miccolis, CFA, Chief Investment Officer, Giralda Advisors
Jared M. Rowley, CFA, Research Strategist, State Street Global Advisors
This Thursday the IASB will give a live web presentation on the Exposure Draft of the IFRS Practice Statement Application of Materiality to Financial Statements.
IASB Executive Technical Director Hugh Shields and IASB staff will introduce the Exposure Draft, which was published on 28 October 2015, and answer questions from the public.
The Exposure Draft has been developed to assist management in applying the concept of materiality (as required by IFRS) in the preparation of financial statements. The Exposure Draft is open for comment until 26 February 2016.
The presentation will last approximately 45 minutes, including questions and answers.
Click on the icon below to register for the webinar.
|Thursday 19 November 2015
|Draft Practice Statement: Application of Materiality to Financial Statements|
For more details, click here.
The question of how best to measure an asset or liability (cost versus current value) always provokes a heated debate. In this article Steve Cooper, a member of the IASB, explains the IASB’s proposals on measurement that are part of the Conceptual Framework project.
In particular, Cooper discusses the factors that the IASB should consider when selecting a measurement method.
Click here for the article
In 2005, economist Richard Koo and The Economist warned that U.S. home prices were in for a collapse much like that seen in Japan after the bubble in real estate and stock prices peaked in December, 1989. “The U.S. is not Japan,” was a phrase used to dismiss any “foreign” data out of hand, much like the 1980s Japanese Minister of International Trade and Industry who stated that foreign ski makers could not compete in Japan because “Japanese snow is different.” In this note, we focus on a critical issue in many countries: what does the experience of other countries with very low interest rates tell us about what lies ahead for U.S. and European interest rates and interest rate risk analysis?
Effective corporate governance is critical to the proper functioning of the banking sector and the economy as a whole. While there is no single approach to good corporate governance, the Basel Committee’s revised principles provide a framework within which banks and supervisors should operate to achieve robust and transparent risk management and decision-making and, in doing so, promote public confidence and uphold the safety and soundness of the banking system.
The Committee’s revised set of principles supersedes guidance published by the Committee in 2010. The revised guidance emphasises the critical importance of effective corporate governance for the safe and sound functioning of banks. It stresses the importance of risk governance as part of a bank’s overall corporate governance framework and promotes the value of strong boards and board committees together with effective control functions. More specifically, the revised principles:
- expand the guidance on the role of the board of directors in overseeing the implementation of effective risk management systems;
- emphasise the importance of the board’s collective competence as well as the obligation of individual board members to dedicate sufficient time to their mandates and to keep abreast of developments in banking;
- strengthen the guidance on risk governance, including the risk management roles played by business units, risk management teams, and internal audit and control functions (the three lines of defence), as well as underline the importance of a sound risk culture to drive risk management within a bank;
- provide guidance for bank supervisors in evaluating the processes used by banks to select board members and senior management; and
- recognise that compensation systems form a key component of the governance and incentive structure through which the board and senior management of a bank convey acceptable risk-taking behaviour and reinforce the bank’s operating and risk culture.
A consultative version of the Corporate governance principles for banks was published in October 2014. The Basel Committee wishes to thank all those who contributed time and effort to express their views during the consultation process.
Municipal bond mutual funds gathered USD 2.8 billion in the four-week period ending Oct. 28, 2015, according to the Investment Company Institute, while muni bond ETFs added USD 593 million of inflows in October, according to SSGA. Despite this low number, at the recent S&P Dow Jones Indices Municipal and Global Bond Forum, various panelists highlighted the relative benefits of municipal bond ETFs.
Multi-Period Credit Risk Analysis: A Macro-Scenario Approach
|Host: Juan Licari|
|Date: November 12, 2015|
|Time: 9:00 a.m. ET / 2:00 p.m. GMT|
SPONSORED BY PRMIA • NOVEMBER 12, 2015 • 2:00 PM GMT
Dynamic stress testing and multi-period credit portfolio analysis are increasingly becoming priorities for risk managers. However significant challenges emerge when it comes to building stochastic multi-period environments.
In this presentation, Dr. Juan Licari of Moody’s Analytics will present an innovative framework for stochastic scenario generation that allows risk managers and economists to build multi-period environments, integrating conditional credit and market risk modeling to meet dynamic stress testing needs.
View Of Credit Spreads Closer To Neutral
New York, NY – Respondents to the latest IACPM Credit Outlook Survey continue to forecast rising credit defaults over the next 12 months in every category of debt tracked by the survey and in every region of the world, just as they have every quarter since the second quarter in 2014 when respondents were neutral on their outlook for European corporate debt. The IACPM Aggregate Credit Default Outlook Index is negative -31.4, relatively unchanged from last quarter’s minus -34.6.
“The threat of rising defaults has been with us for some time” commented Som-lok Leung, the Executive Director of the IACPM. “Recently, we’ve seen a greater number of downgrades from the rating agencies and some transactions have been affected but, all things considered, not that many, nor has liquidity dried up in any meaningful way. The real question is what happens when interest rates rise. How extensive will be the impact?”
Indeed, even as survey respondents continue to be concerned about the prospect of rising defaults, their outlook for credit spreads over the next three months is decidedly mixed, with large numbers of respondents on both sides of the question: will spreads widen or tighten? The Aggregate Credit Spread Outlook Index is negative -7.0 which is considerably closer to neutral than last quarter’s reading of minus -45.2 which meant at that time significantly more respondents believed spreads would widen rather tighten.
“It’s possible we’re reaching an inflection point,” noted Mr. Leung. “Respondents aren’t so much worried about a downturn as much as they think economic expansion will slow down. Credits on the fringe, such as high yield energy companies, could be in for a rough patch, while other credits, such as investment grade debt, may not be as impacted.”
The credit outlook survey is conducted among members of the International Association of Credit Portfolio Managers, which is an association of credit portfolio managers at 103 financial institutions located in 17 countries in the U.S., Europe, Asia, Africa and Australia. Members include portfolio managers at many of the world’s largest commercial banks, investment banks and insurance companies, as well as a number of asset managers. Members are surveyed at the end of each quarter. The latest survey was conducted September 29 to October 12.
Survey results are calculated as diffusion indexes, which show positive and negative values ranging from 100 to minus -100, as well as no change which is in the middle of the scale and is recorded as “0.0.” Positive numbers signify an expectation for improved credit conditions, specifically fewer defaults and narrower spreads, while negative numbers indicate an expectation of deterioration with higher defaults and wider spreads.
Please click here to access a selection of aggregated survey data.
S&P Capital IQ and Standard & Poor’s Ratings Services specialists will provide an overview of what they see happening in the energy sector in the Asia Pacific region, and how it may affect the industry going into 2016. Given what is going on in today’s markets, you won’t want to miss this important discussion!
Can’t make it? Register anyway and we’ll send you the recording
Lawrence Lu, from Standard & Poor’s Ratings Services, will provide an overview of the current state of the oil and gas industry in the Asia Pacific region, as well as a discussion on key issues as we look out to 2016. Topics to be discussed include:
- Our pricing assumptions
- Ratings actions for the past 12 months
- Debt and Capex trends
- Key risk factors looking out to the next year
Vickesh Mistry, from S&P Capital IQ will talk about:
- Relative performance of energy sector stocks versus the price of oil
- M&A and IPO deals and trends
- Overview of current capital raising activities
Michelle Cheong, from S&P Capital IQ, will provide an update on:
- Credit risk trends: how has the price of oil affected the credit quality of companies within the energy sector?
- Historical M&A trends: credit characteristics of acquirers and target
Can auditors expand assurance to meet investors’ needs?
A company’s audited financial statements are among the many pieces of information investors consider when they evaluate where to allocate resources.
But news releases, company presentations, additional information in annual reports, and non-GAAP key performance indicators and financial metrics are also sources of information available to investors.
Crime Rings Have Grown to a Prevalent and Formidable Threat
When: November 6, 2015 | 12:00 PM – 1:00 PM ET
The numerous crimes which currently threaten financial institutions have evolved in concert with the trend of collusive activities by today’s savvy and sophisticated financial criminals. Whether it’s fraud rings that inflict various types of losses (e.g. loan fraud, card fraud, online account takeover, check fraud, tax fraud, etc.); financial exploitation by drug cartels; “funnel accounts” used by human trafficking and smuggling organizations; or “money mules” who are instrumental in money launderers’ attempts to evade detection – the days of the lone financial criminal have become less common. The current financial crime landscape has become the domain of group criminal activity and organized efforts
- Gain an understanding of the anatomy of an example, financial crime ring
- Learn through several real-life cases how crime rings perpetrate numerous types of financial crimes
- Best practices to extend a financial institution’s line of defense and strengthen its protective countermeasures against crime rings
Financial Crimes Consultant and Attorney; Assistant Director
Chris Swecker has more than 30 years of experience in law enforcement, national security, legal, and corporate security/risk management. Chris served 24 years with the Federal Bureau of Investigation (FBI) before retiring as one of the bureau’s top officials. As Assistant Director, Chris was responsible for eight FBI divisions encompassing more than half of the FBI’s total resources. He has appeared as a guest on numerous media programs including CNN, 60 Minutes, Good Morning America, C-SPAN’s Washington Journal, and The Oprah Winfrey Show. Chris is a frequent public speaker on financial crimes, money laundering and cyber-crimes.
Brendan Brothers is a co-founder of Verafin, a leading provider of fraud detection and anti-money laundering software with more than 1200 financial institution customers across North America.
Brendan is a computer engineer with specialized knowledge and deep expertise in advanced analytics.
Quantifying Risk Appetite in Limit Setting
Date: Tuesday, November 3, 2015
Time: 8:00 am (San Francisco) / 11:00 am (New York) / 4:00 pm (London)
Moderator: Andy Condurache, Director of Research and Publications
Presenter: Dr. Amnon Levy, Managing Director of Portfolio and Balance Sheet Research is responsible for research and model development for Moody’s Analytics portfolio and balance sheet models. Dr. Levy has led several research initiatives, including modeling credit portfolio risk, integrated models for balance sheet management and liquidity risk.
Risk appetite is a concept that many firms have trouble quantifying and incorporating into their management activity. In addition to prudent business practices, there are very specific capital requirements around having a clear statement of risk appetite and incorporating it into business decision making.
- Overview of a number of approaches for setting risk- and macro scenario-based limits to quantify a risk appetite statement
- How risk-based limits with risk-based metrics align with an organization’s risk appetite
- Business applications and best practices for setting limits
“Asian bond markets were buffeted by strong headwinds, including anticipation of the US Federal Reserve rate hike, which has led to an outflows of funds in some countries,” said ADB Chief Economist Shang-Jin Wei. “The uncertainty in global bond markets points to the need for continued efforts to strengthen local currency bonds, which together with prudential regulations, can improve a country’s resilience to foreign monetary and financial shocks.” Read full report