Speaking today at a conference in London, Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), said the forward-looking expected loss model in the new financial instruments Standard should provide investors with better insight on loan loss risks.
The conference is the third annual event for financial services institutions organised jointly by the IFRS Foundation and ICAEW. This year’s event is focussed specifically on the practical implementation of the impairment element of the financial instruments Standard, IFRS 9. The Standard was finalised in 2014 and becomes effective in 2018.
The new Standard requires banks to recognise 12 months’ expected losses on loans that perform as anticipated and full lifetime losses on loans that have experienced a significant increase in credit risk.
Read the full press release and access the speech here.
Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), has today delivered a speech on what he calls one of the most difficult topics in accounting—how assets and liabilities should be measured. Speaking at the IFRS Foundation’s conference in Paris, he presented high-level, general observations on when historical cost and current value measurement could be most appropriate.
When measuring an asset or a liability, different measurement models are available: historical cost and current value, which includes fair value. They are often seen to be at opposite ends of the measurement spectrum, and both have their own ‘fan clubs’ with strong views on which is the better model.
Hoogervorst outlined the benefits and challenges linked to the measurement models and said the differences between them are not as great as they may seem.
Read the full press release here.
Asia Index Annual Thought Leadership Seminar : India – Truly Emerging!
|Date: TUESDAY, 3 NOVEMBER, 2015.
Time: 4:30 PM – 8:00 PM IST.
Venue: THE GALLERY, FOUR SEASONS HOTEL, 1/136, DR. E. MOSES ROAD, WORLI, MUMBAI – 400 018.Please register directly at the link below : http://event.standardandpoors.com/LP=8720
Asia Index Private Limited invites you to an exclusive complimentary seminar bringing together key decision makers to discuss the factors currently shaping the Indian investment landscape. Join leading industry professionals for an evening of discussion and debate on topics including:
India’s Macroeconomic Outlook
A closer look at inflation, interest rates and equity market performance from 2015 provides insight on which factors may drive performance in 2016.
What’s Shaping the Indian Investing Arena?
Explore changing regulations, new investment vehicles and the race for FIIs in Chindia.
Global Investment Trends and the Implications for India
What is smart beta? Will India follow global ETF trends? What are the challenges and opportunities in the Indian market?
16:30 : Registration
17:00 : Opening Remarks
Robert Shakotko, PH.D., Managing Director, S&P Dow Jones Indices
17:10 : Welcome Address
V Balasubramaniam, Chief Business Officer, BSE Ltd
17:20 : India’s Macroeconomic Outlook : 2015 – 2016
Dharmakirti Joshi, Chief Ecomonist, CRISIL
17:40 : Keynote Speaker: The Rise of ETFs in Indian Pensions
18:15 : What’s shaping the Indian Investment Arena in 2016?
•Understanding changing regulations and their impact
•Exploring new investment vehicles and techniques
•Chindia race for FIIs and what it means for India
19:00 : Global Investment Trends and the Implications for India
•A look at global hot topics including smart beta, ESG and low volatility
•The differences between the global ETF market and its Indian counterpart
•Challenges and opportunities in the Indian market
19:45 : Thank You from S&P Dow Jones Indices
20:00 : Dinner & Cocktails
+91 8097 66 1200/1201
Market volatility. Rate uncertainty. Bond liquidity. Defaults. Times are unpredictable for global bond investors.
Join us as S&P DJI hosts our 4th Annual Municipal and Global Bond Forum that will explore the impact of economic and financial trends on Municipal and Global Bond markets. Hear industry experts share their ideas on how to navigate pitfalls and identify opportunities for bond investors against a backdrop of global growth uncertainty, market volatility, and Fed rate policy.
This year’s expanded two-part program includes:
Morning: Global Bond Forum- Global Bonds 2.0
Examine the growing transparency of the bond market, critically evaluate recent research around liquidity, and dissect bond duration target investing.
Afternoon: 4th Annual Muni Bond Forum- Show Me the Muni
Explore the benefits of low-cost muni bond ETFs, whether liquidity in this market signals crisis or opportunity, the potential blowback from a Puerto Rico default, and muni laddering as a tool to deal with these issues.
|WEDNESDAY. OCTOBER 28, 2015
|MORNING SESSION: GLOBAL BONDS 2.0
9:00 AM – 12:45 PM EDT
|AFTERNOON SESSION: SHOW ME THE MUNI
2:00 PM – 5:15 PM EDT
Globally, interest rates have been extraordinarily low for an exceptionally long time, in nominal and inflation-adjusted terms, against any benchmark. Such low rates are the most remarkable symptom of a broader malaise in the global economy: the economic expansion is unbalanced, debt burdens and financial risks are still too high, productivity growth too low, and the room for manoeuvre in macroeconomic policy too limited. The unthinkable risks becoming routine and being perceived as the new normal.
This malaise has proved exceedingly difficult to understand. The chapter argues that it reflects to a considerable extent the failure to come to grips with financial booms and busts that leave deep and enduring economic scars. In the long term, this runs the risk of entrenching instability and chronic weakness. There is both a domestic and an international dimension to all this. Domestic policy regimes have been too narrowly concerned with stabilising short-term output and inflation and have lost sight of slower-moving but more costly financial booms and busts. And the international monetary and financial system has spread easy monetary and financial conditions in the core economies to other economies through exchange rate and capital flow pressures, furthering the build-up of financial vulnerabilities. Short-term gain risks being bought at the cost of long-term pain.
Addressing these deficiencies requires a triple rebalancing in national and international policy frameworks: away from illusory short-term macroeconomic fine-tuning towards medium-term strategies; away from overwhelming attention to near-term output and inflation towards a more systematic response to slower-moving financial cycles; and away from a narrow own-house-in-order doctrine to one that recognises the costly interplay of domestic-focused policies. One essential element of this rebalancing will be to rely less on demand management policies and more on structural ones, so as to abandon the debt-fuelled growth model that has acted as a political and social substitute for productivity-enhancing reforms. The dividend from lower oil prices provides an opportunity that should not be missed. Monetary policy has been overburdened for far too long. It must be part of the answer but cannot be the whole answer. The unthinkable should not be allowed to become routine.
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This paper underlines the importance of small and medium-sized enterprises, introduces hometown investment trust funds as a means of financing them, and proposes a scheme to evaluate their credit risk.
In Asia, small and medium-sized enterprises (SMEs) account for a major share of employment and dominate the economy. Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, in particular venture capital markets. Hence, looking for new methods of financing for SMEs is crucial. Hometown investment trust funds (HIT) are a new form of financial intermediation that has now been adopted as a national strategy in Japan. In this paper, we explain the importance of SMEs in Asia and describe about HITs. We then provide a scheme for the credit rating of SMEs by employing two statistical analysis techniques, principal components analysis and cluster analysis, and applying various financial variables to 1,363 SMEs in Asia. Adoption of this comprehensive and efficient method would enable banks to group SME customers based on financial health, adjust interest rates on loans, and set lending ceilings for each group. Moreover, this method is applicable to HITs around the world. Read more
How social and environmental issues impact a company’s bottom line is crucial for investors, but too often that information is not disclosed.
Sustainability reporting — the disclosure of non-financial information into financial reports — is becoming routine in Europe. Last year, the E.U. adopted an amendment to its general accounting directives, requiring that certain large companies include reporting of “sustainability” factors—such as environmental aspects, social and employee-related matters, respect for human rights, anti-corruption and bribery issues, and diversity on boards of directors—in their management reports.
Did you know that CCRA program includes detailed principles on ESG analysis for Credit…. Find out more at www.aiwmindia.com/ccra
The Volkswagen (VW) scandal caught many investors off guard. The repercussions are likely to be felt across the automobile industry for many years to come affecting companies and investors alike. The scandal shines a light on the need for greater corporate transparency. It also ignites the debate over the value of ESG data to detect signals which may be missed by conventional analysis.
Join our panel of experts to examine what ESG data and research can tell us about the scandal. The lessons learned. What are the possible repercussions for automobile industry and what signals are available to investors to potentially detect future black swans.
||Chair – Linda-Eling Lee, Global Head of ESG Research, MSCI
||Alan Brett, Head of Corporate Governance Ratings Research, MSCI
||Arne Klug, Senior Analyst for the Automobiles Industry, MSCI
||Ian McVeigh, Head of Governance, Jupiter Asset Management
WEBINAR: EXTENSIONS OF CREDITMETRICS METHODOLOGY: DEVELOPING DEEPER CREDIT RISK INSIGHTS
Please join us for a webinar focusing on RiskMetrics® CreditManager, and the underpinning CreditMetrics methodology, which has been used by practitioners for years to help quantify credit migration and default risk at horizons of one year and longer.
Recent extensions to the CreditMetrics methodology allow for deeper insights into credit risk.
- Parameter Selection and Validation: Is Definition of ‘Risk’ Appropriate in Terms of Quantile Used and Correlation Modeled?
- Correlated Recovery: A Must, or Too Much? Should Recovery Rates Depend on Market Factors?
- Concentration Add-Ons: How Much Risk is Driven by Concentration?
- Interpreting Economic Capital Contributions: What Factors Drive Risk at a Given Quantile?
Cross-border private placement; new trends, new issuers
October 14 2015 | 4:00pm GMT (London time)
REMEMBER even if you can’t make the live webinar you can still register and listen to it at a time and place that’s convenient for you.
Given the broad range of low volatility indices available in the market, advisors have the advantage of dialing up or down volatility exposure on a global scale.Can low volatility strategies be applied across global benchmarks with the same success as in the U.S.?
Register now to explore
- Where theory meets application –a pragmatic look at domestic and global equity exposures through the lens of volatility.
- The effects of incorporating low volatility strategies to varying degrees on a range of portfolio holdings.
- Volatility 2.0: combining currency hedging with low volatility strategies.
Vinit Srivastava, Director, Strategy Indices, S&P Dow Jones Indices
Scott Kubie, Chief Investment Strategist, CLS Investments
John Feyerer, Vice President, Director of Equity ETF Product Strategy,Invesco PowerShares
Fixed Income Report Cards Demonstration
October 22, 2015
2:30 p.m. – 4:00 p.m.
FINRA is hosting a WebEx presentation discussing new and updated fixed income-related Report Cards. This session provides an overview of these Trade Reporting and Compliance Engine (TRACE) and municipal report cards, presents the features and benefits of each, and includes suggestions for how firms can use them to support their compliance activities. FINRA also highlights the implementation of a monthly member outreach program relating to report card statistics.
The WebEx session is designed for those who use TRACE or municipal report cards.
Register for this event.
If you have any questions you would like addressed during the presentation, please email them in advance to firstname.lastname@example.org.
Please note: Since there are a limited number of lines available for this call, please register as soon as possible and plan to share a phone line with others at your firm to help us maximize participation.
Watch the release of IMF’s World Economic Outlook Tuesday, October 6, 2015, 10:00 AM EDT you can plan to follow our press conferences, panel discussions, and other events when they happen!
The live webcast of the press conference for the World Economic Outlook will be available here: http://www.imf.org/external/pubs/ft/weo/2015/02/index.htm?email=true
The last released report in July can be accessed here