Category Archives: Credit Roundtable

Accounting Watch: December 2013

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About AccountingWatch:

AccountingWatch provides a synopsis of accounting and financial reporting trends and issues; descriptions of the potential analytical impact these issues may present; what they mean for users of financial statements; and links to published Standard & Poor’s commentary or detailed information1. You may also find previous editions of AccountingWatch helpful. To view earlier editions, please click on the links below:

As Investors Seeking Higher Yields Eye New Catastrophe Bond Issues, What Are The Key Risks?

As Investors Seeking Higher Yields Eye New Catastrophe Bond Issues, What Are The Key Risks?

More and more institutional investors around the world are turning to the reinsurance markets for higher returns for their portfolios. The result could be record issuance in 2013 for catastrophe bonds (CAT bonds)–high-yield debt issued by insurers in which principal, rather than being repaid at maturity, may instead offset insured losses when defined catastrophic events occur. At the same time, insurers are looking to increase their own protection in the face of increasingly severe natural-disaster claims from windstorms, earthquakes, hurricanes, and other natural disasters. The severity or frequency of such events may be increasing, and disasters that hit heavily populated areas can be prone to unexpectedly high insured losses. Even with the best predictive models, however, any given year can present reinsurers with surprises

S&P : South And Southeast Asian Economies Grapple With Growth And External Financing Risks

Some analysts have turned up the volume on the risks facing Asia’s emerging economies. At the same time, global financial markets are exhibiting more turbulence, with significant sell-offs in emerging markets. Capital is exiting Asia, bourses and currencies are coming under pressure, funding costs are rising, and some company balance sheets are coming under stress. This has been particularly true in South and Southeast Asia, where external deficits are the norm. This market turbulence comes on the heels of recent cuts in Asian GDP growth estimates, most notably for China. Are we on the verge of a repeat of the Asian financial crisis as the region pays for its excessive borrowing post-Lehman? The road may be rocky in the near term, particularly for the largest deficit countries–India and Indonesia–but we don’t think this is the Asian crisis all over again.

Can The Largest Emerging Market Banking Systems Withstand Jitters About The Economy And Financial Markets?

There has been increasing interest over the largest emerging market banks and Standard & Poor’s Ratings Services’ expectations for their future performance. Below, we answer questions that investors and other market participants have asked us about the largest BRICMT (Brazil, Russia, India, China, Mexico, and Turkey) banks’ asset quality, their capital levels to support a still high lending growth, their profitability, and what effect the slowing economies in these six countries and the Federal Reserve’s expected tightening monetary policy will have. (Watch the related CreditMatters TV segments titled “Are The Good Old Days Over For Banks In Large Emerging Markets, Particularly China And India?,” dated Oct. 23, 2013, “Trends And Outlooks For Russian And Turkish Banks,” and “Can Brazil And Mexico’s Banks Handle The Economic Slowdown?,” both dated Oct. 22, 2013)

Read more at https://www.globalcreditportal.com/ratingsdirect/renderArticle.do?articleId=1205367&SctArtId=190527&from=CM&nsl_code=CMAP

Are The Good Old Days Over For Banks In Large Emerging Markets, Particularly China And India?

In this CreditMatters TV segment, Ritesh Maheshwari, managing director and lead analytical manager of Asia-Pacific Financial Services Ratings, summarizes the findings of a report that studies the banking systems in the six largest emerging markets, with specific insights on China and India.

CARE Research Webinar on Power Transmission & Distribution Sector, Thu, Nov 28, 2013 4:00 PM – 5:00 PM IST

Amazing learning opportunity from the experts.

Please register at https://attendee.gotowebinar.com/register/892188069899921665

PRMIA Webinar : FX Risk – Hedging and Accounting, Nov 19, 630pm IST

Presented by: 

David Wilson, Treasury Project Management Expert
Professor Moorad Choudhry, Dept. of Mathematical Sciences Brunel UniversityAndy Stalmanis,  Director of Market & Liquidity Risk, TSB Bank

Moderated by: Alex Voicu, Director of Education, PRMIA
This webinar will be hosted in collaboration with the Association of Corporate Treasurers.
 Tuesday, November 19, 2013 at 9am US Eastern Time/ 2 pm GMT/630pm IST

 

Registration link : https://www.prmia.org/civicrm/event/register?id=6143&reset=1

In this webinar we will discuss:

  • Effective FX risk hedging framework: components of best practice
  • The optimum hedge structure: which instrument? what tenor?
  • Hedging: removing uncertainty, not speculation
  • Fee: Please enjoy this complimentary webinar.

 

About the Presenters:

David Wilson, Treasury Project Management Expert
David has been a Corporate Treasurer since 1985, after qualifying as a Chartered Accountant: the MCT qualification followed in 1989. He was with National Power Plc, the electricity generator, as Treasury Manager and Group Treasurer from privatisation in 1990 until its Demerger in 2000. Since then, David has undertaken a variety of interim roles at companies including the London Underground PPP, Invensys, Boots, Cable & Wireless, EMAP, John Lewis and D S Smith.
Professor Moorad Choudhry,Department of Mathematical Sciences, Brunel University
Moorad is Visiting Professor at the Department of Mathematical Sciences, Brunel University and author of The Principles of Banking (John Wiley 2012).
Andy Stalmanis,  Director of Market & Liquidity Risk, TSB Bank

S&P Webinar : CREDIT RISKS WITH CHINESE CORPORATIONS – TIME FOR CONCERN?

CREDIT RISKS WITH CHINESE CORPORATIONS – TIME FOR CONCERN?

 Where China is headed economically has been a major topic of concern given the country’s size and power base. Join specialists from Standard & Poor’s Ratings Services and S&P Capital IQ as they take a close look at the credit outlook for the country’s top corporations.

Terry Chan, Managing Director & Head of Corporate Research for Asia Pacific at Standard & Poor’s Ratings Services, will open the session with an informative discussion on key findings from recent statistical surveys of China’s top corporates.

Following this, the S&P Capital IQ team will discuss how to interpret the credit risk of companies in China, looking at:

  • The use of market- and fundamental-based metricsto gain deep insight into the credit risk of both rated and unrated companies.
  • Trends in credit markets for Standard & Poor’s rated companies and the top 150 corporates in China.
  • Extending coverage beyond the rated universe of corporates
  • Interpreting information from different credit risk measures for optimal guidance.

Don’t miss this insightful webinar. Register today!

Webinar Date :  Wednesday, 27 November 2013

Time : India : 08:30a.m. – 09:30a.m.

Register on 

http://profile.standardandpoors.com/content/APAC_SPCIQ_Event_Web_NOV13_ChinaCredit_Form?elq=ce9b011567a04ae2a49d9dc35395de30

Indian Banks May Need INR2.6 Trillion Of Additional Capital By 2018 As They Strive To Meet Basel III Requirements

In the high-growth Indian banking system, banks face a constant need to replenish capital at regular intervals to support their growth. In addition, from April 1, 2013, Indian banks will begin to implement the new Basel III capital requirements. In Standard & Poor’s Ratings Services’ view, the higher capital requirement under Basel III will increase pressures on Indian banks to raise capital and could lead to some changes in the industry. However, we believe the top-tier banks in the Indian banking sector are relatively well-placed to manage the transition toward Basel III and the demands of a high-growth banking system.

Are Good Old Days Over For The Largest Emerging Market Banks?

Asset quality deterioration, shortage of capital, and slowing credit growth could undermine the BRICMT (Brazil, Russia, India, China, Mexico, and Turkey) banks’ credit quality, especially amid economic slowdown following years of strong credit growth. In addition, there remain concerns about the rising household debt burden, given still low, although increasing, GDP per capita and cyclicality of these major emerging market economies. Furthermore, the following country-specific factors are pressuring the banks’ asset quality: increasing economic imbalances in Brazil due to a recently accelerating credit expansion by government-owned banks; rapid increase of high–risk unsecured lending in Russia; a highly leveraged corporate sector in India; lackluster export growth, debt-laden local governments, and many manufacturers suffering from oversupply in China; large homebuilders’ woes and deteriorating consumer lending in Mexico; and rapid credit card debt and consumer lending in Turkey.

Read full report at https://www.globalcreditportal.com/ratingsdirect/renderArticle.do?articleId=1201866&SctArtId=187905&from=CM&nsl_code=LIME