Credit

Christine Lagarde, Luis de Guindos: Monetary policy statement (with Q&A)

Retrieved on: 
Thursday, April 18, 2024

Stock market development and familiarity (language and distance) are considered key determinants for home bias.

Key Points: 
  • Stock market development and familiarity (language and distance) are considered key determinants for home bias.
  • The literature neglects however that investors often invest in foreign funds domiciled in financial centers.

Results of the March 2024 Survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD)

Retrieved on: 
Thursday, April 18, 2024

Stock market development and familiarity (language and distance) are considered key determinants for home bias.

Key Points: 
  • Stock market development and familiarity (language and distance) are considered key determinants for home bias.
  • The literature neglects however that investors often invest in foreign funds domiciled in financial centers.

Survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets (SESFOD) - March 2024

Retrieved on: 
Thursday, April 18, 2024

Survey on credit terms and

Key Points: 
    • Survey on credit terms and
      conditions in euro-denominated
      securities financing and OTC
      derivatives markets (SESFOD)
      March 2024
      The Eurosystem conducts a three-monthly qualitative survey on credit terms and
      conditions in euro-denominated securities financing and over-the-counter (OTC)
      derivatives markets.
    • The survey questions are grouped into three sections:
      1.

      counterparty types ? credit terms and conditions for various counterparty
      types in both securities financing and OTC derivatives markets;

      2.

      securities financing ? financing conditions for various collateral types;

      3.

      non-centrally cleared OTC derivatives ? credit terms and conditions for
      various derivative types.

    • The survey focuses on euro-denominated instruments in securities financing and
      OTC derivatives markets.
    • For securities financing, the survey refers to the
      euro-denominated securities against which financing is provided, rather than the
      currency of the loan.
    • Reporting institutions should report on their global credit terms, so the survey is
      aimed at senior credit officers responsible for maintaining an overview of the
      management of credit risks.
    • SESFOD March 2024

      2

      March 2024 SESFOD results
      (Review period from December 2023 to February 2024)
      The March 2024 Survey on credit terms and conditions in euro-denominated
      securities financing and OTC derivatives markets (SESFOD) reports qualitative
      changes in credit terms between December 2023 and February 2024.

    • Looking at credit terms and conditions for the various types of non-centrally cleared
      OTC derivative, initial margin requirements increased slightly for all derivative types.
    • Survey respondents reported mostly unchanged conditions as regards the maximum
      amount of exposure and the maximum maturity of trades.
    • Moreover, they reported that the volume of valuation disputes had
      declined for all derivative types except credit derivatives.
    • The survey asked respondents to compare credit terms
      and conditions on the cut-off date for the March 2024 survey round (i.e.
    • Compared with the
      previous year, overall terms and conditions for securities financing and OTC
      derivatives transactions had eased somewhat across all counterparties, while credit
      standards for funding secured against various types of collateral and non-price terms
      in OTC derivatives markets were generally tighter.
    • Credit terms and conditions for various counterparty types in both
      securities financing and OTC derivatives markets
      Overall credit terms and conditions eased between December 2023 and
      February 2024 (Chart A).
    • The overall easing of conditions masked some
      heterogeneity between price and non-price terms, and across different types of
      counterparty, though reported changes were relatively small.
    • Credit terms and conditions for various types of non-centrally
      cleared OTC derivative
      Initial margin requirements increased slightly for all derivative types.
    • Meanwhile, they reported
      unchanged conditions for credit derivatives referencing sovereigns and commodities,
      as well as a slight deterioration for credit derivatives referencing corporates and
      structured credit products.
    • The survey asked respondents to compare the credit terms and conditions observed
      on the cut-off date for the March 2024 survey (i.e.
    • Compared with the previous year, overall terms and conditions for securities
      financing and OTC derivatives transactions had eased somewhat across all
      counterparties.
    • Survey respondents reported that non-price credit terms in OTC derivatives
      markets had tightened somewhat for almost all types of derivative relative to
      the previous year.

Is home bias biased? New evidence from the investment fund sector

Retrieved on: 
Thursday, April 18, 2024
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Key Points: 

    Transactional demand for central bank digital currency

    Retrieved on: 
    Thursday, April 18, 2024

    Key Points: 

      EQS-News: Marinomed Biotech AG announces agreement with European Investment Bank (EIB) to defer repayments of the 2019 venture loan for 18 months

      Retrieved on: 
      Wednesday, April 10, 2024

      Under the amendment, repayment of tranche one with a nominal value of EUR 4 million will be shifted from October 2024 to April 2026.

      Key Points: 
      • Under the amendment, repayment of tranche one with a nominal value of EUR 4 million will be shifted from October 2024 to April 2026.
      • Tranche two, with a nominal value of EUR 5 million, will be shifted from December 2025 to June 2027.
      • The amendment contains further terms and conditions, including the extension of the existing royalty agreement for five years.
      • The lenders of the real estate financing also agreed to suspend their capital repayments alongside with the EIB.

      Sun Hung Kai & Co. Announces 2023 Annual Results 

      Retrieved on: 
      Wednesday, April 10, 2024

      SHK & Co’s Consumer Finance arm successfully launched its SIM (Simple Instant Money) credit card while the Investment Management division made substantial progress in narrowing its losses as valuations stabilised.

      Key Points: 
      • SHK & Co’s Consumer Finance arm successfully launched its SIM (Simple Instant Money) credit card while the Investment Management division made substantial progress in narrowing its losses as valuations stabilised.
      • In our Credit segment, we will remain vigilant, while streamlining our business efficiency by upgrading service platforms and digitising our operations.
      • As for our Investment Management and Funds Management businesses, we will maintain a conservative approach while focusing on capital efficiency.
      • For more details of the 2023 earnings, please refer to the official announcement .

      One Heritage Group plc: Corporate Bond Update

      Retrieved on: 
      Wednesday, April 10, 2024

      One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North of England, is providing an update on the repayment of its £1.5 million unsecured corporate bond due for repayment 15th March 2024.

      Key Points: 
      • One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North of England, is providing an update on the repayment of its £1.5 million unsecured corporate bond due for repayment 15th March 2024.
      • The Company is pleased to have today signed a new 12-month £500,000 unsecured Loan with a Bond holder, at an interest rate of 8% per annum.
      • Due to delayed property refinancing, payment of the remaining £1 million is expected to be repaid by 18th March 2024.
      • The Company is not in default unless the Bond is not repaid by 29th March 2024.

      Runway Growth Finance Corp. Provides First Quarter 2024 Portfolio Update

      Retrieved on: 
      Tuesday, April 9, 2024

      MENLO PARK, Calif., April 09, 2024 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today provided an operational and portfolio update for the first quarter ended March 31, 2024.

      Key Points: 
      • MENLO PARK, Calif., April 09, 2024 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today provided an operational and portfolio update for the first quarter ended March 31, 2024.
      • The team is in a strong position to drive performance with ample capital to execute against our long-term growth strategy and deliver shareholder value.”
        In the first quarter of 2024, Runway Growth funded two investments: one investment in a new portfolio company and one investment in an existing portfolio company.
      • During the first quarter ended March 31, 2024, Runway Growth experienced two prepayments totaling $34.5 million and scheduled principal amortization of $0.4 million.
      • As of March 31, 2024, the Runway Growth portfolio included 47 debt investments to 30 portfolio companies and 80 equity investments in 49 portfolio companies, including 26 portfolio companies where Runway Growth holds both a debt and equity investment.

      Melco Announces Extension of Maturity Date of Revolving Credit Facilities

      Retrieved on: 
      Monday, April 8, 2024

      MACAU, April 08, 2024 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today announces that the maturity date of its HK$14.85 billion (equivalent to US$1.92 billion) revolving credit facility (the “2020 Credit Facilities”) has been extended from April 29, 2025 to April 29, 2027.

      Key Points: 
      • MACAU, April 08, 2024 (GLOBE NEWSWIRE) -- Melco Resorts & Entertainment Limited (Nasdaq: MLCO) (“Melco” or the “Company”), a developer, owner, and operator of integrated resort facilities in Asia and Europe, today announces that the maturity date of its HK$14.85 billion (equivalent to US$1.92 billion) revolving credit facility (the “2020 Credit Facilities”) has been extended from April 29, 2025 to April 29, 2027.
      • The extension was made pursuant to a second amended and restated facility agreement dated April 8, 2024 (the “2024 Amendment and Restatement Agreement”).
      • Key terms such as facility size, pricing and financial covenants remain unchanged.
      • In connection with the 2024 Amendment and Restatement Agreement, MCO Nominee One agreed to pay a customary fee to the consenting lenders.