Ello

Bank Analyst/Reg Geek - All tweets & comments my own. Likes are not endorsement

[JohannesBorgen @jeuasommenulle]

Oh, in case you wondered "why bother with a private rating at all" ?

#RegulatoryArbitrage

[JohannesBorgen @jeuasommenulle]

Ladies and gentlemen, the private credit market explained, in two charts.

Left: distribution of private ratings. Vast majority of B and below.

Right: private ratings severely underestimate default risk for ratings... of B and below.

Thanks for listening to my TED talk.

[JohannesBorgen @jeuasommenulle]

@IyerC Usually custody accounts T&C have an interest paid on cash. E.g. ECB-20 bps etc

[Ello @boman1882]

@jeuasommenulle Personally I’d go for a credit fund with better returns from way less AT1 🙂

[JohannesBorgen @jeuasommenulle]

@Alea_ @SakumiBLR @VaeVix @babils C'est toujours 0 et pas près de changer

[Ello @boman1882]

@jeuasommenulle Only 3 letters needed: S R T 🤣

[Ello @boman1882]

@jeuasommenulle Nooooo waaayyy! 😱

[Ello @boman1882]

@jeuasommenulle Get that AT1 out the door, then 💥 🤣

[Ello @boman1882]

@jeuasommenulle Perhaps CI is a double agent: https://t.co/kZEeuWRfO1
"The consultancy’s analysis shows the average total instalment cost (TIC), or the extra amount paid for choosing monthly payments over a lump sum, dropped to 10.1% in the past 12 months, down from 11.3%"

[Ello @boman1882]

@jeuasommenulle @Alea_ @MartinSLewis For me the difference between Annual -> Monthly and Monthly -> Monthly was 1.8%. Suggesting alot of underwriting variabilities that aren't captured by a small sample size

[Ello @boman1882]

@jeuasommenulle @Alea_ @MartinSLewis Its a fine line, because if you have statistical data that shows that customers that usually pay monthly have more underwriting losses etc, then Mediobanca are conflating APR with insurance risk premium - the idea being you answer the questionnaire truthfully.

[Ello @boman1882]

@jeuasommenulle Shoddy buy back level

[Ello @boman1882]

@jeuasommenulle @EBA_News Now post the IRR over the last 4yrs ;)

[JohannesBorgen @jeuasommenulle]

Proposition de réforme constitutionnelle: les députés élus doivent repasser le brevet des collèges et s'ils échouent ils ne peuvent pas siéger.

[Ello @boman1882]

@jeuasommenulle For the less brave you'll have to settle with 18% YTD & 64% from the lows

[Ello @boman1882]

@jeuasommenulle Size matters, in both directions.

[Ello @boman1882]

@jeuasommenulle You want to look at the VDP template, I believe that uses the bucketed approach. It would be more useful if they filled out the Glossary pages like they're suppose to.

[Ello @boman1882]

@jeuasommenulle Distributed LTVs is where you take the loan and put each bit of it into each bucket starting from the bottom.
e.g. 1mm loan 75% bucketed LTV = 1mm goes in the 70-80% bucket. The full amount.
For distributed:
267mm goes in 0-20%
267mm 20-40%
267mm 40-60%
133mm 60-70%
67mm 70-80%

[Ello @boman1882]

@jeuasommenulle Also worth highlighting the soft limited on LTVs for German Pfandbrief is 60% - so you an see why there is such distributions.
This differs by country, but I'd prefer a cover pool that is static, and instead more collateral is required (e.g. Denmark)

[Ello @boman1882]

@jeuasommenulle I could be wrong but I think you're looking at distributed LTV data and not bucketed LTV data (what we're used to looking at).
If this were bucketed LTV data 89.6% would be in the 50-60% LTV bracket.. not that it changes the point of your post.