The document discusses the rationale for establishing a UK municipal bond agency. Key points include:
- The agency aims to lower borrowing costs for local councils by accessing funding at competitive rates from bond markets.
- No additional legislation is required, as councils have the necessary borrowing powers.
- 56 councils have signed up as initial shareholders, investing a total of £6 million to launch the agency.
- The agency expects to break even within 3 years at a lending volume of £2 billion, and will be run on a cost of around £2 million per year.
- The agency will subject councils to a credit process and aims to offer rates competitive with the Public Works Loan Board.
The document summarizes LBP programs and services for countryside financial institutions. It outlines LBP's credit assistance to CFIs including data on number and volume of loans to rural banks, thrift banks, and cooperative banks. It then describes the Grassroots Development Program which provides credit and technical assistance to CFIs and MFIs to expand financial services in unserved rural areas. Eligibility criteria for CFIs and partners are provided. Available LBP credit programs, capital enhancement programs, and other services for CFIs are also summarized.
This document discusses issues around access to credit and managing debt in South Africa. It provides background on the size of the South African credit market, trends in types of lending, and regulations introduced by the National Credit Act. It also summarizes challenges South African consumers face related to literacy, access to banking services, and factors that influence the cost of living. Finally, it advocates for continued education efforts to improve financial literacy.
Cormac Leech: A Banking Analyst's Perspective on P2P
Keynote address by Cormac Leech, of Liberum, at LendIt Europe 2014. The title of this presentation is A Banking Analyst's Perspective on P2P.
Financial Institution Management 3rd Edition Lange Test BankCharlesLsm
Full download : http://alibabadownload.com/product/financial-institution-management-3rd-edition-lange-test-bank/ Financial Institution Management 3rd Edition Lange Test Bank
This document discusses non-banking financial companies (NBFCs) in India. It provides an overview of NBFC regulations, categories, size, activities, and roles. Key points include:
1) NBFCs engage in a variety of financial activities like organizing financing, supplying equipment, cashflow financing, and more.
2) As of 2012, there were over 12,000 registered NBFCs in India with a total asset base of over $20 billion.
3) NBFCs play an important role in financial inclusion by providing services to underserved segments and innovating financial products. However, they also face challenges like lack of regulatory parity with banks.
With Help to Buy never far from the headlines, this quarter Countrywide plc looks at where those buying through the scheme come from and the types of mortgage products they’re using.
Countrywide plc’s Q2 2014 Quarterly Market Review also looks at the number of homes built across Europe over the last decade, the impact of the £500,000 loan to income cap introduced by major banks and how rising house prices are driving first time buyers to cheaper areas of the country.
Funding Good Outcomes- Using social investment to support payment by results.PDFrhoddavies1
This document discusses payment by results (PbR) contracts and how social investment can help address challenges they present for non-profit organizations. It provides examples of government programs using PbR in areas like employment, families, health, and criminal justice. While PbR allows more flexibility, they require upfront capital that non-profits often lack. The document examines how social investment can help by providing loans or guarantees. However, it notes key issues around balancing risk between parties and ensuring fair returns for investors, non-profits, and commissioners.
Red views inflation-linked-bonds-issuance-and-pensions-liabilities-january-2013Redington
This document discusses the growth of the UK inflation-linked bond market and pensions' inflation-linked liabilities. While the inflation-linked bond market has quadrupled since 2005, it remains much smaller than pension schemes' inflation-linked liabilities. This mismatch is pushing real yields lower and limiting pension schemes' ability to match inflation risk. The document examines alternative sources of inflation-linked assets that pension schemes should consider to better match liabilities, such as infrastructure investments.
The document summarizes LBP programs and services for countryside financial institutions. It outlines LBP's credit assistance to CFIs including data on number and volume of loans to rural banks, thrift banks, and cooperative banks. It then describes the Grassroots Development Program which provides credit and technical assistance to CFIs and MFIs to expand financial services in unserved rural areas. Eligibility criteria for CFIs and partners are provided. Available LBP credit programs, capital enhancement programs, and other services for CFIs are also summarized.
This document discusses issues around access to credit and managing debt in South Africa. It provides background on the size of the South African credit market, trends in types of lending, and regulations introduced by the National Credit Act. It also summarizes challenges South African consumers face related to literacy, access to banking services, and factors that influence the cost of living. Finally, it advocates for continued education efforts to improve financial literacy.
Cormac Leech: A Banking Analyst's Perspective on P2P
Keynote address by Cormac Leech, of Liberum, at LendIt Europe 2014. The title of this presentation is A Banking Analyst's Perspective on P2P.
Financial Institution Management 3rd Edition Lange Test BankCharlesLsm
Full download : http://alibabadownload.com/product/financial-institution-management-3rd-edition-lange-test-bank/ Financial Institution Management 3rd Edition Lange Test Bank
This document discusses non-banking financial companies (NBFCs) in India. It provides an overview of NBFC regulations, categories, size, activities, and roles. Key points include:
1) NBFCs engage in a variety of financial activities like organizing financing, supplying equipment, cashflow financing, and more.
2) As of 2012, there were over 12,000 registered NBFCs in India with a total asset base of over $20 billion.
3) NBFCs play an important role in financial inclusion by providing services to underserved segments and innovating financial products. However, they also face challenges like lack of regulatory parity with banks.
With Help to Buy never far from the headlines, this quarter Countrywide plc looks at where those buying through the scheme come from and the types of mortgage products they’re using.
Countrywide plc’s Q2 2014 Quarterly Market Review also looks at the number of homes built across Europe over the last decade, the impact of the £500,000 loan to income cap introduced by major banks and how rising house prices are driving first time buyers to cheaper areas of the country.
Funding Good Outcomes- Using social investment to support payment by results.PDFrhoddavies1
This document discusses payment by results (PbR) contracts and how social investment can help address challenges they present for non-profit organizations. It provides examples of government programs using PbR in areas like employment, families, health, and criminal justice. While PbR allows more flexibility, they require upfront capital that non-profits often lack. The document examines how social investment can help by providing loans or guarantees. However, it notes key issues around balancing risk between parties and ensuring fair returns for investors, non-profits, and commissioners.
Red views inflation-linked-bonds-issuance-and-pensions-liabilities-january-2013Redington
This document discusses the growth of the UK inflation-linked bond market and pensions' inflation-linked liabilities. While the inflation-linked bond market has quadrupled since 2005, it remains much smaller than pension schemes' inflation-linked liabilities. This mismatch is pushing real yields lower and limiting pension schemes' ability to match inflation risk. The document examines alternative sources of inflation-linked assets that pension schemes should consider to better match liabilities, such as infrastructure investments.
The document discusses plans for a "Better Deal for Residents" partnership in Harrow. It outlines challenges like budget shortfalls and increasing resident expectations. The partnership aims to simplify services, increase efficiency through cross-agency collaboration, and better coordinate the £1.9 billion spent annually by partners on issues like healthcare, education, and public safety. Initial deep dives will examine services for high-need families and options to reduce hospital admissions among older residents. Success requires a total partnership approach, consistent government support, and a new culture of openness across agencies.
Banks in the UK saw increased profits in 2014 but challenges remain. While pre-tax profits rose 62% to £20.6 billion, conduct costs were still high at £9.9 billion and return on equity remained below 8% for all banks. Banks continue to reshape their balance sheets to meet regulatory requirements by decreasing risk-weighted assets but this has reduced income and impacted profitability. Overall, UK lending fell 2% as banks maintained a low-risk appetite in a mixed economic environment.
The document provides information about Wealth Today, a financial planning company based in Australia. It discusses Wealth Today's services and credentials, the current state of household finances and debt in Australia, and introduces the LIFT program which aims to help clients terminate their mortgages while building wealth and securing their financial future and retirement lifestyle. The document promotes the benefits of Wealth Today's holistic advice approach over traditional broker models that focus only on loans and debt.
The Chief Finance Officer of the North East Combined Authority is exploring opportunities to create a pooled treasury management facility and strategic investment fund through devolution. This would allow financing of increased infrastructure investment at lower costs while generating additional interest returns for participating councils in the short to medium term. UK local authority investments have risen significantly in recent years to over £33 billion as of 2015. The officer believes investment levels are even higher than reported and there are opportunities to use investments to replace external borrowing and reduce net financing costs. Establishing a pooled investment strategy could more than double interest earned on short term investments to over 2% while reducing borrowing costs by 1-1.5% on projects like Enterprise Zones, yielding estimated annual savings of £25
Financial Inclusion Improving the financial health of the nationDr Lendy Spires
The document discusses financial inclusion in the UK and the work of the Financial Inclusion Commission. Some key points:
1. The Commission was formed to examine the current state of financial exclusion in the UK and make recommendations to promote greater financial inclusion.
2. While progress has been made in recent decades to improve access to financial services, around 2 million UK adults still do not have a bank account and many lack savings or insurance.
3. The Commission took evidence around the country and heard the desire for a more coordinated national effort to promote inclusion and ensure all UK residents can access and benefit from financial services.
The introduction of the Adviser Charging (AC) regime in the UK will significantly change how customers and financial advisers interact. A survey found that 32% of customers will do their own financial planning instead of paying for advice, while 24% will reduce how often they use an adviser. This will leave up to 5.5 million customers disenfranchised from financial advice. There will be opportunities for investment product providers to target these customers directly. Four potential target customer segments in the advice gap are identified: the disenfranchised wealthy, tech-savvy savers, mass affluent orphans, and mass market orphans.
This document contains summaries of presentations given by Dr. Nigel Wilson, the CEO of Legal & General Group. It discusses the success of the UK's auto-enrollment pension system and proposes next steps to improve it. It also outlines Legal & General's investments in areas like housing, infrastructure, and healthcare and argues these investments provide long-term returns while creating social benefits. Finally, it proposes expanding auto-enrollment to include income protection insurance in order to provide greater financial security.
Econet Wireless Zimbabwe Limited (Econet) is the largest mobile operator in Zimbabwe, providing mobile, fixed line, internet, and payment services. It has over 9 million mobile subscribers out of Zimbabwe's total of 16 million. Econet acquired Vimpelcom in 2014 to expand into other African countries. It also has a majority stake in Steward Bank and acquired TN Medical, now Steward Health. For 2014, Econet recorded $752.7 million in revenue, with voice services as the largest component and Ecocash payment services contributing to 14% of growth. Econet launched one of Africa's first LTE networks and has been decreasing its debt-to-equity ratio through repaying debts
The AgeWage solution provides consumers with a summary of their pension that includes the value, a comparison to benchmarks, and an overall AgeWage score. This guidance empowers consumers to consolidate pensions if needed. Over the next 5 years, AgeWage plans to analyze millions of pensions and assist in transferring over 100,000 pensions per year. AgeWage's revenue will come from fees paid by pension providers when consumers transfer funds.
This document outlines Fine Gael's strategy for reforming Ireland's banking system. It argues that the current government's policies of bailing out reckless banks with taxpayer money has undermined confidence and worsened the recession. Fine Gael proposes renegotiating Ireland's bailout agreement to include: 1) European support for bank recapitalization through equity investments. 2) Agreed procedures for restructuring debts of insolvent banks so bondholders share costs. 3) More sustainable funding for Irish banks through securitizing dollar assets or transferring loan books to an EU-funded vehicle. The goal is to restore confidence by capping further losses, sharing costs fairly, and reforming banks to be privately-owned and competitively managed.
The new bank resolution scheme: The end of bail-out?White & Case
The document discusses the new European bank resolution framework and its interaction with state aid rules. The key points are:
1) The new framework aims to reduce bank bailouts by requiring shareholders and creditors to contribute to rescues through "bail-ins" before public funds can be used.
2) However, there are exceptions where governments can aid banks to preserve financial stability, without triggering resolution. Recent Italian bank troubles test these exceptions.
3) State aid rules still apply even in resolution and bank support funds involve state aid scrutiny, so the framework introduces complexity around when and how governments can support struggling banks.
The document discusses the long-term savings challenge facing the UK population and investment management industry due to demographic shifts. By 2050, the UK population is projected to grow 19% to 77 million people, with those over 65 increasing from 12 million to 20 million. This will change the industry as more people enter savings decumulation versus accumulation. It will also increase demands on infrastructure, healthcare, and housing. The industry has an opportunity to help the growing population meet its long-term savings needs but must overcome hurdles to do so.
The document discusses the need for transformation of commissioning and procurement processes in English local government. It outlines the current financial challenges and notes that local councils will need to reduce costs significantly while relying more on external organizations to deliver services. The transformation process should focus on five key themes: new service models, managing risk versus risk aversion, shaping markets, looking ahead not back, and improved contract management. Savings could be achieved through leveraging collective purchasing power across local councils and improving management of contracts once awarded.
The Hampshire Council of Governments (HCOG) saved its member towns over $4.6 million in fiscal year 2015 through various programs and services. Key programs like the Group Insurance Trust and Hampshire Power helped lower costs for things like healthcare and electricity. HCOG is funded through service fees rather than taxes, and provides value to member towns while reinvesting in the local economy and environment through sustainability initiatives like solar energy programs.
Investment Policy of Banks-B.V.RaghunandanSVS College
This document discusses the investment policy of banks, outlining criteria like liquidity, profitability, and statutory compliance. It describes the components of a bank's investment portfolio, including money market instruments, and their loan portfolio priorities like priority sector and consumer lending. The document also covers principles of their investment/lending policy like diversification, safety, and debtor evaluation. It outlines tools for portfolio management such as asset-liability management and managing different types of risks.
This document discusses microfinance in Cambodia, providing statistics on the population, number of microfinance institutions (MFIs), borrowers, and depositors. It outlines the phases of microfinance development and notes that while MFIs originally shared social missions, they now focus more on commercialization. The document identifies several issues and challenges facing MFIs, including legal limitations, high funding costs, multiple borrowing, lack of credit assessments for farmers, and difficulties retaining rural staff. It concludes that allowing MFIs to offer more products and reducing funding costs could help them better serve clients and generate further growth in the sector.
Can Social Impact Bonds influence social policy for the better?OECD CFE
This document discusses social impact bonds and whether they can influence social policy for the better. It notes that government social spending is rising due to increased demand for services like healthcare and children's services. Traditional models of government directly providing or commissioning these services often have poor outcomes and high costs. Social impact bonds are an innovative way to pay for social services based on outcomes rather than activities. They bring private investment and expertise to improve outcomes. An example is given of a social impact bond funding an adoption program that aims to place 2,000 children in families at a lower cost than foster care. The document concludes by saying only time will tell if social impact bonds can change social policy for the better.
Finlombarda, the financial agency of Lombardy, seeks to facilitate public-private partnerships (PPPs) to rebuild infrastructure through projects like sports facilities and schools. However, PPPs have challenges based on experiences in other countries. Specifically, contracts often lack oversight and quality standards, leaving facilities in poor condition. Additionally, monopolistic private partners can exploit local governments with limited bargaining power. To maximize success, Finlombarda should establish standardized contracts, share risks and returns equitably, and protect local partners through oversight and cost assistance.
1. The document discusses structuring a Social Benefit Bond (SBB) between Westpac, the Benevolent Society, and the NSW Government.
2. Key terms of the proposed SBB include a $10 million bond with $7.5 million in moderate risk Class P notes and $2.5 million in high risk Class E notes to fund family preservation services over 5 years.
3. Investor returns are linked to performance outcomes, with Class P notes protected but interest returns variable, and Class E notes having 100% capital at risk but higher potential interest returns.
Bond agency happy with ratings _ Room 151Markus Krebsz
The bond agency has received ratings from two ratings agencies and is ready to issue its first bond. The CEO expressed that he was happy with the ratings but did not disclose them. He said they are waiting for local authorities to approve borrowing through internal processes before issuing a bond within a few weeks at a rate below current PWLB rates. However, the CEO was reluctant to commit to an issuance date given delays in the past.
The document discusses how the United Nations Economic Commission for Europe (UNECE) works to promote disaster risk reduction and resilience. It outlines several key activities:
1) UNECE sets binding rules and standards to contribute to more sustainable development that is resilient to disasters.
2) It promotes implementation of international risk management standards and tools.
3) Through various environmental treaties and programs, UNECE facilitates transboundary cooperation between countries to better prevent, prepare for, and respond to disasters.
4) UNECE also works to integrate disaster risk reduction into urban planning, housing, and land management policies to build more resilient communities.
The document discusses plans for a "Better Deal for Residents" partnership in Harrow. It outlines challenges like budget shortfalls and increasing resident expectations. The partnership aims to simplify services, increase efficiency through cross-agency collaboration, and better coordinate the £1.9 billion spent annually by partners on issues like healthcare, education, and public safety. Initial deep dives will examine services for high-need families and options to reduce hospital admissions among older residents. Success requires a total partnership approach, consistent government support, and a new culture of openness across agencies.
Banks in the UK saw increased profits in 2014 but challenges remain. While pre-tax profits rose 62% to £20.6 billion, conduct costs were still high at £9.9 billion and return on equity remained below 8% for all banks. Banks continue to reshape their balance sheets to meet regulatory requirements by decreasing risk-weighted assets but this has reduced income and impacted profitability. Overall, UK lending fell 2% as banks maintained a low-risk appetite in a mixed economic environment.
The document provides information about Wealth Today, a financial planning company based in Australia. It discusses Wealth Today's services and credentials, the current state of household finances and debt in Australia, and introduces the LIFT program which aims to help clients terminate their mortgages while building wealth and securing their financial future and retirement lifestyle. The document promotes the benefits of Wealth Today's holistic advice approach over traditional broker models that focus only on loans and debt.
The Chief Finance Officer of the North East Combined Authority is exploring opportunities to create a pooled treasury management facility and strategic investment fund through devolution. This would allow financing of increased infrastructure investment at lower costs while generating additional interest returns for participating councils in the short to medium term. UK local authority investments have risen significantly in recent years to over £33 billion as of 2015. The officer believes investment levels are even higher than reported and there are opportunities to use investments to replace external borrowing and reduce net financing costs. Establishing a pooled investment strategy could more than double interest earned on short term investments to over 2% while reducing borrowing costs by 1-1.5% on projects like Enterprise Zones, yielding estimated annual savings of £25
Financial Inclusion Improving the financial health of the nationDr Lendy Spires
The document discusses financial inclusion in the UK and the work of the Financial Inclusion Commission. Some key points:
1. The Commission was formed to examine the current state of financial exclusion in the UK and make recommendations to promote greater financial inclusion.
2. While progress has been made in recent decades to improve access to financial services, around 2 million UK adults still do not have a bank account and many lack savings or insurance.
3. The Commission took evidence around the country and heard the desire for a more coordinated national effort to promote inclusion and ensure all UK residents can access and benefit from financial services.
The introduction of the Adviser Charging (AC) regime in the UK will significantly change how customers and financial advisers interact. A survey found that 32% of customers will do their own financial planning instead of paying for advice, while 24% will reduce how often they use an adviser. This will leave up to 5.5 million customers disenfranchised from financial advice. There will be opportunities for investment product providers to target these customers directly. Four potential target customer segments in the advice gap are identified: the disenfranchised wealthy, tech-savvy savers, mass affluent orphans, and mass market orphans.
This document contains summaries of presentations given by Dr. Nigel Wilson, the CEO of Legal & General Group. It discusses the success of the UK's auto-enrollment pension system and proposes next steps to improve it. It also outlines Legal & General's investments in areas like housing, infrastructure, and healthcare and argues these investments provide long-term returns while creating social benefits. Finally, it proposes expanding auto-enrollment to include income protection insurance in order to provide greater financial security.
Econet Wireless Zimbabwe Limited (Econet) is the largest mobile operator in Zimbabwe, providing mobile, fixed line, internet, and payment services. It has over 9 million mobile subscribers out of Zimbabwe's total of 16 million. Econet acquired Vimpelcom in 2014 to expand into other African countries. It also has a majority stake in Steward Bank and acquired TN Medical, now Steward Health. For 2014, Econet recorded $752.7 million in revenue, with voice services as the largest component and Ecocash payment services contributing to 14% of growth. Econet launched one of Africa's first LTE networks and has been decreasing its debt-to-equity ratio through repaying debts
The AgeWage solution provides consumers with a summary of their pension that includes the value, a comparison to benchmarks, and an overall AgeWage score. This guidance empowers consumers to consolidate pensions if needed. Over the next 5 years, AgeWage plans to analyze millions of pensions and assist in transferring over 100,000 pensions per year. AgeWage's revenue will come from fees paid by pension providers when consumers transfer funds.
This document outlines Fine Gael's strategy for reforming Ireland's banking system. It argues that the current government's policies of bailing out reckless banks with taxpayer money has undermined confidence and worsened the recession. Fine Gael proposes renegotiating Ireland's bailout agreement to include: 1) European support for bank recapitalization through equity investments. 2) Agreed procedures for restructuring debts of insolvent banks so bondholders share costs. 3) More sustainable funding for Irish banks through securitizing dollar assets or transferring loan books to an EU-funded vehicle. The goal is to restore confidence by capping further losses, sharing costs fairly, and reforming banks to be privately-owned and competitively managed.
The new bank resolution scheme: The end of bail-out?White & Case
The document discusses the new European bank resolution framework and its interaction with state aid rules. The key points are:
1) The new framework aims to reduce bank bailouts by requiring shareholders and creditors to contribute to rescues through "bail-ins" before public funds can be used.
2) However, there are exceptions where governments can aid banks to preserve financial stability, without triggering resolution. Recent Italian bank troubles test these exceptions.
3) State aid rules still apply even in resolution and bank support funds involve state aid scrutiny, so the framework introduces complexity around when and how governments can support struggling banks.
The document discusses the long-term savings challenge facing the UK population and investment management industry due to demographic shifts. By 2050, the UK population is projected to grow 19% to 77 million people, with those over 65 increasing from 12 million to 20 million. This will change the industry as more people enter savings decumulation versus accumulation. It will also increase demands on infrastructure, healthcare, and housing. The industry has an opportunity to help the growing population meet its long-term savings needs but must overcome hurdles to do so.
The document discusses the need for transformation of commissioning and procurement processes in English local government. It outlines the current financial challenges and notes that local councils will need to reduce costs significantly while relying more on external organizations to deliver services. The transformation process should focus on five key themes: new service models, managing risk versus risk aversion, shaping markets, looking ahead not back, and improved contract management. Savings could be achieved through leveraging collective purchasing power across local councils and improving management of contracts once awarded.
The Hampshire Council of Governments (HCOG) saved its member towns over $4.6 million in fiscal year 2015 through various programs and services. Key programs like the Group Insurance Trust and Hampshire Power helped lower costs for things like healthcare and electricity. HCOG is funded through service fees rather than taxes, and provides value to member towns while reinvesting in the local economy and environment through sustainability initiatives like solar energy programs.
Investment Policy of Banks-B.V.RaghunandanSVS College
This document discusses the investment policy of banks, outlining criteria like liquidity, profitability, and statutory compliance. It describes the components of a bank's investment portfolio, including money market instruments, and their loan portfolio priorities like priority sector and consumer lending. The document also covers principles of their investment/lending policy like diversification, safety, and debtor evaluation. It outlines tools for portfolio management such as asset-liability management and managing different types of risks.
This document discusses microfinance in Cambodia, providing statistics on the population, number of microfinance institutions (MFIs), borrowers, and depositors. It outlines the phases of microfinance development and notes that while MFIs originally shared social missions, they now focus more on commercialization. The document identifies several issues and challenges facing MFIs, including legal limitations, high funding costs, multiple borrowing, lack of credit assessments for farmers, and difficulties retaining rural staff. It concludes that allowing MFIs to offer more products and reducing funding costs could help them better serve clients and generate further growth in the sector.
Can Social Impact Bonds influence social policy for the better?OECD CFE
This document discusses social impact bonds and whether they can influence social policy for the better. It notes that government social spending is rising due to increased demand for services like healthcare and children's services. Traditional models of government directly providing or commissioning these services often have poor outcomes and high costs. Social impact bonds are an innovative way to pay for social services based on outcomes rather than activities. They bring private investment and expertise to improve outcomes. An example is given of a social impact bond funding an adoption program that aims to place 2,000 children in families at a lower cost than foster care. The document concludes by saying only time will tell if social impact bonds can change social policy for the better.
Finlombarda, the financial agency of Lombardy, seeks to facilitate public-private partnerships (PPPs) to rebuild infrastructure through projects like sports facilities and schools. However, PPPs have challenges based on experiences in other countries. Specifically, contracts often lack oversight and quality standards, leaving facilities in poor condition. Additionally, monopolistic private partners can exploit local governments with limited bargaining power. To maximize success, Finlombarda should establish standardized contracts, share risks and returns equitably, and protect local partners through oversight and cost assistance.
1. The document discusses structuring a Social Benefit Bond (SBB) between Westpac, the Benevolent Society, and the NSW Government.
2. Key terms of the proposed SBB include a $10 million bond with $7.5 million in moderate risk Class P notes and $2.5 million in high risk Class E notes to fund family preservation services over 5 years.
3. Investor returns are linked to performance outcomes, with Class P notes protected but interest returns variable, and Class E notes having 100% capital at risk but higher potential interest returns.
Bond agency happy with ratings _ Room 151Markus Krebsz
The bond agency has received ratings from two ratings agencies and is ready to issue its first bond. The CEO expressed that he was happy with the ratings but did not disclose them. He said they are waiting for local authorities to approve borrowing through internal processes before issuing a bond within a few weeks at a rate below current PWLB rates. However, the CEO was reluctant to commit to an issuance date given delays in the past.
The document discusses how the United Nations Economic Commission for Europe (UNECE) works to promote disaster risk reduction and resilience. It outlines several key activities:
1) UNECE sets binding rules and standards to contribute to more sustainable development that is resilient to disasters.
2) It promotes implementation of international risk management standards and tools.
3) Through various environmental treaties and programs, UNECE facilitates transboundary cooperation between countries to better prevent, prepare for, and respond to disasters.
4) UNECE also works to integrate disaster risk reduction into urban planning, housing, and land management policies to build more resilient communities.
These two slides give an overview of the the total global Structured finance bond downgrades since January 2007. Furthermore, they show the split between US and Europe. Slides have been shown at the Global ABS Investors\' & Regulators\' roundtable, 2/3 June 2009. Underlying data has been compiled from Bloomberg\'s <RATT> function.
Imperial College 2016 Brochure Finance-Short-ProgrammesMarkus Krebsz
This document provides information on short programmes in finance and risk offered by Imperial College Business School. It describes 3 programmes: 1) Finance for Non-Finance Managers which teaches key finance and accounting fundamentals; 2) The Integration of Finance and Strategy for Value Creation which focuses on financial strategy and creating value; and 3) A Complete Course in Risk Management which provides a foundation in risk measurement, markets, instruments and best practices. The programmes utilize Imperial's Impact Lab approach involving experiential learning through simulations, guest speakers and interactive scenarios. They are taught by internationally renowned faculty and provide professional and organizational benefits.
This document provides a progress report on the activities of the Group of Experts on Managing Risks in Regulatory Systems (GRM) from August 2014 to September 2015. It summarizes the GRM's work to broaden the application of risk management recommendations across various sectors and fields. This included developing a methodology for implementing recommendations in specific sectors and strengthening partnerships with organizations like UNISDR. The GRM also worked on applying recommendations to disaster risk reduction and contributed to international conferences on the topic. Annexed is an updated list of GRM members from different regions and areas of expertise.
The document discusses a roundtable meeting between local authorities, the Shadow Chief Secretary to the Treasury, and representatives from the UK Municipal Bonds Agency. The roundtable discussed the benefits of the newly created UKMBA, which allows local authorities to borrow and refinance debts at potentially lower interest rates than through the Public Works Loan Board. Creating a municipal bonds market could give local authorities greater financial autonomy and fiscal control. However, some local authorities remain hesitant due to risks. Encouraging broader participation from local authorities will help establish the municipal bonds market and lower borrowing costs.
This document provides an overview of the contents of The Professional Risk Managers' Handbook, which is a comprehensive guide to current theory and best practices in risk management. The handbook covers topics in finance theory, financial instruments, and financial markets across two volumes. It includes sections on financial theory application, portfolio mathematics, capital allocation, asset pricing models, capital structure, the term structure of interest rates, bonds, forwards and futures, swaps, options, credit derivatives, and interest rate options. The handbook is intended as a reference for the PRM designation exam.
This document provides a bibliography of 33 editions on works related to the global financial/economic crisis from 2008. It is divided into 11 sections that cover topics such as the origins of the crisis, empirical and narrative accounts, the housing and mortgage industry collapse, regulatory failures, the impact on various countries/regions, and normative perspectives on implications and reforms. The bibliography contains over 200 cited works ranging from books, reports, to academic literature.
The document summarizes mortgage regulation at three levels - global, European, and UK. At the global level, standards are set by organizations like the FSB. In Europe, a new Directive aims to encourage a single market for mortgages while reducing risks. It covers areas like marketing, advice, and credit assessments. Key concerns for the UK include pre-contractual information requirements and the ability of lenders to provide advice. The timeline for the Directive and its interaction with the UK's Mortgage Market Review are also discussed.
This document provides a summary of topics covered in Voltaire Financial's inaugural half-yearly bulletin, including:
- An overview of the changing residential development finance market, noting a shift away from large banks toward newer lenders like debt funds and peer-to-peer lenders.
- A guest article on rights of light and legal issues that can arise from infringing on these rights during redevelopment projects.
- Brief updates on taxation of annual tax on enveloped dwellings and trends in bridging loans.
- Case studies of recent projects completed by Voltaire Financial.
The document discusses trends in residential development lending, including less interest in super-prime projects, openness
Senior Commercial Real Estate Debt_Jan 2016Dharmy Rai
This document provides an overview and analysis of the senior commercial real estate debt market. It discusses the market opportunity created by banks reducing lending following Basel III regulations. Commercial real estate debt provides diversification benefits and attractive risk-adjusted returns. The document examines the commercial real estate debt asset class, major geographies including the UK market, and recommendations for investing in this space.
Innovation Loans Competition Briefing: April 2021KTN
- The document provides information about Innovation Loans from Innovate UK, which are loans for later stage research and development projects with commercial potential.
- The loans can provide up to £1.6 million for eligible project costs, with an interest rate of 7.4% and repayment terms of up to 7 years. They target innovative, growth-oriented small and medium enterprises.
- The application process involves answering business and financial questions, completing a financial spreadsheet with historical and forecast financials, and providing details on the proposed project and costs. Applications will be assessed based on the quality of the project and business, as well as the need for funding.
Are you baffled by jargon when it comes to investing? At Huddle we want to educate everyone about peer to peer lending, and help you get to grips with the concepts behind crowdfunding so that you can make more informed choices about money matters. Follow our blog at www.huddlecapital.com for more educational content.
The document discusses peer-to-peer lending as a solution for small businesses struggling to access financing. It provides an overview of Funding Circle, a peer-to-peer lending platform that has facilitated over £165 million in loans to more than 3,000 small businesses since 2010. The document outlines Funding Circle's application process, loan terms, eligibility criteria, and fees. It also shares a case study of a property company that obtained a £300,000 loan through 4576 lenders on the Funding Circle platform at an interest rate of 9.98%.
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1. 1
Q&As UK MBA
1.0 The rationale and history of the UK municipal bond agency
Why launch a municipal bond agency?
The agency will be an independent company owned by local government with the
primary aim of reducing financing costs for councils through sourcing funding at
competitive interest rates
The agency will allow local authorities to diversify funding sources and borrow at
lower cost
The agency will be a visible demonstration of the credit worthiness of local authorities
and both increase the number of investors lending to the sector and make it easier
for them to do so
There are precedents evidencing the positive impact of municipal bonds agencies in
other countries – such as the Nordic region. Their success in reducing the borrowing
costs of local authorities has encouraged the establishment of agencies in other
countries, such as Agence France Locale in France
Why has there not been a municipal bond agency previously in the UK?
Sources of UK local authority borrowing have varied over the years, in the 1980’s
individual local authorities did issue bonds directly
Funding for local authorities has, in the recent past, mainly been through the Public
Work Loans Board (PWLB)/ Debt Management Office (DMO), which increased rates
in 2011
The Local Government Association’s ability to bring local authorities together has
been a major driver behind this initiative
The success of municipal bonds agencies in the Nordic countries provides a powerful
precedent for launching an agency in the UK
Is additional legislation required to enable the Agency to be established?
No. Councils have the necessary powers
2. 2
What's the potential size of the UK municipal bond market?
Local authority long term borrowing in Mar 2013 was £84.5 billion. ~75% of this was
through the PWLB/ DMO
The agency should, over time, capture a significant market share, by providing more
competitively priced lending
2.0 About the UK Municipal Bond Agency
How much will it cost to run the UK MBA? How long will it take to break
even? Who will pay for this?
It will cost less than £2million per year to run the UK MBA. The UK MBA will be run
effectively and efficiently, while maintaining robust processes and management.
The UK MBA will be paid for in an additional 10bps premium on the cost of debt
issuance shareholders and 15bps for non-shareholders. This will be reviewed over
time
The agency should reach break-even when it reaches £2billion in lending volume,
which is anticipated within the three years
Local authorities shareholders are providing the capital required to reach that point
Our project plans envisage that this will be used within a staged process, with a
number of checkpoints overseen by a rigorous governance process
How many people work for the UK MBA?
The UK MBA is run as a lean operation. We have only five full time staff, and we do
not envisage becoming significantly larger
What is the background of the UK MBA staff?
The UK MBA staff come from a diverse and complementary range of backgrounds in
finance and local government
What is the composition of the UK MBA Board of Directors?
The UK MBA has constructed a heavyweight board with proven and complementary
experience and expertise across local government, central government and capital
debt markets.
3. 3
3.0 Timelines for the launch of the UK MBA/ First Issue
When does the agency expect to launch its first bond?
We are currently busy putting in place the required processes and structure to create
a successful, long-term issuing programme for UK municipal bonds. We will be
making further announcements on our progress in due course.
Can you give us a timeline of when the above may be completed?
The process is ongoing, but we will only launch when the councils are ready to do so
Experience has shown it is more important to get the first bond issue right, than to get
it out quickly (the proof is AFL – the French agency who had a very successful first
bond issue following extensive consultation)
What price are you looking to achieve on the first issue?
The final price will depend on the exact nature of the issue and market conditions at
the time. As we’ve stated, we believe that UK MBA bonds will be highly attractive to
investors
What size issue do you want to achieve with your first issue?
Clearly we want to achieve a good sized issue with a diversity of councils involved
How many councils do you expect to be involved with your first issue?
Our aspiration is to have a decent number of councils on the first issue, but this
depends on the councils specific funding needs at the time of the first issue
What maturity do you expect the first issue to be?
This depends very much on the exact needs of councils and the market at the time,
but we would anticipate that the first issue be a medium term issue
4.0 UK MBA Shareholders
How many local authorities have signed up to supporting the UK MBA?
56 have signed up to provide the capital required to launch the UK MBA
These councils represent a broad spread across all regions, tiers and political control in local
government
4. 4
There is significant demand for an alternative, local authority controlled, source of
capital finance
A significant number of local authorities have been very supportive of the initiative to
date, devoting time and resources to help ensure that the business case is fully
robust
We continue to engage with local authorities throughout the UK, including future
potential shareholders. Our aspiration is, over time, for every UK local authority to
become a shareholder
How much capital has been invested in the UK MBA?
To date £6m has been raised from councils (& LGA) to launch the UK MBA. (It’s
important to note that this is to set up and run the agency – the agency is not a bank
and will not lend its own capital.).
How will councils recoup their investments?
It is envisaged that once the Agency is generating sufficient profit, it would be able to
start paying a dividend to shareholders, while delivering economic benefits to
borrowers
Its aim will be to deliver an overall benefit to the local government sector as a whole,
and any future dividend policy set by its board would be subject to that
Its shares will be transferrable and therefore a council could sell its shares to other
local authorities or eligible public bodies
5.0 UK MBA Borrowers
Will the Agency require councils to undergo a credit process?
Yes. Providers of finance, be they bond market investors, banks or non-bank
providers of credit will expect a credit process to have been undertaken
The credit process will underpin the agency’s credit rating, thus enabling it to achieve
the keenest rates of interest
The robust credit process, leveraging the Agency’s expertise, will be tailored to
councils and the Agency and will not be excessively onerous
Will borrowers have to pay interest rates higher than PWLB rates?
5. 5
We cannot foresee circumstances when this would occur
What happens if the Public Works Loans Board changes its interest
rates?
The effect of PWLB rate change on the Bonds Agency’s business would depend on
its amount and how permanent the change was
The business case assesses the risk from future PWLB competition
Nevertheless the Treasury has said publicly that reducing PWLB margins is not being
considered
What can local authorities use the money for?
Local authorities can only borrow for capital purposes or refinancing. Specific projects
will depend on each local authority, but we would anticipate funding being sought for
schools, housing, town centre developments, transport and other infrastructure
projects required to support local communities and economic development
Volumes of local authority borrowing have reduced recently, and there are a number
of reasons for this: low interest rates have resulted in councils doing more short term
borrowing from each other; many councils have a legacy of long dated debt overhang
and LOBO structures; and councils have reduced capital spending, partly driven by
reduced headroom on their revenue accounts and recent austerity measures
However, discussions with councils reveal significant demand for borrowing
What will be the impact on local government borrowing costs?
Currently local authorities borrow from the PWLB/ DMO, predominantly at a rate of
80 bps above gilt rates, for the majority of their borrowing requirements
We expect the agency to be able to deliver significant savings on borrowing costs
The larger, more liquid issues that the municipal bond agency would create are more
attractive to investors
6.0 UK MBA Investors
Who are likely to be the UK MBA’s investors?
Any investor who wants to buy high quality sterling paper.
6. 6
What bond rating does the UK MBA expect to get?
We believe that the agency will receive an attractive rating that reflects the credit
strength of UK councils and the joint and several guarantee
The exact rating is a decision for the credit agencies
Who will underwrite the municipal bonds if local authorities default on
them?
The agency will benefit from a joint and several guarantee of the borrowers
The risk of default is very low, with no UK local authority ever having defaulted
Local authorities (and their financial officers) are subject to statutory controls to
protect against the risk of default, for example the Prudential Code and the need to
have a balanced annual revenue budget
What controls are in place to prevent a default and what measures are
available to a council to recover sums owing to it?
There are a range of controls designed to prevent a Local Authority from defaulting
on its obligations
In addition, there are legislative measures that are likely to ensure that even if a Local
Authority does default, its creditors are able to recover sums owing to them
These controls and measures include:
o Councils are statutorily prevented from borrowing to avoid raising taxes and
cutting spending, thereby reducing the risk of a council entering financial
distress
o The prudential code forces councils to consider whether borrowing is affordable
and financially sustainable
o The responsibility of Section 151 officers under Section 114 of the Local
Government Finance Act 1988 to ensure that councils can meet their
obligations as they fall due, and to formally report if the council’s expenditure
will exceed its resources
o Continuing access to the PWLB for liquidity support
o Government reserve powers to intervene. To date, the Government has not
allowed any Local Authority to default on its obligations
o If a Local Authority defaults on a debt greater than £10,000 for a period of two
months, under Section 13(5) of the Local Government Act 2003 a creditor may
apply to the High Court for an administrator to be appointed. This process
should ensure that any Local Authority that is called upon under the guarantee
can recover the debt via the courts if need be. The powers of the administrator
will be determined by the High Court, but can include:
7. 7
Collecting, receiving or recovering the revenues of the local authority o
Issuing levies or precepts; or
Setting, collecting or recovering Council Tax
In addition, the Agency will have a robust liquidly process
Is it legal for councils to guarantee each other’s debts?
Council opinion, obtained by the Local Government Association, confirms that the
General Power of Competence (GPC) introduced in the Localism Act 2011 gives
English councils the power to guarantee each other’s’ debts
Because the GPC does not cover other public bodies such as Police, Fire and
National Park Authorities, it is less clear whether they could do the same without a
change in the legislation, which applies to them
7.0 The impact of the UK MBA on Government
What impact will this proposal have on the Government’s control of
overall government borrowing?
Nothing in this proposal seeks to change existing arrangements
The proposals do not facilitate additional borrowing over what is already permitted
within the capital regulatory system
The existing arrangements with the Government retaining ultimate regulatory control
are to be maintained and borrowing authorities will be required to operate within the
current prudential code
What it will do is, for any given level of borrowing, reduce the interest bill local
taxpayers have to fund
Does it have Ministerial support?
The Government’s view is that it is within the powers of local authorities to establish a
municipal bond agency
Ministers have said, “It remains for the local authority sector to determine collectively
whether a local authority bond agency could be delivered on a sustainable and
affordable footing. It is consistent with the localism agenda that the autonomous local
government sector considers whether it is able to deliver and sustain alternative
financing models.”