The U.S. consumer finance market has come a long way since the depths of the global financial crisis. By most metrics, the market has not just climbed back to the peak, but is continuing to rise to new heights. Asset Backed Securities (ABS) has become a key part of that ascent, as lenders look to extend both secured and unsecured consumer credit. Growth policies under the new U.S. administration could affect specific consumer ABS sectors.
As 2021 fast approaches, the burning question of what indices will replace LIBOR (London Interbank Offered Rate) comes to the forefront. LIBOR scandals have caused the creation of alternative indices options. The impact to the Asset-Backed Securities (ABS) market could be significant as there are billions of dollars of residential mortgage loans in the U.S. that are tied to LIBOR.
Trustees are a vital component of reinsurance, and choosing the right one can be the difference between a smooth experience and a sticky one. The true cost of a trust is defined by more than the dollars, and the time you spend as a grantor or a beneficiary of a reinsurance trust must also be considered. Some trustees understand the nature of the reinsurance trust business better than others.