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Delinquency Rates on Loans and Leases at Commercial Banks are spiking!

Delinquency Rates on Loans and Leases at Commercial Banks are spiking!

Source: https://www.federalreserve.gov/releases/chargeoff/delallsa.htm Credit Cards: All Consumer Loans: Delinquency Rate on All Loans, All Commercial Banks: On the consumer side, this lines up with the Survey of Consumer Expectations: U.S. households probability of being able to come up with $2,000 if an

Survey of Consumer Expectations

Survey of Consumer Expectations: U.S. households probability of being able to come up with $2,000 if an unexpected need arose within the next month falling to its lowest level since 2013.

Source: https://www.newyorkfed.org/microeconomics/sce/credit-access#/financial-fragility1 Wut Mean?: Overall Decline in Consumer Credit Demand (2023): * General weakening in most credit application rates. * Credit card limit increase applications rose. Rejection Rates Trends: * Overall rise in rejection rates for credit applications. * Decline in rejection rates for credit card limit

Joint Industry Plan to Address Extraordinary Market Volatility

OPEN for comment: Joint Industry Plan to Address Extraordinary Market Volatility for all exchange-traded products (“ETPs”) except for single stock ETPs--for example, those providing exposure to GameStop...

Purpose: Appendix A to the Plan sets out the definitions of Tier 1 and Tier 2 NMS Stocks and the Percentage Parameters for each. Appendix A currently provides that Tier 1 includes all NMS Stocks included in the S&P 500 Index and the Russell 1000 Index, as well

Relating to the GSD and MBSD Schedules of Haircuts for Eligible Clearing Fund Securities

FICC & MBSD also have a new Haircut Schedule effective 12/4/23.

Background: Wut Mean?: FICC's Role: * Acts as a central counterparty. * Provides clearance and settlement services for U.S. government and mortgage-backed securities. Margin Collection: * Collects daily margin from members to manage credit exposure. * GSD and MBSD Clearing Funds created from aggregated margins. Purpose of Clearing Fund: * Mitigates potential

Implementation of Changes to NSCC’s Collateral Haircut Schedule

NSCC Alert! New Haircut schedule will become effective 12/4/2023. Why? IDIOSYNCRATIC RISK!

November 8th NSCC Approved the rule: We have talked about this before and I was confused about timing (sorry!), as the item published in the federal register was for an additional waiting period for comments before being approved by the commission (which it was 11/8) 60 days from November

Proposed Rule Change

NSCC proposes updating MLA charge by moving all exchange traded products (other than those deemed to be Illiquid Securities) into the equities asset group & calculating impact cost at the security level along with ETF tweaks.

Purpose: Wut Mean?: These proposed changes aim to make the calculation of the MLA charge more accurate, particularly in the context of liquidating exchange-traded products and equity ETFs. Refinement of Calculation: * The proposal includes refining how the MLA (Market Liquidity Adjustment) charge is calculated for liquidating securities or portfolios. Changes

William Birdthistle Director, Division of Investment Management

SEC's Birdthistle: "The population of private funds in this country stands currently at almost 100,000, approximately 54,000 of which are advised by SEC-registered investment advisers and 40,000 by SEC-exempt reporting advisers."

Highlights: * "The population of private funds in this country stands currently at almost 100,000, approximately 54,000 of which are advised by SEC-registered investment advisers and 40,000 by SEC-exempt reporting advisers." * "The former comprise more than $21 trillion in gross assets under management; the latter,