Meet specialists and management representatives from all well-known banks, originators and arrangers, international investors, law firms, auditing companies, rating agencies, consulting companies and service providers as well as representatives of supervisory authorities, politics and business! The annual TSI Congress is also proving to be of growing interest for treasurers and CFOs from large German "Mittelstand" companies. Nearly 40 discussion forums and workshops, together with a number of business events, will provide extensive information and numerous opportunities to establish contact and network with others.
Major topics that will dominate the world of finance and real economy in early autumn 2018 are already beginning to show.
Implementation of STS securitisation regulation – consequences for the securitisation markets
The new rules on STS securitisation have been issued and will be implemented in 2018/19. While applying the standard approach will provide benefits in the southern countries, it will affect the different asset classes of the German securitisation market in different ways. The effects on the strongly represented ABCP transactions in Germany in particular will be significant, and its impacts on synthetic transactions should not be underestimated either. With the level 2 and level 3 regulations yet to be implemented, it is certainly too early to make a conclusive assessment, but the TSI Congress in autumn 2018 will probably come at just the right moment to gain clarity in this regard. Until then, TSI will do all it can to inform the debate and help structure the further steps in a way that serves the market.
Auto ABS – important also under STS
The asset class auto ABS continued to gain in importance as a financing instrument in the years 2016/2017, especially as ABS bonds moved considerably better through the diesel crisis than unsecured financings. Even in the new STS regulatory environment, the instrument will remain important for the automotive industry although some questions still probably have to be answered with regard to the interpretation of some of the regulatory requirements.
New alternative financing solutions and their impacts on banks
CLOs, FinTechs and credit funds are driving the lending business; insurance, family offices and pension funds are investing in corporate financings. For banks, this generates new competition but also offers new, diverse partnership models. The topic of alternative financings offers a number of starting points for 'alternative investments' – from regulation to new market opportunities. And the instrument of securitisation plays a significant role – not only for the CLOs.
Brexit – the last act
The time for the EU to strike a Brexit deal with the UK will run out in March 2019. What the further Brexit roadmap will look like should be apparent by autumn of 2018. By then, many finance institutions will surely have moved their registered office to the continent. But the strengthening of Germany as a financial location will be met not just with joy but with concern over the effects Brexit has on the proven, established production networks in the European finance industry. Securitisations are also impacted, given the high involvement of UK transaction partners and UK investors, and the high investments by investors from continental Europe in British transactions.
Interest reversal and stability in Europe
At first glance Europe appears to be running smoothly. Growth is returning, the populist threat appears to have been averted, and capital markets are breaking records. But if we take a closer look, the old issues – which include high sovereign debt, the unfortunate connection between bank risks and state risks, productivity gaps between countries – have not been resolved, as recently demonstrated by the permanent discussion of the NPL problem in Italy. Are Europe's pressing challenges only postponed, not resolved? In this environment, what will the imminent interest rate turnaround bring?
Green finance – a topic gathering steam
Until recently it was only a side issue, but green finance is now on everyone's lips. Climate and environmental aspects have now reached the finance industry, too, making demands on sustainability and social responsibility. Apart from green bonds, some green ABS bonds and even green synthetic ABS bonds entered the market in 2017, and we can expect to see more of them in 2018.
Digitalisation and new paradigms
Digitalisation, block chain, e-mobility – industrialised countries are facing numerous disruptive paradigm shifts at the same time. The finance industry and its processes are not being spared by these shifts, which are also changing the corresponding risk analyses and assessments in a fundamental manner. So they can hardly be separated from financial topics. We will delve deeper into the associated impacts on the finance industry in the upcoming TSI Congress – and not just at the traditional wine evening.
TSI Congress 2018 ... where the community meets!