Examples of using Structured finance instruments in English and their translations into Hungarian
{-}
-
Financial
-
Official
-
Colloquial
-
Medicine
-
Ecclesiastic
-
Programming
-
Official/political
-
Computer
Information on structured finance instruments.
Additional obligations in relation to credit ratings of structured finance instruments.
Under certain circumstances structured finance instruments may have effects which are different from traditional corporate debt instruments. .
This rule imposes disclosure requirements to issuers of structured finance instruments.
For structured finance instrumentsHence, registered or certified credit rating agenciesshould have the right to access a list of structured finance instruments that are being rated by their competitors.
Article 8a Information on structured finance instruments« 4.
This Regulation also lays down obligations for issuers,originators and sponsors established in the Union regarding structured finance instruments.".
Article 8a Information on structured finance instruments.
(20) Due to the complexity of structured finance instruments, credit rating agencies have not always succeeded in ensuring a sufficiently high quality of credit ratings issued on such instruments. .
ESMA shall set up a webpage for the publication of the information on structured finance instruments in accordance with paragraph 1.
The information for this rating should be provided by the issuer or a related third party for thepurpose of the issuance of unsolicited competing ratings on structured finance instruments.
Therefore credit rating agencies should either usedifferent rating categories when rating structured finance instruments or provide additional information on the different risk characteristics of these products.
Recent events have opened up the possibility of identifying the failures of their action and of re-examiningtheir status as certifiers of the subjects of their analysis: companies, the public sector, and structured finance instruments.
Other amendments aim at addressing the risk of over-reliance on creditratings by financial market participants as regards structured finance instruments and at increasing the quality of the credit ratings regarding such instruments: .
Article 8b: this new article requires issuers(or their related third parties) who solicit a rating to engage two credit rating agencies, independent from each other,to issue two independent credit ratings in parallel on the same structured finance instruments.
Issuers of structured finance instruments such as credit institutions, banks and investment firms will also have to provide all other interested CRAs with access to the information they give to their own CRA, in order to enable them to issue unsolicited ratings.
As you know, CRAs rate three different sectors- the public sector,companies and structured finance instruments.
A credit rating agency which, in accordance with paragraph 2,accesses the information referred to in paragraph 1 for more than 10 structured finance instruments within one calendar year shall issue, within the same calendar year, credit ratings in respect of at least 10% of the structured finance instruments in respect of which it accessed the information.
A credit rating agency shall record all instances where in its credit rating process it downgrades existing credit ratings prepared by another creditrating agency with respect to underlying assets or structured finance instruments providing a justification for the downgrade.
In cases where the lack of reliable data or the complexity of the structure of a new type,in particular structured finance instruments, raises serious questions as to whether the credit rating agency can produce a credible credit rating, the credit rating agency should refrain from issuing a credit rating or withdraw an existing credit rating.
Provided they satisfy certain organisational and confidentiality conditions, competing CRAs should be given access, upon request, by the rated entity ora related third party to the information given for the purposes of rating structured finance instruments to the CRAs it hires.
Credit rating agencies(CRAs) provide ratings for three different sectors- the public sector,companies and structured finance instruments- and played a significant role in the path that led to the financial crisis, through the assignment of faulty ratings to structured finance instruments, which had to be downgraded on average three to four notches during the crisis.
This additional information should facilitate that investors, such as UCITS or AIFs, could make their own credit risk assessments and need not systematically and mechanically rely on credit rating agencies to assess the creditworthiness of the instruments, in particular structured finance instruments, in which they invest.
In order to avoid possible conflicts of interest arising for the CRA under the issuer-pays model, to enhance transparency and to increase competition among CRAs,issuers of structured finance instruments should be required to give access to the information which they have given to the CRA they hired for the purpose of rating structured finance instruments to competing CRAs.
The credit rating agency infringes the second subparagraph of Article 8(4) by not recording all instances where in its credit rating process it departs from existing credit ratings prepared by another creditrating agency with respect to underlying assets or structured finance instruments or by not providing a justification for the differing assessment.
In order to avoid possible conflicts of interest arising for the CRA under the issuer-pays model whichare particularly virulent regarding the rating of structured finance instruments, to enhance transparency and to increase competition among CRAs, issuers of structured finance instruments or related third parties should be required to give access to the information which they have given to the CRA they hired for the purpose of rating structured finance instruments to competing CRAs.
The requirements to use external credit ratings in legislation, the excessive use of external ratings for internal risk management by investors, the investment strategies directly linked toratings as well as the insufficient information on structured finance instruments results in overreliance on external credit ratings leading to procyclicality and"cliff" effects9 in capital markets;
In particular, when a structured finance instrument is rated, it shall provide information about the loss and cash flow analysis it has performed.
Where a credit rating agency rates a structured finance instrument, it shall provide in the credit rating information about loss and cash-flow analysis it has performed.
Issuers of structured financed instruments should provide more information on their products to the market, including information on the credit quality and performance of the individual underlying assets of the structured finance instrument, the structure of the securitization transaction, the cash flows or any collateral supporting a securitisation exposure.