The Spanish renewables market is highly competitive. Market pricing is increasingly less reliant on subsidy. Spain is committed to growing renewable power capacity by approx. 50GW by 2030. This Market Insight examines some recent initiatives and significant steps being taken to reduce carbon emissions, including the impact of increased cross-border investor interest.
The Covid-19 pandemic has a big impact on the economy and the banking sector. Since the implementation of IFRS9 in 2018, banks have to take large provisions early on in a crisis. Bank capital will become tighter and consequently banks will be less able to support a speedy economic recovery. Securitisation techniques may help banks address unwanted fluctuations in IFRS9 loan loss provisions. Mike Nawas from Bishopsfield Capital Partners, weighs up the advantages and disadvantages, in an article he published in Dutch together with his colleagues at Nyenrode Business University.
Read the article in Dutch: IFRS-9 kan economisch herstel in de weg zitten
Peer-to-peer (“P2P”) and peer-to-business (“P2B”) platforms have changed the dynamics in the credit markets. They have become more appealing and useful to the public. In addition, they have become increasingly attractive to investors, who are either looking to invest in P2P and P2B companies themselves, or to utilise borrower-lender matchmaking services offered in these platforms. However, as access to credit becomes progressively effortless thanks to these platforms, market failures surface. Given the significance P2P and P2B platforms have gained in the corporate credit market, we examine whether it possible to mitigate these market failures.
This paper discusses how a lender must balance mitigating relationship damage whilst not limiting legal remedies if a borrower breaches its debt facility agreement. We argue that adopting measured communication strategies to complement robust legal responses is essential and enhances the likelihood of an efficient and effective resolution.
This paper examines relative value amongst certain groupings of debt instruments typically classed under the banner of infrastructure debt. We observe that triple-B rated investment-grade rated debt within the Infrastructure & Transport sub-category offer the most consistent, risk adjusted returns across the maturity spectrum, whilst single-A rated bonds in the Energy & Utility sub-category offer the greatest value – at the long-end of the maturity spectrum, after adjusting for expected losses.
The promise of blockchain, the technology behind Bitcoin, is to make financial services more efficient and secure. Clever coding and sophisticated cryptography are said to remove the need for middlemen and supervisors to validate transactions. Will blockchain-enabled Fintech start-ups indeed disrupt the financial services industry, or is a more collaborative approach more likely?