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2008 Conference of the AMF Scientific Advisory Board Structured finance products: what are the challenges for markets and regulators? - 2nd October 2008

Since summer 2007, financial markets worldwide have been shaken by severe turmoil, initially set in motion by the subprime crisis in the United States. The extensive development of securitisation, which allowed credit risk to spread to a broad swathe of investors and encouraged massive leverage, rapidly amplified the crisis, which rip­ pled out to affect every segment of the financial markets The structured finance market has expanded at an exceptional pace since the beginning of this decade. The driving forces have been strong demand from institutional investors in search of yield, non­ stop innovation and accelerating disintermediation on a broad scale. At first confined to conventional instruments for transferring credit risk by securitising receivables, this market has quickly evolved to encompass synthetic instruments based on products such as credit derivatives. Now, because of its diversity and complexity, the credit market as a whole has become a critical area of focus for regulators. . With this sensitive context in mind, the French securities regulator, the Autorité des marchés financiers (AMF), is devoting the 2008 Conference of its Scientific Advisory Board to the challenges of struc­ tured finance, both for markets and for regulators. Since this topic straddles market regulation and prudential and banking supervision, the AMF is organising the conference jointly with the Banque de France. Thus, co­chairing the event are Michel Prada, AMF Chairman, and Christian Noyer, Governor of the Banque de France. The first part of the conference will examine the features of structured finance products and their role on financial markets. The second will address questions of liquidity and credit risk contagion and management.

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Updated on: 10/05/2017 16:02