fbpx

Investment & Insurance Blog

Currently browsing Latest Posts

Structured Product – Counterparty League Tables: November 2019

If you are looking at investing in Structured Investment and Deposit products – simply click the link to review the quality of the issuer’s credit rating ranking.

Meteor have recently published the latest league tables which assists with information relating to respective strength of a range of global investment banks.

Click the link to read the article and understand more about the tables:

https://meteoram.com/counterparty-league-tables-november-2019/?utm_source=Meteor+Asset+Management&utm_campaign=0faa10195d-EMAIL_CAMPAIGN_2018_11_08_01_17_COPY_01&utm_medium=email&utm_term=0_4a14b74b61-0faa10195d-255087973

The data used was sourced from Bloomberg on 26 November 2019 – as confirmed by Meteor.

  • Credit ratings represent an assessment of the creditworthiness of an institution.  Moody’s, Fitch and Standard & Poor’s make up the majority share of the credit rating industry and their ratings are watched especially closely when it comes to banks.  The ‘ranking by’ has been placed in perceived order of strength.
  • Credit Default Swap (CDS) rates allow investors to gauge how risky an entity’s debt is perceived to be relative to other entities based on market supply and demand.  Higher CDS rates are considered riskier because higher premiums are paid to ‘insure’ against the higher risk of a credit event.Investors will be aware of the term ‘Systemically important bank’.  The influence an institution has on global financial markets directs the level of consideration in respect of being a ‘systemically important bank’.Since 2011, the Financial Stability Board has published a list of banks categorised as such and ranks the banks in buckets corresponding to the ‘importance’ – detailing the capital buffer required.  The higher the requirement, the greater their perceived importance.

Click the link to read more about various products, views and details about the sector generally:

https://www.bestpricefs.co.uk/structured-products/

Important Regulatory Statement – The small print and literally!

The information in this article is not written to provide a recommendation to invest based upon the data.  Advice to invest must be specific to an investor’s needs, goals and risk tolerance, considering ability to suffer capital loss.

The information provided has been produced by a third party, based upon information gathered, as at the date provided.  We do not undertake to update this information and cannot be held responsible for the accuracy and views.

As always, if you require advice, simply get in touch.

Yuletide Greetings.

Best Price FS Team