April 5, 2019 | Issue 277
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Nominations for the 2019 SFIG Board of Directors Now Open
SFIG is now accepting nominations for its Board of Directors in anticipation of the June 2019 Board rotations. Eligibility for a position on the SFIG Board of Directors is limited to individuals employed by SFIG's primary members. Members may nominate themselves or another qualified industry participant.
View SFIG Board Member responsibilities here
.
SFIG's Nominating Committee will review nomination submissions, research and vet candidates, and make recommendations to the current Board of Directors for approval. The Nominating Committee is dedicated to selecting a balanced Board of Directors that is reflective of the membership and the industry at large, and is committed to advancing the principles of SFIG.
Board of Director terms are for two years. Nominations for the Board of Directors will be accepted until
Friday, April 12, 2019
.
If you have any questions or require any clarification around the nominating process, please email
[email protected]
.
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SFIG Submits Response to IBA on Bank Yield Index
On Friday, March 29, SFIG responded to the ICE Benchmark Administration’s proposal to provide a replacement benchmark rate
in anticipation of LIBOR’s
phase-out after 2021. The
proposal
is for
a U.S. Dollar ICE Bank Yield Index which would provide forward-looking term rates and be based on the unsecured debt obligations of a broad set of large, internationally active banks. SFIG’s
letter
sets forth membership’s preference for a forward-looking term rate, but also addresses concerns that members have identified in the current proposal.
Please contact
Hunter Hamrick
if you would like to join SFIG’s LIBOR Task Force.
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House Financial Services Committee
- Tuesday, April 9 at 10:00 AM
- The Subcommittee on Consumer Protection and Financial Institutions: “The Community Reinvestment Act: Assessing the Law’s Impact on Discrimination and Redlining.”
- Tuesday, April 9 at 2:00 PM
- Full Committee: “The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System.”
- Wednesday, April 10 at 9:00 AM
- Full Committee: “Holding Megabanks Accountable: A Review of Global Systemically Important Banks 10 years after the Financial Crisis.”
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Senate Votes to Confirm Calabria to Lead FHFA
On Thursday, April 4
th
, the Senate voted to confirm Mark Calabria as Director of the Federal Housing Finance Agency (FHFA), by a 52-44 vote. Dr. Calabria most recently served as the Chief Economist to Vice President Pence and worked as a staffer on the Senate Banking Committee, where he was involved in drafting the original legislation that created the FHFA.
As FHFA Director, Dr. Calabria will play a critical role in the Trump Administration’s efforts to reform housing finance, which were on display last week when President Trump released a memorandum directing federal official to develop a plan for releasing Fannie Mae and Freddie Mac from the decade-long conservatorship.
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SOFR Swaps Use Hits Record High for March
A record $13.6 billion in swaps linked to the Secured Overnight Financing Rate (SOFR) were traded in March, nearly twice the previous record high in January, according to the
Wall Street Journal
. The rise in trades indicates that market participants may be concerned about big moves in the near future, according to the article. Investors may be using SOFR swaps to hedge against a repeat of the volatility that hit the market at the end of the fourth quarter.
“It’s a very positive thing that market participants are using SOFR derivatives as another tool to manage risk,” said Thomas Pluta, Global Co-head of Rates Trading at
JPMorgan Chase
. “[It] indicates the continued development of the market.”
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Fed Considers Overnight Standing Repo Facility to Lessen SOFR Quarter-end Spikes
The Federal Reserve (Fed) may be considering an overnight standing repo facility, according to
Risk.net
, to effectively cap both the Fed funds and repo rates, and tame quarter-end spikes. On the last day of 2018, the repo rate shot up 147% to an intraday high of 7.25%. The idea of new “ceiling tools” and a repo facility emerged after this spike.
Such a facility could also result in major policy shifts, the article explains. If the Fed is seen to be steering repo rates, it could elevate the Secured Overnight Financing Rate (SOFR) to a monetary policy standard in the eyes of the market.
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Mortgage Investors Turn Away from Swaps
According to
Bloomberg
, mortgage investors are reducing their demand for interest rate swaps, indicating yields may have bottomed out. Spreads on the 10-year T-Bill have widened since hitting its tightest level since October 17
th
last week. The article also mentioned investor demand for a duration hedge has also cooled, though it noted that a drop in the 30-year mortgage rate below four percent could reignite demand.
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LIBOR Task Force
Wednesday April 10, 2019
4:00-5:00 PM ET
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Private Label RMBS Committee
Monday April 8, 2019
1:30-2:30 PM ET
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Announcing the Women in Securitization Spring Event
SFIG’s Women in Securitization (WiS) Steering Committee is excited to announce its
Spring Event
, a panel presentation to discuss Insights on Advancing Your Career in a Male-Dominated Industry. The featured panelists will share personal insights on lessons learned throughout their careers and tips on how women can achieve success.
Join us on
Tuesday, May 14,
at The Edison Ballroom in New York City for this exciting opportunity to gain exclusive insights from our panel of esteemed executives and to connect with others in the industry.
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