Archives: Capital Markets

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Regulator takes action to address risky lending practices

On 4 July 2017, the Prudential Regulation Authority (“PRA”) released a statement on consumer credit (“Statement”), following a review of consumer credit lending (“PRA Review”). The review included the examination of PRA regulated firms’ underwriting practices for credit cards, unsecured personal loans and motor finance.   As readers will be aware, there has been a good deal … Continue Reading

Closing out derivative contracts following Brexit

Since the shock Brexit vote on 23 June there have been big movements in a number of financial markets, as participants of all types reposition themselves for the period of uncertainty that the leave vote has ushered in. Regardless of the eventual terms of a UK exit from the EU, market movements that have already happened can be … Continue Reading

The dangers of short selling in secondary market debt trades

A recent case in the English High Court has provided a timely reminder to broker dealers and investment funds trading high yield bond and loan tranches on the secondary market of the problems that can arise if a chain of trades breaks down. Molton Street Capital LLP v Shooters Hill Capital Partners and Odeon Capital … Continue Reading

The Canary Wharf “Spens” case: why Welsh caravan parks are a danger to the financial markets

The Oxwich Leisure Park on Wales’s Gower Peninsular might seem a world away from the concerns of Noteholders of a Canary Wharf securitisation following the sale of a £795 million skyscraper. But a decision in the Commercial Court last week (28 January 2016) showed how in the one-size-fits-all world of English contract law they can … Continue Reading
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