Sector developments and company hires

RFC issued on LGD proposal
The EBA has published a consultation paper on draft Regulatory Technical Standards specifying the types of factors to be considered when assessing the appropriateness of risk weights and minimum loss given default (LGD) values for exposures secured by immovable property. Relevant authorities, as designated by a Member State, may set higher risk weights or impose stricter criteria on risk weights, or increase the minimum LGD values when two conditions are met.

The first condition is when risk weights do not adequately reflect the actual risks related to the exposures secured by mortgages on residential property or commercial immovable property, or that the minimum LGD values are not adequate. The second is when the identified inadequacy of these risk weights or minimum LGD values could adversely affect current or future financial stability in the Member State.

The draft RTS focus on the first condition. For institutions applying the standardised approach (SA), these draft RTS specify the types of factors that authorities should consider during the risk weight assessment on the basis of the loss experience of exposures secured by immovable property and forward-looking immovable property market developments. For institutions applying the internal ratings-based (IRB) approach to retail exposures secured by residential or commercial immovable property, these draft RTS provide conditions to be considered when assessing the appropriateness of minimum LGD values.

Comments on the consultation should be submitted by 29 July. A public hearing is scheduled for 30 June.

In other news…

EMEA
Arrow Global has named Marco Grimaldi head of fund portfolio management, Italy. He will be responsible for the Italian portfolio management of the Arrow Credit Opportunities 1 Fund book and Arrow Global back books. Grimaldi was previously co-ceo of Whitestar Asset Solutions, prior to which he worked at Zenith Service, Commerzbank and ABN AMRO.

Alberto Marone has been appointed md for Intrum’s operations in Italy, having previously been group investment director at the firm. Since 2018, he has also been part of Intrum Italy’s senior management team, where he covered the role of head of M&A and strategy for the joint venture with Intesa Sanpaolo. Prior to joining Intrum, Marone worked as director at UBS Investment Bank in London, focusing on capital market activities with European financial institutions and sponsors.

Marone will report directly to president and ceo Anders Engdahl and be a member of Intrum’s group management team. He replaces Marc Knothe, who takes on the role as md for Intrum Germany and Austria.

General QM rule delayed
The CFPB has delayed the mandatory compliance date of the General Qualified Mortgage final rule from 1 July 2021 to 1 October 2022 (SCI 4 March). The move is designed to help ensure access to responsible, affordable mortgage credit and preserve flexibility for consumers affected by the Covid-19 pandemic and its economic effects. Delaying the mandatory compliance date of the General QM final rule allows lenders more time to offer QM loans based on a homeowner’s debt-to-income (DTI) ratio, rather than certain pricing thresholds.

North America
Eagle Point Credit Management has recruited Sam Yoon as a vp, reporting to principal and portfolio manager Dan Ko. Yoon will work alongside Patricia Antonios, director, assisting the senior investment team in CLO debt trading and portfolio management. Prior to joining Eagle Point, he was a vp at Good Hill Partners, where he was a member of the firm’s CLO investment team. Before that, he was an associate portfolio manager at MKP Capital Management, also focusing on CLO investing.