Sector developments and company hires

NPR issued on GSE capital framework
The FHFA is seeking comment on a notice of proposed rulemaking that would amend the Enterprise Regulatory Capital Framework (ERCF) for Fannie Mae and Freddie Mac. The proposed amendments would refine the prescribed leverage buffer amount (PLBA) and the capital treatment of credit risk transfers (CRT) to better reflect the risks inherent in the GSEs’ business models and to encourage the distribution of credit risk from the enterprises to private investors.

Specifically, the proposed rule would: replace the fixed PLBA equal to 1.5% of a GSE’s adjusted total assets with a dynamic PLBA equal to 50% of the enterprise's stability capital buffer; replace the prudential floor of 10% on the risk weight assigned to any retained CRT exposure with a prudential floor of 5% on the risk weight assigned to any retained CRT exposure; and remove the requirement that an enterprise must apply an overall effectiveness adjustment to its retained CRT exposures.

Comments on the proposed rule must be submitted within 60 days of its publication in the Federal Register.

In other news…

APAC
Monroe Capital has expanded its platform to Asia, with the appointment of Alex Kim as md and head of Asia. He will be based in the firm’s newly opened office in Seoul, South Korea.

Prior to Monroe, Kim was the ceo and md of Korea and head of Southeast Asia institutions at Aberdeen Standard Investments. He has over 20 years of experience in asset management and banking, with 15 years spent in the Asia Pacific region. Prior to Aberdeen Standard Investments, he held roles at Russell Investments, RBS and PIMCO.