Moody's Talks - Focus on Finance

We discuss how differences in regional regulatory regimes and market structures affect life insurers’ allocations to private credit investments, and lay out those investments’ benefits and risks.Speakers: Benjamin Serra, Senior Vice President, Moody’s Ratings; Will Keen-Tomlinson, VP-Senior Analyst, Moody’s RatingsHost: Danielle Reed, VP – Senior Research Writer, Moody’s RatingsRelated research:Life Insurance – Cross Region: Regulation contributes to material differences in private credit allocationInsurance-Global: Insurers’ growing private credit investment brings more benefits than risks

Moody’s Ratings analysts explain why Japan’s regional banks are vulnerable to yield-curve steepening and predict strong loan growth, and higher funding costs, for India’s non-bank finance companies.Speakers: Kensuke Ogawa, Analyst, Moody’s Ratings;  C.J. Wong, AVP- Analyst, Moody’s RatingsHost: Danielle Reed, VP – Senior Research Writer, Moody’s RatingsRelated Research:Regional banks – Japan: Strong liquidity will mitigate increasing risks from rising ratesNon-bank finance companies – India: Credit fundamentals improving backed by strong economy amid rising funding costs

As the regulatory environment continues to evolve, US and European banks have sought regulatory capital relief by offloading the credit risk of loans they make via special types of transactions.Guests: Warren Kornfeld, Senior Vice President at Moody's Ratings; Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Frank Cerveny, VP-Senior Research Analyst at Moody's RatingsHost: Aaron Johnson, VP-Senior Research Writer at Moody's RatingsRelated reports:Auto ABS - US: Credit-linked notes include risks not seen in typical auto ABS; issuance is risingBanks and Structured Finance – US: Risk transfer gives banks protection, but more capital is better; ABS implications varyBanks and Structured Finance – Europe: Output floor proposal could erode benefits of SRT for regulatory capital and risk management purposes

We talk to Joe Lyons of Bitsight about the growing risk from deepfakes in the age of GenAI. Speakers: Joe Lyons, VP, Cyber Risk & Ratings Research, Bitsight;  Abhi Srivastava, AVP-Analyst, Moody’s RatingsHost: Danielle Reed, VP – Senior Research Writer, Moody’s RatingsRelated Research: Digital Economy – Cross Region: GenAI-powered deepfakes introduce new and transformed credit risks

Shortening the settlement cycle is a complex undertaking for a clearing house and its members, but once the transition is complete, it will reduce counterparty risk.Speakers: Peter Nerby, Senior Vice President, Moody’s RatingsHost: Danielle Reed, VP – Senior Research Writer, Moody’s RatingsRelated Research:Exchanges & Clearing Houses – North America: Shift to T+1 settlement has near-term risks for securities firms but will benefit financial markets

Alternative asset managers seek removal of barriers to private markets for individual investors. Regulators are supportive but also wary of potential dangers.Speakers: Alexandra Aspioti, VP-Senior Analyst, Moody’s RatingsHost: Danielle Reed, VP – Senior Research Writer, Moody’s RatingsRelated Research:As individual investors drive growth in private markets, risks also rise

Companies have responded to weather-related losses and higher reconstruction costs with sharp increases in premiums and tighter policy terms, and some have exited high-risk regions.Speakers: Evelyn Ocas Salazar, AVP Analyst, Moody’s RatingsHost: Danielle Reed, VP – Senior Research Writer, Moody’s RatingsRelated Research:Property & Casualty Insurance – US: Homeowners insurers aim to boost profits as weather-related losses, inflation take tollFor more, listen to our Muniland episode: Insurance crisis poses credit risks for hurricane-prone Florida and Louisiana

Anthony Moro, CEO of Provenance Blockchain Foundation, discusses how blockchain technology is revolutionizing finance through tokenization. The podcast explores the benefits of tokenization in enhancing asset liquidity, secure communication, and transitioning traditional asset classes to blockchain technology.

Moody’s analysts explore green finance, discussing greenwashing risk, the EU green loan market, and how clear standards and rules – and blockchain technology – could play a positive role.Speakers: Michael Dion, VP – Senior Analyst, Moody’s Ratings; Alberto Postigo, VP – Senior Credit Officer, Moody’s Ratings; Abhi Srivastava, AVP Analyst, Moody’s RatingsHost: Danielle Reed, VP – Senior Research Writer, Moody’s RatingsRelated Research:Asset Managers – Global: Despite growing regulation, greenwashing is a persistent riskBanking – Europe: Proposed green loan definition to support banks' alignment with climate targetsDigital Finance – Cross Region: Blockchain can bring rigor and efficiency to ESG management, data and reporting

Basel 3.1 reforms will lead banks to apply high haircuts to unsustainably high property values and adjust mortgage risk weights to better differentiate between low-risk and high-risk loans.Speakers: Alexander Zeidler, VP-Sr Credit Officer at Moody's Ratings; Guillaume Lucien-Baugas, VP-Senior Analyst at Moody's RatingsHosts: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings; Danielle Reed, VP-Senior Research Writer at Moody's RatingsRelated Research:Basel 3.1 will reduce risk of boom and bust property cycles, boost private credit marketRising interest rates will weaken commercial property values and raise refinancing riskExplanatory comment – Haircuts smooth CRE values through the property market cycle