• Loans

    Billions In Office Loans At Risk Of Distress As Tenants Flee Older Buildings

    Many questions about the office market’s future remain unanswered as the pandemic nears the two-year mark, but one trend has become increasingly clear: Tenants are leaving older buildings in favor of newer projects. This accelerated shift has left owners of some aging office buildings with large vacancies and insufficient cash flow to pay back their debt, putting billions of dollars of office-backed loans at risk.  The Chicago office building at 175 West Jackson Blvd., owned by Brookfield Asset Management. The flight to higher-quality assets had already taken off before 2020, but it reached new altitudes during the pandemic as tenants  

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  • Finance

    Why Omicron is a bigger market risk in 2022 than people think

    U.S. markets have largely shaken off Omicron fears, witnessed by the pop in cruise line stocks Thursday despite a general market sell-off. But surging COVID-19 infections in China, beyond the early pandemic peak, are leading one strategist to warn of an underpriced risk to inflation that could weigh on stocks. At a recent Yahoo Finance Plus webinar, Bianco Research President Jim Bianco argued that China’s zero tolerance COVID policy could lead to a nationwide shutdown — causing economic reverberations around the world.  “What I’m most worried about here is as this Omicron variant mushrooms, and we get millions of cases  

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  • Business Accounting

    Investors tell Big-4 auditors they risk AGM rebellion over climate accounting

    Investor group with $4.5 trln to escalate action Group writes to Deloitte, PwC, KPMG and EY Letter follows several years of talks on toughening audits GLASGOW/LONDON, Nov 2 (Reuters) – Major investors have warned the world’s top four audit firms they will vote to stop the firms working for the companies they invest in at AGMs from next year if audits do not integrate climate risk. The challenge, laid out in letters from an investor group managing around $4.5 trillion that were seen by Reuters, marks an escalation in the group’s efforts to ensure investors were armed with robust information.  

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  • Business Accounting

    Audit reforms risk backfiring, accountants warn

    Plans by the UK government to increase significantly the number of companies subject to stringent governance standards risk straining audit firms and their new beefed-up regulator to breaking point, accountants have warned. The government has proposed broadening the definition of “public interest entities” as part of a wide-ranging consultation on audit and corporate governance reform after a string of corporate collapses, including at Aim-listed café chain Patisserie Valerie and privately owned retailer BHS. About 2,000 listed companies, financial institutions and insurers are classed as PIEs in the UK meaning that their audits are subject to more stringent regulation. Ministers have  

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  • Loans With Collateral

    5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} cash collateral on foreign loan guarantee to mitigate forex risk

    File photo: US dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009 Reuters Multiple banks have commended this move stating it to be a form of insurance A minimum of 5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} cash collateral has to be kept by guarantee-providing banks on associated foreign loans by private sector borrowers to mitigate foreign exchange risks, the Bangladesh Bank said in a notice on Monday. Multiple banks have commended this move stating it to be a form of insurance. “Since we earn in taka and have to pay back in foreign currency, there are  

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  • Loans With Collateral

    Reinterpreting Risk Premiums to Finance the Green New Deal and the Fight Against COVID-19*

    By Oliver Pahnecke, PhD candidate, Middlesex University, London and Juan Pablo Bohoslavsky, Former (2014-2020) United Nations Independent Expert on Debt and Human Rights       Risky borrowers pay more for the same loans than low-risk clients due to risk-weighted interest rates that are based on the absence or quality of collateral. This approach treats collateral and risk premium in interest rates as exchangeable1Deutsches und europäisches Bank- und Kapitalmarktrecht § 13 at 3 (Peter Derleder, Kai-Oliver Knops and Heinz Georg Bamberger eds., third edition, 2017)., but why then is the collateral returned at the end—while the risk  

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  • Financial Analysis

    Financial Institutions Factor Transition Risk into Climate-Related Stress Testing

    Climate change has become an important strategic issue for financial institutions around the world as concern grows about lending to, investing in, or insuring companies that are failing to take steps to transition to a low-carbon economy. Research shows that in the five years since the Paris Agreement, the world’s 60 largest banks alone have financed fossil fuels to the tune of $3.8 trillion U.S.[1] As stakeholders continue to sharpen their focus on sustainability issues, it is becoming essential for financial institutions to better understand the potential climate-related risks they face. Climate change can bring physical risks from severe  

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  • Financial Analysis

    Executive Order on Climate-Related Financial Risk

    By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1.  Policy.  The intensifying impacts of climate change present physical risk to assets, publicly traded securities, private investments, and companies — such as increased extreme weather risk leading to supply chain disruptions.  In addition, the global shift away from carbon-intensive energy sources and industrial processes presents transition risk to many companies, communities, and workers.  At the same time, this global shift presents generational opportunities to enhance U.S. competitiveness and economic growth, while also  

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