LEAD CATALYST
SUPPORTING CATALYST
INDUSTRY CATALYST
INDUSTRY CATALYST
ITALY CATALYST
MEDIA CATALYST
"EuroCatalyst is one of the few worthwhile conferences because the audience is senior and come from the leading players in each of the respective mortgage markets. The ideas and intellectual capital being shared goes far beyond recycled conference topics and touches at the heart of the most important issues driving the markets. It's also the only event that draws people who have stopped attending conferences altogether."
Hoesli Labhart
"I've been back at the office for a week and cannot stop talking about EuroCatalyst. My colleagues are beginning to think that I've joined a cult"
Fanny Borgstrom, Head of Group Funding, Nordea Treasury
"Hold your course and don't ever turn EuroCatalyst into a capital markets event. Keep focusing on the entire value chain because that's what really matters the most. You guys are the only ones who really care about everyone getting some value out of this. Just don't lose the intimacy once everyone else figures out that this is really where things are said, ideas are launched and relationships are formed that just don't happen anywhere else."
Will Ross
"You really have to experience it to understand it. EuroCatalyst encourages a participatory and three-dimensional dialogue in a way that is much more thought-provoking than anything I've ever been to. They have created a setting in which people are forced to think about the issues long after their events are over."
Helena Day, Vice President, Morgan Stanley Mortgage Servicing
"I found the event as stimulating from the audience as I did onstage."
Karin Lissakers, Advisor to George Soros, The Soros Group
"It was a spectacular event. It was also fun, and I really enjoyed myself."Alexander Pollock, Resident Fellow, American Enterprise Institute
(and former president and chief executive officer, Federal Home Loan Bank)
"You really have your priorities in the right place and it shows in your program. Thanks for the ideas and the meetings, we'll always be back . . ."
Liam Coleman, Nationwide
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DAY 1 | DAY 2 | DAY 3
FINAL PROGRAM
DAY 3: 28 SEPTEMBER 2005 (WEDNESDAY) / ROME HILTON
LEAVING HOME: THE PSYCHOLOGY OF RISK MANAGEMENT AND CAPITAL MARKETS
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While EuroCatalyst has been steadfast in its determination to provide an independent and neutral platform to discuss funding issues by focusing on commercial realities - leaving politics to the politicians - our position has taken us through some interesting twists and turns over the years, subjecting us to varying degrees of respect, indifference, political cross-fire and exclusion from the debate. Rather than speak for the industry, we once again provide a platform for the industry to speak for itself - and boy, is the industry upset at the moment. Since 2001 EuroCatalyst has pointed to globalization as the context in which European mortgage markets would integrate based on the inevitable convergence between structured finance and covered bonds and the resulting expansion of the funding continuum. The acceleration of financial innovation will fuel the growth of European mortgage markets into the future, driving change from secondary markets throughout the value chain into primary markets. The title for the sessions, “Leaving Home: The Psychology of Risk Management and Capital Markets” acknowledges departure from traditional market practices and maps out the journey to a new world of challenges and opportunities posed by capital market innovation, funding and risk transfer. Despite the increase in knowledge and tools to measure, price and transfer risk, the title also serves as a reminder of the human element that remains central to all risks, the relationships required to manage those risks and the rewards of profit and growth for those who have found the right balance. Day 3 sessions bring us up to date on where we left off in Berlin, and captures how market changes are impacting the thought process of leading players and how this new way of thinking is fundamentally changing the nature of the markets.
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DAY HOSTS: |
TONI MOSS, Founding Partner, EuroCatalyst BV
TIM SKEET, Managing Director, Debt Capital Markets Origination, ABN AMRO
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| 0845-0945 |
SESSION 1
HOLDING OUR BREATH: HIGH ANXIETY OVER HOUSING PRICES
According to estimates by The Economist, the total value of residential property in developed economies rose by more than $30 trillion over the past five years to over $70 trillion - an increase equivalent to 100% of the combined GDPs of those countries. Not only does the current situation dwarf any previous house price booms, they argue, it is the most massive capital markets bubble in history. Feeling a little anxious? As lenders move up the LTV curve and down the credit curve in search of new borrowers, how will the possibility of a housing bubble impact markets in the near future? While bubbles are never identified until after they have burst, the combination of rapidly increasing house prices and leveraged mortgage debt have raised serious concern for the industry. This session explores differing perspectives on the extent to which the industry hinges on the fundamental value of house prices, and where they will go next, with suggestions on how to improve the safety and security of housing markets in the future.
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PANELLISTS: |
Julian Callow, Chief European Economist, Barclays Capital
Tobias Just, Senior Economist, Deutsche Bank
Marco Terrones, Senior Economist, IMF
Nick Tyrrell, Head of Research and Strategy, European Real Estate Group, JP Morgan Asset Management
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| 0945-1100 | SESSION 2 |
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LIFE IN THE FAST LANE: KEEPING PACE WITH THE SPANISH MARKET
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HIGH EXPECTATIONS UNDER A LOW SKY: THINKING TWICE ABOUT THE DUTCH MARKET
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| HOST(s) |
Sandie Fernandez, Moody’s Investors Service
| Leo-Hendrik Greve, Managing Director, Financial Institutions Capital Markets, Citigroup |
| PANEL |
Baralides Alberdi, economist
Gustavo Celi, Associate Director, FitchRatings
Fernando Cuesta, Head of Securitisation, Caja Madrid
Ana Delgado, Manager of Servicing Operations, Ahorro y Titulización
Fernando Durante, Head of Capital Markets, Banco Pastor
Eric Klesta, Chief Operating Officer, UCI
| Hein G.M. Blocks, Managing Director, Nederlandse Vereniging van Banken (Netherlands Bankers' Association), and Chairman of the Executive Committee of the European Banking Federation
Jeroen Belt, Structured Finance, SNS Finance Markets
Peter Besuijen, Managing Director, Quion Groep BV
Rob van den Berg, GMAC-RFC NederlandLodewijk Van der Heijden, Managing Director, De Hypotheekshop
Cor Zwaan, Mortgage Finance and Asset Securitisation, NIB Capital |
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| 1100-1115 | BREAK |
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| 1115-1230 | SESSION 3 |
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THE NORDIC COMBINED: CREATIVE COMPETITION, INNOVATION AND EXPANSION IN THE NORDIC MARKETS
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CENTRAL AND EASTERN EUROPE REGIONAL MARKET SESSION
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| HOST |
Tim Skeet | Yaron Ernst, Moody's Investors Service |
| PANEL |
Lotte Bomgaard, Senior Economist / Investor Relations Manager, Nykredit
Fanny Borgström, Head of Group Funding, Nordea Treasury
Martin Gregersen, Covered Bonds & Derivatives Strategy, Danske Bank
Lauri Iloniemi, Head of Asset and Liability Management, Sampo Bank plc
Johannes Luef, President and CEO, VP Denmark
Timo Pietilä, Managing Director, Aktia Mortgage Bank | OPENING SPEAKER
Opportunity in CEE and Emerging Markets / Achim Dübel, Economist, Finpolconsult
PANEL
Dr. Astrid Kratschmann, Chief of Department, Central European Housing Finance, Erste Bank
Pam Lamoreaux
Carmen Retegan, Executive Director and Acting CEO, Domenia Credit
Bahadir Teker
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| 1230-1330 |
SESSION 4
WHO AM I? COVERED BONDS FACE AN IDENTITY CRISIS
While covered bonds will remain king of the mortgage funding jungle for mainstream products, the rapid convergence of funding has led to the most heated debate in the history of European mortgage markets with dramatic implications for the global industry. Today, covered bonds are facing an identity crisis, and the whole world is watching its outcome. An "identity crisis," a term coined by Danish psychologist Erik Erikson, happens "when one loses a sense of personal sameness and historical continuity". Of his Eight Stages of human development, Erikson believed the identity crisis is the single most important conflict human beings encounter by asking the question for the first time, "Who am I?" This session analyses (pun intended) the current identity crisis facing the covered bond community given that the oldest markets have lost historical continuity with the addition of new markets. Will this new community find sameness in a single asset class, or will the drive toward individuation and differentiation prevail? How well will the rift over collateral definitions that can be used in covered bonds that has raged over this summer have healed by September?
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PANELLISTS |
Louis Hagen, Executive Director, Verband deutscher Pfandbriefbanken
Hélène Heberlein, Managing Director and Head of Covered Bonds, FitchRatings
Heiko Langer, Senior Covered Bond Analyst, BNP Paribas
Rob Thomas, Senior Policy Advisor—
Funding, Council of Mortgage Lenders
Bill Thornhill, Senior Reporter, Covered Bonds, IFR
Claus Tofte Nielsen, Senior Portfolio Manager, Norges Bank Investment Management
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| 1330-1430 | LUNCH |
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| 1430-1630 | SESSION 5
A BALANCED APPROACH: OPTIMISING FUNDING EFFICIENCIES, RISK TRANSFER AND ECONOMIC CAPITAL MANAGEMENT
Second to retail deposits, while covered bonds will continue to provide the lowest cost of funding they do not provide a source of risk transference. This two-part session continues to break new ground in defining the European capital market landscape by providing a matrix for optimizing portfolio funding considerations between cash securitisation, structured covered bonds, Pfandbrief and senior debt. Spanning wholesale and retail markets, on- and off-balance-sheet funding and incorporating risk transfer and Basel II, we update last year’s template to determine how lenders are currently thinking about how to structure, fund and leverage mortgage assets from the perspective of return on equity, return on assets and return on economic capital vs. straight equity, showing how changes in the funding spectrum cause resulting changes throughout the entire mortgage value chain. The session is divided into two parts, starting with the larger picture of funding efficiencies on a pure borrowing basis and moves into the extent to which lenders are moving away from regulatory capital arbitrage and into risk transfer through whole loan sales and trades, funding and synthetic instruments.
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HOSTS |
Dominic Swan, HSBC
Hoesli Labhart, Citigroup
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PART 1 - FUNDING EFFICIENCY ON A PURE BORROWING BASIS |
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PANELLISTS: |
Will Davies, International Structured Finance Research, Merrill Lynch InternationalThierry Dufour, Chief Executive, Compagnie de Financement Foncier
Justin Fox, Head of Funding, Nationwide Building Society
Gabriele Müller, Capital Markets Director - Germany, Genworth Financial
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PART 2 - MONETISING PROFIT BY LEVERAGING CAPITAL AND TRANSFERRING RISK
Current net interest margins have reached unsustainably low levels at many European banks, prompting the search for higher risk and higher return products
to compensate. However, high growth strategies expose banks to higher levels of risk with increased possibilities of credit losses, prompting the need to find
immediate solutions for risk transfer. With Basel II and CRD implementation around the corner, securitisation as a form of regulatory capital relief is being
replaced by the need for economic capital management through the transfer of risk. This session explores the challenges faced by banks in expanding into
riskier products to increase earnings, and the need to balance and manage that risk in light of the impending Basel II requirements. The session provides
insight into how banks will strike the balance, which lending groups are creating a common response to the challenge and which partners and strategies are
reducing their exposure. |
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PANELLISTS: |
Eugenio Cerioni, Head of Funding and Treasury, BNL (Banca Nazionale del Lavoro)
David Liu, Vice President, International Markets, PMI Capital Corp.
Peter Green, Director of Treasury, Bradford & Bingley
Gloria Hernández, CFO, Banco Pastor
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