Objectives and Organisation

Who we are

CreditUtility has been launched by Casey Campbell and Tamar Joulia-Paris in response to a financial market need for a more stable risk transfer market and as a public service. As banking and insurance industry practitioners, our motivations are to respond to recent market failings; to focus upon long term banking resilience and to support prudent lending growth.

With a combined 45 years of credit risk management experience, we have a first-hand appreciation of how portfolio risk management techniques have evolved and how their ever adaptive application might lead to systemic instability. We have also faced the operational challenges confronting banks and insurers when default rates increase, risk concentrations shift1 as well as the daily market pressures shaping the supply of credit.

Further biographical detail for each of us may be found on our respective LinkedIn pages.

Casey Campbell LinkedIn

Tamar Joulia-Paris LinkedIn

We can also be contacted via

Casey@CreditUtility.eu

Tamar@CreditUtility.eu

Objectives

CreditUtility is a small, single-purpose “incubator” for developing pragmatic risk transfer regulation proposals and establishing a credit network monitoring capability. As such CreditUtility generates both targeted research and independent input into official policy making discussions. It also acts as a discussion catalyst and bridge between academic commentators, industry professionals and policy makers on how such adjustments might be introduced.

CreditUtility’s ultimate objective is to simplify and strengthen the credit network, specifically the collateralised credit risk transfer market within this network. That is, CreditUtility sees the risk transfer market as an integral component within an efficient financial system and functional regulation as a means of fostering that financial system’s health.

CreditUtility’s focus rests primarily on the non-regulated and unmonitored credit trading activities that generate leverage and interconnectedness within the financial system. These include non-regulated credit intermediation by shadow banks as well as regulated banks’ balance sheet management transactions (e.g. securitisation and “repos”). For the avoidance of doubt, single name and index linked credit default swap (CDS) transactions are considered as separate, non-collateralised activities and beyond CreditUtility’s development scope. This reflects, in part, the already advanced state of regulatory initiatives for the CDS market. Nonetheless, CDSs are important components within the broader credit network and CreditUtility seeks to integrate the emerging CDS market data flows with its own.

CreditUtility maintains an open mind as to whether risk transfers should occur within a regulated or “shadow” banking context. CreditUtility’s main concern is that these transactions are transparent and that their monitoring and regulation respects participants’ legitimate commercial sensitivities.

With regard to existing regulatory frameworks and official initiatives to ensure a level playing field, CreditUtility fully supports these while offering further perspectives and insights that may prove useful to the policy formation effort. CreditUtility also harbours no ambitions for on-going policy formulation or regulatory lobbying work. It simply seeks the introduction of appropriate monitoring and transparency infrastructure for the risk transfer market.

Further notes on our organisation

And on our operating policies

Footnotes:
[1] e.g. in response to changing discount rates and shifts in market risk perceptions
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