The Joint Forum, a group of senior financial sector supervisors from the Basel Committee on Banking Supervision, the International Organization of Securities Commissions, and the International Association of Insurance Supervisors (IAIS), has released the final version of its paper titled Credit Risk Transfer–Developments from 2005–2007 (paper). The paper was drafted upon a request from the Financial Stability Forum in March 2007.

The paper noted that many insurance supervisors remain concerned about several aspects of the credit risk transfer market, such as complexity, valuation, as well as liquidity, operational and reputation risks, and the broader effects of the growth of credit risk transfers. The paper contains a large number of recommendations relating to credit risk transfers, covering, amongst other areas, senior management review, credit analysis, stress testing, risk measurement, concentration risk, and valuation and accounting.