The Benefits of Gearing/Leverage Facilities to EU, UK and U.S. Private and Listed Credit Funds
|
|
- Beverly Mills
- 5 years ago
- Views:
Transcription
1 The Benefits of Gearing/Leverage Facilities to EU, UK and U.S. Private and Listed Credit Funds November 03, 2016 At Dechert's seminar on Private and Listed Credit Funds, the The Benefits of Gearing/Leverage Facilities to EU, UK and U.S. Private and Listed Credit Funds panel considered key trends and structures driving lending to private and listed credit funds across the United States, the United Kingdom and the European Union. Key takeaways are set out below: The transatlantic gap The panel noted that private and listed credit funds that invest in loans in the United States have a long history with leverage, driven primarily by investors who have preferred the higher returns that can be achieved on their equity investments when a credit fund s loan portfolio is leveraged. This broadly accepted use of leverage has resulted in a deep bench of lenders providing financings for US credit funds. By contrast, leverage lending to credit funds is far less common in the UK and European markets, where investors have historically shown more aversion to risk than their US counterparts and have accordingly discouraged the use of leverage. In these markets, leverage lending to credit funds is far less developed than the US market. That position, however, is evolving as UK and European managers seek to use leverage to increase credit fund returns and investors demonstrate a greater acceptance of leverage in fund finance structures. The panel attributed this increasing use of leverage in the UK and Europe to the leadership of large private credit funds operated by managers with significant long-term presence in the market. Their track records over many years and at least one full credit cycle have helped foster a willingness among some investors to permit credit fund leverage and have provided a strong credit basis for banks to expand their lending to credit funds managed by these managers. Lending to credit funds The panel explored a number of types of credit facilities used to finance credit funds in the US, UK, and European markets. Subscription facilities: Subscription facilities are commonly used across all of these markets. A subscription facility is a revolving credit facility made available to the credit fund itself, with the lenders underwriting the creditworthiness of the equity investors who have agreed to provide capital commitments to the credit fund and with the lenders taking security over (i) the capital commitments of such investors, (ii) the right to issue capital calls to such investors, and (iii) the bank account into which those capital commitments are required to be funded. Subscription facilities typically involve the lenders lending against a borrowing base calculated by reference to the uncalled capital commitments of equity investors in the fund whose credit has been underwritten by the lenders and may provide for different advance rates depending on how creditworthy the lenders view particular groups of such equity investors.
2 A subscription facility is typically used to bridge investor contributions in order to facilitate and expedite investments in loans while capital call are outstanding to the investors although some managers have used subscription facilities to obtain a degree of fund-level leverage by making investments without having to drawdown investor commitments. However, as a credit fund ramps up its loan portfolio, typically the amount of unfunded capital commitments of the equity investors who create the borrowing base for the subscription facility are reduced and the manager of the credit fund may seek a credit facility the borrowing base of which is related to the loans owned by the credit fund, not the capital commitments of its equity investors. The panel then explored some common financing facilities backed by the loan portfolios of credit funds. These facilities typically provide higher leverage over a longer period of time than subscription facilities. Loan to SPV facilities: A common feature in the US market, a loan to SPV is a financing facility extended to a bankruptcy-remote special purpose vehicle ("SPV") wholly owned by the credit fund. The lenders underwrite the origination/acquisition and loan management procedures of the credit fund's platform and require that the loans meet certain eligibility criteria since the SPV s loan portfolio is the primary collateral securing the financing which is non-recourse to the credit fund itself. A few lenders require that the SPV obtain their prior written consent to a loan before it can be included in the borrowing base for the related financing. Typically lenders will not extend any financing to the SPV borrower until it has a certain number and aggregate principal balance of loans included in the borrowing base. Managers frequently use the subscription facility provided to the parent credit fund to acquire these loans which are then contributed by the parent fund to its SPV subsidiary. The amount of financing available under the SPV facility will be driven by a borrowing base calculation. Prior to the credit crisis, these borrowing bases frequently operated using mark-to-market methodologies, but since the credit crisis, most SPV facilities now employ a credit mark methodology, typically with the credit mark initially being determined by the lead lender, as administrative agent on behalf of the lenders (with the borrower being able to object to a particular credit mark and to require a third party valuation to be obtained in relation to the relevant asset) and with the credit mark being redetermined if certain specified events occur which are expected to have an effect on the creditworthiness of the loan, such as in the case of a material amendment, obligor financial distress or a default on the loan. The borrowing base will be further modified by: advance rates for specified types of loans (which currently range from 65 to 85 per cent for first lien loans and 35 to 50 per cent for second lien loans); concentration limits which apply haircuts to loan values of loans that are in excess of related concentration limits; discounted purchase price haircuts which apply haircuts to loan values which are acquired for a price lower than a specified purchase price; and event haircuts which apply haircuts to loan values (and may haircut the value of a loan to zero in certain instances) if certain events occur such as default (loan values are typically haircut to the lesser of market value or a specified recovery rate) or an event that gives rise to a redetermination of the credit mark of the loan.
3 Although the manager usually has discretion regarding which loans are originated or acquired by the SPV subject to the loan eligibility criteria (unless lender consent is required for each loan prior to its being included in the borrowing base), these modifiers of the borrowing base ensure the lenders that the facility is secured by a loan portfolio that satisfies the lenders credit requirements. There are a number of other structural features in an SPV facility that protect the lenders and ensure that their debt will be paid in the event of a significant deterioration in the loan portfolio including interest coverage and overcollateralization tests which, if not met, require that the lenders debt under the credit facility be paid before the SPV can reinvest funds or make distributions to its parent credit fund and trading restrictions to ensure that the loan portfolio is in line with credit requirements. An SPV facility typically is a revolving credit facility with a two to four year reinvestment period followed by an amortization period when the platform is being wound down with moneys being applied to repay the facility and, after payments required by the credit facility are paid, distributed to the parent credit fund. BDC facilities: A dominant player in the lower and middle U.S. credit market is a business development company ( BDC ) (which is a type of U.S. regulated closed-end fund that is not subject to regulatory limitations or capital requirements applicable to banks and other traditional lenders). The market in the U.S. has developed a panoply of financings available to this type of credit fund (e.g., loans to an SPV of the BDC, convertible bonds, baby bonds, securitizations, total return swaps, etc.). One of the most common is a traditional assets based revolving credit facility ( ABL ) directly to the BDC with direct recourse to the fund. Although the ABL is very similar in concept to the SPV facility, in practice the ABL facility generally offers the BDC significantly more flexibility at slightly increased pricing. As a result, many asset managers use the benefits of both facilities. Similar to an SPV facility, an ABL facility would generally have a four to five year term with the facility revolving for a portion of the term and then essentially converting into a term loan for a portion of the term (in the case of an ABL facility, generally in the final year of the term). In addition, similar to a SPV facility, the BDC facility is borrowing base driven with availability under the facility based on the value of the fund s assets. However, the types of assets included in the borrowing base of an ABL facility and how these assets are valued are vastly different from an SPV facility. In an ABL facility, the borrowing base may include first lien loans, second lien loans, subordinated loans, unsecured loans, first out and last loans, preferred equity and common equity (whereas, SPV facilities generally only include senior loans). The value of quoted assets included in the borrowing base of an ABL facility are valued weekly based on the bid prices of an approved dealer and/or approved pricing service or, to the extent applicable, the closing price for an asset listed on an exchange. With respect to unquoted assets, under an ABL facility the underlying BDC borrower is required to value the assets each week and one or more independent third party appraisers (retained by the Borrower or the agent under the BDC facility) value all (or for bigger more established BDCs, a portion) of the assets included in the borrowing base of such facility (with the ultimate value generally being the lowest valuation). An SPV facility, in contrast, permits the lenders to determine the value of the asset included in the borrowing base at the time that such assets are initially included in the borrowing base; and also gives the lenders the ability to revalue
4 such assets upon the occurrence of certain events. For regulatory purposes, many bank lenders to BDCs mandate under the terms of an ABL facility that they have a right to cause a third party appraiser to determine the value of all of the assets included in the borrowing base. The value of assets included in the borrowing base of an ABL facility is subject to haircuts based on various concentration limits, which (for example) can limit the amount of the borrowing base that can be based upon particular industries, categories of issuers, and classes of assets. These caps encourage a diversity of assets within the borrowing base of an ABL facility and accordingly manage risk exposures. ABL facilities are a highly flexible leverage facility for BDCs. The initial credit decision for a lender to a BDC, and the design of each ABL facility, focuses heavily on the investment strategy of the BDC. This flexibility results, in part, from the need for the ABL facility to provide for the ongoing, working capital management of the BDC in order to facilitate investment flow at the level of the investment vehicle. Gearing facilities: The most common form of asset-based leverage for credit funds in the UK and European markets is the gearing facility, which is a financing facility typically made available to a SPV wholly owned by the credit fund backed by the loan portfolio owned by the SPV. A gearing facility is similar to an SPV facility in many respects: it is non-recourse to the credit fund itself; the loans must meet certain eligibility criteria; and it is a borrowing base facility where the value of the underlying loan is modified by advance rates, concentration limits, discounted purchase price haircuts, and event driven haircuts. Unlike US asset-backed leverage facilities that provide the lenders with a security interest over the loans in the related loan portfolio and certain other assets, the collateral for a gearing facility typically is limited to security over the shares in the SPV borrower and a collections account which will hold all proceeds and realisations from the underlying assets. Due to the complexities of taking effective and perfected security over receivables in multijurisdictional Europe, lenders typically do not seek security over the underlying assets which make up the borrowing base. In addition, the values ascribed to borrowing base loans are typically prepared by the manager on a quarterly basis without verification by an independent third-party. These values are subject to a sense-check by the lender, and the gearing facility will frequently provide for a dispute mechanism where the lender considers based on its experience of the loan market that the manager's calculations require adjustment or are incorrect. Gearing facilities tend to involve a considerable amount of negotiation around the eligibility criteria for the loans in the borrowing base and the borrowing base modifiers i.e. the advance rates, concentration limits, discounted purchase price haircuts and event driven haircuts, and which apply to the loans and the market is very relationship-driven at this stage. While gearing facilities provide strong asset-based leverage for a loan portfolio, lenders also frequently require a degree of diversity in the borrowing base typically measured by a minimum number of loans having a minimum aggregate principal balance before they can
5 be drawn. This requirement may be problematic for a credit fund or its SPV expecting to originate or otherwise acquire a limited number of large loans since such diversity requirements may not be met until well into the investment cycle. The market is responding to this issue with the development of hybrid facilities these start off as subscription facilities with a borrowing base calculated by reference to investors uncalled capital commitments, but they convert to asset-based facilities once the relevant diversity criteria have been satisfied. While the panel observed that hybrid facilities are rare at present, their emergence and development in the UK and European markets suggests an evolving product offering aimed at near full-life leverage for credit funds. Dual track growth The panel was of the view that, while the US market for lending to credit funds is deeper and broader than the UK and European markets, the use of debt and leverage is increasing across all markets. In particular, lending facility structures are becoming increasingly complex and sophisticated in the US. But the trend was also noticeable in the UK and Europe, where the market has expanded to include gearing and hybrid facilities as a supplement to the more traditional subscription line facility. The growth of the market for credit fund leverage in Europe is expected to be slower in the medium term, taking into account the relative youth of the credit fund market which naturally limits the market presence and power of European credit funds. The considerable growth in the UK and European credit fund market, however, has seen a significant expansion in the size and activities of key market players, and the panel expects this increased base to build confidence in the industry and to further expand the scope for leverage. Related Professionals JAY R. ALICANDRI Partner New York T CYNTHIA J. WILLIAMS Partner Boston T Related Services Corporate Leveraged Finance View All Related Professionals
6 Permanent Capital
Credit Card Receivable-Backed Securities
Credit Card Receivable-Backed Securities Analysts: Thomas Upton, New York The securitization of credit card receivables presents the issuer with several potential benefits, including the efficient use
More informationM E K E T A I N V E S T M E N T G R O U P DIRECT LENDING. Timothy Atkinson
M E K E T A I N V E S T M E N T G R O U P BOSTON MA CHICAGO IL MIAMI FL PORTLAND OR SAN DIEGO CA LONDON UK Timothy Atkinson MEKETA INVESTMENT GROUP 100 Lowder Brook Drive, Suite 1100 Westwood, MA 02090
More informationcovered bonds in the us
covered bonds in the us In this tight credit market, US banks looking for new sources of funding for their loan originations may find covered bonds a viable alternative. If proposed legislation is adopted,
More informationTranche Warfare, CDOs in Default
2008 ANNUAL MEETING AND EDUCATION CONFERENCE American College of Investment Counsel New York, NY Tranche Warfare, CDOs in Default 9:30 a.m. - 10:30 a.m. October 24, 2008 MODERATOR: Cynthia J. Williams
More informationBank Disintermediation Opportunity
Bank Disintermediation Opportunity PRIVATE DEBT Credit markets resemble nature in their diversity of species. The spectrum is indeed wide and colourful. Markets have continuously shown us that not all
More information1 SOURCES OF FINANCE
1 SOURCES OF FINANCE 2 3 TRADE CREDIT Trade credit is a form of short-term finance. It has few costs and security is not required. Normally a supplier will allow business customers a period of time after
More informationTaiwan Ratings. An Introduction to CDOs and Standard & Poor's Global CDO Ratings. Analysis. 1. What is a CDO? 2. Are CDOs similar to mutual funds?
An Introduction to CDOs and Standard & Poor's Global CDO Ratings Analysts: Thomas Upton, New York Standard & Poor's Ratings Services has been rating collateralized debt obligation (CDO) transactions since
More informationMay 1, Legg Mason Partners Variable Income Trust. Western Asset Variable Global High Yield Bond Portfolio
May 1, 2017 Legg Mason Partners Variable Income Trust Western Asset Variable Global High Yield Bond Portfolio Class I (QLMYIX) and Class II (QLMYTX) Shares 620 Eighth Avenue New York, New York 10018 1-877-721-1926
More informationTerm Asset-Backed Securities Loan Facility: Terms and Conditions 1. Printer version Changes from October November 130 Terms and Conditions
Term Asset-Backed Securities Loan Facility: Terms and Conditions 1 Effective November July 21, 201013, 2009 Printer version Changes from October November 130 Terms and Conditions General Terms and Conditions
More informationDevelopments in Capital Call Lines, NAV Facilities and Other Unique Funding Facilities
Developments in Capital Call Lines, NAV Facilities and Other Unique Funding Facilities Presented by Meyer Dworkin, Davis Polk Yukako Kawata, Davis Polk October 25, 2017 Davis Polk & Wardwell LLP Index
More informationRisks. Complex Products. General risks of trading. Non-Complex Products
We offer a wide range of investments, each with their own risks and rewards. The following information provides you with a general description of the nature and risks of the investments that you can trade
More informationExample:(Schweser CFA Note: Automobile Loans Securitization)
The Basic Structural Features of and Parties to a Securitization Transaction. ABS are most commonly backed by automobile loans, credit card receivables, home equity loans, manufactured housing loans, student
More informationStructuring Credit Facilities for Private Equity Funds: Subscription, NAV and Hybrid Loans
Presenting a live 90-minute webinar with interactive Q&A Structuring Credit Facilities for Private Equity Funds: Subscription, NAV and Hybrid Loans THURSDAY, DECEMBER 7, 2017 1pm Eastern 12pm Central 11am
More informationSecurities Lending Outlook
WORLDWIDE SECURITIES SERVICES Outlook Managing Value Generation and Risk Securities lending and its risk/reward profile have been in the headlines as the credit and liquidity crisis has continued to unfold.
More informationIFRS 9 Readiness for Credit Unions
IFRS 9 Readiness for Credit Unions Classification & Measurement Implementation Guide June 2017 IFRS READINESS FOR CREDIT UNIONS This document is prepared based on Standards issued by the International
More informationIIFIG BROAD OPPORTUNITIES BOND FUND. Supplement dated 10 April 2018 to the Prospectus for LDI Solutions Plus ICAV
IIFIG BROAD OPPORTUNITIES BOND FUND Supplement dated 10 April 2018 to the Prospectus for LDI Solutions Plus ICAV (an umbrella Irish collective asset-management vehicle with segregated liability between
More informationDiversify Your Portfolio with Senior Loans
Diversify Your Portfolio with Senior Loans Investor Insight February 2017 Not FDIC Insured May Lose Value No Bank Guarantee INVESTMENT MANAGEMENT Table of Contents Introduction 2 What are Senior Loans?
More informationFS GLOBAL CREDIT OPPORTUNITIES FUND
FS GLOBAL CREDIT OPPORTUNITIES FUND An investment in any fund sponsored by FS Investments involves a high degree of risk and may be considered speculative. Investors are advised to consider the investment
More informationFinancing DESCOs : A framework of financing working capital for Distributed Energy Services Companies. Chris Aidun and Dirk Muench March 2015
Financing DESCOs : A framework of financing working capital for Distributed Energy Services Companies Chris Aidun and Dirk Muench March 2015 INTRODUCTION... 3 WHAT IS WORKING CAPITAL?... 4 TOTAL CAPITAL
More informationGet ready for FRS 109: Classifying and measuring financial instruments. July 2018
Get ready for FRS 109: Classifying and measuring financial instruments July 2018 Contents Preface 03 1 Overview of classification and measurement requirements 04 2 The business model test 06 2.1 Determining
More informationNot created equal: Surveying investments in non-investment grade U.S. corporate debt
Winter 2016 Not created equal: Surveying investments in non-investment grade U.S. corporate debt Institutional investors seeking yield and current income opportunities have increased their allocations
More informationAn Overview Of Silent 2nd-Lien Loans In The US And Europe
Portfolio Media. Inc. 111 West 19 th Street, 5th Floor New York, NY 10011 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com An Overview Of Silent 2nd-Lien Loans In The
More informationIIFIG LOAN FUND. Supplement dated 10 April 2018 to the Prospectus for LDI Solutions Plus ICAV
IIFIG LOAN FUND Supplement dated 10 April 2018 to the Prospectus for LDI Solutions Plus ICAV (an umbrella Irish collective asset-management vehicle with segregated liability between sub-funds) This Supplement
More informationMORGAN STANLEY SMITH BARNEY LLC CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AS OF JUNE 30, 2017 (UNAUDITED)
MORGAN STANLEY SMITH BARNEY LLC CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AS OF JUNE 30, 2017 (UNAUDITED) ******** MORGAN STANLEY SMITH BARNEY LLC CONSOLIDATED STATEMENT OF FINANCIAL CONDITION June
More informationFitch Rates Iowa Finance Auth's Series 2017 Revolving Fund Bonds 'AAA'; Outlook Stable
Fitch Rates Iowa Finance Auth's Series 2017 Revolving Fund Bonds 'AAA'; Outlook Stable Fitch Ratings-Austin-22 November 2017: Fitch Ratings has assigned a 'AAA' rating to the following bonds issued by
More informationCredit Risk Retention: Dodd- Frank Final Rule February 26, 2015 Presented By: Kenneth E. Kohler Jerry R. Marlatt
Credit Risk Retention: Dodd- Frank Final Rule February 26, 2015 Presented By: Kenneth E. Kohler Jerry R. Marlatt 2014 Morrison & Foerster LLP All Rights Reserved mofo.com Summary of Presentation In this
More informationHoneycomb Investment Trust plc
Registered Number: 09899024 Honeycomb Investment Trust plc Interim Report and Unaudited Financial Statements For the period from 1 January 2017 to 30 June 2017 Table of Contents 1 Strategic Report... 3
More informationCONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Unaudited) As of June 30, 2017
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Unaudited) As of STIFEL, NICOLAUS & COMPANY, INCORPORATED 501 NORTH BROADWAY ST. LOUIS, MISSOURI 63102-2188 Telephone Number: (314) 342-2000 Consolidated
More informationRISK DISCLOSURE STATEMENT
RISK DISCLOSURE STATEMENT This General Risk Disclosure (the Notice ) supplements the Lloyds Bank Corporate Markets Plc General Terms of Business (the General Terms ), which you may receive from us from
More informationIBS INSTITUTIONAL BANKING
IBS Guide IBS INSTITUTIONAL BANKING Entrepreneurs Investing in Entrepreneurs IBS Investment Bank 101 Plaza Real S #222 Boca Raton, Florida 33432 Group Line: (954) 889-5827 www.myinstitutionalbanking.com
More informationTREATMENT OF SECURITIZATIONS UNDER PROPOSED RISK-BASED CAPITAL RULES
TREATMENT OF SECURITIZATIONS UNDER PROPOSED RISK-BASED CAPITAL RULES In early June 2012, the Board of Governors of the Federal Reserve System (the FRB ), the Office of the Comptroller of the Currency (the
More informationYEARS ENDED DECEMBER 31, 2012 AND 2011 FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS REPORT
YEARS ENDED DECEMBER 31, 2012 AND 2011 IDB- IIC F E D E RA L C R E D I T U NI O N FINANCIAL STATEMENTS WITH INDEPENDENT AUDITORS REPORT Table of Contents Independent Auditors Report on the Financial Statements.1
More informationConsolidated Statement of Financial Condition
Morgan Stanley DW Inc. Consolidated Statement of Financial Condition (Unaudited) May 31, 2005 Investments and services are offered through Morgan Stanley DW Inc., member SIPC. Morgan Stanley DW Inc. Consolidated
More informationAppendix 2. Reverse Security Transactions
Appendix 2. Reverse Security Transactions Introduction 1. A reverse securities transaction is defined in the Guide to include all arrangements whereby one party legally acquires securities and agrees,
More informationA LEADING ALTERNATIVE ASSET MANAGER
A LEADING ALTERNATIVE ASSET MANAGER This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. Only a prospectus for Owl Rock Capital Corporation II can make
More informationFund of Funds Financing: Secondary Facilities for PE Funds and Hedge Funds
Article Fund of Funds Financing: Secondary Facilities for PE Funds and Hedge Funds By Zachary K. Barnett, Todd Bundrant, Mark Dempsey and Ann Richardson Knox 1 Real estate, buyout, infrastructure, debt,
More informationComparing Intercreditor Arrangements
Comparing Intercreditor Arrangements Introduction The past several years have been marked by increased competition among banks and alternative lenders, each stretching to offer the most attractive financing
More informationBeginner s Glossary to Fund Finance
Article Beginner s Glossary to Fund Finance By Kristin M. Rylko, Zachary K. Barnett and Mark C. Dempsey The following glossary is intended to serve as a reference tool for those that are new to the private
More informationFOR MORE INFORMATION, PLEASE CONTACT:
Principal Risks of Investing The Fund s principal risks are mentioned below. Before you decide whether to invest in the Fund, carefully consider these risk factors and special considerations associated
More informationFREQUENTLY ASKED QUESTIONS ABOUT COVERED BONDS
FREQUENTLY ASKED QUESTIONS ABOUT COVERED BONDS Background What are covered bonds? Covered bonds are debt obligations that provide recourse to the issuer, usually a bank. Upon an issuer default, covered
More informationSenior Credit Officer Opinion Survey on Dealer Financing Terms
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DIVISION OF MONETARY AFFAIRS DIVISION OF RESEARCH AND STATISTICS For release at 2:00 p.m. EDT March 29, 2012 Senior Credit Officer Opinion Survey on Dealer
More informationIIFIG BONDS PLUS FUND. Supplement dated 10 April 2018 to the Prospectus for LDI Solutions Plus ICAV
IIFIG BONDS PLUS FUND Supplement dated 10 April 2018 to the Prospectus for LDI Solutions Plus ICAV (an umbrella Irish collective asset-management vehicle with segregated liability between sub-funds) This
More informationMORGAN STANLEY & CO. LLC (SEC I.D. No ) CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2011 AND INDEPENDENT AUDITORS REPORT
MORGAN STANLEY & CO. LLC (SEC I.D. No. 8-15869) CONSOLIDATED STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2011 AND INDEPENDENT AUDITORS REPORT ******** INDEPENDENT AUDITORS REPORT To the Board of
More informationEUROPEAN UNION ACCOUNTING RULE 11 FINANCIAL INSTRUMENTS
EUROPEAN UNION ACCOUNTING RULE 11 FINANCIAL INSTRUMENTS Page 2 of 35 I N D E X 1. Objective... 3 2. Scope... 3 3. Definitions... 3 4. Presentation... 7 5. Recognition... 9 6. Measurement... 10 6.1 Initial
More informationCONSOLIDATED STATEMENT OF FINANCIAL CONDITION. As of December 31, (With Report of Independent Registered Public Accounting Firm)
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION As of (With Report of Independent Registered Public Accounting Firm) STIFEL, NICOLAUS & COMPANY, INCORPORATED 501 NORTH BROADWAY ST. LOUIS, MISSOURI 63102-2188
More informationMethodology for Rating Parents, Subsidiaries, and Issues
Methodology for Rating Parents, Subsidiaries, and Issues October 2015 Page 2 of 9 Methodology for Rating Parents, Subsidiaries, and Issues Ratings of individual debt instruments may be adjusted up or down
More informationTHE NAME IS BOND COVERED BOND
THE NAME IS BOND COVERED BOND Covered Bonds An Alternative Source of Financing Mortgage Lending December 4, 2012 Mira Tamboli Presentation Outline Introduction Covered Bond Basics Product Overview Issuer
More information14. What Use Can Be Made of the Specific FSIs?
14. What Use Can Be Made of the Specific FSIs? Introduction 14.1 The previous chapter explained the need for FSIs and how they fit into the wider concept of macroprudential analysis. This chapter considers
More informationPriority Lien Tax Revenue Debt
Priority Lien Tax Revenue Debt Criteria Request for Comment Copyright 2017 by S&P Global. All rights reserved. Priority Lien Debt Scope WHAT IT COVERS Approximately 1,300 credit ratings Bonds with a specific
More informationNot created equal: Surveying investments in non-investment grade
Winter 2018 Not created equal: Surveying investments in non-investment grade U.S. corporate debt Institutional investors searching for yield and current income opportunities have increased their allocations
More informationMovie theatres typically announce and promote coming
US covered bonds: Coming soon to a financial institution near you Anna T. Pinedo and James R. Tanenbaum, Morrison & Foerster LLP Movie theatres typically announce and promote coming attractions. The US
More informationDisclosure pursuant to Art. 453 CRR Credit Risk: mitigation techniques (CRM)
Disclosure pursuant to Art. 453 CRR Credit Risk: mitigation techniques (CRM) The Austrian Financial Market Authority (FMA) and Oesterreichische Nationalbank (OeNB) have assessed UniCredit Bank Austria
More informationGlobal Investment Opportunities and Product Disclosure
Global Investment Opportunities and Product Disclosure Our clients look to us, the Citi Private Bank, to help them diversify their investment portfolios across different currencies, asset classes and markets
More informationCRR IV - Article 194 CRR IV Principles governing the eligibility of credit risk mitigation techniques legal opinion
CRR IV - Article 194 https://www.eba.europa.eu/regulation-and-policy/single-rulebook/interactive-single-rulebook/- /interactive-single-rulebook/article-id/1616 Must lending institutions always obtain a
More informationMuzinich & Co. Summary Prospectus June 29, 2018
Muzinich U.S. High Yield Corporate Bond Fund Class A Shares (Ticker: MZHRX)* Institutional Shares (Ticker: MZHIX) Supra Institutional Shares (Ticker: MZHSX) * Shares are not available at this time. Summary
More information2017 Q3 Report on U.S. Direct Lending
2017 Q3 Report on U.S. Direct Lending Private debt has been a rapidly growing asset class among institutional investors, a trend that Cliffwater expects to continue. This report focuses on third quarter
More informationChapter 11. Evaluating Consumer Loans
Chapter 11 Evaluating Consumer Loans Recent trends in consumer lending Credit scoring more lenders use statistical models to predict which individuals are good and bad credit risks. Rapid consolidation
More informationAsset-Based Lending: Navigating Borrowing Base, Article 9 Collateral Issues, and Key Loan Documentation Provisions
Presenting a live 90-minute webinar with interactive Q&A Asset-Based Lending: Navigating Borrowing Base, Article 9 Collateral Issues, and Key Loan Documentation Provisions THURSDAY, JANUARY 10, 2019 1pm
More informationFIRM CAPITAL MORTGAGE INVESTMENT CORPORATION CAPITAL PRESERVATION DISCIPLINED INVESTING MD&A MANAGEMENT DISCUSSION AND ANALYSIS
FIRM CAPITAL MORTGAGE INVESTMENT CORPORATION CAPITAL PRESERVATION DISCIPLINED INVESTING MD&A MANAGEMENT DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2015 MANAGEMENT S DISCUSSION AND ANALYSIS OUR BUSINESS
More informationSPDR Blackstone / GSO Senior Loan ETF
SPDR Blackstone / GSO Senior Loan ETF Summary Prospectus-October 31, 2017 SRLN (NYSE Ticker) Before you invest in the SPDR Blackstone / GSO Senior Loan ETF (the Fund ), you may want to review the Fund's
More informationCorporate Capital Trust, Inc. Quarterly Earnings Presentation. Quarter Ended March 31, 2018
Corporate Capital Trust, Inc. Quarterly Earnings Presentation Quarter Ended March 31, 2018 CCT Overview CCT The Basics CCT is a business development company focused on making originated, senior secured
More information1 st National Bank St. Lucia Limited (formerly St. Lucia Co-operative Bank Limited)
1 st National Bank St. Lucia Limited (formerly St. Lucia Co-operative Bank Limited) Financial Statements March 29, 2005 Auditors Report To the Shareholders of We have audited the accompanying balance sheet
More informationBlackstone Real Estate Income Fund II
April 17, 2015 Blackstone Real Estate Income Fund II 345 Park Avenue New York, New York 10154 212-583-5000 The prospectuses of Blackstone Real Estate Income Fund II (the Fund ), dated April 17, 2015 (each,
More informationDespite the significant market volatility that stemmed from the global
21 Emerging CEMA securitisation Tim Nicolle Despite the significant market volatility that stemmed from the global credit crisis, securitisations remain viable in some sectors and regions. The CEMA region
More informationSVG Capital plc. (incorporated with limited liability in England and Wales with registered number ) 120,000,000
INSERT UNFORMATTED TEXT OFFERING CIRCULAR DATED 2 June 2008 SVG Capital plc (incorporated with limited liability in England and Wales with registered number 3066856) 120,000,000 8.25 per cent. Convertible
More informationLower Risk, Higher Yield Investing
Lower Risk, Higher Yield Investing Real Estate Based Investments Providing Stable Income & Principal Protection For most investors, the nirvana of investing would be finding an investment that provides
More informationEBF response to EBA consultation on homogeneity of underlying assets
15/03/2018 EBF response to EBA consultation on homogeneity of underlying assets Key points: Well established securitisations considered as high-quality under current market practices must be preserved
More informationInvestment Insights What are asset-backed securities?
Investment Insights What are asset-backed securities? Asset-backed securities (ABS) are bonds secured by diversified pools of receivables across a variety of consumer or commercial assets. These assets
More informationBANKINGAND FINANCIAL REGULATION REPORT BASEL II:PROPOSEDU.S.RULE IMPLEMENTING STANDARDIZED APPROACH ALSTON&BIRD LLP
ALSTON&BIRD LLP BANKINGAND FINANCIAL REGULATION REPORT BASEL II:PROPOSEDU.S.RULE IMPLEMENTING STANDARDIZED APPROACH LAURABIDDLE WILLABRUCKNER DWIGHTSMITH SEPTEMBER 17, 2008 Table of Contents Background
More informationPrime Trust Conduit Overview Report, November 2016
Prime Trust Conduit Overview Report, November 2016 This report was produced on November 14, 2016 and, unless stated otherwise herein, the information in this report is current as of that date. For a copy
More informationFuture Flow Financings
Future Flow Financing Forum International Finance Corporation, World Bank Group Washington, DC April 9, 2009 Jim Patti Partner 312 701 8476 cell: 773 619 4540 jpatti@mayerbrown.com Mayer Brown is a global
More informationProduct Key Facts Franklin Templeton Investment Funds Franklin Asia Credit Fund Last updated: November 2018
Product Key Facts Franklin Templeton Investment Funds Franklin Asia Credit Fund Last updated: November 2018 This statement provides you with key information about this product. This statement is a part
More informationDescription: Sound Risk Management Practices. Subject: Leveraged Financing PURPOSE
Subject: Leveraged Financing Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of Thrift Supervision Description: Sound
More informationVanguard Global Value Equity Fund Vanguard Global Minimum Volatility Fund Vanguard Global Quantitative Equity Fund Vanguard Managed Payout Fund
Product Disclosure Statement 1 November 2018 Vanguard Global Value Equity Fund Vanguard Global Minimum Volatility Fund Vanguard Global Quantitative Equity Fund Vanguard Managed Payout Fund This Product
More informationANNEX E CONTENTS LIST E-1 Eligibility 1.1. Funded credit protection On-balance sheet netting Master netting agreements repurchase
ANNEX E CONTENTS LIST E-1 Eligibility 1.1. Funded credit protection 1.1.1. On-balance sheet netting 1.1.2. Master netting agreements repurchase transactions / securities or commodities lending or borrowing
More informationUK Loan to Value Distribution Analysis of Unregulated Loans
UK Loan to Value Distribution Analysis of Unregulated Loans Introduction: Calnea Analytics estimates the distribution of Loan to Value (LTV) ratios as part of its whole market loss forecasting 1. This
More informationWhat are Covered Bonds and Why Should Anyone Care?
What are Covered Bonds and Why Should Anyone Care? Michael S. Gambro, Anna H. Glick, Frank Polverino, Patrick T. Quinn, and Jordan M. Schwartz The authors believe that, given the current political impetus
More informationLAZARD RETIREMENT SERIES, INC. 30 Rockefeller Plaza New York, New York (800) STATEMENT OF ADDITIONAL INFORMATION May 1, 2018
LAZARD RETIREMENT SERIES, INC. 30 Rockefeller Plaza New York, New York 10112-6300 (800) 823-6300 STATEMENT OF ADDITIONAL INFORMATION May 1, 2018 Lazard Retirement Series, Inc. (the "Fund") is a no-load,
More informationFederal Reserve Adopts Single Counterparty Credit Limits
Debevoise In Depth Federal Reserve Adopts Single Counterparty Credit Limits July 10, 2018 On June 14, 2018, the Federal Reserve Board (the FRB ) adopted regulations (the Final Rule ) to implement the single-counterparty
More informationSound Practices: Implications of Fintech Developments for Banks and Bank Supervisors
October 31, 2017 UPLOADED AT http://www.bis.org/bcbs/commentupload.htm Basel Committee on Banking Supervision Bank for International Settlements CH-4002 Basel Switzerland Re: Sound Practices: Implications
More informationMerrill Lynch, Pierce, Fenner & Smith Incorporated and Subsidiaries (SEC ID No ) Consolidated Balance Sheet June 30, 2013
Merrill Lynch, Pierce, Fenner & Smith Incorporated and Subsidiaries (SEC ID No. 8-7221) Consolidated Balance Sheet Index Page(s) Balance Sheet Consolidated Balance Sheet... 1-2... 3 42 Consolidated Balance
More informationMortgage Terms Glossary
Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see
More informationZoologic Learning Solutions. Finance Essentials II. Financing with Debt. Copyright SS&C Technologies, Inc. All rights reserved.
Zoologic Learning Solutions Finance Essentials II Financing with Debt Copyright SS&C Technologies, Inc. All rights reserved. Course: Finance Essentials II Lesson 4: Financing with Debt Now that Ian Raymond
More informationCALAMOS FAMILY OF FUNDS Supplement dated November 1, 2018 to the
CALAMOS FAMILY OF FUNDS Supplement dated November 1, 2018 to the CALAMOS INVESTMENT TRUST Statement of Additional Information dated March 1, 2018, as supplemented on June 29, 2018 and July 23, 2018 Effectively
More informationUS Cash Collateral STRATEGY DISCLOSURE DOCUMENT
This Strategy Disclosure Document describes core characteristics, attributes, and risks associated with a number of related strategies, including pooled investment vehicles and funds. 1 Table of Contents
More informationDEBT CAPITAL MARKETS EXECUTIVE SUMMARY MIDDLE MARKET
MARKET INSIGHTS 4Q 2017 DEBT CAPITAL MARKETS EXECUTIVE SUMMARY In the middle market, bank loan capital is available at attractive levels. For leveraged middle market companies, non-bank lenders are driving
More informationThe CLO Deep. Discount Dilemma. by Greg B. Cioffi and David H. Sagalyn, asset securitization and global restructuring group, Seward & Kissel LLP
Asset May 25, 2009 Volume 9, Number 12 securitization The Premier Guide to Asset and Mortgage-Backed Securitization The CLO Deep REPORT Discount Dilemma by Greg B. Cioffi and David H. Sagalyn, asset securitization
More informationConsultation Paper. FSB Principles for Sound Residential Mortgage. Underwriting Practices
Consultation Paper FSB Principles for Sound Residential Mortgage Underwriting Practices 26 October 2011 Table of Contents Page Definitions... i I. Introduction... 1 II. Principles... 2 1. Effective verification
More informationA guide to the incremental borrowing rate Assessing the impact of IFRS 16 Leases. Audit & Assurance
A guide to the incremental borrowing rate Assessing the impact of IFRS 16 Leases Audit & Assurance Given a significant number of organisations are unlikely to have the necessary historical data to determine
More informationAIFMD Investor Disclosure
AIFMD Investor Disclosure Name of Alternative Investment Fund ('AIF'): Name of Alternative Investment Fund Manager ('AIFM'): Name of Depositary: Name of Auditor: British Empire Trust Plc Asset Value Investors
More informationKCAP FINANCIAL, INC.
KCAP FINANCIAL, INC. FORM 10-K (Annual Report) Filed 03/18/13 for the Period Ending 12/31/12 Address 295 MADISON AVENUE 6TH FLOOR NEW YORK, NY 10017 Telephone 212-455-8300 CIK 0001372807 Symbol KAP Industry
More informationJPMORGAN INSURANCE TRUST. JPMorgan Insurance Trust Mid Cap Value Portfolio (Class 1 Shares) (the Portfolio )
JPMORGAN INSURANCE TRUST JPMorgan Insurance Trust Mid Cap Value Portfolio (Class 1 Shares) (the Portfolio ) Supplement dated October 22, 2018 to the Summary Prospectus and Prospectus dated May 1, 2018,
More information$1,967,896,000. Mercedes-Benz Auto Lease Trust 2017-A. Issuer (CIK: )
PROSPECTUS $1,967,896,000 Mercedes-Benz Auto Lease Trust 2017-A Issuer (CIK: 0001700323) $439,000,000 (1) 1.15000% Class A-1 Asset Backed Notes $675,000,000 1.53% Class A-2A Asset Backed Notes $225,000,000
More informationIntroduction The Goals and Nature of Credit Analysis
Chapter 1 Introduction The Goals and Nature of Credit Analysis Credit analysis is an art, not a science. The goal of credit analysis is to make a judgment about an obligor s ability and willingness to
More informationStructured Finance.. Rating Methodology..
Structured Finance.. Rating Methodology.. www.arcratings.com GLOBAL CRITERIA FOR RATING TRADE RECEIVABLES ECEIVABLES-BACKED ACKED SECURITISATIONS February 6, 2015 I. INTRODUCTION This Criteria (the Criteria
More information1.1. Funded credit protection
ANNEX E-1 Eligibility This section sets out the assets and third party entities that may be recognised as eligible sources of funded and unfunded credit protection respectively for the purposes of granting
More informationAmerican Beacon Bridgeway Large Cap Growth Fund
American Beacon Bridgeway Large Cap Growth Fund SUMMARY PROSPECTUS April 28, 2017 Before you invest, you may want to review the Fund s prospectus and statement of additional information, which contain
More informationPILLAR 3 DISCLOSURES
. The Goldman Sachs Group, Inc. December 2012 PILLAR 3 DISCLOSURES For the period ended December 31, 2014 TABLE OF CONTENTS Page No. Index of Tables 2 Introduction 3 Regulatory Capital 7 Capital Structure
More informationCredit Suisse Park View BDC, Inc.
Prospectus Credit Suisse Park View BDC, Inc. Common Stock We are a newly organized, externally managed specialty finance company that is a closed-end, non-diversified investment management company that
More informationRETAIL DISCOUNT NEW BREED OF MARKETPLACES
RETAIL DISCOUNT NEW BREED OF MARKETPLACES Raising working capital has always been quite a difficult endeavor for a balance sheet lender focused on a non-prime segment. There are several ways to get working
More information