Tailored transactions to mitigate risk and structure cash flows

We carry out bespoke deals across an array of markets, working closely with colleagues to evaluate a range of derivative, asset-backed and credit-linked opportunities. More specifically, they include mortgage-backed securities, collateralised debt obligations, social housing, leveraged finance, government-/supranational-guaranteed loans, aviation and trade financing.

Benefits

Bringing more clarity for investors seeking long-dated cash flows.

Diversification

Historical performance shows diversification benefits versus liquid market opportunities.

Bespoke structuring

Specially adapted structures can be helpful for those with defined cash-flow and eligibility criteria (e.g. Matching Adjustment Eligibility).

Risk control

Our expertise includes actuarial and derivative pricing, with strong risk controls for pension and insurance clients.

Secured risk

Many trades offer security in the form of an asset (e.g. aircraft, real estate), contributing to improved recovery rates in the event of default.

Illiquidity premia

Attractive yields relative to comparable listed credit, although real estate assets are significantly less liquid than bonds.

Key risks

Investment risk

The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

Illiquidity risk

Certain assets held in the fund could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Market risk

Changing market dynamics may undermine the relative attractiveness of structured transactions.

Complexity risk

Assessing risk implications of multi-layered transactions is challenging.

Being part of one of the UK’s largest insurers means we see significant flow and can execute large and complex transactions, giving us a first-mover advantage and allowing us to generate significant risk-adjusted returns for our clients.
Munawer Shafi, Head of Structured Finance

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For further information, please contact our investment sales team.

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RA19/0008/05012020