Financial investments involve an element of risk. For further information, please see the risk warning section.

The team is responsible for originating bespoke transactions across a wide variety of underlying asset classes, and for opening up investment in the new asset classes.

The structured deals are typically more complex than mainstream corporate bonds, with the structuring used to either enhance risk mitigation or alter the cash flow profile to better meet an investor’s requirements.  This category can also include niche asset types that may be difficult for most investors to access. Managing over £2.8bn (as of 30 September 2017), we have consistently provided investors with superior  risk-adjusted returns.

New regulations for banks have curtailed their appetite to continue providing certain products, providing us with a rich pipeline of potential transactions.  The Structured Finance team works closely with colleagues across the firm to evaluate a broad range of derivative, asset-backed and credit-linked opportunities, including:

  • Mortgage-backed securities
  • Collateralised mortgage obligations
  • Collateralised debt obligations
  • Asset-backed securities
  • Social housing
  • Ground rent debt
  • Derivative-related transactions (including swap repackagings)
  • Leveraged finance
  • Government-/Supranational-guaranteed loans
  • Aviation financing
  • Trade financing
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Munawer Shafi
Being part of one of the UK’s largest insurers means we see significant flow and are able to 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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Notable landmarks

  • As of 31 December 2017 we have completed over £2.8 billion of structured finance transactions
  • We have successfully structured the largest CLO of PFI loans, as well as several portfolios of uncollateralised swap positions
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Sample transaction: Export Credit

  • An export credit agency (ECA) acts as an intermediary between banks and exporters to facilitate export financing
  • Government backed. ECA-guaranteed loans or bonds become a government liability
  • No mark-to-market risk if investment is held to maturity
  • Loans are for specific commercial transactions
  • ECA loans tend to be illiquid with little depth to any secondary market
  • The loans have an illiquidity premium over comparable sovereign bonds
Counterparties Sovereign / national ECA agencies
Investment size $50 million - $150 million
Format Usually amortising
Spreads over comparable government bonds 50 - 100bps
Credit rating Sovereign risk; AAA to AA
Cash flow profile  Floating rate
Tenor 5-10 years