This panel focuses on investing in capital relief trades at the peak of the credit cycle. Against increasing corporate defaults, does SRT represent sensible diversification or a risky bet? How are rising interest rates affecting investor IRR targets for both US and European transactions? How does the investment appetite of the pension/insurance industry for synthetics differ from that of hedge funds? From an issuer’s perspective, what constitutes a ‘perfect’ partner for CRTs? How have previous deals performed? Case study on lessons learned and pricing considerations.
Syril Pathmanathan, The D . E . Shaw Group
Kaelyn Abrell, ArrowMark Partners
Kaikobad Kakalia, Chorus Capital
Jessica Littlewood, Clifford Chance
Jason Marlow, Barclays
Manish kapoor, West Wheelock Capital
Kaelyn Abrell comments: “We’ve witnessed the CRT market mature over the last few years to become an integral part of the opportunity in private credit. As we approach a potentially more difficult credit environment, we believe the unique return profile of CRT securities will validate the asset class as a key tool to achieve overall portfolio goals. Drawing on ArrowMark’s eight years partnering with both CRT issuers and institutional investors, we look forward to sharing our thoughts on the impact of the market’s ongoing evolution and how best to align issuer objectives with those of a diverse group of investors.”