Fitch Ratings has published an exposure draft proposing new rating criteria for feeder fund debt (also known as “rated note feeders”).  The exposure draft can be accessed here.   

Market participants have until 6 July to submit comments.

Fitch will host a webinar on 17 June to discuss the new methodology.  The registration link is here. 

Regulation is playing an increasing role in shaping the future of the fund finance market.  It is not just a concern for banks or regulatory lawyers – it is relevant to everyone in the industry.  With liquidity demands on the rise, and with regulators increasingly focusing on fund finance, understanding the evolving regulatory landscape is not an option – it is a strategic priority.  Staying ahead of these changes is essential in navigating the impacts on liquidity, efficiency and transparency.

The LMA is pleased to have published the fourth in its series of Fund Finance Insights papers. These are intended to enhance understanding of this growing asset class.

This latest Fund Finance Insights paper explores the evolving perspectives on the use of fund finance. The ability for a fund to incur financial indebtedness is often a key point of negotiation between fund managers and their investors during the fund formation process. It is important to understand the key drivers and concerns of different market players in order to maximise efficiencies and pave the way for optimal liquidity solutions.