Fitch Ratings has published two Exposure Drafts proposing changes to both its “Collateralized Fund Obligations (CFO) Rating Criteria” and “Net Asset Value (NAV) Finance Rating Criteria” reports. 

 Key changes proposed include:

• Updated Fitch cash flow stresses;
• Replaced concentration limits for fund and general partner with a linear stress approach
• Removed rating cap for general partner (GP)-concentrated transactions;
• For secondaries funds, introduce ability to look-through to underlying exposures and remove concentration limits;
• Allow certain transactions to be rated up to ‘AA+’

The existing criteria apply to existing and new ratings during this consultation period. The new methodologies will only apply upon publication of the final criteria.

Fitch invites feedback on the proposed criteria from market participants.

Comments should be sent to criteria.feedback@fitchratings.com by  12 January 2026.

The LMA is pleased to share its end of year Fund Finance Insights paper. The Insights series is intended to enhance understanding of this growing asset class. 

This latest paper explores the evolution of liquidity solutions in the market.  Whilst subscription facilities remain the cornerstone, financing tools increasingly sit alongside broader liquidity solutions such as continuation vehicles (CVs) and collateralised fund obligations (CFOs).  These innovations create opportunity but also complexity.

This latest Insights paper draws on perspectives from leading market participants to explore:

• The expanding liquidity toolkit
• LP sentiment and navigating complexity
• Transparency and alignment – the cornerstone of trust 
• Voices from the market – wish list and predictions for 2026 
• Final reflections and a call for collaboration.

On 21 November 2025, we submitted a high-level response to the FCA’s consultation on progressing fund tokenisation.

We believe tokenisation presents a significant opportunity for both funds and loan markets.

To utilise these benefits, we have urged for continued dialogue and collaboration between regulators and industry participants to ensure regulatory frameworks keep pace with technological innovation.