In Person: Private Debt
One theme from the 2023 Global Insurance Market Report is the increasing allocation of capital from the insurance sector to more illiquid investments such as private debt. Further, where a life insurance cedant accepts private debt fund holdings as collateral for an annuity reinsurance contract, a more competitive price for the reinsurance contract can normally be obtained than if the collateral posted were, say, investment-grade, highly liquid corporate bonds.
Private debt funds have experienced explosive growth since the global financial crisis in 2008. Their growth has been driven by three main factors: (i) the demand for debt from private equity entities to fund company buy-outs; (ii) increased regulation of banks in the wake of the global financial crisis causing them to pull back on lending; and (iii) investors’ search for yield in a two-decades period of falling interest rates.
Private debt has become a core component of the investment portfolios of many institutional investors partly because of its historic track record of stronger risk-adjusted returns relative to traditional debt securities and partly because of the diversification it offers within the debt asset class.
However, private debt funds like other private funds have come under regulatory scrutiny for such features as a lack of visibility of concentration risks, liquidity risks, and synthetic leverage risks which might potentially alert regulators to links to other parts of the financial sector.
Eadbhard O’Callaghan and John Caslin will present a paper entitled “Private Debt” which will cover a range of aspects of private debt lending including the risks and returns, loan underwriting, investor due diligence on private debt funds, private debt fund leverage, and the focus of regulators on the asset class.
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Members: The buddy system is in place for this event, therefore you are welcome to invite up to two non-members along with you, free of charge, as your guests to this event. You will need to record their name under your reservation.
Non-members: If you are not coming along with a member of the SAI under the buddy system, there is a charge of €50 to attend.
Cancellation Policy available here.