Municipal Bond Underwriting

Emerging technologies could spark product innovations that change the way the industry serves customers. But insurers must match technologies with strategic goals.

March 2015 | by Mr. John Olivier, Chief Investment Officer

Our leveraged finance clients include some of the world’s largest investment banks and financial institutions, private investment funds and other institutional lenders and investors, as well as private equity funds, hedge funds, and other corporate borrowers and issuers of securities. We have advised on numerous noteworthy leveraged financings, including Credit Suisse in its fully underwritten covenant-lite five billion senior secured term loan to Fortescue Metals Group, the second-largest leveraged covenant-lite term loan of all time, the largest institutional term loan since 2007, and the largest-ever leveraged metals and mining term loan, which was recognized in the 2013Financial Times "US Innovative Lawyers" report.

Risk-Linked Securities

The rising tide of regulatory scrutiny stemming from the global financial crisis has now reached beyond banks, to the companies that supply them. Under the broad notion that activities can be outsourced; the Consumer Financial Protection Bureau and other regulators are holding financial institutions responsible not only for their own actions but also for those of their vendors and suppliers. With asset values low and regulatory uncertainty high globally, we expect to see opportunities, whether as a result of insurance companies divesting their assets or others, such as banks, selling their insurance arms.

All-Bond Structures and Toggle Notes

The Firm has broad experience in high-yield bond offerings. The Firm handled many of the initial high-yield bond financings in Europe in the mid‑ to late‑1990s, and then helped devise the structural enhancements on the Brake Bros. high-yield bond offering that were demanded at that time by high-yield investors. More recently, we have helped introduce other innovations, such as the standard intercreditor provisions used in Europe, loan options in lieu of bond financings, “all-bond” structures and the first “toggle notes” used in Europe. We have handled many other transactions, such as the first large buyouts in France and Italy, the first buyouts in Europe for Lindsay Goldberg and Ripplewood and the roll-up of the German cable operators.

A Comprehensive Investigation of Third-Party Risk

Regulators now expect institutions to know their third parties, how each of them interacts with consumers, and what activities it performs. Many firms do not have this information readily available. Supplier databases can be incomplete, and some of the most sensitive risks can reside in relationships that are not found in them. Cobranded partnerships, joint ventures, sponsorships, and similar relationships can account for up to eighty percent of the spending that some business units assign to suppliers.

 

Executive Editor

 Ms Anna Sullivan

Ms Anna Sullivan