ARTICLE
31 January 2022

Managers Seeking New Capital Look To Debt Products

W
Walkers

Contributor

Walkers is a leading international law firm which advises on the laws of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Ireland and Jersey. From our 10 offices, we provide legal, corporate and fiduciary services to global corporations, financial institutions, capital markets participants and investment fund managers.
Over the course of 2021, Bermuda saw an uptick in deal activity, reflected by both a greater number of transactions but also by aggressive deal timetables.
Bermuda Finance and Banking

Over the course of 2021, Bermuda saw an uptick in deal activity, reflected by both a greater number of transactions but also by aggressive deal timetables. A wave of amendments to previous deals based on the phasing out of LIBOR (and its replacement by new reference rates - SOFR, SONIA etc.) unquestionably featured heavily in the motivating factors behind this trend. We also saw a noticeable increase in demand for debt products across certain industries. Most notably, in reinsurance, a number of asset managers - whose investment focus is in insurance-linked securities or collateralised reinsurance - found themselves seeking alternative sources of capital and increasingly took to debt to help fund renewals in this space. As a result, we expect that managers will make greater use of credit facilities and other debt products in this field and that this trend will continue into 2022

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