As asset-backed fund financings such as net asset value-based loans (NAV loans) get increasing interest from insurance companies and other institutional investors, market focus has shifted to structuring, reporting, and ratings criteria to test and predict resilience of such financings under stress. Accordingly, certain rating agencies have developed and publicly articulated certain rating criteria and parameters related to NAV loans.
In “Net Asset Value-Based Fund Financings: Credit Rating Criteria and Key Structuring Considerations,” Sidley partners Elizabeth Tabas Carson and Eno Usoro and counsel James Jiang discuss some of the most common NAV loan features and structural protections considered by such rating agencies and provides insights on practice implications thereof for investors and borrowers.
Sidley lawyers Peter Burke, Michele Nudelman, Daniel Philion, Leslie Plaskon, and Annie Wallis also contributed to this article.
