As part of the Valuation of Securities Task Force’s meeting today at the NAIC Spring National Meeting, Structured Securities Group (SSG) Director Eric Kolchinsky provided an update on the NAIC’s proposed CLO Modeling Methodology. Recall this is the in-house model that the NAIC is working on alongside the model that the American Academy of Actuaries...
The NAIC’s Risk-Based Capital (RBC) Investment Risk and Evaluation Working Group convened this morning at the NAIC’s Spring National Meeting in Indianapolis. The agenda included an update from the American Academy of Actuaries (AAA) on the Structured Securities RBC project and oral comments on the American Council of Life Insurers’ (ACLI) RBC Principles for Bond...
he NAIC’s Risk-Based Capital (RBC) Model Governance Task Force held a call today to adopt its proposed 2025 charges, which were exposed for comment in February.
Earlier this week, the federal banking agencies published their Shared National Credit (SNC) 2024 report highlighting findings from their semi-annual reviews. The report assesses risk in credit facilities syndicated among at least three banking institutions with aggregate loan commitments of $100 million and nonbanks. The 2024 SNC sample covered 34% of the $2.96 trillion in...
This series unpacks critical trends shaping the corporate loan market. Episodes feature insights from industry experts, providing in-depth discussions on emerging issues, regulatory shifts, and innovative financing structures.
The NAIC’s Risk-Based Capital (RBC) Investment Risk and Evaluation Working Group held a call yesterday to provide a status update from the American Academy of Actuaries on the Structured Securities RBC Project (i.e., the Academy’s framework for calculating RBC charges for CLO notes), which has been underway since 2022. As we’ve previously noted, this framework...
Yesterday, the Federal Reserve published its January 2025 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices. Responses were received from 67 domestic banks and 20 U.S. branches and agencies of foreign banks. (While the survey covers commercial and industrial (C&I), consumer and real estate loans, for the purposes of this summary, we will...
The BDC Quarterly Wrap highlights select data points to provide a readout on BDC growth, structure, financing and asset quality. For context, growth data includes the entire BDC universe, which consists of 159 funds; all other data captures BDCs reporting financials by December 2nd, representing a universe of 155 funds. Market. In 3Q24, Business Development...
Analysis & Data, LSTA publications on the private corporate credit market
This article has been updated to highlight new details on the transition to model-based RBC charges for CLO notes. On December 5th, the NAIC’s SSG released preliminary probability weights for the 10 stress scenarios to apply to BSL CLO notes. Recall that the scenarios and probabilities are part of the NAIC’s process for transitioning...
The Financial Stability Oversight Council (FSOC) addressed its financial stability concerns for private credit in its 2024 annual report published late last week. The report incorporates a call out box entitled “Private Credit: Financial Stability Considerations” to discuss perceived risks related to opacity, liquidity, and interconnectedness with banks and insurers, echoing several of the same...
BDCs have become significant players in the private credit landscape, with publicly traded, non-traded, and private BDCs offering varying levels of liquidity.
Policy & Advocacy, Private Corporate Credit Series
