Credit, where it's due
The credit insurance market appetite runs down from implied ratings of investment grade to B/B2 (but a rating is not required to access the CRI market) and across a range of products from term loans and RCFs through to derivatives, asset-backed lending securitizations.
Overview
CRI is an effective form of unfunded risk transfer that provides lenders with loss mitigation in the event of a borrower or counterparty's failure to pay. CRI is typically structured to provide pro rata or tranched protection over a single name or a portfolio of names. It can be arranged for virtually any type of credit exposure, whether in loan, security or derivative format.
Benefits
CRI offers a range of benefits such as:
Maximizing lending capacity while complying with credit limit constraints
Mitigating portfolio concentration and credit policy exceptions
Enhancing the rating of an instrument
Supporting access to cheaper back leverage or funded participations
Regulatory capital relief via RWA substitution
Providing an alternative to loan sales and CDS for illiquid exposures
Atlantic's Credit Risk Solutions group pulls together decades of experience across banking and insurance that enables us to deliver these benefits, effectively advise clients and arrange insurance for challenging and complex transactions.
