Overseas investors are increasingly providing funding for senior settlement securitizations backed by pools originated in the U.S., where issuers have had a hard time lining up financing.
Investors in countries that benefit from a double taxation treaty, such as Germany and Austria, currently make up the primary market for these deals, said Boris Ziser, a partner at Baker & McKenzie. “Attractive rates of return combined with favorable tax treatment have been driving these transactions.”
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Insurers' unfunded significant risk transfers should meet a set of extra solvency criteria to ensure stability if policymakers back the most lenient bank-capital treatment.
The pool is primarily composed of multifamily mortgages, but includes a range of properties, and one third of the pool structured with future funding.
The fintech integrates with payroll systems of employers to arrange early access to earned wages for its customers.
Liability management exercises are driving defaults and complicating recoveries in collateralized loan obligation pools.
Proceeds will allow Abacus to originate more policies and fund general corporate operations. The transaction is also part of Abacus' shift toward recurring, fee-related revenue.
