Following the pandemic and market volatility that ensued in its earlier days, private debt assets have hit new highs with total AUM reaching $887 billion as of June 2020 . To address this immense growth, however, deal/fund structures – along with operations and technology – have become far more complex, especially for those creative deals that have been designed to align with higher risk tolerance.
The Securities and Futures (Reporting of Derivatives Contracts) Regulations is an over-the-counter derivative trade reporting regulation prescribed by the Monetary Authority of Singapore (MAS). It is a phased reporting regime under which interest rate and credit derivatives are already being reported and foreign exchange, commodity and equity derivatives contracts have to be reported beginning October 1st, 2021.
Private real estate has been one of the most attractive areas in alternative asset investment over the past decade with its share only increasing throughout the years. However, surrounding COVID-19 market distress in 2020, valuations were significantly impacted and the sector experienced a declining growth rate of new deal originations.
Security settlement involves the receipt or delivery of financial instruments against payments. For hedge funds trading thousands of securities, this process is notoriously prone to error as a result of the inaccuracies often found within data and use of sub-optimized workflow systems – leading managers to seek automated solutions in their effort to increase efficiency while simultaneously mitigating risks.
The new normal of near-zero interest rates is largely here to stay and, while inflation pressures could show a potential interest rate movement, this means increased asset liability management and asset allocation pressure for insurance providers. With this, current investment allocations to private equity, private debt, CLO managers and hedge funds will need to increase in order for insurers to manage the asset/liability mismatch and optimize their models effectively.