As markets evolve and the complexity of financial instruments rise, more and more security types are being pegged against a benchmark rate. With this, the process of mastering a security is now coupled with mastering the underlying benchmark curve and further linking the applicable rate to the security.
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 [1]. 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.
