Danny Dieleman

Why the same private credit loan is different on a bank’s or insurer’s balance sheet Introduction Since I started exploring partnerships between banks and insurers, I have been intrigued by the question: “how can a loan, with a certain economic risk profile, have a very different capital charge on a bank’s or an insurer’s balance sheet, and is this capital arbitrage, or not?” Over the years, I have had many discussions with colleagues on this topic and more recently, I have received reactions...

Introduction Securitizations help European banks lend more. They allow banks to move the credit risks of loans off their balance sheets and use the freed-up capital to support new lending. But since the Global Financial Crisis (“GFC”), securitization volumes in Europe have dropped significantly, while in contrast, the U.S. market has grown, even though U.S. defaults peaked during the GFC. To address this, the EU Commission is reviewing how securitization works in the EU. This is part of its...