Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
Apollo Global Management Inc. has acquired a significant portion of Deutsche Bank AG’s risk transfer related to a $3 billion leveraged finance debt portfolio. According to sources familiar with the matter, the New York-based asset manager purchased over 50% of the significant risk transfer (SRT) transaction, which was issued through Deutsche Bank’s Loft program.
In SRT transactions, banks transfer the risk associated with loan portfolios while retaining ownership of the assets. They pay investment firms to absorb future losses, typically securing default protection for up to 15% of potential losses. In exchange, investors often receive attractive yields, commonly in the low double digits.
Deutsche Bank increased the size of this SRT transaction due to strong investor demand, as reported by Bloomberg earlier this month. The SRT consists of a portfolio comprising various credit facilities and loans.
The riskiest tranche of the bonds, totaling $420 million, was priced at 10.5 percentage points over the Secured Overnight Financing Rate (SOFR). Additionally, a mezzanine tranche of $120 million, which absorbs losses after the junior tranche, was priced at 3.75 percentage points over benchmark rates.
As of now, global issuance of SRTs for 2024 is on track to reach between $28 billion and $30 billion, bolstered by a robust pipeline for the second half of the year. This anticipated volume marks a significant increase compared to last year’s record issuance of approximately $24 billion.
The transaction underscores the growing interest from investors in risk-sharing agreements as financial markets navigate evolving economic conditions.
Comments
Post a Comment