KUALA LUMPUR, April 1 (Bernama) -- Bursa Malaysia closed higher on Wednesday, with the key index rising 1.10 per cent, in line with firm gains across regional markets following a strong rally on Wall Street overnight, said an analyst. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the improvement in sentiment was underpinned by easing geopolitical concerns and a decline in oil prices. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increase 18.54 points or 1.10 per cent to 1,708.90 from Tuesday’s close of 1,690.36. The benchmark index opened 25.58 points higher at 1,715.94, marking its intraday high, and hit a low of 1,700.20 during the mid-morning session. The broader market was positive, with gainers leading decliners 780 to 444. A total of 475 counters were unchanged, 926 untraded and 11 suspended.
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.
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