KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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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