Sustainable Securitisation: White Whale or Inevitable Next Step in Evolution?

As investor interest in ESG rises, what is the impact on the credit sector, and in particular the European Collateralised Loan Obligation (CLO) industry? Is it possible to satisfy investor demand and ESG regulations? 

Access to underlying ESG characteristics for lenders has never been a straightforward and clear process as many borrowers may not be listed companies and so have limited requirements for disclosures. With the introduction of new regulations and directives leading to amendments and additions in previously established regimes, a question continues to be raised; is it possible to have a truly ESG CLO?

Read our latest piece of thought leadership, where we examine:

• The role that private markets will play in the global recovery from COVID-19 and how that plays into the CLO space 
• The evolution of ESG CLOs, since the first European launch in 2018
• The impact of EU Sustainable Finance Disclosure Regulation (“SFDR”) and the EU Green Bond Standard on CLOs
• Whether an Article 8 CLO remains financial world’s white whale?

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Questions?

Our specialists are on hand to help you to navigate the these challenges while considering the complexity of your firm’s unique compliance, managed services, and ESG requirements.

In addition, our ESG advisory team are on hand to help you gain clarity on your ESG requirements and build a strong ESG program that meets incoming regulatory needs. This practice helps firms of all sizes develop and monitor ESG programs to mitigate risk, make informed choices, grow profitably and sustainably, and combat greenwashing in the process.

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