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ARTICLE · 06 FEBRUARY 2023

Assessing Lender Risk In Fund Finance Markets

Carey Olsen
Carey Olsen
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Carey Olsen

Carey Olsen

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Lawyers from Jersey and the Cayman Islands have contributed to Global Legal Insight's 2023 guide to assessing lender risk in fund finance markets.

GlobalFinance and Banking
Robin Smith
Robin Smith
Alistair Russell
Alistair Russell
Holly Brown
Holly Brown
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Lawyers from Jersey and the Cayman Islands have contributed to Global Legal Insight's 2023 guide to assessing lender risk in fund finance markets.

CONTENTS

  1. Risk analysis in an evolving market
  2. Complex fund structures
  3. Typical structures in our jurisdictions
  4. Legal perspective
  5. Waiver of commitments
  6. Market risk
  7. Competition in the market
  8. Concentration risk
  9. Liquidity risk
  10. ESG risks
  11. Conclusion

RISK ANALYSIS IN AN EVOLVING MARKET

Despite being a relatively long-standing lending product, there have been limited public payment defaults by funds in the fund finance space. Consequently, the market has legitimately considered this to be a safe product for lenders and encouraged more market actors to participate. Whilst the market has weathered, even prospered, in the face of certain challenges (such as the 2008 global financial crisis), there are a new set of challenges ahead. The ongoing impact of COVID and the war in Ukraine have

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