The Loan Market Association has published the fifth piece in the series of Fund Finance Insights papers. This latest piece focuses on Fund Finance Ratings: Behind the Scenes. They explore the history of fund finance ratings and their role in the market. They also examine the key rating considerations for different fund finance structures, focusing on subscription facilities and net asset value facilities.
The fund finance market has witnessed remarkable growth and evolution in recent years, becoming a crucial component of the broader financial ecosystem. As this market matures, the need for robust risk assessment and transparent frameworks has also increased. Fund finance ratings have been playing an increasing role in this context, offering a standardised approach to evaluating creditworthiness of various fund finance structures and helping to widen access to liquidity for the market. These ratings take into account different quantitative and qualitative factors specific to each structure.
