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November 05, 2021
Cadwalader partner Sophie Cuthbertson kicked off the Practising Law Institute’s (PLI) “New Developments in Securitization” 2021 event, marking her third consecutive year as chair of this annual gathering that addresses key developments in structured finance.
In her opening remarks, Cuthbertson noted that issuance volumes for asset-backed securities are above 2020 levels, which continues an acceleration in issuance that, for many asset classes, began in late 2020.
In addition, Cuthbertson participated on the “Recent Developments in Structured Finance” panel, which covered the impact of COVID-19, legal and regulatory updates, Brexit and the EU, risk retention and other important forward-looking topics, such as environmental, social and governance (ESG) priorities. Cuthbertson also presented as part of the panel, “LIBOR: Are the Securitization Markets Ready?,” during which she addressed important bond-related considerations for regulated banks and practitioners with regard to the imminent cessation of LIBOR.
Cadwalader partner Joseph Beach participated on the panel, “CLO Market Update – Lessons Learned,” whose speakers discussed ESG investing in U.S. collateralized loan obligations (CLOs) as a growing trend, especially in 2021, even as the U.S. lags behind Europe in this sector. They also addressed critical aspects of EGS investing, such as how to effectively screen the underlying obligors and how to avoid any risks of “greenwashing,” or giving the false impression that a pool of collateral is more “green” than it really is.
“I think that ESG requirements in U.S. CLOs create opportunities for investors to make their voices heard on important, but not traditionally economic, issues,” Beach said. “The goal will be to continue to develop systems of screening and grading assets to ensure that the investors’ requests are being honored.”
Cuthbertson, a partner in Cadwalader’s Capital Markets Group in Washington, DC, focuses on innovative and complex structured finance transactions and private fund formation for high-profile clients, including issuers, underwriters, initial purchasers, hedge funds and private equity funds.
Charlotte-based Beach, also a partner in Cadwalader’s Capital Markets Group, represents investment banks, asset managers, large commercial banks and commercial paper conduits in a broad range of securitization and structured finance transactions, focusing primarily on CLOs and structured loans.