Story thread · 2 reports / 2 sources

Davidson Kempner joins UK risk transfer to support Oxbury Bank lending

hedgeweek.com · 2hShare

Hedge fund Davidson Kempner Capital Management is partnering with the UK government to provide capital relief to agricultural lender Oxbury Bank through a synthetic risk transfer covering as much as £500m ($662m) of loans to small and medium-sized farming businesses, according to a report by Bloomberg. Under the transaction, the British Business Bank will provide a guarantee covering the senior portion of the portfolio, while New York-based Davidson Kempner will invest in a junior tranche, according to the government-owned development bank. Oxbury will retain part of the underlying credit exposure while benefiting from additional regulatory capital that can be used to expand lending to the agricultural sector. The transaction forms part of the British Business Bank’s efforts to encourage institutional investors to participate in synthetic risk transfers through its Enable programme. The initiative is designed to make capital-relief transactions more accessible to smaller specialist len

First report: Davidson Kempner Joins UK-Led Risk Transfer Deal for Farm Lender — bloomberg.com, 1d