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By Eduard von KYMMEL*, Head of VP Fund Solutions
In the light of new regulatory provisions, banks must drastically curtail their lending. The main beneficiaries of this trend are alternative financial instruments such as loan funds.
The financial crisis ushered in radical changes for the global financial system. To prevent future bank failures, directives such as the Alternative Investment Fund Manager Directive (AIFMD) and Basel III were introduced. However, these measures aimed at protecting the financial system had unintended consequences, as banks had to significantly scale back their lending due to new capital requirements and more stringent securitisation standards.
Given the more restrictive lending policy, alternative...
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