TOKYO: Apollo Global Management Inc and other investors have bought the first known bonds that offload risk from bank loans extended to private credit funds known as business development companies.
Japan’s Sumitomo Mitsui Banking Corp (SMBC) sold securities known as significant risk transfers earlier this year to shed risk from at least US$3bil of credit lines it had provided to Business Development Companies (BDCs), a popular fund structure among direct lenders, according to sources.
