Swedish pension giant Alecta and Dutch institutional pension and investment manager PGGM have signed a co-investment agreement to invest in credit risk sharing transactions, according to a joint press release.
In credit risk sharing transactions, banks transfer part of the credit risk of a portfolio of loans to investors while maintaining a share of the risk. With these kinds of transactions, investors get exposure to unique credit risks that is not otherwise available. The benefit for the banks is freed-up capital that can be re-used again, for example for new loans to clients, Alecta and PGGM explain.
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