arbiter
JournalsPricingAccount

MDB Loans: A New Asset Class for CLOs

Mahesh Kotecha

The Journal of Structured Finance2022https://doi.org/10.3905/jsf.2022.1.151article
AJG 1ABDC C
Weight
0.37

What the paper says

Use of structured financings for balance sheet management by multilateral development banks (MDBs) is still in its infancy. Three path-breaking deals by the African Development Bank (AfDB) and International Finance Corporation (IFC) are leading the way, however. The two AfDB deals are both synthetic, with the loans remaining on the balance sheet despite substantial risk transfers. The IFC transaction allows co-funding of private sector loans with other lenders. New insights and opportunities will certainly emerge with rising experience in MDB loan deals. A few imperatives for a robust MDB collateralized loan obligation (CLO) market are already evident: (i) public disclosure of the relevant parts of proprietary historical MDB loan performance data; (ii) more-transparent rating agency criteria for MDB securitizations, and (iii) greater management, investor, banker, and MDB expertise in this asset class.

1 citation

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.3905/jsf.2022.1.151

Or copy a formatted citation

@article{mahesh2022,
  title        = {{MDB Loans: A New Asset Class for CLOs}},
  author       = {Mahesh Kotecha},
  journal      = {The Journal of Structured Finance},
  year         = {2022},
  doi          = {https://doi.org/https://doi.org/10.3905/jsf.2022.1.151},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

MDB Loans: A New Asset Class for CLOs

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.07 × 0.4 = 0.03
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.