FISL panels are live in New York City. To get the morning started, let’s talk about counterparty default indemnification. Agent lenders say they have never (or almost never historically) had to pay out for indemnification against a borrower default. In the event of a borrower default, the value of collateral liquidated was sufficient to cover the re-purchase of lent securities and return the excess to the defaulted estate. If this is true, and the arguably arbitrary regulatory cost of indemnification impedes pricing, then why should beneficial owners want it?
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