<p>Filter Knowledge</p>

Welcome to the fifth episode in our Spotlight on ESG video series. 

In this podcast Jonathan Gilmour, Peter Hughes, John Lee and Adam Schnider consider the implications of the recent collapse of cryptocurrency exchange FTX. They discuss some of the key issues that could arise from the insolvency of FTX or other crypto investment firms more generally, including priority of claims, proprietary rights in crypto-assets, tracing and recovery of crypto-assets, and cross-border insolvency issues.

The rise in gilt yields following Kwasi Kwarteng's "mini-budget" announced on 23 September 2022 led to the Bank of England stepping in to stabilise the market - primarily to protect UK defined benefit (DB) pension schemes from the impact of the volatility which arose immediately afterwards. Here we outline what happened and some of the potential longer-term impact for schemes pursuing liability-driven investment (LDI) strategies.

Partners Andy Lewis and Jonathan Gilmour, Senior Counsel Harriet Sayer and Senior Consultant Simon Witney have contributed to the latest paper from Principles for Responsible Investment (PRI): A legal framework for impact (UK): integrating sustainability investment goals across the investment industry.

The aftermath of the COVID-19 pandemic, the ongoing Russia/Ukraine conflict, and rising inflation and interest rates have exacerbated a slowdown in the world economy. Many borrowers have availed themselves of low-cost debt in the decade since the financial crisis, and some may encounter challenges in servicing or refinancing this debt in a harsher economic climate.

We are very proud to continue to be the Contributing Editor of the recently published International Comparative Legal Guide (ICLG) to Derivatives 2022.

A regular briefing for the alternative asset management industry. 

With real estate finance (REF) and real estate development finance markets increasingly looking to integrate sustainability within their financing offerings, the Loan Market Association has published a guide on the application of the Sustainability Linked Loan Principles (SLLP) to real estate finance (REF) and real estate development finance transactions.

Peter Hughes and Joseph Wren and Vanessa Kalijnikoff Battaglia have co-authored a chapter in the GLI - Fund Finance 2022 publication highlighting the key structural and documentary legal issues that should be considered by a private capital manager thinking about entering into derivatives transactions at fund level. 

Travers Smith and Validus Risk Management hosted a webinar on Monday 22nd November exploring the hidden FX risks in pension scheme portfolios.

Writing for the Journal of International Banking & Financial Law, Derivatives & Structured Products Partner, Joseph Wren, and Associate, Nicholas Baines, take a closer at the key terms of deal contingent derivatives and consider how they can be used to mitigate risk in M&A transactions. 

Writing for Portfolio Institutional, Derivatives & Structured Products Partner, Sebastian Reger, discusses illiquid assets in the context of defined benefit pension schemes and considers the legal and commercial factors which cause illiquidity that asset owners should be aware of. 

Certain buy side market participants, including pension schemes and asset managers, will be required under EMIR/UK EMIR to exchange initial margin on most of their uncleared OTC derivatives transactions from 1 September 2022. Your pension scheme will be affected by this upcoming regulatory requirement if it uses uncleared OTC derivatives with an aggregate notional amount above EUR8bn.

On 12 October 2021 the English High Court ruled that interest rate swaps executed between Deutsche Bank AG London ("Deutsche Bank") and the Italian municipality Comune di Busto Arsizio ("Busto") in mid-2007 were valid and binding, obliging Busto to maintain its payments to the bank up to the conclusion of the swaps in 2031.

We have now passed the end of the third quarter of 2021, the date set by the Sterling RFR Working Group for the completion of the active transition of financial contracts away from LIBOR. Our briefing in June outlined the roadmap to transition and the progress being made in the cash and derivatives markets.

The environmental, social and governance (ESG) performance of a business is both a financial matter and an ethical one. As a result, responsible investment is right at the heart of the private equity investment agenda.

We are very proud to be the Contributing Editor of the recently published International Comparative Legal Guide on Derivatives 2021.

We are delighted to this year be the Contributing Editor of the recently published International Comparative Legal Guide on Derivatives 2021.

It is no longer news by now that after 35 years as a mainstay of the financial markets, LIBOR is to be discontinued, with the majority of tenors and currencies scheduled to be published for the last time on 31 December 2021.

UK counterparties to derivatives transactions should note that there is an upcoming filing deadline under UK EMIR.