Polar Asset Raises $215 Million for Canadian Credit Risk Fund

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessPolar Asset Raises $215 Million for Canadian Credit Risk FundCanada’s Polar Asset Management Partners Inc. received more than $215 million in commitments for the first close of a fund that will invest in significant risk transfer deals.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Canada’s Polar Asset Management Partners Inc. received more than $215 million in commitments for the first close of a fund that will invest in significant risk transfer deals. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe Toronto-based asset manager’s new vehicle — called CRS Fund-II, for “credit risk sharing” — will deploy the money into transactions with Canadian financial institutions, according to a statement seen by Bloomberg News. Banks use significant risk transfers, or SRTs, as a way to insure loans against default and free up capital for new business. They do it by selling the risk on bundles of loans to private lenders and hedge funds such as Polar, using credit-linked notes or other instruments. In return, investors receive coupon payments that sometimes exceed 10%. SRTs are becoming more popular with banks as a way to improve balance sheet flexibility and manage regulatory capital levels. Bank of Montreal recently completed two significant risk transfers covering about $5 billion of corporate loans.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againPolar has been one of Canada’s most active investors in structured credit, putting about $1.3 billion toward 20 risk-transfer deals since 2011. Its first SRT-focused fund is fully deployed.“A strong first close of CRS Fund-II builds on more than a decade of experience in structured and opportunistic Canadian credit,” Chief Executive Officer Greg Lemaich said in the statement. Polar plans to begin investing the new money right away, taking advantage of what it sees as a robust pipeline of transactions. Several SRT deals are targeted for execution in the second half of this year.Founded in 1991, Polar manages about $5.7 billion across several investment strategies.The new fund is part of Polar’s strategy of broadening its presence in structured finance. The firm is also building a mortgage lending and securitization business focused on Alt-A residential mortgages, having originated more than C$500 million ($359 million) of loans through a partnership with mortgage company Nesto Inc. Polar is preparing its inaugural residential mortgage-backed securities transaction, expected to be issued this year.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.