X-class loan notes and avoiding moral hazard

In Credit Suisse Asset Management LLC v Titan 2006-1 Plc the Court of Appeal rejected an attempt by Class X noteholders to claim an increased proportion of the available income when the underlying loans were in substantial default. In this article, Nicola Rushton considers why this might have been and how the rewards to the originator might better be aligned with those for the investors.

Click here to read the full article.

Filed Under: JIBFL

Relevant Articles
Area of Interest