Sector developments and company hires

Incentive fee ruling
The High Court in London has ruled that Barings (UK), as collateral manager, was not entitled to an incentive fee at the expense of junior bondholders following the optional redemption of the Duchess VI CLO. Part 8 proceedings were brought by Deutsche Trustee Company, to determine the correct interpretation of the bond documentation in which Barings (UK) claimed to be entitled to over €15m in the form of an incentive collateral management fee, following the redemption of the structure by the class F noteholders. Collyer Bristow acted for Napier Park European Credit Opportunities Fund as representative of the class F noteholders, which are now entitled to funds that had been reserved during the dispute. The collateral manager has permission to appeal the ruling.

North America
Capsicum Re has hired Stephen Mathews to lead the global analytics capability of its mortgage indemnity reinsurance division, based in New York. He reports to Steven Rance, managing partner of mortgage indemnity reinsurance. Mathews was previously md of Guy Carpenter and a co-founder of its mortgage credit specialty reinsurance practice. Before that, he was with Willis Capital Markets & Advisory, Bank of America Merrill Lynch and Goldman Sachs.