Sector developments and company hires

Call for additional index granularity
SFA has submitted a letter to Fannie Mae and Freddie Mac in response to their Social Index (SCI 19 October 2022) that strongly advocates for additional transparency and granularity in how existing social metrics are reported to investors beyond the index. While the association commends the GSEs for their efforts to improve ESG data collection and reporting, it notes that in its current form, the Social Index obfuscates data and does not provide a sufficient basis upon which investors can satisfy their diligence and compliance obligations. Additionally, the letter argues that the Social Index must not serve as a de facto industry standard framework for how other structured finance issuers disclose and report social data metrics in the future, including the self-selected nature of the index.

SFA says it recognises that there are challenges associated with reporting this data, including protecting borrower privacy. Given those challenges, the association recommends that both GSEs continue to engage with investors on how best to report and disclose social metrics within the context of ESG investing in a way that protects borrowers’ interests while providing investors with the data necessary to make informed investment decisions.

Specifically, SFA investor members believe it’s critical that the GSEs report metrics on an individual, disaggregated basis, noting that disclosure of individual metrics with sufficient transparency is fundamental to investors’ ability to independently assess the characteristics, risks and impact of any bond. As part of future discussions, SFA investor members have offered to provide their consensus prioritisation of fields most relevant and impactful for their investment analysis.

In other news…

EMEA
Urs Banziger has joined Tramontana Asset Management as md, augmenting the firm’s origination and execution capabilities for renewable power transactions and carbon-backed financings across the European region. He was previously md and Switzerland country head at UniCredit, having worked at Barclays before that.

North America
Blackstone has promoted Brad Marshall to global head of private credit strategies, adding to his role as chairman and co-ceo of the firm’s two BDCs, Blackstone Private Credit Fund (BCRED) and Blackstone Secured Lending Fund (BXSL). He has been leading the firm’s direct lending efforts for nearly 17 years. Jonathan Bock, formerly the ceo of Barings BDC, has joined Blackstone to serve alongside Marshall as co-ceo of its BDCs.

Kelli Marti, senior md and head of CLO management at Churchill Asset Management, is set to assume an additional role at the firm. As of 1 March, she will co-head Churchill’s Chicago office alongside Alona Gornick, md and senior investment strategist at the firm.

PGIM has announced that fixed income head Michael Lillard is set to retire in April 2024 and John Vibert will be appointed as president and ceo, effective from 1 January 2024. Lillard joined Prudential in 1987 and has served in a host of investment and leadership roles throughout his tenure, including cio from 2008 to 2021.
Vibert joined the firm in 2014 as head of securitised products, a position he held until assuming the newly created role of president in January 2022. In this role, he works closely with Lillard on the strategic direction and overall management of the firm, including oversight of global operations, technology and business management functions. Vibert also oversees the global CLO business and will retain that responsibility upon his appointment as ceo.
Craig Dewling and Gregory Peters, both mds, will remain co-cios and will report to Vibert when he assumes the role of ceo. Lillard will serve as an advisor to the firm for the period from January through April 2024.