Private Credit working party

This survey is done on behalf of the Private Credit Working Party for Insurers. The working party is researching the impact the Covid-19 pandemic has had on private credit markets, in particular commercial real estate (CRE) and infrastructure debt. The survey is addressed to professionals working in the investment functions of insurers and their asset managers, who are originating, managing and / or overseeing portfolio of such investments.

By CRE debt we mean mortgages that are secured by a lien on a commercial property. A commercial property is an income-producing property, used solely for business (rather than owner-occupier) purposes.

By infrastructure debt we mean debt provided to infrastructure projects, rather than to corporate entities. Examples of infrastructure projects include transportation systems, communication networks, sewage, water, energy production and distribution.

The results of the survey will only be accessible by members of the working party and the results from the analysis will be presented on an anonymised basis.

The survey should take 15 - 20 minutes to complete.

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* 1. Where is the main business of your company concluded?

Continental Europe

USA / Canada

Asia

Australia

Africa

Latin America

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* 2. Is your company:

Life

Non-life

Composite

Reinsurer

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* 3. What is the size of your balance sheet?

Below £1bn

£1bn £5bn

£5bn £20bn

£20-£100bn

Over £100bn

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* 4. What is the size of your respective Real Estate / Infrastructure portfolios?


Real Estate debt	Real Estate debt menu
Infrastructure debt	Infrastructure debt menu

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* 5. What’s the % of your portfolio rated IG (internally or externally)


Real Estate debt	Real Estate debt menu
Infrastructure debt	Infrastructure debt menu

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* 6. Has your perception of the relative attractiveness of public vs private assets changed following COVID-19?

Yes - more favourable towards public assets

Yes - more favourable towards private assets

No - remains the same

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* 7. What’s the percentage (by portfolio market value) of defaults in you suffered in 2020 in your respective portfolios?

	Real Estate debt
Real Estate debt	Real Estate debt Real Estate debt menu
Infrastructure debt	Infrastructure debt Real Estate debt menu

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* 8. What’s the percentage (by portfolio market value) of downgrades (internally or externally rated) you suffered in 2020 in your respective portfolios?


Real Estate debt	Real Estate debt menu
Infrastructure debt	Infrastructure debt menu

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* 9. What’s the percentage of Covid-19 relief requests you received in your respective portfolios?


Real Estate debt	Real Estate debt menu
Infrastructure debt	Infrastructure debt menu

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* 10. Have you granted relief for:

	Yes	No
Interest or capital deferral	Interest or capital deferral Yes	Interest or capital deferral No
Maturity	Maturity Yes	Maturity No
Event of Default Waiver	Event of Default Waiver Yes	Event of Default Waiver No
Covenant Waiver	Covenant Waiver Yes	Covenant Waiver No
Covenant Reduction	Covenant Reduction Yes	Covenant Reduction No

Other (please specify)

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* 11. What percentage of your annual origination budget have you / will you have achieved in 2020?


Real Estate debt	Real Estate debt menu
Infrastructure debt	Infrastructure debt menu

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* 12. For CRE / Infra loans in the pipeline at the outset of Corona (March 2020) what percentage of your loans (sum to c. 100)

Closed as expected on schedule, terms materially as expected

Closed with delay but with terms materially as expected

Closed with wider spreads

Didn’t close, rejected by lender

Didn’t close, due to borrower / sponsor / syndicate reasons

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* 13. How have spreads reacted following the crisis in real estate debt pre COVID until today?

Broadly flat

Increased 10-20bps

Increased 20-40bps

Increase by more than 40bps

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* 14. How have spreads reacted following the crisis in infrastructure debt pre COVID until today?

Broadly flat

Increased 10-20bps

Increased 20-40bps

Increase by more than 40bps

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* 15. “Will your allocation to CRE debt change in 2021, relative to 2020?

Yes

If yes, how much? (can be negative)

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* 16. Will your allocation to infrastructure debt change in 2021, relative to 2020?

Yes

If yes, how much? (can be negative)

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* 17. How have covenants reacted following the crisis pre COVID until [today]?

	Substantially tighter	Tighter	No change	looser	Substantially looser
CRE	CRE Substantially tighter	CRE Tighter	CRE No change	CRE looser	CRE Substantially looser
Infra	Infra Substantially tighter	Infra Tighter	Infra No change	Infra looser	Infra Substantially looser

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* 18. Following the crisis how would your allocation change in the Real Estate sectors below

	Completely divest	Decrease	No change	Increase	Substantial increase
Industrials	Industrials Completely divest	Industrials Decrease	Industrials No change	Industrials Increase	Industrials Substantial increase
Retail	Retail Completely divest	Retail Decrease	Retail No change	Retail Increase	Retail Substantial increase
Hotels	Hotels Completely divest	Hotels Decrease	Hotels No change	Hotels Increase	Hotels Substantial increase
Alternatives	Alternatives Completely divest	Alternatives Decrease	Alternatives No change	Alternatives Increase	Alternatives Substantial increase
Residential	Residential Completely divest	Residential Decrease	Residential No change	Residential Increase	Residential Substantial increase

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* 19. Following the crisis how would your allocation change in the Infrastructure sectors below

	Completely divest	Decrease	No change	Increase	Substantial increase
Transportation	Transportation Completely divest	Transportation Decrease	Transportation No change	Transportation Increase	Transportation Substantial increase
Energy production	Energy production Completely divest	Energy production Decrease	Energy production No change	Energy production Increase	Energy production Substantial increase
Energy storage	Energy storage Completely divest	Energy storage Decrease	Energy storage No change	Energy storage Increase	Energy storage Substantial increase
Renewables	Renewables Completely divest	Renewables Decrease	Renewables No change	Renewables Increase	Renewables Substantial increase
Social	Social Completely divest	Social Decrease	Social No change	Social Increase	Social Substantial increase
Telecoms / digital	Telecoms / digital Completely divest	Telecoms / digital Decrease	Telecoms / digital No change	Telecoms / digital Increase	Telecoms / digital Substantial increase

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* 20. Following the COVID crisis how has your allocation to CRE or Infra been affected in relation to your total portfolio?

	Completely Divest	Reduce	No change	Increase	Substantially Increase
CRE	CRE Completely Divest	CRE Reduce	CRE No change	CRE Increase	CRE Substantially Increase
Infra	Infra Completely Divest	Infra Reduce	Infra No change	Infra Increase	Infra Substantially Increase

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* 21. How do you think the COVID crisis will impact CRE in the future (sectors, pricing, covenants, sourcing, other)?

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* 22. How do you think the COVID crisis will impact Infra in the future (sectors, pricing, covenants, sourcing, other)?

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* 23. Are you looking to add new asset classes to your private debt portfolio in 2021 and beyond?

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* 24. Please provide your details as the working party members may contact you for further clarification.

Name:

Email:

Job title

Company