Thursday, 16 May 2019 in Frankfurt
The Schuldschein market has expanded and internationalised over the last years. It attracts significant interest both from market participants and (legal) media. Currently the use of trading platforms, digitisation, work out and other implications of defaulting Schuldschein loans, as well as the recommended forms of Schuldschein loan agreements recently published by the Loan Market Association, are the subject of intense discussions in the market.
We have offered the opportunity to discuss these issues and other current developments in the Schuldschein market during our Linklaters „Schuldschein" Seminar held on 16 May 2019.
The main topics were:
„Schuldschein: Trading Platforms and Digitisation – Hype or Revolution?“
A multitude of digital platforms for the issuance and trading of Schuldscheine have been established. The services offered by them vary. Some are sponsored by banks, others operate independently. The first Schuldscheine on blockchain have been executed, some Schuldschein transactions have been placed exclusively over trading platforms. We discussed inter alia the following questions: What are the implied benefits for corporate issuers? Are there any associated risks? Will the market shift into this direction?
„Schuldschein: Workout and Restructuring – What are the lessons learned?“
The default rates of Schuldschein transactions are very low. Some defaults have recently sparked off a discussion whether Schuldschein loans, due to their legal structure, are more challenging in work out/restructuring scenarios than other comparable finance instruments. We presented our lessons learned from recent work outs/restructurings involving Schuldschein debt.
„Schuldschein: Market update“
The first quarter of 2019 saw a very active Schuldschein market with issuers arbitraging against bond pricing. More than half of the debut transactions involved non German borrowers. We discussed these trends, presented the current state of the market, reported on first experiences with the new LMA recommended forms of Schuldschein loan agreements and provided an outlook for the rest of the year.
Our speakers were:
Michael Schober, Director – Houlihan Lokey, Andreas Petrie, Head Primary Markets – Landesbank Hessen-Thüringen, Dr Sebastian Glock, Co-Founder – VC Trade, Dr Neil George Weiand, Partner – Linklaters LLP, Nick Le Masurier – Linklaters LLP, Dr Sven Schelo, Partner – Linklaters LLP, Dr Christian Storck, Partner – Linklaters LLP, Dr Sabine Vorwerk, Partner – Linklaters LLP.
You are more than welcome to get in touch with any of the Linklaters speakers if you would like to discuss any of the seminar topics or other topics related to the Schuldschein market.