Dutch pension fund manager , Philips , has announced a € 2.3bn deal to insure loans of companies , in a deal that highlights the potential appeal of exotic financial instruments in a world of ultra - low interest rates . It said the deal – involving a portfolio of more than 6,000 loans to Santander’s clients in Spain – would generate a “stable and robust” return. The " synthetic " securitisation deal will involve PGGM selling credit insurance against potential default on a portion of more than 6,000 outstanding loans to small and medium enterprises ( 2014 ) .
Dutch pension fund manager , Philips , has announced a € 2.3bn deal to insure loans of companies , in a deal that highlights the potential appeal of exotic financial instruments in a world of ultra - low interest rates . The " synthetic " securitisation deal will involve PGGM selling credit insurance against potential default on a portion of more than 6,000 outstanding loans to small and medium enterprises ( 2014 ) .