Arrangers protect Schuldscheine from US banks out of fear of SEC

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By Silas Brown
03 Oct 2019

Schuldschein arrangers have actively prevented US investors from lending in the market over the past few years, for fear of the consequences of US regulators ruling the instrument a bond security as opposed to a loan. But as new arrangers enter the market, the old guard’s ability to protect their cherished loan instrument — and their market share — is in question, Silas Brown reports.

For a market desperate for global recognition, it is a curious thing to find a clutch of investors barred from entry. But this has occurred in the Schuldschein market. The major Schuldschein arrangers, primarily the Landesbankens, have purposefully not approached US bank investors.

“We do not pursue any ...

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