Venture debt backed ABS face Moody’s downgrades

By Will Caiger-Smith
26 Aug 2014

Asset backed securities issued by firms that lend to venture capital backed tech start-ups could be downgraded by up to two notches if Moody’s changes its ratings approach to include its default correlation framework.

Venture debt ABS transactions pool secured loans made by specialist financing companies such as Hercules Technology Growth Capital and Horizon Technology Finance Management to start-up companies supported by venture capital firms.

Moody’s on Monday published a request for comment on the inclusion of its default correlation ...

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