Private placements act as a hybrid between a public bond and a syndicated loan. They are not regulated by the SEC and public disclosures are not required. Life insurance companies are attracted to US Private Placements, or USPPs, due to their covenant protection and portfolio diversification potential. European institutional investors have gravitated towards the European private placements market for similar reasons.
Key learning objectives:
Consider why certain companies like USPPs
Understand the process of a private placement
Gain an introduction to the European private placement market