Perenna was established in 2013 by three partners combining strong investment track records in fund management with significant expertise in residential mortgage loans obtained from leading investment banks.
The new regulatory landscape has created new and compelling opportunities for investors, particularly insurance companies and pension funds, to invest in the residential mortgage market.
Banks and building societies need to recalibrate their balance sheets as a result of new capital, leverage and liquidity requirements under Basel III and CRD IV.
Insurance companies are subject to the new Solvency II capital directive. Residential mortgage loans obtain an extremely favourable capital treatment under the Solvency II directive and are significantly more capital efficient than residential mortgage backed securities, covered bonds or corporate bonds.
Pension funds are facing challenges in the current low interest rate environment. Schemes are maturing and demographics are evolving. Better and more cost efficient capital allocation and performance is required. De-risking strategies need to be implemented. Assets with attractive risk adjusted returns, low volatility and predictable cashflows are required.
Perenna provides solutions to the challenges created by these dynamics.
We understand the evolving requirements of investors and mortgage lenders and provide investment solutions to fit these