Regulatory
SVO
Also known as: Securities Valuation Office, SVO designation
status: draft
Securities Valuation Office. The NAIC unit that assigns credit designations (NAIC 1-6) to securities held by insurance companies. SVO designations determine risk-based capital (RBC) charges and thus which investments are economic for insurers.
What to watch
An SVO designation can differ from the rating agency rating, especially for unrated or thinly traded securities. Insurance investors may require SVO pre-clearance before committing to a deal. The filing process takes time, so build it into your timeline if insurers are target buyers. SVO has become more active in reviewing CLO equity and other complex structures.
Referenced in 12 topics
Accessing insurance capital for originators playbooks Bermuda and offshore insurance capital capital-sources Credit-linked notes / synthetic securitizations structures Finding the right capital partner playbooks Insurance and bank investor considerations legal NAIC designations and regulatory framework capital-sources NAIC filing and designation deep dive legal Rated note feeders structures Repackaging structures structures Sourcing capital for ABF funds playbooks Structuring deals for investor appeal playbooks Understanding ABF LPs playbooks