Hedge Fund Veteran Pitches First-Ever CO2 Risk Transfers (1)

A veteran of alternative investment management has started pitching a new type of securitization he says would allow banks to cut the carbon footprint of their balance sheets.

Andrew Hohns, a former managing director at hedge fund Mariner Investment Group who now runs Newmarket Capital, says he’s currently in talks with a number of banks to construct such novel transfers.

For banks, repackaging and transferring the credit risk from their loan books to less-regulated private fund managers is nothing new. The appeal for investors on the other side of such deals is they can get double-digit returns, ...