German state lender is increasing third-party fund lending and packaging loans for investors, highlighting how legacy balance sheets are pursuing yield in structured credit.
NordLB, a German state lender, is moving deeper into fund finance and collateralized loan obligation, or CLO, markets as it expands third-party fund lending and packages loans for investors. The shift points to a broader push by traditional balance-sheet lenders into higher-yielding areas of structured credit as established financial institutions adapt to changing market conditions.