These developments have been supported and encouraged by the growth of markets for syndicated loans and securitized assets and the creation of new financial instruments, such as credit derivatives, that greatly ease the dispersion of risk to those more willing and able to bear it. Do not misunderstand me.
The buffer tranche is invested in a highly conservative manner, while the investment tranche is aimed at generating excess returns, albeit subject to the same constraints of capital preservation and liquidity. Page 9 of 13  In developing our latest SAA framework, we were, however, faced with a completely different set of circumstances to those that had prevailed in 2013.