Private credit transactions across all sub-markets can apply for default coverage from Anzen. However, Anzen only accepts coverage for those transactions that adhere to strict underwriting methodologies, observable market standards and defined reporting requirements (collectively, Eligibility Criteria). Transactions that meet Eligibility Criteria (Eligible Transactions) must also be presented by an approved sponsor (Eligible Sponsor). Eligibility Criteria and Eligible Sponsors are approved by veANZ holders. Eligible Transactions are deemed to meet Eligibility Criteria by an independent 3rd party verification agent and are then considered Approved Eligible Transactions. All Approved Eligible Transactions presented by an Eligible Sponsor will also be subject to a standard Reserve Payment according to the Reserve Payment schedule specified in the Reserve Agreement. The Reserve Payment schedule is approved by veANZ holders.
All Approved Eligible Transactions presented by an Eligible Sponsor will enter into Reserve Agreement between Anzen and the Eligible Transaction's borrower or investors to repay the Eligible Transaction's investors in the event the borrower defaults on the Eligible Transaction as per the Eligibility Criteria and Reserve Agreement (Covered Default). The coverage amount in the event of a Covered Default on any given Eligible Transaction at any given time will be the lesser of the Coverage Ratio and coverage limits specified in each Reserve Agreement.
Below are the current sub-markets within private credit that Anzen covers today, with many more to be added as veANZ holders approve more Eligible Sponsors and current Eligible Sponsors present more Eligible Transactions from various sub-markets.