Mark Walter’s TWG Says ‘There Has Been No Fraud’

Summary

Bloomberg's Sridhar Natarajan discusses TWG Global's public defense against federal probes, saying there has been no fraud and describing the matter as a regulatory misclassification of affiliated assets. He also explains how a 2018 $300 million LeBron James future-revenue bond highlights life insurers' shift into riskier, higher-yielding investments. The conversation touches on growing celebrity securitization and Mark Walter's balance-sheet unwinding.

• TWG Global issued a combative statement denying fraud and saying there is no victim.
• The firm frames the federal probe as a regulatory matter over $20 billion in misclassified affiliated assets.
• A 2018 LeBron James deal structured as $300 million in bonds was backed by future non-basketball earnings.
• Athletes and artists are increasingly using future-revenue securitization for liquidity.
• Life insurers are moving into unusual, riskier, higher-yielding investments as asset managers take control.
• Mark Walters of Guggenheim has been looking at unwinding some balance sheets.