Given the recent market volatility, our Capital Markets team has been active in the work out or close out of warehouse finance facilities and repurchase finance facilities. Utilizing the experience that we have gained in prior liquidity crises we bring liquidity to the Secondary Markets.

All secondary markets are a natural consequence of large pools of capital. Investors' situations and strategies change over time, creating a need for early liquidity. Commercial loans, mortgages and various types of insurance are some of the many areas in which active secondary markets have developed. Indeed, except in the relatively small part of their turnover represented by the issuance of new stocks and shares (IPOs and rights issues), all the world's stock exchanges are secondary markets.

We provide liquidity to investors, allowing them to sell positions in illiquid asset class, creating liquidity for the seller as certain consequence. In recent years, secondary sales have been driven by investors' increasingly active approach to managing their portfolios. This trend will continue and intensify over the next few years, as originators reposition their holdings in response to new economic realities and focus more of their commitments on a core of preferred managers.

New regulatory regimes for banks and insurance companies (Basel III and Solvency II, for example) will also prompt significant secondary selling in the next few years and we are appropriately positioned to maximize these values.