How Credit Linked Notes Can Access Institutional Capital

Introduction

As interest in Credit Linked Notes (CLNs) continues to rise, more professional investors are asking: how exactly can we access CLNs? And for businesses or lenders using CLNs to raise capital, understanding distribution is critical to achieving both scale and liquidity.

At Kingsbury & Partners, we don’t just structure CLNs—we place them. And successful placement requires knowing the distribution infrastructure that sits beneath global private credit.

Here’s how it works.

What Is CLN Distribution?

Once a Credit Linked Note is structured and priced, it needs to be issued, settled, and allocated to investors. This happens through a mix of capital markets infrastructure and networked placement.

Unlike publicly listed bonds or equities, most CLNs are issued over-the-counter (OTC), often through private placements. But even OTC instruments use institutional-grade systems to ensure legitimacy, settlement, and custody.

Primary Channels of Distribution

1. Bloomberg

https://www.bloomberg.com/

Bloomberg remains the primary interface for execution and visibility. New CLNs can be quoted via Bloomberg’s bond market screens, often under custom ISINs, with full term sheets available on request.

• Investors use Bloomberg to view pricing, coupon structure, maturity, and underlying credit exposure.
• Trades are often confirmed and settled through Bloomberg messaging (IB Chat or EMSX).

At Kingsbury, we work closely with our payment agent partners and counterparties to ensure our CLNs are visible and priced on Bloomberg—giving confidence and comparability to professional investors.

2. Euroclear

https://www.euroclear.com

Once issued, most CLNs are settled through Euroclear, the leading international central securities depository (ICSD).

• Euroclear provides settlement and custody infrastructure for international debt instruments.
• It ensures that institutional buyers—whether in Luxembourg, London, or Singapore—can book, settle, and hold the note with confidence.
• The use of Euroclear also allows CLNs to be admitted to wider distribution networks, including private banks and discretionary wealth managers.

We typically list CLNs via Euroclear Belgium, ensuring a recognised ISIN and bulletproof back-office infrastructure.

3. Clearstream

https://www.clearstream.com

Like Euroclear, Clearstream (part of Deutsche Börse Group) acts as a global settlement and custody provider. While Euroclear often dominates Western Europe and the UK, Clearstream is preferred by institutions in Germany, Switzerland, and parts of Asia.

At Kingsbury, we use either Euroclear or Clearstream depending on investor jurisdiction, custodian preferences, and operational cost.

What About Distribution to Investors?

Distribution isn’t just about systems—it’s about people. The placement of CLNs is typically handled via:

• Private banks
  (especially those with discretionary portfolio management teams seeking fixed income alternatives)
• Family offices and investment managers
• Institutional allocators, including credit funds and insurance groups
• Professional platforms, including IFAs, external asset managers (EAMs), and wealth advisors with eligible clients

CLNs are often distributed through reverse enquiry—where a specific investor mandate (e.g. “5-year fixed, 10%+, Europe-based credit risk”) prompts the structuring of a tailor-made note.

Kingsbury & Partners operates in exactly this way. We work with both sides:

• Investors, to understand what return, risk, and duration they’re seeking.
• Businesses and originators, to structure CLNs that meet those expectations while delivering real funding outcomes.

Why This Matters for Issuers

If you’re a business considering using a CLN to raise capital—whether for lending, credit portfolios, or structured receivables—distribution is as important as structure.

The quality of your counterparties, the credibility of your ISIN, and the transparency of your settlement process determine how much capital you can raise—and at what cost.

Kingsbury & Partners ensures every note we structure is:

• Properly listed and cleared via Euroclear or Clearstream
• Distributed via credible institutional channels through over 550 counterparties
• Overseen by regulated note managers and adminstrators, and payment agents.

This is how you turn a good structure into a scalable raise.