// definition
Rated feeder note
Rated debt issued by a feeder fund
Short definition
Rated debt issued by a feeder vehicle investing in a fund. In a master-fund structure, repayment relies on distributions received after the master fund meets its own obligations. Seniority sets payment priority within the feeder. For a US insurer, capital treatment depends on accounting classification, credit designation and the applicable rules.
risk atlas
Knowledge map
Related analyses
- Private credit: a new route to insurersDebt seniority, available cash flows and prudential treatment of rated feeders.
Primary sources
- Fitch, Feeder Fund Debt Rating Criteria, 24 September 2025Pages 5–7: credit enhancement, liquidity, master-fund debt and cash-flow allocation. General methodology.
- NAIC, SSAP 26, version effective January 2025Paragraphs 6 and 10: creditor relationship, underlying equity interests and substantive loss protection.
- SEC / Investor.gov, ABCs of Credit Ratings, 12 October 2017Credit-risk scope and distinction from market price and liquidity.