UK-listed investment company SVG Capital has written down its holdings in structured leveraged finance funds to zero, as the ratings agencies become much gloomier on the outlook for the sector.

In its results today, SVG said it had a number of investments in collateralised loan obligation funds, which invest in debt backed by an underlying pool of loans. Primarily its investments were in two managed by its part-owned adviser Key Capital Investment Management and one by Permira Debt Managers, the separate operation run by buyout firm Permira.