ABS

  • Slow start

    European ABS and CLO market update

    The European ABS market is experiencing its “slowest start to a year since 2011” as STS and Brexit uncertainty dampen primary activity. Attention is being focused on secondary trading and CLO issuance.

    “CLOs have started the year fairly well,” says one portfolio manager. “The latest St Paul’s CLO has just been announced, and there are a few more already in .......

    Market Reports 23 January 2019

  • Two depart at ILS firm

    Sector developments and company hires

    Europe

    M&G Investments has appointed Vincent Charles-Gervais as portfolio manager within its ABS division. Charles-Gervais will report to James King, head of ABS portfolio management, and will be based in London. Charles-Gervais has 15 years’ experience in structured and alternative credit and joins from ICG where he was a portfolio manager for ICG alternative credit. Prior to that .......

    Market Moves 22 January 2019

  • Chinese equipment lease ABS prepped

    Transaction features several firsts for experienced issuer

    Far East Horizon Corporation (FEH) is marketing a CNY1.865bn securitisation backed by equipment lease receivables. The transaction, dubbed Far East Leasing 2019-1, is the first deal from FEH to be supported by smaller-ticket and more diversified finance lease contracts as well as being the first that S&P has rated.

    S&P has assigned preliminary ratings on the transaction of single A .......

    News 22 January 2019

  • Pepper up

    European ABS market update

    European secondary market activity is picking up, following a quiet start to the year. However, the new issue pipeline remains sparse, with only four CLO managers lining up deals.

    “We’re not hearing of anything imminent,” confirms one portfolio manager. “There is talk of a UK master trust issuer potentially tapping the market – it already delivers to .......

    Market Reports 22 January 2019

  • Latest SCI podcast available

    SCI podcast episode four is now live

    SCI’s latest podcast is now live. This month the team round up asset class performance from 2018 and look ahead to the expectations for 2019.

    2018 was a landmark year, with US new issue supply outpacing maturing debt for the first time since 2007. Furthermore, while non-mortgage ABS and structured credit have had positive net issuance since 2014, last year .......

    News 21 January 2019

  • CRT growth continues

    Tighter pricing trend points to expanding market

    The year 2018 saw a flurry of capital relief trades referencing various asset classes that were priced at tighter levels compared to previous years. Such activity is a reflection of the good performance of the underlying collateral and increased investor allocations in the market, suggesting a growth trend that is set to continue in 2019.

    According to James ......

    News Analysis 18 January 2019

    Premium Content

  • Innovative ILS transaction launched

    Sector developments and company hires

    Auto ILS closed

    AlphaCat Managers has securitised a non-standard passenger auto insurance portfolio. “This innovative transaction creates new ILS market opportunities in securitizing broader classes of insurance risk. We look forward to working with more MGAs and insurers. "The bilateral transaction comprises a private placement of two tranches of notes: a US$6.67m senior note and a US$3.33m junior .......

    Market Moves 18 January 2019

  • Redemption relief?

    RMBS calls could boost European supply

    The European securitisation pipeline remains all but empty as regulatory uncertainty continues to hamper new issuance activity. Upcoming optional redemption dates could provide a much-needed source of supply, however, with the potential restructuring of the Towd Point Mortgage Funding 2016-Granite1, 2 and 3 deals leading the way.

    Approximately €21.2bn of outstanding post-crisis European RMBS transactions will hit their .......

    News Analysis 18 January 2019

  • Global investor promotes duo

    Sector development and company hires

    Europe

    Martin Munte has been named director, investor relations at CVC Credit Partners in London. He was previously director, sales for Germany, Austria and Luxembourg at BlueBay Asset Management.

    Zenith Service has recruited Maria Bianca Mascheroni as head of SPVs corporate department, based in Milan. She is tasked with coordinating and supervising all of the corporate activities .......

    Market Moves 17 January 2019

  • Risk retention for Japan?

    Sector developments and company hires

    ILS

    Sarah Demerling has joined Walkers Bermuda as a partner in the firm's corporate, finance and funds group. With more than 17 years' experience in the financial services industry in Bermuda, Demerling adds asset management, investment funds and ILS expertise to the practice. She was previously client director at Estera Services (Bermuda) and before that a partner at Appleby in .......

    Market Moves 16 January 2019

  • STS-compliant ABS issuance to be 'higher than expected'

    Lack of certainty continues around areas of Securitisation Regulation

    The EU Securitisation Regulation came into force as of 1 January this year, despite several parts of the legislation not yet having been finalised and amid concerns that market participants may lack the necessary infrastructure to adequately comply. Despite this, it is thought that there will be more STS-compliant transactions issued at the start of 2019 than expected, with many .......

    News Analysis 16 January 2019

  • Agency launches new Euro office

    Company hires and sector developments

    Europe

    Alantra has hired James Fadel as md. He was previously head of structured finance advisory at Deloitte.

    DBRS has opened a new office in Madrid, making this its third European office - it is already up and running with analysts having relocated to Madrid from the London office. It will assign ratings to serve market participants looking for expertise .......

    Market Moves 14 January 2019

  • Risk transfer round-up - 11 January

    CRT sector developments and deal news

    The fourth quarter of 2018 saw a slew of risk transfer deals typical of year-end issuance (SCI 21 December 2018). Among the deals that are believed to have been completed last month are two corporate trades from BNP Paribas. One is understood to be a club deal, while the other is rumoured to be a bilateral deal with .......

    News 11 January 2019

  • Credit events synchronised

    BBVA completes innovative IFRS 9 hedge

    BBVA has completed an innovative transaction that synchronises credit events with IFRS 9 lifetime expected loss provisions, while also being the first synthetic securitisation to incorporate blockchain technology (SCI 21 December 2018). Dubbed Vela Corporate 2018-1, the €60m financial guarantee references a €1bn Spanish corporate portfolio.

    The EIF acted as counterparty to BBVA by providing a guarantee ......

    News Analysis 11 January 2019

    Premium Content

  • US firms see flurry of hires

    Sector developments and company hires

    US

    Bay Crest Partners has bolstered its fixed income business with a trio of senior hires: Tadeusz (Ted) Jachowicz, Jatin Dewanwala and Greg Hackett. Jachowicz and Dewanwala previously ran Metacapital Management's structured credit effort, including portfolios of ABS, CMBS and RMBS. Hackett joins Bay Crest following five years at RBC, where he headed the firm's CMBS and CRE .......

    Market Moves 10 January 2019

  • Mezz opportunity

    Insurer interest in risk transfer on the rise

    The facility recently inked by Texel Finance and Liberty Specialty Markets (SCI 9 November 2018) signals an increasing interest among insurers in providing meaningful risk transfer solutions for structured finance opportunities. One key area being targeted by the facility is mezzanine risk transfer for SRT transactions, following the coming into force of the new securitisation framework.

    Alan .......

    News Analysis 10 January 2019

  • Risk-sharing boost

    Cajamar SRT sets tone for standardised banks

    BCC Grupo Cajamar has completed a €972.1m Spanish true sale significant risk transfer transaction with the EIF, ICO and hedge fund investors. Dubbed IM BCC Capital 1, the transaction is the first cash SRT issued by a standardised bank and the first risk-sharing transaction by a standardised bank that involves both the EIF and private investors, paving the way .......

    News Analysis 9 January 2019

  • UK tax partner pinched

    Sector developments and company hires

    UK

    Hunton Andrews Kurth has recruited David Klass as a partner in its London office. Klass brings more than 15 years of experience advising on a wide range of tax issues and transactions, particularly those with an international element. Among the clients he advises are asset originators and arrangers in connection with structured finance deals. He was previously .......

    Market Moves 8 January 2019

  • Freddie Mac launches debut reinsurance deal

    Company hires and sector developments

    Acquisitions

    doBank has acquired 85% of NPL servicer Altamira Asset Management from entities affiliated with funds managed by Apollo Global Management, Canada Pension Plan Investment Board and Abu Dhabi Investment Authority, following a competitive sales process. The shareholding involved in the sale may be increased to 100%, should Santander - holder of the remaining 15% interest in the .......

    Market Moves 7 January 2019

  • SCI Start the Week - 7 January

    A review of securitisation activity over the past seven days

    Transaction of the week

    Santander has launched an unusual synthetic securitisation of auto loans, dubbed Santander Consumer Spain Synthetic Auto 2018-1. The transaction comprises a €60.6m twelve-year CLN that references a €1.01bn portfolio of Spanish auto loans paying Euribor plus 8.90%.

    Synthetic securitisations of granular, consumer portfolios are uncommon, as the structures are typically used for concentrated, non-granular portfolios. This .......

    News 7 January 2019

  • Banca Carige placed into temporary administration

    NPL disposals 'could be accelerated'

    Banca Carige has been placed into temporary administration by the European Central Bank (ECB) following the resignation of the majority of Banca Carige’s board members. The decision is unlikely to negatively impact Banca Carige’s non-performing loan (NPL) securitisation programme and could actually expedite its NPL disposal plans.

    The ECB states that, following the board member resignations, it became necessary to .......

    News Analysis 4 January 2019
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