ABS

  • Concerns ignited

    Wildfire peril pricing questioned

    ILS market participants are re-evaluating whether the pricing of wildfire risk in catastrophe bonds is adequate, after the 8 November US wildfires caused between US$9bn-US$13bn worth of damage. However, the picture is likely to only become clear over 2019 as the claims are counted and the full scale of loss across multiple perils is measured.

    “It has generally ......

    News Analysis 13 December 2018

    Premium Content

  • Libor consultation launched

    Sector developments and company hires

    ILS

    Peak Reinsurance Company has launched Asia’s first sidecar transaction via a new Bermuda-domiciled special purpose insurer, Lion Rock, to provide collateralised retrocession for part of Peak Re’s global property reinsurance risk portfolio. The establishment of this special financial structure, referred to as a “reinsurance sidecar”, allows investors to take on the risk and benefit from specific books .......

    Market Moves 11 December 2018

  • Risks remain

    Termination risks persist for SF transactions in no-deal scenario

    Contingency plans being implemented by financial institutions will help to avoid many derivatives risks associated with a no-deal Brexit, according to a report from Fitch. However, termination risks still persist for structured finance transactions, should issues around uncleared derivatives not be mitigated.

    As it stands, a no-deal Brexit would result in a lapse of EU authorisation for UK financial services, .......

    News 10 December 2018

  • Corporate finance partner hired

    Sector developments and company hires

    CDO manager transfer

    Dock Street Capital Management has replaced Deerfield Capital Management as collateral manager for the Buckingham CDO II and III ABS CDOs. Under the terms of the appointment, Dock Street agrees to assume all the responsibilities, duties and obligations of the collateral manager under the indenture. Moody's has confirmed that the move will not result in .......

    Market Moves 7 December 2018

  • Bid scarcity

    European ABS market update

    A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to widen in the CLO and ABS primary markets.

    “We are running a few private processes, which are keeping us busy, and we will hopefully conclude them over the next couple of days,” says a trader.

    The trader comments that .......

    Market Reports 7 December 2018

  • BTL securitisation planned

    Sector developments and company hires

    Europe

    Accunia has promoted Mads Romild as head of Accunia’s CLO platform. Romild will continue as cio and head all Accunia investment strategies. Andres Garcia Bartolome and Rajiv Thaker are also promoted to senior portfolio managers and will be responsible for the portfolio management of the three existing and all new Accunia CLOs. Romild previously held a position as chief portfolio .......

    Market Moves 6 December 2018

  • TRAFIN relaunched

    Deutsche Bank replaces trade finance CRT

    Deutsche Bank has refinanced its TRAFIN 2015-1 deal with the issuance of a new trade finance capital relief trade dubbed TRAFIN 2018-1. The US$216.125m five-year CLN references a US$3.5bn trade finance portfolio.

    Deutsche Bank called and replaced the 2015 transaction last month with a new deal in order to lock in a better coupon. “High demand for trade finance CRTs .......

    News Analysis 5 December 2018

  • Colonnade issuance continues

    Barclays completes corporate capital relief trade

    Barclays has completed Colonnade Global 2018-2, a US$110m financial guarantee that references a US$1.33bn portfolio of mostly US corporate loans (see SCI's capital relief trades database). The transaction is typical of Colonnade Global risk transfer deals in the sense that the credit protection covers both principal and accrued interest.

    Rated by DBRS, the transaction consists of US$1.1bn triple-A rated .......

    News 5 December 2018

  • Enforcement uncertainty

    Set-back for STS-eligible issuance

    The recent statement issued by the Joint Committee of the ESAs (SCI 4 December) is unlikely to be sufficient to assuage securitisation market concerns on its own. Such regulatory uncertainty is expected to further delay the emergence of STS-eligible securitisations in the pipeline.

    “The statement by the Joint Committee of the ESAs acknowledges the concerns about the .......

    News 5 December 2018

  • Activity upsurge

    European ABS market update

    The European primary and secondary ABS markets are seeing a surge in activity, due to uncertainty over the next quarter.

    “After the high volatility last month, I was expecting a slow-down,” says one trader, surprised by the activity.

    He suggests that market ambiguity around the next quarter is driving it. “The consensus is that things will only get choppy from .......

    Market Reports 4 December 2018

  • BDC merger announced

    Sector developments and company hires

    BDC merger

    Golub Capital BDC (GBDC) has merged with Golub Capital Investment Corporation (GCIC), with GBDC as the surviving company, subject to certain stockholder approvals and customary closing conditions. The combined company will remain externally managed by GC Advisors and all current GBDC officers and directors will remain in their current roles. The transaction is expected to close .......

    Market Moves 4 December 2018

  • Proportional approach

    ESAs tackle delay in transparency requirements

    The joint European Supervisory Authorities (ESAs) - which consist of the EBA, ESMA and the European Insurance and Occupational Pensions Authority - have published a letter reiterating market concerns over ESMA’s disclosure requirements (SCI 5 October) and Article 14 (SCI 9 July) of the CRR. The authorities have also called on EU national regulators to apply a ......

    News 4 December 2018

    Premium Content

  • ESAs suggest 'proportion'

    Sector developments and company hires

    Aussie securitisation fund

    The Australian government has introduced a A$2bn Australian Business Securitisation Fund, which will provide significant additional funding to smaller banks and non-bank lenders to on-lend to small businesses on more competitive terms. The fund will be administered by the Australian Office of Financial Management (AOFM), consistent with its prior involvement in the RMBS market in .......

    Market Moves 3 December 2018

  • NPL plans accelerated

    Company hires and sector developments

    Eurobank merger

    Eurobank is merging with Grivalia in a bid to accelerate the reduction of non-performing exposures to a ratio of approximately 15% by end-2019 and single-digits by 2021. The transaction envisages an NPE deconsolidation of approximately €7bn, with all shareholders keeping potential upside from the assets. The merger will create the best capitalised bank in Greece, with .......

    Market Moves 30 November 2018

  • Tighter pricing

    Latest Elvetia trade completed

    Credit Suisse has completed a Swiss corporate and SME significant risk transfer trade from its Elvetia programme, dubbed Elvetia Finance Series 2018-6. The trade printed at tighter levels compared to previous Elvetia corporate and SME deals, due to wide syndication. The transaction was completed under the new securitisation framework, which stipulates thicker tranches and was also a driver of the ......

    News 30 November 2018

    Premium Content

  • Tough approach

    PRA guidance puts UK CRT issuers at a disadvantage

    The UK PRA’s latest significant risk transfer guidance is putting UK capital relief trade issuers at a disadvantage compared to their European peers, mainly due to the regulation’s provisions on excess spread and the capital treatment of standardised portfolio transactions. The regulation is broadly in line with a consultation from May that sparked a market backlash (SCI .......

    News Analysis 30 November 2018

  • Funding boost for online lender

    Sector developments and company hires

    Alesco CDOs transferred

    The collateral management agreements for the Alesco Preferred Funding X to XVII Trups CDOs have been assigned to Hildene Collateral Management Company (HCMC), an affiliate of Hildene Capital Management. Under the terms of the assignments, HCMC agrees to assume all the responsibilities, duties and obligations of the current collateral manager (ATP Management) under the agreements and under .......

    Market Moves 29 November 2018

  • Basel 4 impact will 'vary massively'

    Regulatory changes represent 'complete overhaul'

    Regulatory changes coming into effect next year will have a major impact on the way European banks calculate risk weighted assets (RWAs), resulting in a greater incentive for some banks to utilise risk transfer mechanisms. However, it is expected that a nuanced picture will emerge, with regulatory changes impacting banks’ RWA calculations differently depending on a range of factors, such .......

    News Analysis 29 November 2018

  • Term leveraging

    European ABS market update

    The European primary ABS market is still drifting wider, due to concentration of supply.

    “Investors are using their leverage to dictate terms and push deals as wide as possible. That’s one of the reasons why the pipeline has been brought forward,” says one trader.

    He adds: “If a deal is struggling, an investor can offer to push .......

    Market Reports 29 November 2018

  • Timing issues

    European ABS market update

    The two-year senior notes of Compass Banca’s €900m Quarzo Series 2018 consumer ABS are being talked at three-month Euribor plus 95bp. However, the transaction is not considered to be well-timed, as Italian spreads continue to widen.

    “The deal is attractive, but not compared with the yield on Italian government paper,” says a trader. “It makes no sense to ......

    Market Reports 28 November 2018

    Premium Content

  • Tax credits eyed

    Second Greek NPL ABS proposal unveiled

    The Bank of Greece has unveiled a securitisation scheme backed by its deferred tax credits (DTCs) that aims to reduce the country’s large non-performing loan stockpile. The plan is seen as a positive development, with any move to introduce a government guarantee on the senior tranches expected to raise the prospects of its success.

    The proposed scheme envisages .......

    News Analysis 27 November 2018
×