ABS

  • Firms favour floating rate

    Investors find value in range of SF asset classes

    US investors are seeing relative value in a number of pre- and post-crisis securitised asset classes, including non-agency legacy RMBS, TruPS CDOs and US BSL CLOs. While firms’ allocations to different sectors may vary, the overriding theme is a move away from fixed rate products, with further interest rate rises expected.

    As a result, floating rate products are of growing .......

    News Analysis 22 August 2018

  • Market moves - 17 August

    Company developments and new hires in the structured finance sector

    Acquisitions

    Vistra has completed the acquisition of the corporate services business of Deutsche Bank’s global transaction banking division. The corporate services business will now be rebranded under the Vistra umbrella. The acquisition broadens the company’s presence in seven of the existing locations across Europe, the Cayman Islands and Mauritius, providing further scale and expertise in these jurisdictions and involves management .......

    Market Moves 17 August 2018

  • Moral hazard addressed

    EIF completes SRT with BP Bari

    The EIF has completed a guarantee agreement with Banca Popolare di Bari under the SME Initiative for Italy. The transaction consists of a number of structural features designed to reduce moral hazard.

    According to Sebastian Dietzsch, associate director at Scope: “The loss claims under the guarantee are based on an expected loss calculation, which minimises cashflows between BP .......

    News 17 August 2018

  • Risk transfer round-up - 17 August

    CRT sector developments and deal news

    UBI Banca is believed to be marketing its second-ever capital relief trade. The Italian bank’s inaugural risk transfer transaction, dubbed UBI 2017 RegCap1 and inked last year, was a €100m deal referencing a €1.9bn Italian corporate portfolio (see SCI’s capital relief trades database).

    ......

    News 17 August 2018

    Premium Content

  • SMEs supported

    Supranationals driving new credit ecosystem

    A new ecosystem is gaining traction in the securitisation market, with supranational institutions stimulating organic origination by non-bank lenders. By facilitating the flow of credit and acting as a bridge to the capital markets, the prevalence of their activity – especially in the SME sector – is creating a new sub-category of transactions.

    Supranational institutions are a key .......

    News Analysis 16 August 2018

  • Integrated fund structure developed

    Innovative, single structure could benefit ILS investors

    A new fund structure has been devised, which combines the fund and insurance elements of ILS structuring and investment. Dubbed the “fund of one”, it aims to simplify the ILS investment process by aggregating the disparate jurisdictional and regulatory requirements that currently hamper the ILS sector.

    Mark Helyar, of counsel at Bedell Cristin, says the structure has been developed due .......

    News Analysis 15 August 2018

  • Market moves - 10 August

    Company developments and new hires in the structured finance sector

    CDOs transferred
    Dock Street Capital Management     has replaced Deerfield Capital Management as collateral manager of the Knollwood CDO and Mid Ocean CBO 2001-1 transactions. Moody’s has confirmed that the move will not impact its ratings on any of the notes issued by the issuers. For more CDO manager transfers, see SCI’s database.

    Effective 2 August, Highland Capital Management .......

    News 10 August 2018

  • Risk transfer round-up - 10 August

    CRT sector developments and deal news

    Banco Comercial Portugues is believed to be prepping a significant risk transfer deal for 4Q18. According to SCI’s capital relief trades database, the Portuguese lender’s last deals were Caravela SME No. 4 and Caravela SME No. 3 in May 2014 and June 2013 respectively.

    Barclays is also rumoured to be working on another Colonnade deal for 4Q18, referencing UK ......

    News 10 August 2018

    Premium Content

  • Retention questioned

    Call for NPL regulatory differentiation

    Questions are emerging over the relevance of risk retention in the context of European non-performing loan securitisations. Given its utility in transferring risk on capital-intensive portfolios, securitisation could play a greater role in resolving Europe’s troubled loan burden if there was regulatory differentiation for such assets.

    Vertical risk retention may make sense in terms of originating banks being .......

    News Analysis 7 August 2018

  • CRT resilience highlighted

    Investors undeterred by turn in credit cycle

    Widening credit spreads and an expected turn in the credit cycle have not induced significant changes in the structuring of capital relief trades, thanks to the positive performance of the asset class. Indeed, investors continue to allocate more capital to the sector.  

    “QE ends soon and tightening will start next year. However, Euribor is quite low. It will take a .......

    News Analysis 6 August 2018

  • Market moves - 3 August

    Company developments and new hires in the structured finance sector

    Acquisitions
    Savills Investment Management is set to acquire a 25% interest in DRC Capital. In addition, the partners of DRC have granted Savills Investment Management a call option to acquire the remaining 75% interest in DRC on the third anniversary of the completion of the initial transaction. Dale Lattanzio, ceo and managing partner of DRC, will join the board of Savills .......

    News 3 August 2018

  • Chinese MPL ABS prepped

    Online lender brings debut rated deal

    Beijing Jingdong Century Trade Co is marketing a consumer ABS under the asset-backed notes (ABN) with a special purpose trust scheme in the Chinese interbank bond market. Dubbed Beijing Jingdong Century Trade Co 2018 Asset-Backed Notes Series 1 (JD ABN 2018-1), the CNY1bn deal marks Fitch’s first ratings assignment for a securitisation of unsecured consumer receivables generated via an .......

    News 3 August 2018

  • Market moves - 27 July

    Company developments and new hires in the structured finance sector.

    Acquisitions

    American Mortgage Consultants (AMC), has announced the acquisition of certain personnel and the operations center of Des Moines, Iowa-based The Barrent Group. This transaction will establish a market presence for AMC in the Midwest and adds more than 50 residential mortgage professionals to its platform, further enhancing the firm’s client service capabilities. AMC plans to hire up to 150 .......

    Market Moves 27 July 2018

  • Testing time

    European ABS succumbs to widening pressures

    Poor new issue execution has seen the European securitisation market finally succumb to widening pressure, in line with other credit markets. A number of short-term and long-term factors are at play, but the true test of the sector will be when participants begin putting cash to work after the summer.

    Cartesian 3 and Sunrise SPV 40 were among the headline .......

    News Analysis 24 July 2018

  • Market moves - 20 July

    A weekly breakdown of new hires and company developments in the global structured finance industry.

    Acquisition agreed

    Stone Point Capital’s Trident VII fund is set to acquire Sabal Capital Partners, with Sabal Investment Advisors, Sabal Investment Holdings and their managed funds also merged into the Sabal platform to create a vertically integrated lending, servicing and investment management platform focused on the small balance commercial real estate sector. Sabal will continue to be operated by its .......

    Market Moves 20 July 2018

  • Fight for control eyed

    Rapid amortisation event 'unlikely' to occur

    Allegations of embezzlement and a fight for control of Harley Marine Services (HMS) have emerged less than two months after the firm closed its first whole business securitisation, Harley Marine Financing Series 2018-1 (see SCI’s primary issuance database). The legal battle has sparked concern that should a manager termination event occur, the US$455m transaction will enter rapid amortisation.

    News 20 July 2018

  • Fit for purpose?

    Efficacy of STS label questioned

    Once portrayed as the initiative to revitalise European securitisation, the STS label has been variously hailed as a game-changer or lamented as not fit for purpose. The truth, perhaps, may be somewhere in between.

    Regulations (EU) 2017/2402 and 2017/2401 – which provide for the implementation of simple, transparent and standardised (STS) securitisations – will apply from 1 January .......

    Talking Point 18 July 2018

  • Return to form?

    More traditional synthetic CRE deals emerging

    A number of issuers are working on CRE capital relief trades, including some UK banks that issued CRE deals in 4Q17 (see SCI’s CRT database), with a view to closing before year-end. However, some of these transactions suggest that the asset class may potentially be returning to more traditional significant risk transfer structures and investors.

    David Wainer, partner at .......

    News Analysis 13 July 2018

  • Multi-originator GACS deal debuts

    Iccrea Banca completes landmark NPL securitisation

    Iccrea Banca, the cooperative group owned by multiple Italian mutual banks, has issued a €1bn NPL securitisation of primarily secured loans. Dubbed BCC NPLs 2018, the deal is the first multi-originator GACS securitisation, as smaller Italian banks group together to offload the risk of larger NPL portfolios (SCI 29 June).

    Rated by Moody’s and Scope, the capital structure comprises .......

    News Analysis 13 July 2018

  • Market moves - 13 July

    A weekly breakdown of recent hires and company developments in the structured finance industry.

    Acquisitions and investments

    Alantra has acquired KPMG UK’s portfolio solutions group business, which specialises in advising financial institutions in relation to non-performing and non-core banking assets globally. The team – which comprises around 70 professionals – will be renamed Alantra Corporate Portfolio Advisory and will be led by managing partners Joel Grau, Andrew Jenke and Nick Colman. Closing of the .......

    Market Moves 13 July 2018

  • NPL SPV established

    Barclays financing portfolio acquisition

    Barclays, Varde Partners and Guber Banca have acquired a €1.4bn non-performing loan portfolio originated by 53 cooperative, rural and popolari banks spread throughout Italy. The pool was purchased at 10%-13% of GBV and transferred to a securitisation vehicle dubbed Futura SPV. The transaction is believed to be the first to utilise digital due diligence.

    The portfolio comprises more than 9,000 .......

    News 12 July 2018
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