ABS

  • 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

  • Canadian asset expansion

    Sector developments and company hires

    ILS

    TigerRisk Partners has hired Stephen Fromm as vice chairman of TigerRisk capital markets and advisory. In his new role, Fromm will act as a senior investment banker focusing on insurance industry M&A, capital raising and strategic advice. Fromm was previously md and vice chairman of financial institutions investment banking at Deutsche Bank.

    MBS purchase plans

    The Bank of Canada .......

    Market Moves 27 November 2018

  • Italian RMBS sell-off 'unlikely'

    Uncertainty ahead may see pan-European issuance drop

    A widespread sell-off of Italian RMBS is ‘unlikely’, despite a recent comment from a UK investment manager that there is no longer a case for investing in Italian RMBS now spreads are trading within Italian government bonds. The statement, from 24 Asset Management (24AM), adds that Dutch and UK RMBS are now a more sensible option, although some investors question .......

    News Analysis 26 November 2018

  • Start the week - 26 November

    A review of securitisation activity over the past seven days

    Market commentary

    US CLO equity and double-B bonds were casualties of last week’s drop in the S&P 500 index, with bids softening across the secondary market (SCI 21 November).

    “A handful of CLO equity and double-B bonds were out for the bid and did not trade,” said a trader. “There was some clear hesitation in the market compared with a week ago. .......

    News 26 November 2018

  • UK SLABS slated

    Sector developments and company hires

    EMEA

    Eurocastle Investment has appointed Hammad Khan to its board as a non-executive director, increasing its number of directors to six. Khan is a representative of Eurocastle’s largest shareholder, an affiliate of EJF Capital, where he is a senior md and a senior member of the EJF Investments Manager investment team. He joined EJF in March 2013 and is responsible .......

    Market Moves 23 November 2018

  • Risk transfer round-up - 23 November

    CRT sector developments and deal news

    Credit Suisse is believed to be pricing a risk transfer transaction from its Elvetia programme on Monday. The issuer’s last Elvetia transaction was a Sfr300m ticket referencing a Sfr5bn portfolio (see SCI’s capital relief trades database).

    Further details have also emerged regarding the pricing of Standard Chartered’s trade finance transaction, Sealane 4 (SCI 14 November). The ......

    News 23 November 2018

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  • Sweet spot

    Multi-arrangement ILS vehicle debuts

    Brit has launched Sussex Capital UK, the first vehicle to be given permission by the PRA under the UK’s new ILS regime to write general collateralised reinsurance for multiple cedants. The SPV’s multi-arrangement designation enables the vehicle to write a broad range of reinsurance contracts, each written by a different cell but using approved template documents and therefore only .......

    News 23 November 2018

  • Financial frontier

    UAE poised for securitisation growth

    The United Arab Emirates continues to ameliorate investment concerns by introducing new legislation and addressing issues presented by Sharia finance. In an amendment released on 12 November, the government abolished limited liability companies in the Dubai International Financial Centre (DIFC) and introduced new categories of public and private companies as part of a broader initiative in line with international best practices, providing a suitable regulatory framework and creating greater certainty and flexibility for ......

    News Analysis 22 November 2018

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  • Classification clarity

    Spanish SME ABS 'first' marketing

    Be-Spoke Capital is marketing an unusual, inaugural securitisation, backed by a portfolio of loans to Spanish SMEs and expected to total around €300m, with pricing targeted for early December. Dubbed Alhambra SME Funding 2018-1, Natwest Markets is sole arranger on the transaction while the European Investment Bank is looking to invest €80m in the mezzanine tranche.

    Miles Hunt, head of securitised .......

    News Analysis 21 November 2018

  • CRT tranche downgraded

    Sector developments and company hires

    Acquisitions

    Spruce Finance has been acquired by HPS Investment Partners. Spruce will be headquartered in Houston and maintain its executive and M&A offices in San Francisco. Christian Fong has joined the company as president and ceo after holding a position as co-chairman of the board of directors since early 2017. The transaction took place through Spruce Holdings, a .......

    Market Moves 21 November 2018

  • Bloodbath blues

    European ABS market update

    The European ABS market has repriced, after taking a hit yesterday when the S&P 500 index plunged by 1.8%. The tone has improved this morning, as traders cautiously return to the market.

    “We’re seeing the market repricing after the bloodbath that happened yesterday,” says one trader. “A lot of paper hit the shelf and nobody wanted to trade it; mezz ......

    Market Reports 21 November 2018

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  • Tougher approach

    KNF stance puts Polish securitisation on hold

    The future of securitisation and closed-end securitisation funds in Poland remains uncertain, following the Polish financial supervisory authority’s (KNF) approximately PLN6.4m (€1.49m) fine against Raiffeisen Polska in September. KNF fined the Austrian bank over its alleged failure in safeguarding securitisation fund assets as a depository bank in securitisation transactions, citing an incomplete register and lack of awareness over the .......

    News Analysis 21 November 2018

  • Long goodbye

    First non-Libor linked ABS anticipated

    Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index average (SONIA) in September. The move has sparked predictions that the first securitisations tied to alternative reference rates will emerge next year.

    Libor is set to be phased out from 2021 and it remains unclear what will replace it as a .......

    News Analysis 20 November 2018

  • Credit clutch

    European ABS market update

    The European ABS slow-down continues, with prices drifting wider and subdued credit growth across the board. In particular, an aversion to duration risk has emerged this week.

    “Credit is headed for the worst year since 2008,” one trader explains. “ABS traders are not used to showing negative figures to their clients. People are reassessing the market.”

    In .......

    Market Reports 20 November 2018

  • Fixed income head hired

    Company hires and sector developments in structured finance

    Newmark Group has established an operating committee consisting of key senior managers following the spin-off from BGC announced on the 13 November. The operating committee members are as follows: Lou Alvarado, chief revenue officer, previously senior md at Cushman & Wakefield; Raj Bhatti, cio, previous partner at Kinetix Trading Solutions; Jeff Day, president and head of multifamily capital .......

    Market Moves 19 November 2018

  • STS documents released

    Sector developments and company hires in structured finance

    ILS

    Hiscox has made three new appointments to its ILS division. Mike Schindel has been promoted to head of North America underwriting from head of international underwriting. Schindel will continue to be based in Bermuda. Nick Orton has been promoted to head of international, based in London, and worked most recently as a senior underwriter within the international team. Finally, .......

    Market Moves 16 November 2018

  • Risk transfer round-up - 16 November

    Capital relief trade sector developments and deal news

    Deutsche Bank is rumoured to be executing a bilateral trade finance capital relief trade from its TRAFIN programme this month, as a replacement trade for TRAFIN 2015-1. TRAFIN 2015-1 was due for November 2022 (see SCI’s capital relief trades database), but the German lender has decided to call it and reportedly replace it with a new deal. The ......

    News 16 November 2018

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  • Selling stagnation

    European ABS market update

    Activity in the European ABS primary and secondary markets has slowed this week, with volumes generally stabilising across both segments.

    “It feels a little softer on the secondary market,” says one trader. “There has been between a 5bp to 10bp drop in spreads across the board, although a decent bid remains for 2.0 paper. There are fewer sellers .......

    Market Reports 16 November 2018

  • CMBS desk launched

    Sector developments and company hires in structured finance

    Europe

    Simmons & Simmons has hired James Grand to lead its CLO offering. Grand was previously a structured products partner at Freshfields where he spent over 20 years, specialising in advising both the sell-side and the buy-side on CLOs, as well as contentious and non-contentious derivatives work, structured credit, tax structured products, regulatory capital and prime brokerage.

    Partnerships

    Alexandria Capital .......

    Market Moves 15 November 2018

  • Dry powder

    International ABS market update

    Pepper Group is prepping an Australian RMBS that is expected to be sized at A$500m-equivalent and include a short US dollar tranche and a Euro-denominated pass-through tranche. Elsewhere in the European primary securitisation market, Tesco’s Delamare Cards MTN Issuer Series 2018-1 deal – the senior tranche of which is being talked at one-month Libor plus 70bp – is expected .......

    Market Reports 15 November 2018

  • Dual speed

    Standard Chartered follows with tranche carve-up

    Standard Chartered has completed a US$297.5m financial guarantee that references a US$3.5bn trade finance portfolio. Dubbed Sealane 4, the transaction is a replacement trade for Sealane 3 - which matures in December - and is structured as a dual mezzanine tranche to appeal to a broad base of investors and address the EU Securitisation Regulation’s higher capital requirements.

    News Analysis 14 November 2018

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