ABS

  • 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

  • Article 14 negotiations begin

    Amendment to reduce securitisation compliance requirements

    Trilogue discussions between the European Parliament, the European Commission and the European Council have begun on a compromise package that includes an amendment to Article 14 of the CRR. If ratified, the amendment would preclude non-EU subsidiaries of European banks from complying with all the requirements in Chapter Two of the new securitisation regulation.

    The current requirement under Article .......

    News 9 July 2018

  • Landmark UTP deal completed

    Inaugural large-scale, pure UTL transaction inked

    Bain Capital Credit has acquired a portfolio of unlikely-to-pay (UTP) corporate loans, dubbed Project Valery, from the Italian arm of Credit Agricole. The portfolio has a total book value of €450m and is the first large-scale, pure UTP transaction in Italy.

    While this is not the first ever UTP portfolio acquisition, previous deals have been smaller in size and comprised .......

    News 4 July 2018

  • Barclays engineers comeback

    Further impetus added to Colonnade programme

    Barclays has returned to the risk transfer market with Colonnade Global 2018-1, a £34.2m cash-collateralised eight-year financial guarantee. As with previous Colonnade transactions, the credit protection covers both principal and accrued interest (SCI 8 September 2017).

    Rated by DBRS, the deal comprises US$325.3 triple-A rated class A notes, US$6.2m double-A rated class B notes, US$1.75m double-A rated class C .......

    News 2 July 2018

  • Green ABS branches out

    Commercial PACE and renewables gain traction as green ABS expands

    PACE is catching on in both the US and Europe. An April whitepaper from the New York State Energy Research and Development Authority (NYSERDA) presents PACE as a tool to achieve the state’s ambitious energy efficiency targets, while a trial programme in Spain is looking at both residential and commercial PACE, although PACE is not the only green ABS sector .......

    News Analysis 29 June 2018

  • Multi-seller GACS deals pending

    Large portfolio sizes facilitate critical mass

    Multi-seller GACS securitisations brought by smaller Italian banks are emerging, with at least two transactions in the pipeline. However, as the transactions come to market, banks and investors will have to deal with challenges that are atypical for single-seller deals.

    During the two years that the GACS scheme has been operational, portfolio sizes (in GBV terms) have evolved towards larger .......

    News Analysis 29 June 2018

  • Market moves - 29 June

    CLO manager acquired

    THL Credit Advisors has acquired the collateral management business of Kramer Van Kirk Credit Strategies, which currently manages seven CLOs totaling approximately US$3.4bn of assets. THL Credit currently manages 15 CLOs, including the recently priced THL Credit Wind River 2018-1. The acquisition would bring THL Credit's CLO assets under management to approximately US$12bn and the firm's total .......

    Market Moves 29 June 2018

  • Trade finance CRTs gather pace

    Transactions offer multiple benefits to issuers and investors

    Interest is growing in synthetic securitisations backed by trade finance receivables - collateral that is particularly suited to the synthetic structure. These transactions exhibit several differences to corporate capital relief trades and while some of these can cause certain challenges, they also offer issuers and investors unique benefits.

    Peter Wong, md, portfolio management at Standard Chartered, says that the synthetic .......

    News Analysis 28 June 2018

  • NPL issuance surging

    Italian lenders look to beat GACS deadline

    Banco di Sardegna has completed a €253m non-performing loan securitisation called 4Mori Sardegna, the senior notes of which are expected to be granted a GACS guarantee. The transaction features high credit enhancement levels for the senior and mezzanine notes and it is the latest in a slew of GACS issuance aiming to beat the expiration of the Italian government guarantee .......

    News Analysis 28 June 2018

  • Securitisation to support PPP growth

    The Argentinian government recently announced plans for a number of infrastructure projects and has established a public-private partnership (PPP) framework to help bring the projects to fruition. Structured finance technology is expected to be utilised in raising the required capital for the construction, operation and maintenance of the projects.

    Historically, large infrastructure projects in Argentina have mainly been funded through .......

    News Analysis 26 June 2018

  • PRA's tough stance continues

    Banks have been reviewing the PRA’s significant risk transfer (SRT) consultation, which proposes a full capital charge for excess spread in SRT securitisations and is expected to reduce the capital relief that can be achieved by UK issuers. The paper also introduces uncertainty over the hierarchy of approaches and is another indication that, going forward, the UK regulator’s stance .......

    News Analysis 22 June 2018

  • Mortgage SRT booster voted down

    MEP Caroline Nagtegaal’s amendment 596 to Article 234 of the CRR was rejected by the European Parliament in a vote this week, in order to prevent the establishment of an unwanted precedent. The amendment had been expected to boost significant risk transfer (SRT) transactions of mortgages (SCI 20 April).

    According to Article 234 of the CRR, loan-level insurance protection .......

    News Analysis 22 June 2018

  • Risk transfer round-up - 22 June

    Intesa Sanpaolo is rumoured to be prepping a capital relief trade referencing corporate assets, with the transaction currently believed to be in the portfolio selection process. The Italian lender is a frequent issuer of synthetic SME securitisations, but it has been less active in the corporate space (see SCI’s capital relief trades database).

    ......

    News 22 June 2018

    Premium Content

  • Market moves - 22 June

    Europe

    Axa Investment Managers has hired Hans Stoter to global head of fixed income and interim head of multi asset client solutions. He was previously cio at NN Investment Partners.

    DBRS has hired Edward Dittmer to its CMBS team as svp and will be based in New York. He was previously svp in the CMBS team at Morningstar.

    BlueBay has .......

    Market Moves 22 June 2018

  • Questions remain over insurer participation

    The European Commission recently published the Delegated Act on Solvency 2, which improves the capital treatment for certain ABS exposures, as of 1 January 2019. However, market participants suggest that STS securitisations deserve fairer capital treatment and, as a result, insurance firms remain unlikely to return to the securitisation market in great number.

    Rabobank credit analysts take a bullish approach .......

    News Analysis 21 June 2018

  • PE players driving growth

    Australian ABS and RMBS issuance saw record volumes of over A$8bn and A$37bn respectively in 2017, according to SCI data. The rise of fintech platforms, non-bank financial institutions and private equity-backed lenders in the country - combined with the global hunt for yield - is set to support continued growth of its securitisation market.

    Private equity involvement in the .......

    Talking Point 19 June 2018

  • Capital computation

    The complexity involved in executing capital relief trades is driving increased focus on the operational requirements necessary for efficient cost of capital computation. Indeed, implementing a joined-up approach across the front, middle and back offices can benefit an issuer’s bottom line – not only in terms of RWA savings, but also in other areas of their business.

    “A great deal .......

    News Analysis 18 June 2018

  • IFRS 9 benefit welcomed

    The first-time adoption of IFRS 9 has had a muted impact on bank capital ratios and this has been reflected in existing capital relief trades through P&L gains (SCI 14 May). Indeed, the benefit can be acquired whether the first-loss tranche is sold or retained.

    According to a structurer at a large European bank: “The silver lining in SRT deals .......

    News Analysis 15 June 2018

  • Risk transfer round-up - 15 June

    Deutsche Bank is expected to execute two capital relief trades this month. One is a corporate deal from its CRAFT programme and the other is an SME deal from its GATE programme. The bank is also believed to be prepping a trade finance transaction from its TRAFIN programme for either end-3Q18 or 4Q18.  

    .......

    News 15 June 2018

  • CRI explained

    Stephen Taylor, head of structured and capital solutions EME...

    Q: What is credit risk insurance?
    A: Credit risk insurance (CRI) is used to transfer credit risk to insurers. One of the benefits of using CRI in securitisation structures is that this credit enhances the asset pool (subject to the legal/accounting treatment) and can make the portfolio more attractive to lenders.

    Q: How does CRI help optimise a credit portfolio?
    A: Our .......

    Talking Point 15 June 2018

  • Market moves - 15 June

    CLO name change

    The name of Babson Euro CLO 2014-1 has been changed to Barings Euro CLO 2014-1. The move is effective from 13 June.

    Europe

    MDB Group (MeDirect) has recruited Michael Curtis as cio, responsible for core credit activities and spearheading the bank’s diversification into new product areas. Based in London, he reports to ceo Mark Watson. Curtis was .......

    Market Moves 15 June 2018
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