ABS

  • 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

  • Creval completes second NPL deal

    Credito Valtellinese (Creval) has completed a €586.35m non-performing loan securitisation with a gross book value equal to €1.67bn, as at the 31 December 2017 cut-off date. The senior notes of the deal – dubbed Aragorn NPL 2018 – are expected to benefit from the GACS guarantee.

    Rated by DBRS and Scope, the transaction comprises a €509.52m BBB (low)/BBB- senior tranche .......

    News 13 June 2018

  • Bankruptcy law brings transparency

    India’s landmark Insolvency and Bankruptcy Code (IBC) has inflicted heavy losses on the nation’s banks this year. The law has nevertheless provided more transparency in the market and has reduced non-performing loan recovery periods.

    Cumulative losses for state banks were large enough to wipe out almost all of the government's capital injections of US$13bn, while weak performance is likely to .......

    News 11 June 2018

  • Market moves - 8 June

    Acquisition

    Angel Oak Commercial Lending (AOCL) has acquired a controlling interest in Cherrywood Mortgage – a national, small-balance commercial mortgage lender based in Los Angeles, California. Cherrywood will serve as the wholesale small-balance commercial lending arm of (AOCL) and is led by ceo Bill Komperda and president Ed Resendez.

    Cat bond first

    SCOR has sponsored a new cat bond, dubbed Atlas .......

    Market Moves 8 June 2018

  • UTP loans raise AI prospects

    Resolving unlikely to pay (UTP) loans is becoming more important for Italian banks, but the challenges involved can be particularly complex. As a result, special servicers are looking to create proprietary servicing platforms that utilise machine learning and artificial intelligence.

    Servicers have collected extensive information on borrower performance and credit data which they are using to an increasing degree to .......

    News 7 June 2018

  • Start-up launches to solve structured product problems

    Banks remain too big to fail and there is still opacity surrounding securitisation and structured products. This is the view of banking and derivatives veterans Philippe Naegeli and Patrick Loepfe, who have launched a new platform - dubbed GenTwo - aimed at addressing these challenges.

    Loepfe, founder and chairman at GenTwo, was previously chief risk officer at DIVAS Asset Management .......

    Provider Profile 7 June 2018

  • Deal 'will happen' despite political risk

    Banco BPM has announced the transferral of a €5.1bn gross nominal value (GNV) portfolio of NPLs to the Red Sea SPV, as part of Project Exodus (SCI June 1). The Italian bank aims to sell the junior and mezzanine notes, although political uncertainty may lead to higher premiums, putting a strain on the transaction.

    Banco BPM will apply for the .......

    News Analysis 6 June 2018

  • Chinese issuance growing strongly

    Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. Overseas ABS market participants point to the need to develop the investor base and deepen market expertise, but are also showing increased willingness to dip their own toes in the water.

    The Chinese securitisation market is now the second-largest in terms of issuance, hitting CNY1.495trn in .......

    News Analysis 4 June 2018

  • Consultant activity surveyed

    Investment consultants for long-term investors such as pension funds haven’t been as active in capital relief trades as other investors, typically hedge funds - although this is expected to change, as corporate defaults pick up over the next two to three years (SCI 25 April). The trades are attractive to consultants’ clients, as they provide exposure to higher quality corporate .......

    News Analysis 1 June 2018

  • Euro mortgage market heating up

    A thriving European mortgage market is attracting foreign investors seeking to capitalise on the low-risk returns on offer, particularly in the UK and the Netherlands. New firms such as Fortrum (SCI 18 May) are being established, offering innovative products and services to help smooth the path for those venturing into the European structured finance sector.

    Simon Collingridge, co-founder of Fortrum, .......

    Provider Profile 1 June 2018

  • Market moves - 1 June

    BTL RMBS planned
    UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool of approximately £350m buy-to-let non-member mortgages originated by The Coventry Building Society Group through its Godiva brand. The portfolio comprises 2,077 recently-originated loans with an average balance of approximately £169,000 and an average LTV of 60.8%. The loans have approximately five years until the current fixed rate .......

    Market Moves 1 June 2018

  • RRBs on the rise?

    Signs of an uptick in the US rate reduction bond (RRB) market are emerging, albeit the sector remains a relatively small segment of the securitisation landscape. More states are putting frameworks in place to enable them to issue RRBs and there are indications of innovative transactions on the horizon.

    Deborah Newman, director at S&P, says that while the RRB market .......

    News Analysis 30 May 2018

  • GACS issuance surge expected

    Investor appetite for GACS non-performing loan securitisations will be tested this year, as a strong pipeline of deals come to market before the government guarantee expires in September. Should the guarantee fail to be extended, more outright sales of NPLs are expected rather than securitisations.

    “Only three GACS NPL securitisations where completed before the first GACS law decree expired in .......

    News Analysis 29 May 2018

  • NPL financing hurdle highlighted

    Financing non-performing loan resolutions remains the missing piece in efforts to tackle Europe’s troubled asset burden. While securitisation can help close the NPL bid/ask gap and broaden the investor base, the technology typically isn’t appropriate for volatile or deeply impaired assets.

    There is currently no preferred transfer model for NPLs, nor discussion around different NPL asset classes at .......

    News Analysis 25 May 2018

  • Risk transfer round-up - 25 May

    Standard Chartered is expected to roll over two existing trade finance capital relief trades in 2H18. In particular, Shangren 3 and Sealane 3 will be rolled over into two new deals: Shangren 4 and Sealane 4. Shangren 3 – in which Dutch pension fund PGGM was the investor - is a bilateral deal, while Sealane 3 is a syndicated one.

    News 25 May 2018

  • Landmark NPL securitisation closed

    Banca Monte dei Paschi di Siena’s landmark non-performing loan securitisation, Siena NPL 2018, features several structural innovations that are expected to be replicated in future NPL securitisations. The €4.33bn transaction securitises exposures equivalent to a gross book value of around €24.07bn (SCI 11 May).

    One structural innovation is that the transaction provides for a real estate operating company (ReoCo) to .......

    News Analysis 25 May 2018

  • Market moves - 25 May

    Analytics acquisition

    IHS Markit has signed a definitive agreement to acquire Ipreo for US$1.855bn from private equity funds managed by Blackstone and the Goldman Sachs merchant banking division. The acquisition is expected to close in 2H18, subject to customary closing conditions and regulatory approvals. Following a detailed review of its financial services businesses, the firm has also initiated a process .......

    Market Moves 25 May 2018

  • Securitisation 'right tool' for NPL disposals

    Participants at a recent SCI seminar on non-performing loan securitisation were optimistic about the role of ABS in facilitating disposals of troubled loans across Europe, with or without government guarantees. Concerns persist, however, that work still needs to be done in several jurisdictions in terms of professionalising servicing capabilities and standardising securitisation procedures.

    Iain Balkwill, partner at Reed Smith, commented: .......

    Talking Point 18 May 2018

  • IFRS 9 first-time impact gauged

    Banks have begun releasing their first quarterly results for this year, with the reports suggesting a limited impact from the first-time adoption of IFRS 9. However, the lack of a requirement to restate comparative figures means that the potential volatility in reporting generated by the accounting standard’s three credit stages will have to be monitored over time. Furthermore, banks appear .......

    News Analysis 14 May 2018

  • BMPS deal taps ReoCo

    Banca Monte dei Paschi di Siena (BMPS) has completed its much-anticipated non-performing loan securitisation (SCI passim). Dubbed Siena NPL 2018, the €4.33bn transaction securitises exposures equivalent to a gross book value of around €24.07bn and envisages the involvement of a real estate operating company (ReoCo).

    Rated by DBRS, Moody’s and Scope, the deal comprises €2.92bn BBB/A3/BBB+ rated class .......

    News 11 May 2018

  • NPL recovery boost expected

    Greek systemic banks are teaming up to create a platform that will manage and settle mortgage and retail non-performing loans to borrowers who have filed for protection under a much-abused law providing favourable restructuring terms (SCI 8 December 2016). Greek lenders have used this procedure for corporate loans, but not for mortgages, consumer and SME loans.

    The arrangement .......

    News Analysis 4 May 2018
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