ABS

  • 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

  • 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


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