ABS

  • Mortgage ILS landmark imminent

    United Guaranty is in the market with Bellemeade Re 2017-1 (see SCI's deal pipeline). The mortgage insurance securitisation is the first of its type to be publicly rated, potentially opening the gates for an increase in similar issuance.

    The US$368.11m mortgage insurance-linked securitisation (mortgage ILS) has been rated by Morningstar Credit Ratings. The agency has assigned a preliminary .......

    News 18 October 2017

  • CRT outlook bullish

    Optimism prevailed at SCI's recent Capital Relief Trades Seminar, where panellists were bullish on the future of the risk transfer market. While capital relief trade activity has slowed this year compared to last, speakers concurred that issuance will grow in 2018, with a greater number of issuers and asset classes emerging.

    Kaikobad Kakalia, cio, Chorus Capital Management, said: "Towards the .......

    Talking Point 16 October 2017

  • Risk transfer round-up - 13 October

    Risk transfer activity continues, with Lloyds reportedly readying a transaction for Q4. Sources also suggest that Mizuho and Lloyds are arranging a transaction for an Irish bank. Meanwhile, Caplantic is said to be prepping a shipping SRT and is targeting a 30 November deadline.

    .......

    News 13 October 2017

  • Job swaps round-up - 13 October

    Acquisition

    Navient has entered into an agreement to acquire online student lender Earnest for US$155m in cash. Earnest will continue to operate under its current brand and be led by its current management team. Navient has suspended its remaining share repurchase programme through year-end 2018 to allocate capital towards growing its education lending business and building book value. Closing of .......

    Job Swaps 13 October 2017

  • NPL platform to boost recoveries

    The creation of a non-performing loan platform by Portugal's three largest banks - Caixa Geral de Depósitos (CGD), Banco Commercial Português (BCP) and Novo Banco (NB) - is expected to speed up recovery processes. However, the impact on the three banks' asset quality is likely to be limited.

    According to DBRS, the NPL platform is a "positive, but small step, .......

    News Analysis 13 October 2017

  • BJETS concerns highlighted

    Business Jet Securities series 2017-1 exposes investors to multiple risks - including performance volatility, transaction structural risks and a servicer with a limited track record - according to Fitch. The corporate jet aircraft ABS is not rated by the agency, which notes that the deal does not meet its investment grade standards.

    KBRA assigned preliminary single-A ratings to the securitisation's .......

    News 11 October 2017

  • ILS issuance hits all-time highs

    The insurance-linked securities market has seen a surge in new issuance this year, with 1H17 witnessing the largest monthly, quarterly and half-year volumes on record. The largest-ever deal size was also recorded and overall market outstandings topped previous peaks.

    Swiss Re reports that ILS issuance volumes in 1H17 topped US$8bn, nearly 40% larger than any previous half-year, and just US$230m .......

    News Analysis 11 October 2017

  • Specialised financing vehicles introduced

    The latest reform of the French finance sector introduces a new category of financing vehicle that is expected to benefit both classic securitisation and risk transfer structures. The reform - the first phase of which is due to be finalised in January 2018 - also expands the legal tools available to French banks for refinancing their loan exposures.

    The reform .......

    News 11 October 2017

  • Treasury report supports securitisation

    The US Treasury has released a report recommending a number of regulatory changes that could make it easier for companies to issue and invest in securitisations. The second in a series on boosting the US financial system, the report stresses the importance of securitisation to a strong economy and suggests repealing elements of the Dodd-Frank Act and lightening other regulatory .......

    News 9 October 2017

  • C-PACE lender breaks new ground

    Greenworks Lending has privately placed the first rated securitisation of purely commercial PACE assets. While the firm intends to tap the market again in the near future, potentially with a public C-PACE deal, the present emphasis is on origination of high quality assets by meeting the needs of commercial real estate property owners.

    Greenworks Lending's US$75m ABS was arranged by .......

    News Analysis 9 October 2017

  • Credit unions to tap ABS market?

    US credit unions could soon tap the securitisation market after the National Credit Union Administration stated that such institutions have the authority to issue ABS. The move follows legislation that allows credit unions to adopt powers granted to federal institutions, meaning 3,600 federal credit unions could adopt the ruling immediately.

    The opinion was aired by the NCUA on 21 June, .......

    News 6 October 2017

  • Auto ABS value explored

    There is still good value to be found among US auto ABS subordinate tranches. This appears to be particularly true for the DRIVE, PART, DTAOT, AMCAR and CARMX programmes.

    Spread tiering within non-prime auto ABS endures, with both newer lenders and deeper subprime issuers necessitating higher spread premiums. The tighter end of non-prime auto ABS triple-Bs includes names such as .......

    News 5 October 2017

  • Rating agency opens in Europe

    KBRA has opened its first European office, located in Dublin, Ireland, and intends to expand into further jurisdictions (SCI passim). Several new hires and some existing staff will support the European effort, which will have a concerted focus on infrastructure and aviation securitisation, along with traditional core business areas.

    Kate Kennedy, senior md at the rating agency, comments: "With the .......

    News 5 October 2017

  • New dawn for bank funding strategies?

    The European securitisation market faces what is expected to be an "interesting" year ahead, as low-cost central bank liquidity dries up and banks adopt new funding strategies. Together with boosting primary ABS issuance, Bank of England and ECB tapering will likely impact the volume of paper being retained.

    In the UK, the drawdown periods for the Funding for Lending Scheme .......

    News Analysis 4 October 2017

  • Direct lending warehouse formed

    Bespoke Capital has established a direct lending warehouse facility, set up as a cashflow securitisation dubbed Be-Spoke Loan Funding, to fund a portfolio of loans granted to Spanish SMEs. The initial transaction portfolio - comprising 21 obligations - stands at €70.8m, with warehouse notional expected to reach €400m, as of the last drawing point.

    DBRS has assigned final ratings to .......

    News 3 October 2017

  • Euro secondary sustained

    Activity levels continue to be sustained if not spectacular in the European securitisation secondary market.

    "Secondary is still fairly quiet," says one trader. "New issues are coming through at a good steady rate and occupying people's minds."

    Overall, the trader adds: "The market feels pretty firm and spreads are holding up across the board. That's being backed up by decent .......

    SCIWire 3 October 2017

  • Job Swaps round up - 29 September

    North America

    HouseCanary has hired Josh Seiff to lead business development. He joins from Fannie Mae where he was vp, multifamily capital markets and trading.

    GC Securities, a division of MMC Securities has announced the establishment of Cerulean Re SAC, a private syndicated collateralised reinsurance platform and Bermuda registered segregated account company (SAC) and licensed special purpose insurer. The joint .......

    Job Swaps 29 September 2017

  • Risk transfer round up - 29 September

    The focus of this past week has been the EBA's SRT discussion paper. Regulators and market participants expect it and the resulting guidance to standardise structural features and boost deal flow in the market (SCI 28 September).

    The paper comes at a time of a flurry of transactions in Q4. Among these, sources mention a Banca IMI-arranged transaction for UBI .......

    News 29 September 2017

  • BMO steps on the gas with debut ABS

    Bank of Montreal is marketing an inaugural auto securitisation, called Canadian Pacer Auto Receivables Trust 2017-1 (see SCI's deal pipeline). The ABS is backed by 42,258 prime retail instalment auto loan contracts and is another first for the bank after debuting the first RMBS sponsored by a major Canadian bank earlier this year (SCI 18 April 2017).

    The deal .......

    News 29 September 2017

  • First solar ABS looks to pay dividends

    Dividend Finance is in the market with its first term ABS securitisation collateralised by secured residential consumer solar loans. The transaction, Dividend Solar Loans 2017-1 (see SCI's deal pipeline), will issue three classes of notes in an aggregate principal amount of US$128.95m.

    Kroll Bond Rating Agency has assigned a preliminary rating of single-A to the US$115.376m class A .......

    News 29 September 2017

  • Trustee role rewritten by court?

    A ruling by the UK High Court could have significant implications for trustees, potentially redefining their role in securitisation. The court's ruling confirms that a trustee cannot outsource decision making and must take responsibility for exercising the discretion that deal documents allow them, although questions do remain.

    GLAS Trust Corporation was brought into the Fairhold Securitisation (FHSL 2006-1) as a .......

    News Analysis 29 September 2017
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