ABS
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PRA consults on CRR rules
Market updates and sector developments
The UK PRA has launched a consultation on draft rules to replace firm-facing requirements regarding securitisation under the CRR in 2H24. As such, it has published a discussion paper (DP) that raises certain key issues for feedback, in order to inform its approach - including the use of unfunded credit risk mitigation (CRM) in SRT transactions.
In particular, the .......
Market Moves 1 November 2023
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EIB Group backs BNP's €627m energy efficiency drive
Market updates and sector developments
The EIB Group has signed its first true sale securitisation in France in more than 15 years, in support of BNP Paribas’s commitment to provide €627m of financing for home energy efficiency equipment.
The deal sees the European Investment Bank contributing €400m and the European Investment Fund providing a further €50m. The investors will take senior and mezzanine .......
Market Moves 31 October 2023
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Growing the core
Overcoming hurdles in unfunded CRT execution
(Re)insurer interest in CRTs is rising, but execution of unfunded transactions remains limited. This Premium Content article outlines the hurdles that still need to be overcome.
(Re)insurer participation in the capital relief trades sector is seeing continued growth, with an estimated 30 unfunded deals anticipated to close by year-end. Nevertheless, unfunded protection providers still only account for ......
News Analysis 30 October 2023Premium Content
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Job swaps weekly: Antares beefs up team after strategy launch
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Antares Capital hiring multiple senior executives, as it closes its debut broadly syndicated loan CLO. Elsewhere, Prosperise Capital has appointed PC2 Capital’s founder as partner and head of CRE following its acquisition of the firm, while S&P Global has promoted three securitisation execs to md in the Americas.
Antares Capital .......
Market Moves 27 October 2023
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Risk transfer round-up - 26 October
The week's CRT developments and deal news
People moves
News 26 October 2023
Alan McNamara is set to join Howden CAP as executive director, balance sheet advisory and structuring, based in Dublin. McNamara was previously at the Bank of Ireland, most recently as head of group balance sheet management and execution, responsible for the bank’s extensive SRT programme. In his new role, he will enhance the advisory and structuring expertise across .......
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Polish lease SRT prints
Millennium, Veld strengthen relationship
Private credit specialist Veld Capital has acted as investor in Millennium Leasing’s latest significant risk transfer transaction. The trade references a €1bn portfolio, comprising highly granular performing Polish SME leases, underpinned by vehicles and machinery, with Veld Capital investing in the mezzanine tranche of the trade.
Leases originated by Millennium Leasing in Poland have historically exhibited high payment .......
News 24 October 2023
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'Endgame' comment period extended
Market updates and sector developments
US federal bank regulatory agencies have extended the comment period for both the Basel Endgame risk-based regulatory capital proposal and the G-SIB surcharge proposal until 16 January 2024 (SCI 28 July). Comments on both proposals were originally due by 30 November, but the comment period has been extended to allow interested parties more time to analyse the issues .......
Market Moves 23 October 2023
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Subprime auto is not the next credit crisis
Vadim Verkhoglyad, vp and head of research publication at dv...
Many view the US subprime auto market as a ‘canary in the coal mine’, equating facts like rising delinquencies to an indication of a looming financial crisis. This perspective is false and its adoption could decrease subprime activity and exclude borrowers from a critical market. It is crucial that market participants acknowledge the broader context of subprime auto loans .......
Talking Point 23 October 2023
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Job swaps weekly: Octagon elevates Lam to ceo
People moves and key promotions in securitisation
This week’s round-up of securitisation-related job swaps sees Octagon Credit Investors appointing senior portfolio manager Gretchen Lam as its new ceo. Elsewhere, structured finance lawyers Martin Bartlam and Elana Hahn have joined Xfinite Global and Fasken respectively.
The appointment of Lam as Octagon’s new ceo comes as the firm’s cofounder Andrew Gordon transitions into a new role as executive .......
Market Moves 20 October 2023
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CRT Market Update
Diversity on display
Capital relief trade issuance volume could creep past €200bn by year-end, according to Man GLG’s Q4 credit outlook paper. The report further states that as SRT spreads sit at their widest levels for over a decade, the opportunity for investors to gain exposure to a diversified pool of high-quality loans is currently compelling (SCI 14 September).
“We’ve seen the .......
News 20 October 2023
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Taking charge
NBFCs boost Indian securitisation issuance
The Indian securitisation market appears to have beaten the odds, with robust issuance volumes seen so far in 2023. This is despite concerns regarding the impact of the HDFC merger earlier this year (SCI 24 April).
“The market has been mostly unfazed by the merger,” states Nathan Menon, partner at Reed Smith. “It has noted it, but .......
News Analysis 20 October 2023
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US CLN market could reach US$220bn
Market updates and sector developments
JPMorgan securitised products research analysts estimate that the potential size of the US CLN market could amount to US$220bn, as banks become more comfortable with issuing the notes for capital relief purposes, following the Federal Reserve’s clarification of what defines a synthetic securitisation (SCI 29 September). Indeed, they suggest that the move may mark the beginning of a .......
Market Moves 16 October 2023
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Junon 4 prices
SG's latest corporate SRT unveiled
Societe Generale has executed the fourth synthetic securitisation from its Junon programme. The significant risk transfer transaction – called Junon 4 – references a €5bn portfolio of global corporate loans.
Structured as a CLN and issued via a French SPV, the deal further received the STS designation. Regarding the transaction’s syndicated nature, Pascale Olivie, director, asset-backed products at .......
News 16 October 2023
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Job swaps weekly: Fearon steps up at Arch
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Arch Capital Group appoint a new ceo in its global mortgage group. Elsewhere, Gallagher Re has hired a new head of global credit and political risk, while Cushman & Wakefield has snapped up a Patterson Real Estate Advisory exec as md.
Arch Capital Group has promoted Seamus Fearon to ceo, international mortgage for the .......
Market Moves 13 October 2023
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Risk transfer round-up - 12 October
The week's CRT developments and deal news
Market news
Fannie Mae has commenced fixed-price cash tender offers for the purchase of any and all of 11 Connecticut Avenue Securities (CAS) notes, with an unpaid principal balance of US$1.398bn and vintages ranging from 2016 to 2018. The offers will expire on 16 October and settlement is expected on 18 October.Fannie Mae has engaged BofA Securities as .......
News 12 October 2023
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Freddie B-piece investments closed
Market updates and sector developments
Sabal Investment Holdings has closed a series of five B-piece investments, representing approximately US$2bn in collateral balance, across three Freddie Mac multifamily CMBS programmes. The programmes comprise SB-Deals, K-Deals and Q-Deals.
Three SB-Deals closed by Sabal are backed by Freddie Mac multifamily small balance loans (SBLs), totalling US$90m in bond balance across US$933m in collateral balance and 338 .......
Market Moves 12 October 2023
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Quitting coal
Using utility ABS to fund a 'just' energy transition
An uptick in utility ABS is expected as US utilities seek financial solutions for retiring the country’s aging fossil fuel fleet. This SCI Premium Content article explores how the proceeds from these transactions can be used to facilitate an equitable energy transition.
Utility ABS may be set for revival in the US as a means of funding ......
News Analysis 10 October 2023Premium Content
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Snowball effect
EIF expands CEE engagement
The EIF is prepping a third synthetic securitisation with a Bulgarian banking group, following its deals with Bulbank last October (SCI 19 October 2022) and ProCredit Bank in June (SCI 22 June). Meanwhile, a further transaction in Romania is anticipated towards the end of the year, as the fund continues its engagement across Central and Eastern Europe.
News 10 October 2023
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Cat bond rebound
'Significant repricing' spurring renewed interest in ILS
The floods in New York at the end of September were the latest in a series of extreme climate-related events to dominate the global news agenda this year. Yet, while the assumption may be that this onslaught of disasters would lead to a strain on the catastrophe bond market, issuance in the asset class has soared this year.
News Analysis 6 October 2023
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Job swaps weekly: HSBC snaps up former Deutsche Bank CLO head
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees a former head of CLOs at Deutsche Bank taking up a director role at HSBC. Elsewhere, CBRE has promoted a London-based executive md to president and coo in its Tokyo office, while SLC Management has appointed two new co-heads for its private fixed income team.
Deutsche Bank’s former head of CLOs, .......
Market Moves 6 October 2023
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Risk transfer round-up - 5 October
The week's CRT developments and deal news
Market news
News 5 October 2023
A new paper published by the European Systemic Risk Board (ESRB) suggests that the synthetic securitisation sector has reached sufficient critical mass to make SRT a permanent feature in the capital management toolkit of European banks. However, it notes that as more banks and investors enter the market, the current assessment process will “need to become .......