ABS

  • Risk transfer round-up - 25 January

    The week's SRT developments and deal news

    Market news
    BofA Global Research analysts believe that there is potential for 2021-2022 GSE credit risk transfer transactions to be upgraded, as their credit enhancement levels and mark-to-market LTVs continue to improve and delinquencies remain low. Rating agencies upgraded 292 CRT bonds in 2023, 35 of which were upgraded from non-investment grade to investment grade.

    In particular, bonds rated .......

    News 25 January 2024

  • Pilot transaction

    IDB expands focus and lending capacity to the private sector

    The Inter-American Development Bank (IDB), the main source of development financing for Latin America and the Caribbean, recently completed a risk-transfer transaction using credit-insurance protection with private insurance companies to optimise the use of resources and unlock capital for additional lending to the region. This is the IDB's first such transaction with the private sector. 

    Previously, the IDB .......

    The Structured Credit Interview 25 January 2024

  • Building momentum

    Chinese consumer ABS market tipped for growth

    Chinese securitisation issuance posted a 7% decline in volumes last year. However, backed by solid mortgage originations, vehicle sales and foreign investor interest, China could well be on its way to long-term growth if its structured finance market can stay afloat.

    After seeing the market’s first triple-A rated consumer ABS last year, the consumer segment is likely to .......

    News 24 January 2024

  • Job swaps weekly: Permira Credit promotes pair to lead expansion

    People moves and key promotions in securitisation

    This week’s round-up of securitisation job swaps sees Permira Credit appoint two new co-heads to lead the firm’s expansion. Elsewhere, Hildene Capital Management has snapped up a Jefferies executive as head of capital markets, while Axonic Capital has promoted its head of credit to the newly created role of co-cio. 

    David Hirschmann and Ariadna Stefanescu have been appointed .......

    Market Moves 19 January 2024

  • Gathering momentum

    SRT market update

    Following a measured start to the year, SRT investors are expecting a pick-up in issuance to materialise soon. Meanwhile, activity in the US market is clearly gathering momentum.

    While at the end of last year it had been reported that a few transactions had been pushed into Q1 of this year, one SRT investor cites the increased .......

    News 19 January 2024

  • IFC, SG team up on sustainable finance

    Market updates and sector developments

    Societe Generale and IFC have signed a Collaboration Framework Agreement to accelerate efforts on sustainable finance in developing countries, as part of both institutions' shared ambition to contribute to the UN Sustainable Development Goals (SDGs) and a strong commitment to the environmental transition and sustainability.

    As part of this agreement, the two institutions aim to further develop wide-ranging .......

    Market Moves 19 January 2024

  • Hanging in the balance

    UK green securitisation market falling behind

    The outlook for the UK’s green securitisation market appears bleak this year, following government backtracking on green policies. In contrast, green originations are anticipated to play a crucial role in driving continental European issuance volumes in 2024.

    Last year alone, the UK government took a U-turn on new EPC rules for landlords - despite support for the rules .......

    News 17 January 2024

  • Radical reform?

    ESMA disclosure consultation could pave the way for material improvements

    ESMA’s launch of its long-awaited consultation on potential revisions to the European Commission’s securitisation disclosure templates in late December (SCI 21 December 2023) may have negatively impacted interest in submitting responses. Nevertheless, the move could potentially open the door to radical reforms.

    ESMA is seeking feedback on four very different possible options (A through D) for .......

    News 16 January 2024

  • IACPM 'stands ready' to work with US regulators on SRT

    Market updates and sector developments

    The IACPM says it stands ready to share data and experience on synthetic securitisation with US federal regulators, in order for US banks to share risk in an effective, safe and transparent manner with specialised long-term partners. The move follows recent positions taken in the press or in letters sent to the US agencies, notably by Sheila Bair and .......

    Market Moves 16 January 2024

  • SCI In Conversation podcast: Andrew South and Alastair Bigley, S&P Global Ratings

    We discuss the hottest topics in securitisation today...

    In this episode of the SCI In Conversation podcast, SCI's deputy editor Kenny Wastell speaks to S&P Global Ratings’ md and head of EMEA structured finance research Andrew South and Alastair Bigley, md and sector lead for European RMBS, about the year ahead. The ratings agency recently published its European Structured Finance Outlook for 2024, forecasting that issuance in Europe could .......

    News Analysis 16 January 2024

  • Risk transfer round-up - 12 January

    The week's SRT developments and deal news

    Deal news
    Europejski Fundusz Leasingowy (EFL), owned by Crédit Agricole, has completed a synthetic securitisation with the EIB Group. The transaction is backed by a PLN2bn portfolio of Polish leasing receivables.

    The EIF guarantee on the PLN250m mezzanine tranche covers a reference portfolio of PLN2bn, while a counter-guarantee from the EIB mirrors the EIF’s obligation, whereby the EIB covers the .......

    News 12 January 2024

  • Project finance SRT finalised

    BBVA closes bilateral trade

    BBVA has closed a synthetic securitisation with PGGM referencing a project finance portfolio valued at €750m. The bilateral transaction allows BBVA to release up to 88% of the portfolio's capital. 

    Of the projects in the securitised portfolio, 60% are classified as sustainable, with renewable energy, digital infrastructure and transportation infrastructure the leading sectors. In terms of geography, the portfolio is .......

    News 11 January 2024

  • First-mover advantage

    SCI recently asked Georgi Stoev, head of Northern Europe &am...

    The EIF invested over €3bn in the securitisation market last year, of which €2.8bn was executed in a synthetic format. In terms of jurisdictions, the fund continues to strengthen its engagement across Central and Eastern Europe (CEE), with Romania (accounting for over €700m of investments), Bulgaria (close to €500m) and Poland (€450m) topping the investment list.

    Q: Is .......

    The Structured Credit Interview 10 January 2024

  • BNPL boom

    Middle East consumer ABS set for expansion

    The Middle East’s securitisation landscape is poised for expansion as the second local buy now, pay later (BNPL) transaction is unveiled. Coupled with a wave of new legislation and ever-growing interest from foreign investors, the future of Islamic structured finance appears bright.

    UAE-based BNPL service provider, Tabby, hit the market last month with a US$700m ABS - echoing .......

    News 10 January 2024

  • Latest SRTx fixings released

    Index values indicate gradual tightening in spreads and impr...

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Spread indexes have moved higher compared with December’s fixings (SCI 4 December), particularly in the large corporate space, owing to typical year-end volatility.

    After two months of tightening in SRTx Spread Indexes, this month’s survey responses show a widening of both the large .......

    News 8 January 2024

  • Competitive spirit

    'Structural evolution' drives Oceanic auto ABS volumes

    Australian securitisation volumes are this year expected to surpass 2023’s record-breaking highs of A$52.3bn across 77 transactions, primarily due to the country’s budding ABS sector, as well as improved macro conditions for prime non-bank lenders and the likelihood of ADI issuers returning to the market in order to maintain relevance. However, competition with covered bond programmes, changing operating conditions .......

    News Analysis 8 January 2024

  • Performance shift?

    Indian cross-border ABS debuts

    Shriram Finance last month closed the first Indian cross-border ABS. The US dollar-denominated India Vehicle Finance deal also represents the country’s first two-tier securitisation, featuring an onshore trust named Sansar Vehicle Finance Trust Dec 2022.

    Rated triple-B minus by Fitch, the transaction is backed by a pool of commercial vehicle loans and benefits from an experienced servicer (Shriram .......

    News 5 January 2024

  • Riverstone co-founders launch Breakwall Capital

    Market updates and sector developments

    Riverstone Holdings co-founders have launched a new independent energy focused asset-manager, Breakwall Capital, dedicated to supporting energy companies through the complexities of the energy transition. The new firm will be led by Riverstone co-founders and colleagues of close to 20 years, Christopher Abbate, Jamie Brodsky and Daniel Flannery.

    Breakwall will support conventional, renewable and ‘next generation’ energy companies .......

    Market Moves 5 January 2024

  • Job swaps weekly: Greenberg Traurig appoints three new partners from Seward & Kissel

    People moves and key promotions in securitisation

    The first weekly roundup of securitisation job swaps of 2024 sees Greenberg Traurig appointing a trio of structured finance specialists as partners. Elsewhere, Obra Capital has hired two senior investment executives from AllianceBernstein and RiverRock Funds, while Stout’s md and co-lead of structured credit leaves the firm for a new project.

    Kalyan Das has joined Greenberg Traurig, along .......

    Market Moves 5 January 2024

  • Accretive process

    Wasif Kazi, structurer at UniCredit, forecasts continued gro...

    Q: Given that 2022 was widely viewed as a breakthrough year in terms of CEE capital relief trade issuance, is the Polish market still a trend to monitor, or is it becoming an established jurisdiction for SRT transactions?
    A: I would say it's somewhere in between the two. We see more transactions each year coming out of Poland. We see .......

    The Structured Credit Interview 5 January 2024

  • CIFC launches multi-strategy credit fund

    Market updates and sector developments

    CIFC has launched a UCITS multi-strategy credit fund, combining sub-investment grade fixed income with structured finance, senior secured loans and liquid credit investments identified by its distressed team. The firm is looking to capitalise on growing sentiment that rates have peaked and on investors' resulting appetite for fixed-rate credit in order to "lock in the current high rates".

    The .......

    Market Moves 4 January 2024
×