ABS
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Job swaps weekly: New faces for Newmark
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Newmark Group making a number of senior appointments to its debt and structured finance team. Elsewhere, Helaba has hired a former Deutsche Bank md to lead its asset finance team, while CRED iQ has appointed a new head of data and analytics.
Commercial real estate manager Newmark has made three senior appointments in its .......
Market Moves 11 August 2023
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Risk transfer round-up - 10 August
The week's CRT developments and deal news
Market news
News 10 August 2023
Western Alliance Bank has amended its WAL 2021-CL2 transaction, to collateralise the deal and reduce corporate credit risk. Principal payments on the notes are now secured by a cash collateral account equal to the full principal amount. Interest payments remain the obligation of WAB but are newly secured by a line of credit by JPMorgan for up to .......
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Green front
EIF obvious candidate to scale up SRT amid energy transition
A new paper highlights how SRT transactions could be scaled up to support Europe’s shift to the green economy. Central to the proposal is the potential for the EIF to participate as a ‘fronter’ in synthetic securitisations.
In the paper, entitled ‘A proposal for the European Green Transition via Significant Risk Transfer Securitisations’, ECB senior advisor Fernando Gonzalez .......
News Analysis 9 August 2023
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Latest SRTx fixings released
Stabilising trend continues in August index values
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. The stabilising trend seen across the sub-indexes over the last few months generally appears to have continued, albeit views are slightly mixed on certain segments.
Spreads across the SRTx Spread Indexes have stabilised to improved month-on-month, reflecting the economic backdrop. Values now stand at .......
News 3 August 2023
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Innovative financing inked for Deutsche Bahn
Market updates and sector developments
The EIB and HypoVereinsbank are providing credit lines totalling up to more than €2bn to Deutsche Bahn for the procurement of 90 new trains for the Munich S-Bahn. Deutsche Bahn will receive financing for the new vehicles from Bayerische Eisenbahngesellschaft (BEG), which plans, finances and controls the regional and S-Bahn traffic in Bavaria on behalf of the Bavarian Ministry .......
Market Moves 3 August 2023
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Risk transfer round-up - 3 August
The week's CRT developments and deal news
Market news
News 3 August 2023
Risk Control has received funding from the MDB Challenge Fund for two projects with the objective of helping Multilateral Development Banks (MDBs) build on the recommendations of the G20’s Independent Review of MDB Capital Adequacy Frameworks (CAF). One of the projects will deliver analysis to support MDB risk transfer, creating insights and technical tools for balance sheet optimisation .......
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Groundbreaking cannabis CMBS closed
Market updates and sector developments
Groundbreaking cannabis CMBS closed
Market Moves 2 August 2023
Pelorus Capital Group has closed PCG 2023-1, the first-ever securitisation backed by cannabis-linked real estate assets. The firm retained a third of the US$70m offering, selling US$45m of bonds, which it says attracted a range of institutional investors and hedge funds that were “drawn to the high yield and growth of the businesses”. The single-tranche CMBS .......
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Closing the gap
SRT 'unlevel playing field' called out
A reduction of the p-factor is inarguably positive for IRB banks and the significant risk transfer space in general, as these banks account for the bulk of synthetic securitisation issuance volume (SCI 25 July). However, the absence of changes positively affecting banks under the standardised approach points to an unlevel playing field across the market.
The hurdles .......
News Analysis 1 August 2023
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New tricks
Banks' backing boosts AI utilisation in ABS
Artificial Intelligence (AI) is increasingly being embraced by banks seeking to improve workflows and support securitisation processes. But other benefits of the technology are also becoming apparent in the current challenging economic environment.
“We knew mathematically how an AI model could be used, but now we can actually see the benefit of it,” explains Altin Kadareja, co-founder and .......
News Analysis 31 July 2023
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After the gold rush
Digital revenues resuscitate music royalty ABS
With the European summer festival season in full swing and rocket man Elton John announcing his retirement from live music, securitisation is certainly not a word on many music fans’ lips. Yet music royalty ABS is making a comeback, two and a half decades after its rise to fame and subsequent fall.
KBRA anticipates that music royalty issuance .......
News Analysis 28 July 2023
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PRA launches SecReg consultation
Market updates and sector developments
The UK PRA has launched a public consultation on proposed changes to the retained EU Securitisation Regulation and the accompanying technical standards on risk retention and disclosure. Rather than a complete overhaul, the authority is seeking to introduce targeted adjustments to the existing EU securitisation framework by 2Q24.
The key changes include a more principles-based approach to due .......
Market Moves 28 July 2023
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Job swaps weekly: Angelo Gordon beefs up in structured credit
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Angelo Gordon poach a new head for its commercial real estate debt division from Tilden Park Capital Management, alongside a raft of senior promotions in its structured credit team. Elsewhere, law firm Blank Rome has launched a new Dallas office with two senior hires from Alston & Bird partners, while ARC Ratings has .......
Market Moves 28 July 2023
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Risk transfer round-up - 27 July
The week's CRT developments and deal news
Pipeline update
The capital relief trades market is currently seeing a lull in activity ahead of the traditional fourth-quarter spike in issuance, as banks seek to close transactions before year-end. Indeed, a significant pick-up in CRT trades is anticipated straight out of the blocks in September.“We are expecting a lot of significant risk transfer deals to .......
News 27 July 2023
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'Transformational' merger agreed
Market updates and sector developments
Rithm Capital is set to acquire Sculptor Capital Management in a transaction valued at approximately US$639m, which includes US$11.15 per Class A share of Sculptor. This transaction will leverage Sculptor’s US$34bn of AUM with Rithm’s US$7bn of permanent equity capital and US$30bn-plus balance sheet to create what the firm describes as a “world-class” asset management business.
Sculptor’s investment .......
Market Moves 26 July 2023
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Less punitive
Halving of p-factor sparks SRT optimism
The European Council’s finalisation of the Basel 3 reforms last month has sparked renewed optimism across the European capital relief trades market, with news of an agreement to halve the punitive p-factor (SCI 28 June). The impending need to address the adverse effects of the output floor had been at the core of the regulatory debate for synthetic .......
News 25 July 2023
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Legacy issue
ECJ ruling a boon for Polish CRTs
The European Court of Justice (ECJ) ruled last month that Polish banks must not charge remuneration from customers when legacy Swiss franc mortgage contracts are annulled (SCI 21 November 2016). As a result, banks could face moderately higher losses from affected portfolios and are likely to speed up their provisioning for such mortgages due to borrower lawsuits. The .......
News Analysis 25 July 2023
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Obra adds CLO issuance capabilities
Market updates and sector developments
Obra Capital has acquired the assets of asset management and investment research firm KDP and its affiliated companies. The transaction supports Obra’s expansion of its existing liquid markets capabilities in structured credit into the fundamental credit space. By combining KDP’s established research with Obra’s diversified asset management capabilities, the firm expects to augment its product suite to include the .......
Market Moves 21 July 2023
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Job swaps weekly: Oppenheimer's blockbuster appointment
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Oppenheimer & Co appoint a new head for its Latin America investment banking group. Elsewhere, Angel Oak Companies has poached a new chief legal officer from Reverence Capital Partners, while Fitch has a new head of structured finance product strategy in New York.
Oppenheimer & Co has stepped up its .......
Market Moves 21 July 2023
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Barings and Lakemore partner up
Market updates and sector developments
Charlotte-headquartered global asset manager Barings has entered into a partnership with CLO-focused private credit investor Lakemore Partners. Lakemore, which primarily takes super-majority control equity positions in new US CLOs, says the partnership will expand its global reach, deepen its institutional client base and boost its Aquatine CLO equity platform.
Barings has around US$351bn in assets under management, spanning public equities and fixed .......
Market Moves 20 July 2023
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Consumer goals
EIF, historic champion of SMEs, embraces consumer ABS
Three recent transactions by the European Investment Fund (EIF) reveal a subtle but potentially impactful change in approach to the institution’s securitisation investment strategy. The fund is displaying an increasing willingness to invest in consumer ABS transactions, with green transition and gender diversity goals at the top of the agenda.
In early July, the EIF took a stake .......
News Analysis 19 July 2023
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Student politics
Refis may increase as Biden plan stalls while broad ABS looks better
Following the June 30 Supreme Court decision to strike down President Biden’s plan to forgive the $430bn federal student debt, refinancings in government-owned loans may accelerate from October as payments recommence, suggest analysts.
Private lenders may offer more competitive rates to the 27m borrowers affected, and as there is no longer any incentive to continue to hold government debt, borrowers will be .......
News Analysis 14 July 2023