ABS
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Positioned for quality and liquidity
Kate Galustian, lead portfolio manager for BlackRock Senior...
Q: When you announced BlackRock Senior Securitised Fund (SCI 20 November), BlackRock stated that this new vehicle will predominantly invest across continental Europe and the UK. To what extent was that driven by current opportunities specific to that geographic market, and could you provide an outline as to what those are?
The Structured Credit Interview 30 November 2023
A: The fund was designed in collaboration with .......
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Rules of conflict
Final SEC "conflict of interest" ruling offers crumbs of comfort
The SEC’s final “conflict of interest” ruling, designated Rule 192 and released at the beginning of this week (SCI 29 November), waters down some of the most onerous restrictions but still represents a serious imposition for securitized markets participants, say those in the field.
The new rule prohibits so-called “securitization participants” from engaging in “conflicted transactions” during the life of an .......
News 30 November 2023
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SIFMA calls for STC framework
Market updates and sector developments
A new SIFMA blog highlights three actions that will mitigate what the association calls the “perverse incentives” created by the lack of appropriate risk-sensitivity of the SEC-SA framework, under the US Basel 3 Endgame (B3E) proposal. The blog describes the proposal as “the most restrictive approach to set capital requirements for banks’ securitisation exposures in the developed world”.
As .......
Market Moves 29 November 2023
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Basel 4 series: Preparing - video
Market participants share their insights about how to prepare for Basel 4
....... News Analysis 29 November 2023
Treasury overhang
Unprecedented Treasury supply dominates agency MBS story for 2024
The enormous Treasury issuance expected next year forms a long shadow falling over the agency MBS market, say investors.
Estimated 10-year Treasury issuance is now projected to be US$1.34trn in 2024, some US$90bn more than earlier estimates and breaking previous records. Assuming the Federal Reserve extends quantitative tightening, overall 10-year Treasury supply will exceed US$1.5trn.
“The biggest risk to agency MBS is Treasury supply. .......
Talking Point 27 November 2023
Job swaps weekly: EverBank lures Forbright's Walsh
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees EverBank hiring a senior Forbright Bank executive as head of structured real estate finance. Elsewhere, National Australia Bank (NAB) has made two senior promotions within its securitisation teams in Melbourne and New York, while Piraeus Bank has elevated an Athens-based director to the role of senior director, head of securitisations and transaction structuring.
EverBank, .......
Market Moves 24 November 2023
Basel 4 series: Industry impacts - video
Exploring the effects of Basel 4 on market participants and their clients or members
....... News Analysis 22 November 2023
Gaining traction
The rise of project finance SRT
Synthetic securitisation is expected to play a key role in assisting Europe’s transition towards a more sustainable economy. This Premium Content article explores the significance of project finance SRT transactions within this context.
Given the challenging macroeconomic conditions over the past 12 months and the unprecedented write-down of Credit Suisse’s AT1 bonds, banks are increasingly adopting synthetic ......
News Analysis 21 November 2023Premium Content
Global goals
Chris Whitcombe, head of European and US ABS at Challenger I...
Q: Challenger IM recently launched its first securitisation-only investment fund – the Challenger IM Global ABS Fund (SCI 1 November). What makes now the right time?
The Structured Credit Interview 20 November 2023
A: At Challenger IM, we manage assets for leading global and Australian institutions. We have been actively investing in ABS since 2005, including the private ABS market for the last decade. So, although .......
BlackRock launches Article 8 ABS fund
Market updates and sector developments
BlackRock has launched the BlackRock Senior Securitised Fund (BSSF), its new flagship securitisation fund, in the existing BlackRock Specialist Strategies Fund range. The firm says that BSSF is designed to meet the strong demand for securitised assets from both institutional and wealth clients seeking to diversify their fixed income exposures. Clients have demonstrated a desire for the diversification benefits, .......
Market Moves 20 November 2023
Manulife acquires CQS
Market updates and sector developments
Manulife Investment Management is to acquire London-based alternative credit manager CQS. The transaction will see CQS’s investment team continue to operate autonomously, though Manulife will take ownership of the firm’s brand and credit platform.
Following completion of the deal, CQS will benefit from exposure to new investors and the scaling of its distribution footprint, according to a statement. .......
Market Moves 17 November 2023
Job swaps weekly: BNP bulks up in Americas
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees BNP Paribas building out its Americas-focused advisory and solutions teams, with two senior securitisation-focused appointments among a number of hires. Elsewhere, American Century Investments has appointed two industry veterans to its securitised markets team, while Academy Securities has snapped up a senior Citi exec as md and head of RMBS capital .......
Market Moves 17 November 2023
Risk transfer round-up - 16 November
The week's CRT developments and deal news
Market news
News 16 November 2023
Freddie Mac last week priced the high-LTV STACR 2023-HQA3 deal, its first CRT transaction since the end of June, introducing a new deal structure. The trade included an A1 class structured as a three-year bullet-like bond, which is pro-rata to the senior retained AH class from day one, but receives all AH cashflows at the three-year mark and .......
Value covered
LibreMax Capital cio Greg Lippmann and ABS head Kevin Tyler...
Q: How has the evolution of the banking system and regulatory environment over time shaped private credit markets?
The Structured Credit Interview 16 November 2023
GL: Before the global financial crisis (GFC), there were certain aggressive financial products which enabled consumers to become overleveraged, as well as light bank capital charges for investment bank holdings of structured products, which ultimately brought Lehman Brothers to default and spurred .......
Angel Oak ABS-focused ETF reaches US$100m in AuM
Market updates and sector developments
Angel Oak Capital Advisors, based in Atlanta, has announced its Ultra Short Income ETF, chiefly invested in ABS, has grown to over US$100m in assets under management in the year since launch. Most ultra short ETFs with assets of a year or less in duration are invested in commercial paper and Treasury bills, but Angel Oak perceived a gap .......
Market Moves 15 November 2023
Inflection point?
Dennis Heuer, partner at White & Case, discusses the...
Q: Having historically been secretive and opaque, is the SRT market likely to transition from highly private to increasingly more syndicated deals? Are we witnessing an inflection point?
Talking Point 15 November 2023
A: I wouldn’t describe it as a clear shift but rather something I can foresee happening. Currently the market is divided between small club (often anchored by one lead investor) or bilateral .......
Waiting game?
Islamic securitisation gaining traction
Saudi Real Estate Refinance Company (SRC) is widely anticipated to become the first to issue a Shari’ah-compliant RMBS transaction in the Kingdom. However, the drivers for a broader lift-off in Islamic limited recourse securitisation are yet to materialise.
The Islamic finance market is not dissimilar to the conventional securitisation market. In the conventional market, consumer retail banks seek .......
News Analysis 13 November 2023
Job swaps weekly: ESG debt-swap pioneer transitions to UBS
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees a Credit Suisse veteran take on a senior ESG- and structured-credit role at UBS Group following the latter’s acquisition of the former. Elsewhere, Colliers has lured two ex-George Smith Partners (GSP) executives as vice presidents, while a senior Federal Housing Finance Agency (FHFA) exec has joined Guy Carpenter.
Credit Suisse .......
Market Moves 10 November 2023
Securitisation due in H1 for international student loan provider
Goldman, Deutsche and Värde backed MPOWER's latest debt funding round
MPOWER Financing, a provider of loans for international university students, is due to price its first securitisation in the first half of 2024 after closing its latest debt funding round. The business has raised further commitments from Goldman Sachs, Deutsche Bank and Värde Partners to bring its total deployable capital to more than US$300m.
“There are three forces .......
News Analysis 10 November 2023
Scope sees ratings drift reverse in Q3
Market updates and sector developments
Ratings drift in structured finance instruments improved in the third quarter of 2023 for the first time in more than a year, Scope Ratings has revealed. The metric measures the ratio between upgrades minus downgrades and the total number of monitored ratings over the past year.
While the agency oversaw just 12% of 294 instruments upgraded against 17% .......
Market Moves 7 November 2023
Esoteric explosion
Data centre securitisation seeing strong fundamentals
Insatiable demand for connectivity is fueling a rise in data centre securitisation issuance. This Premium Content article tracks the market’s development.
Demand for data centres outstrips supply by a hefty margin and, as more and more regions join the established areas of data centre building, the need for financing shows no sign of abating. While some developers seek ......
News Analysis 6 November 2023Premium Content