ABS

  • Swedish auto lease ABS debuts

    Sector developments and company hires

    Swedish auto lease ABS debuts
    Volkswagen Financial Services has closed its inaugural Swedish auto lease ABS. Dubbed VCL Master Sweden Compartment 1, the Skr9.1bn transaction is backed by a diversified pool of receivables representing over 40,000 leasing contracts extended to corporates and individuals in Sweden by Volkswagen Finans Sverige (VFS).

    In a private placement, the Aaa/AAA/AAA rated (Moody’s/ DBRS .......

    Market Moves 27 March 2023

  • Long-term viability of QT questioned

    Sector developments and company hires

    Long-term viability of QT questioned
    US banks borrowed a record amount over the last week, demonstrating the extent to which they are under pressure and also, say analysts, raising questions about the long-term viability of QT. The US Fed released its balance sheet on 22 March and it shows that banks borrowed US$152.9bn during this period, US$11.9bn of which was .......

    Market Moves 24 March 2023

  • Arrow closes second credit opps fund

    Sector developments and company hires

    Arrow closes second credit opps fund 
    Arrow Global Group has held a final close for its second credit opportunities fund - ACO II – at a hard cap of €2.75bn, surpassing its target of €2.5bn. The strategy focuses on the European non-performing loan market and attracted commitments from institutional investors spanning Europe, the US, the APAC region and the Middle .......

    Market Moves 23 March 2023

  • AlbaCore, FSI strategic partnership inked

    Sector developments and company hires

    AlbaCore, FSI strategic partnership inked
    Australian asset manager First Sentier Investors (FSI) has acquired a majority stake in UK-headquartered private debt firm AlbaCore Capital Group. The move is intended to diversify FSI’s portfolio across new asset classes and geographies. Completion of the strategic partnership is targeted for 3Q23, pending regulatory approvals.

    The deal is the latest in a trend .......

    Market Moves 21 March 2023

  • Credit Suisse AT1 write-downs 'rip up rules'

    Sector developments and company hires

    Credit Suisse AT1 write-downs ‘rip up rules’
    UBS has agreed to acquire Credit Suisse, creating a business with more than US$5trn in total invested assets and supporting the bank’s growth ambitions in the Americas and Asia, while adding scale to its business in Europe. Under the terms of the all-share transaction, Credit Suisse shareholders will receive one UBS share for .......

    Market Moves 20 March 2023

  • Ringfencing the problem

    Fed's SVB response calms RMBS nerves

    The US Fed's swift response to Silicon Valley Bank's (SVB) collapse has calmed nerves in the US securitisation market. Although some volatility remains in the RMBS sector, conditions may stabilise further once the Fed announces its rate decision later this week.

    "It is important to be clear about what the Fed isn’t doing. It is not buying paper. .......

    News 20 March 2023

  • Gryphon acquired in APAC expansion move

    Sector developments and company hires

    Gryphon acquired in APAC expansion move
    Barings has agreed to wholly acquire Australian structured finance manager Gryphon Capital Investments, in order to accelerate its expansion into the Asia Pacific region. The deal will also enable Gryphon to grow its investment platform by increasing its access to capital, Barings says.

    Gryphon will be integrated into Barings' structured finance team, though .......

    Market Moves 17 March 2023

  • ACC servicing transferred post default

    Sector developments and company hires

    ACC servicing transferred post default
    RAC Asset Holdings – the transferor and undivided trust interest beneficiary of the collateral underlying the ACC Trust 2019-2, ACC Trust 2021-1 and ACC Trust 2022-1 auto ABS (SCI 8 March) – has filed for Chapter 7 bankruptcy in the US Bankruptcy Court for the District of Delaware. The servicer for the securitisations, RAC .......

    Market Moves 16 March 2023

  • Utility tool

    Cat bonds tipped for 'pre-financing' fiscal risks

    Catastrophe bonds could offer tangible financial benefits to jurisdictions most vulnerable to catastrophe events, as insurance penetration levels increase across low- and middle-income countries (SCI 22 February). Although significant growth in the public cat bond market is needed before governments across the world can realise its potential, new research from DBRS Morningstar highlights the utility of the instrument .......

    News 15 March 2023

  • Regional bank CLNs on watch amid SVB fallout

    Sector developments and company hires

    Regional bank CLNs on watch amid SVB fallout
    KBRA has placed on watch developing 78 ratings from three CLN transactions issued by Western Alliance Bank (WAB) and one issued by Pacific Western Bank (PWB), following the rating agency’s placement of each institution’s senior unsecured rating on watch developing. The move comes amid a period of stress for WAB and PWB, .......

    Market Moves 15 March 2023

  • EU authorities call for improved climate data

    Sector developments and company hires

    EU authorities call for improved climate data
    ESMA, in collaboration with the EBA, EIOPA and the ECB, has disclosed that it is working towards enhancing disclosure standards for securitised assets by including new, proportionate and targeted climate change-related information. At the same time, the ESAs and the ECB are also calling on issuers, sponsors and originators of such assets at .......

    Market Moves 14 March 2023

  • SVB failure liquidity-driven

    Outsized, unhedged MBS holdings behind bank run

    Securitisation analysts have been quick to emphasise that the collapse on 10 March of Silicon Valley Bank (SVB), which marks the largest bank failure since the financial crisis, is not a credit story and that the broad US banking system remains well-capitalised. Indeed, there are some very specific circumstances surrounding SVB’s demise, with rising interest rates – and the .......

    News 13 March 2023

  • ICE merger challenged on 'competitive harm'

    Sector developments and company hires

    ICE merger challenged on ‘competitive harm’
    The US FTC is seeking to block the proposed merger between Intercontinental Exchange (ICE) and its top competitor, Black Knight (SCI 5 May 2022). The regulator claims that the merger would drive up costs, reduce innovation and reduce lenders’ choices for tools necessary to generate and service mortgages.

    ICE owns the dominant .......

    Market Moves 10 March 2023

  • Hybrid stop-loss deal closed

    Sector developments and company hires

    Hybrid stop-loss deal closed
    Swiss Re has closed its second hybrid bank financing and ILS transaction (SCI 22 April 2022). Building on the firm’s first innovative hybrid transaction from April last year, the latest multi-year stop-loss transaction provides Swiss Re with US$700m in underwriting protection for the financial years of 2023 to 2027, as it continues to pursue profitable .......

    Market Moves 8 March 2023

  • SEC-SA and the death of public securitisation

    Adam Croskery, head of debt financing and structuring at Arr...

    In the early 2010s, I was a mortgage structurer at the forefront of the birth of NC2.0 (the non-conforming 2.0 sector). Even before then, I rated RMBS transactions at a major rating agency. If anyone should be a cheerleader for public securitisations, it’s me.

    There is no doubt that public transactions are academically appealing (if somewhat exhausting) to .......

    Talking Point 8 March 2023

  • BREP default an 'inflection point'?

    Sector developments and company hires

    BREP default an ‘inflection point’?
    A senior loan EOD has occurred in connection with Finnish single-loan CMBS FROSN-2018, after Blackstone Real Estate Partners failed to repay the loan on 1 March (SCI ABS Markets Daily - 2 March). The episode marks one of the first high-profile securitisation defaults of the current cycle.

    The FROSN-2018 loan had been granted .......

    Market Moves 6 March 2023

  • SRTx inaugural fixings released

    Index values project worsening conditions for CRTs

    The inaugural fixings for the SRTx (Significant Risk Transfer Index) have been released. The index values suggest that pricing volatility is rising and credit risk is worsening for US capital relief trades at a higher level than for European CRTs.

    Overall, both pricing volatility and SRT execution conditions are shown to be skewing higher for SME transactions in .......

    News 3 March 2023

  • Supreme Court grants CFPB petition

    Sector developments and company hires

    Supreme Court grants CFPB petition
    The US Supreme Court has granted the CFPB’s Petition for a Writ of Certiorari in the case of ‘CFPB v. Community Financial Services Association of America’ and denied the cross-petition filed by Community Financial Services Association of America (CFSAA). The CFPB’s petition asked the court to overturn the 19 October 2022 ruling by the US .......

    Market Moves 3 March 2023

  • Window of opportunity

    German auto ABS dominates primary issuance

    After the first European ABS deal of the year – Dutch Property Finance 2023-1 - printed on 25 January, a flurry of paper has hit the primary market as issuers sought to capitalise on strong market conditions. Auto ABS has dominated activity, with German lenders leading the way.

    “It’s mainly issuers capitalising on the strong market conditions before .......

    News Analysis 2 March 2023

  • Confidence and convenience

    Brian Bejile, founder and ceo of Octaura Holdings, answers SCI's questions

    Q: After launching the platform last year, Octaura reported the completion of its first fully electronic syndicated loan trade last month (SCI 2 February). What has Octaura been working on since then?
    A: Since we launched last June, we have covered a lot of ground. We have spent a lot of time recruiting and bringing people into the ranks, .......

    Provider Profile 1 March 2023

  • Direct lending platform unveiled

    Sector developments and company hires

    Direct lending platform unveiled
    Oaktree Capital Management has launched private credit-focused Oaktree Lending Partners (OLP) and its related vehicles. OLP is targeting US$10bn in equity commitments from institutional investors and will seek to originate senior secured loans of US$500m or more to private equity-owned US companies, typically with over US$100m in EBITDA.

    Oaktree believes this market is especially attractive .......

    Market Moves 28 February 2023
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