ABS
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Regulatory storm?
CRT market split over new rules
Concern over the future viability of synthetic securitisation is rising, in light of the impending Basel output floor and the EBA’s synthetic excess spread proposals. This Premium Content article investigates whether such regulatory change is likely to be as severe as it seems.
The coming implementation of the Basel output floor and the EBA’s proposal for a ......
News Analysis 15 December 2022Premium Content
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Play it forward
Evolution of BNPL securitisation eyed
The cost-of-living crisis and growing regulatory scrutiny are set to shape the evolution of the BNPL securitisation sector. This Premium Content article explores what the next 12 months may bring for the asset class.
The cost-of-living crisis may stall the securitisation of buy now, pay later (BNPL) assets before the sector has had chance to take off, ......
News Analysis 14 December 2022Premium Content
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Mind the gap
'Regulatory impediments' stalling ESG securitisation
Securitisable green lending in respect of residential mortgages on energy-efficient properties, loans for green home renovations and electric vehicle financing could exceed €300bn annually by 2030, according to a new AFME analysis. The findings are part of a study that provides a comprehensive overview of the current European regulatory landscape for green securitisation, challenges preventing the instrument from fully .......
News 12 December 2022
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Survey suggests improved sentiment
Sector developments and company hires
Survey suggests improved sentiment
KBRA has published the results of its December survey of European structured finance investors, which was conducted to gauge their views and expectations regarding the market. The report reveals a more positive picture than the rating agency’s previous investor survey from June.“While many challenges remain for the European securitisation sector, sentiment for the market .......
Market Moves 9 December 2022
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Ambitious objective
LEV financing investigation underway
The European DataWarehouse (EDW) and Leibniz Institute for Financial Research SAFE’s Green Auto Securitisation (GAS) project has an ambitious objective of developing a green finance framework for low-emission vehicles (LEVs) (SCI 4 October). The initiative is expected to help shape the future of green car policies, while having a profound impact on European financial institutions.
“We’ve really .......
News Analysis 5 December 2022
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Agency activism
Divided Congress means greater agency intervention
The split US Congress, as a result of the recent mid-term elections, is likely to lead to the agencies responsible for the housing market to steer a course which will be both more independent and more interventionist, say analysts.
News Analysis 1 December 2022
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Don't panic!
Vadim Verkhoglyad, vp and head of research publication at dv...
Concerns of a recessionary impact on US consumer markets, and comparisons to the global financial crisis, are rampant across the media. This fearmongering is not accurate, is harming the market and is not in our best interest.
Widespread media analysis suggests that we are in a crisis: headlines focus on the increase in subprime auto delinquencies, the downturn .......
Talking Point 29 November 2022
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Less dilutive
Dan Trolio, executive svp and cfo of Horizon Technology Finance Corporation, answers SCI's questions
Q: Horizon recently completed a US$158m ABS - Horizon Funding Trust 2022-1 - backed by non-investment grade performing loans advanced to venture capital-backed companies in the technology, life science, healthcare information and sustainability industries. DBRS Morningstar assigned a single-A rating to the US$100m class A notes, which bear interest at a fixed interest rate of 7.56% per annum and .......
The Structured Credit Interview 25 November 2022
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Encouraging activity
European ABS/MBS market update
The UK and European ABS/MBS primary market saw some signs of recovery this week, with eight deals pricing. Further, following weeks of volatile market conditions and a lengthy trend of exclusively fully privately/pre-placed deals, the UK market finally welcomed a public transaction.
Yesterday, Nationwide priced the £750m 1A class of its RMBS securitisation Silverstone 2022-2. In an impressive .......
News 25 November 2022
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Sell-side specialisms
SRT bank relationships, technical knowledge transferred
SRT arranger/structurer departures from Citi have been notable over the last year, with Olivier Renault (SCI 1 December 2021), Mark Kruzel (SCI 11 May) and Alexis De Vrieze (SCI 8 September) all moving to the buy-side, for example. Capital relief trade sell-siders bring specialisms – including technical knowledge and bank relationships – that can be particularly .......
News 24 November 2022
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Unlimited mandate
Robert Bradbury, head of structured credit execution and adv...
Q: A&M’s structured credit offering is a core component of the firm’s portfolio advisory group, which acts for both the buy-side and the sell-side in respect of portfolio and credit opportunities across asset classes, including core lending books, non-performing loans, aviation, shipping and specialty lending, as well as all structured finance opportunities relating to these segments. What does your .......
Provider Profile 23 November 2022
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Grounds for optimism
US equipment ABS stays strong
US equipment ABS has had a good year, notwithstanding macro-driven spread widening. As this premium content article shows, there is also hope for 2023.
While most sectors throughout the global capital markets have struggled in 2022, the US equipment ABS market quietly but surely had a record year. That is not to say it’s all been easy, ......
News Analysis 23 November 2022Premium Content
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Staying strong
Partnership approach hailed as basis of SRT success
SRT pricing is, generally speaking, currently approximately 200bp wider compared to the beginning of 2022. Yet pricing has remained relatively sticky within a range, demonstrating the success of the partnership approach involved in capital relief trades, which tend to be much more negotiated and tailored.
“Despite the difficult economic environment, we believe 2022 has been a successful year .......
News Analysis 15 November 2022
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Irish, UK NPE disposals inked
Sector developments and company hires
Irish, UK NPE disposals inked
The Bank of Ireland has reached agreements to dispose of portfolios of Irish and UK non-performing exposures, through two .......
Market Moves 9 November 2022
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New landscape
ABS litigation 'rules of engagement' explained
US subprime RMBS disputes could impact ABS deal structures and related litigation in five pivotal ways. Against this backdrop, it is incumbent on parties to plan accordingly to navigate the new ABS litigation landscape.
“A lot of the changes over the years and more recently have been in favour of defendants, who have been gaining momentum,” says .......
News Analysis 8 November 2022
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Existential challenge
Activist agency, 'originalist' Court clash
The US Court of Appeals for the Fifth Circuit last month ruled that the CFPB is unconstitutionally funded. This Premium Content article investigates what this landmark judgment means for the securitisation industry.
Those in the securitisation industry concerned by the implications of the lawsuit brought by the Consumer Financial Protection Bureau (CFPB) against National Collegiate Master Student ......
News Analysis 4 November 2022Premium Content
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Call for Och 'feud' to end
Sector developments and company hires
Call for Och ‘feud’ to end
Market Moves 3 November 2022
Sculptor Capital Management’s independent board members and Jimmy Levin, the firm’s current cio and ceo, have issued statements in response to a recent court filing related to a dispute brought by former chairman and ceo Daniel Och. The filing mentions a “personal issue” from Levin’s past, which was thoroughly reviewed at the time and .......
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Stress-testing resilience
Climate-change risk assessment approach debuts
Scope has introduced a stress-testing methodology to assess climate-change impacts on securitisations. The objective is to help gauge the resilience of a transaction to transition and physical risks.
“We have introduced a quantitative and scenario-based stress-testing approach to assessing climate change impacts on the credit risk of securitisation transactions. The climate-change scenarios identified offer a range of outcomes for .......
News 2 November 2022
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Chinese CMBS 'structural deficiencies' eyed
Sector developments and company hires
Chinese CMBS ‘structural deficiencies’ eyed
Market Moves 31 October 2022
The recent near-default of a Chinese CMBS issued by Yango Group - together with the two previous defaults of PKU TechPark and Hongbo Exhibition Center - expose several structural deficiencies in Chinese CMBS transactions, according to Fitch. Such deficiencies include low DSCR and collateral quality - due to weak underlying cashflow - limited protection through .......
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Apollo, PIMCO set to acquire Credit Suisse SPG
Sector developments and company hires
Apollo, PIMCO set to acquire Credit Suisse SPG
Credit Suisse has unveiled its new strategy and transformation plan, following a strategic review of the bank’s businesses (SCI 28 July). The bank says it is taking “extensive measures” to deliver a more integrated business model, with the goal of creating value for shareholders.Over the next three years, Credit .......
Market Moves 28 October 2022
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CMBS hedging agreements eyed
Sector developments and company hires
CMBS hedging agreements eyed
Market Moves 25 October 2022
DBRS Morningstar has raised concerns that the current DSCRs of three European CMBS it rates - Sage AR Funding No 1, Sage AR Funding 2021 and Taurus 2021-4UK - will be insufficient to enable the borrowers to use excess cash to purchase new interest rate cap agreements, without cash injections from the sponsors, as the respective .......