ABS
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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 .......
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Regional bank CRT pipeline builds
New SCI Global Risk Transfer Report published
A couple more US regional bank capital relief trades are in the pipeline for late 2022 or early 2023, according to SCI’s new Global Risk Transfer Report. In terms of reference pools, a current area of focus is relatively high-quality assets that have a good credit story and are available in some depth.
“I can think of .......
News 12 October 2022
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Non-calls to continue?
Extension risk on the rise, particularly for non-bank issuers
Following the announcement that buy-to-let RMBS Towd Point Mortgage Funding 2019 - Auburn 13 will not be called at its first call date this month, “given current market conditions”, extension risk in the European ABS/MBS market is expected to increase. Indeed, noting continued rate volatility, Barclays European securitised research analysts have revised their earlier opinion (SCI 31 August) .......
News 10 October 2022
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Testing the waters
European ABS/MBS market update
Following last week’s record €4bn securitisation BWIC volume, European and UK ABS/MBS secondary market activity is fading. At the same time, the primary market is still not completely shut, with a few deals out and testing market conditions.
“The real action has certainly been for the most part in the secondary market with undeniably elevated volumes,” notes one .......
News 7 October 2022
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M&G finances tech rental firm Grover via ABS deal
Sector developments and company hires
M&G has announced entry into a funding deal with the consumer-tech subscription platform, Grover. Proceeds from the €270m ABS transaction will be used to grow Grover’s product inventory and expand its presence across European markets. Subscribers to Grover’s platform receive access to over 5,000 tech appliances, which are available to rent on a flexible monthly basis. Grover’s services have seen .......
Market Moves 30 September 2022
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Primary stutters as secondary swamped
European ABS/MBS market update
In what has been a week of political and financial turmoil since last Friday’s UK mini-budget, two deals were pulled, though two more made it over the line. At the same time, the secondary market was flooded with BWICs, driving some hefty volumes.
“This week has been all the about the secondary market,” notes one European ABS/MBS trader. .......
News 30 September 2022
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SCI In Conversation podcast is now live!
We discuss the hottest topics in securitisation today...
In this inaugural episode of the SCI In Conversation podcast, Angela Sharda chats to KBRA European research head Gordon Kerr about a European securitisation investor survey the rating agency undertook in June and the implications of the findings today. We also discuss a couple of new SCI Premium Content articles, one of which tracks the evolution of the STS synthetic .......
News 30 September 2022
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Bright spots
IRA set to boost solar ABS origination
The US solar ABS market is poised for growth, following the passage of the Inflation Reduction Act (IRA) last month. In particular, the extension and expansion of the investment tax credit (ITC) is set to encourage consumer engagement with solar panels.
“Origination continues to be strong and we will continue to see ABS transactions for the rest of .......
News Analysis 28 September 2022
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Split opinion
Recession considerations discussed
The jury is still out on the likely impact of next year’s forecast recession on the securitisation market. However, panellists at S&P’s European Securitisation Conference earlier this month did concur that the situation is likely to get worse for the sector before it gets better.
While the forecast for the European securitisation market appears somewhat bleak, the majority .......
News Analysis 27 September 2022
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'Specialist-squared' solution?
Renewable energy SRT challenges addressed
Banks are expected to substantially grow their lending in the renewable energy sector, driven by ambitious net-zero programmes and government efforts to meet climate targets, heightened further by recent geopolitical tensions. Risk-sharing transactions can play an important role in allowing banks to manage both regulatory capital and risk limit constraints as lending books grow, while retaining the assets on .......
News Analysis 26 September 2022
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Legitimate questions
STS synthetics adoption discussed
The adoption of STS synthetic securitisation has helped legitimise the capital relief trades market. However, this Premium Content article outlines how the EBA’s most recent consultations could prove challenging.
STS synthetic securitisation issuance has soared since the execution of the first transaction in June 2021, adding momentum to this year’s capital relief trade deal flow, further legitimising ......
News Analysis 22 September 2022Premium Content
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Branching out
Thomas Majewski, managing partner and founder of Eagle Point...
Q: Eagle Point recently announced its expansion into the ABS, MBS and SRT markets, which will be led by Karan Chabba as head of ABS, MBS, SRT and speciality finance (SCI 19 July). What were the motivations behind branching out into these markets?
The Structured Credit Interview 15 September 2022
A: In terms of relative interest, the order we are looking at these is SRT, ABS .......
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Controversial Revlon decision reversed
Sector developments and company hires
Controversial Revlon decision reversed
Market Moves 14 September 2022
The US Circuit Court for the Second Circuit last week reversed the controversial decision by the District Court for the Southern District of New York (SDNY) that permitted lenders to retain the mistaken payment made by Citi as administrative agent for a credit agreement with Revlon (SCI 20 August 2020). The SDNY decision upended decades .......