ABS
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Leading the pack
UniCredit tops NPL sales
UniCredit has topped the list for European non-performing loan sales since 2019, according to new data released by KPMG. Indeed, Italian banks overall remain the most active sellers across the sector.
The European NPL market is highly concentrated, with only a few players conducting the majority of deals. The top 20 sellers account for 74% of GBV transacted .......
News 25 June 2021
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Volatility hedge
Bart Bakx, head of ABS and mortgages at NN Investment Partne...
Q: Do you believe private credit will take on a more significant role in investor portfolios in 2021? If so, which factors are driving this forward?
The Structured Credit Interview 25 June 2021
A: We see that many investors are undertaking searches and these are increasing towards private credit. Looking for opportunities to allocate, investors seek alternatives in the private market space in view of continued volatility .......
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Riding a wave
BNP Paribas executes capital call SRT
BNP Paribas has finalised a significant risk transfer transaction backed by capital call facilities. Dubbed Wagner 2021-1, the deal is the French lender’s first such transaction and is riding a wave of capital call SRTs.
Banks that have successfully executed such deals over the last 18 months include Credit Agricole, Standard Chartered, Citi and Societe Generale (SCI .......
News 25 June 2021
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Ever tighter?
European ABS/MBS market update
European ABS/MBS primary spreads continue to edge in on heavy investor demand. That looks unlikely to change, especially in core Europe, as supply begins to ease into the summer.
“The most notable development of the past four months for me has been that spreads keep going tighter and tighter,” says one core Europe ABS trader. “Current pricing levels .......
News 24 June 2021
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Digital investment ABS prepped
Sector developments and company hires
Digital investment ABS prepped
DigitalBridge Group is in the market with its debut securitisation, the US$500m DigitalBridge Issuer Series 2021-1. The unusual transaction is secured by the firm’s digital investment management fees and carried interest, including from future investment vehicles.The triple-B rated notes will be issued in two classes: a US$300m class A2 secured fund fee revenue tranche, .......
Market Moves 22 June 2021
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SRT debut
LBBW prints first capital relief trade
The EIB Group and LBBW have executed a €95m mezzanine guarantee that references a €1.8bn portfolio of SME and midcap loans. The transaction is the German lender’s first capital relief trade and will enable it to provide up to €570m of SME and midcap financing.
According to Rainer Bohn, head of structured finance at LBBW: ‘’The transaction is .......
News 22 June 2021
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Generali debuts green cat bond
Sector developments and company hires
Generali debuts green cat bond
Assicurazioni Generali has priced an innovative catastrophe bond. Dubbed Lion III Re, the €200m ILS has a number of sustainable finance features.First, Generali freed up €28.1m in capital as a result of the protection provided by Lion III Re, which will be allocated to eligible projects as defined by Generali’s Green ILS Framework. .......
Market Moves 21 June 2021
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SRT upgraded on CE build-up
Sector developments and company hires
SRT upgraded on CE build-up
Market Moves 18 June 2021
Scope Ratings has affirmed its single-A rating on the class C credit-linked notes issued by SSPAIN 2019-A and upgraded the class D to F notes to triple-B plus, triple-B minus and double-B plus respectively from triple-B minus, double-B and double-B minus. The transaction is a significant risk transfer deal, which closed on 28 June 2019 .......
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Pricing flurry
European ABS/MBS market update
Yesterday saw five new European ABS/MBS price in one of the busiest days the primary market has seen this year. However, volumes are still short of pre-Covid levels.
Despite the flurry of deals yesterday, paper throughout the stack saw strong demand. Indeed every offered tranche priced inside initial price talk.
“Across European ABS/MBS, sentiment has been pretty positive for .......
News 18 June 2021
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AutoNoria returns
BNP Paribas draws crowd
BNP Paribas has arranged a €1bn full-stack significant risk transfer transaction for Banco Cetelem. Dubbed AutoNoria Spain 2021, the Spanish auto SRT is the first post-Covid capital relief trade from the AutoNoria programme and attracted one of the largest order books for Spanish auto ABS following the 2008 financial crisis at over €2bn.
Rated by Fitch and Moody’s, .......
News 18 June 2021
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NPL ABS return
Government guarantees dominate 2020 NPE activity
Government guaranteed non-performing loan securitisations in Italy and Greece dominated NPL transaction issuance last year. However, overall volumes were well below their 2018 and 2019 peaks.
Most NPL transaction activity came to a halt during 2H20 as the first wave of the coronavirus pandemic spread throughout Europe. According to the latest data from Deloitte, €53.8bn gross book value .......
News 15 June 2021
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Financing football
James Paul, head of sport at Blackstar Capital, discusses ho...
Q: Which sports are you seeing structured financing in?
A: In Europe, football is the most mature sport commercially and hence attracts most of the opportunities for structured debt financing. That isn’t to say that there aren’t things done in other sports, particularly on the equity side, but it’s certainly much more opportunistic.The impact of the pandemic has .......
Provider Profile 14 June 2021
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Auto turnover dampens DFP issuance
Sector developments and company hires
Auto turnover dampens DFP issuance
Market Moves 14 June 2021
Accelerated dealer auto inventory turnover has resulted in insufficient collateral available for US dealer floorplan (DFP) ABS master trusts in 2021, Fitch reports. The agency notes that this is indirectly accounted for by deal structures, for the most part, through the use of excess funding accounts (EFAs). EFAs are meant to protect trusts against inventory .......
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Low flying aircraft
Aircraft ABS remain slowest to recover from Covid
Aircraft lease ABS remains the black spot of the US ABS market, and has been the slowest to recover from the pandemic sell-off, note analysts.
While spreads in every other sector have now recovered from the pandemic sell-off, and, in fact are now trending at 24-month lows, the aircraft ABS market is still mired in the doldrums.
At the end of May 2021, .......
News 11 June 2021
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Execution queries
Questions linger over funded insurer SRTs
Originators of significant risk transfer transactions have welcomed the trio of innovative funded insurer trades from Credit Risk Transfer Solutions (SCI 27 May). Even though all three deals were successfully executed, questions have been raised about the potential cost and pricing of future transactions, however.
CRTS’s deals are generally mezzanine trades and involve an investment platform managed by the broker .......
News Analysis 11 June 2021
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Euro CLOs could still soften
Sector developments and company hires
Euro CLOs could still soften
European CLO new issue triple-A spreads are now out to 87bp-88bp from their post-Covid tights of 79bp-80bp. While there appears to be considerable support at current levels, technicals could yet push them to the low-90s, according to Bank of America European CLO research analysts.Offsetting factors currently at play include broader credit market direction, rates moves .......
Market Moves 7 June 2021
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Revised expectations
Italian NPL business plans underperform
Italian NPL transaction collections are largely underperforming expectations, partly due to the impact of the pandemic, according to the latest data. Some 21 Italian NPL securitisation servicers have updated their business plan at least once and only two servicers have revised their latest gross collection expectations upwards, while ten trades have been downgraded due to a combination of Covid-related factors, .......
News 4 June 2021