ABS
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Asset and liability origination tie-up agreed
Sector developments and company hires
Asset and liability origination tie-up agreed
Apollo and Athene have entered into a definitive agreement to merge in an all-stock transaction that implies a total equity value of approximately US$11bn for Athene. Upon closing of the merger, current Apollo shareholders will own approximately 76% of the combined company on a fully diluted basis and Athene shareholders will own approximately 24%.Market Moves 9 March 2021
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Libor announcements to 'accelerate' transition
Sector developments and company hires
Libor announcements to ‘accelerate’ transition
Market Moves 5 March 2021
The UK FCA has confirmed that all Libor settings will either cease to be provided by any administrator or no longer be representative immediately after 31 December 2021 - in the case of all sterling, euro, Swiss franc and Japanese yen settings, as well as the one-week and two-month US dollar settings – and immediately .......
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Promising pipeline
STS synthetic securitisations slated
Appetite for STS synthetic securitisations is emerging ahead of the publication of the final legislative text, which is anticipated in April, with several transactions expected to hit the market this year. Indeed, panellists at IMN’s recent Virtual Investors’ Conference on Significant Risk Transfer agreed that the deal pipeline – and overall environment for SRT - is promising.
Pascale .......
News Analysis 5 March 2021
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General QM delay proposed
Sector developments and company hires
General QM delay proposed
Market Moves 4 March 2021
The CFPB has released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from 1 July 2021 to 1 October 2022 (SCI 24 February). The CFPB is proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the Covid-19 .......
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Stepping up
Indian banks change gear on Libor transition
The State Bank of India and ICICI Bank undertook their first alternative risk-free rate transactions in January. This utilisation of SOFR is expected be instructive in helping the Indian securitisation market move towards Libor cessation, having initially been slower to react than other jurisdictions.
“Libor is a central issue in Europe and the US, but the impact is .......
News Analysis 4 March 2021
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Benchmark legislation
Congress to rescue Libor-based contracts, but questions remain
Federal Reserve chairman Powell’s endorsement last week of federal legislation to ease the transition to non-dollar Libor benchmarks has been hailed as a positive step for the structured finance industry. Powell was speaking in front of the House of Representatives Financial Services Committee and predicted that there will be a “hard tail” to the exit from Libor, to which .......
News Analysis 3 March 2021
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UKAR pair preplaced
Sector developments and company hires
UKAR pair preplaced
Market Moves 26 February 2021
Citi has preplaced a pair of UK non-conforming RMBS backed by a portfolio it acquired from UKAR. The transactions – the £2.898bn Jupiter Mortgage No. 1 and the £1.559bn Stratton Mortgage Funding 2021-2 - securitise a pool of first-lien owner-occupied and buy-to-let loans originated by NRAM, GMAC-RFC, Mortgage Express, Kensington, Keystone Property Finance, Bradford & Bingley, Legal .......
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Pandemic uplift
Covid-19 boosts NPL note sales
Non-performing loan note sales have increased by 70% since the start of the coronavirus pandemic and now account for an average of 12% of total collections. Servicers have increased note sales to compensate for lower judicial proceeds, given limited court activity during lockdowns, and a decline in collateral liquidity. However, uncertainties pertaining to NPL trading platforms and the EU’s .......
News 26 February 2021
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Injunction sought over Blue Owl combination
Sector developments and company hires
Injunction sought over Blue Owl combination
Market Moves 25 February 2021
Golub Capital Partners, one of 17 partner managers in the Dyal Capital Partners IV fund, has brought a lawsuit against the fund, Neuberger Berman Group (NBG) and NB Alternatives Advisers, seeking an injunction against the Blue Owl transaction (SCI 4 December 2020). Sixth Street previously filed a lawsuit against the Dyal Capital Partners .......
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Democratising access
Debut Indian wealth-tech bond repaid
The debut bond structured by Indian wealth-tech platform GrowFix has been fully repaid, with investors earning a 10% yearly return on the asset. The firm seeks to democratise investor access to fixed income assets yielding returns of 200bp-400bp over fixed deposits and intends to eventually launch multiple bonds on a monthly basis, depending on the demand.
Secured by .......
News 25 February 2021
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Record fundraising
Chorus exceeds SRT fund targets
Chorus Capital has concluded fundraising for Chorus Capital Credit Fund IV, its latest dedicated significant risk transfer fund. The firm has amassed US$1.4bn of capital commitments, well above the initial target of US$1bn. The fund represents Chorus Capital’s largest commingled investment vehicle to date and one of the largest private credit funds raised in Europe since the start of .......
News Analysis 25 February 2021
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Strong pipeline
European ABS market update
Bank of America’s Taurus 2021-1 UK has priced at tight levels for UK CMBS transactions on the back of significant demand (SCI 10 February). Against this backdrop, the European securitisation pipeline appears to be gaining strength.
“Generally, the market feels pretty busy. The pipeline is quite full, including new issuance and refinancings,” says one trader.
He .......
News 23 February 2021
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Supply issues
STS volumes concentrated in auto loans
Of the securitisation asset classes that qualify for STS status, auto loan ABS is where the label has been applied most frequently. In contrast, mortgage collateral is often diverted to support covered bond issuance or STS RMBS are retained.
Consumer and auto loan ABS, as well as prime and buy-to-let RMBS are eligible for the STS label. However, .......
News Analysis 23 February 2021
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Irish NPE portfolio offloaded
Sector developments and company hires
Irish NPE portfolio offloaded
AIB Group is set to sell a non-performing loan portfolio in long-term default to Mars Capital Finance Ireland as part of a consortium arrangement with Mars and affiliates of Apollo Global Management. At completion, AIB will receive a cash consideration of approximately €400m.As at September 2020, the loan portfolio had a gross NPE value .......
Market Moves 22 February 2021
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