ABS
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Pan-European logistics CMBS prepped
Sector developments and company hires
Pan-European logistics CMBS prepped
Blackstone Real Estate Partners is in the market with a €318.6m single-loan pan-European CMBS. Dubbed Pearl Finance 2020, the transaction is secured by 61 predominantly last-mile logistics assets across Denmark, Finland, France, Germany, Ireland and the Netherlands.The assets are valued by Cushman & Wakefield at €576.9m, as of 31 July 2020. Portfolio occupancy currently .......
Market Moves 28 October 2020
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Best-of-breed network
Zach Lewy, founder and group cio of Arrow Global Group, answers SCI's questions
Q: How and when did Arrow Global Group become involved in the non-performing loan market?
The Structured Credit Interview 27 October 2020
A: Arrow Global was established in 2005 as the European principal investment arm of Sallie Mae and was tasked with investing in distressed assets across the region. It was apparent that there were amazing opportunities for local champions to be successful, given that they remained .......
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AMCO deal completed
Sector developments and company hires
AMCO deal completed
Market Moves 26 October 2020
Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as .......
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Risk transfer round-up - 26 October
CRT sector developments and deal news
RBS is believed to be prepping a corporate capital relief trade that is expected to close in 4Q20. The UK lender’s last significant risk transfer transaction settled earlier this year and referenced project finance loans (SCI 31 January).
....... News 26 October 2020
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Environmental risk score rolled out
Sector developments and company hires
CMBS environmental risk score rolled out
Market Moves 23 October 2020
Trepp has implemented a new data integration with Risk Management Solutions (RMS) that aims to help evaluate and manage global risk from natural and man-made catastrophes. The solution provides an environmental risk score for properties backing CMBS loans, ranging from one to five, that measure the likelihood of property damage and business interruption from .......
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Risk transfer return
BDK preps capital relief trade
Bank Deutsches Kraftfahrzeuggewerbe (BDK) is marketing a full-stack capital relief trade backed by a static €1bn German auto loan portfolio. Dubbed Red & Black Auto Germany Seven, the deal is broadly similar to R&B Six, although changes have been made to the composition of the portfolio and the payment triggers.
Rated by S&P and Fitch, the transaction consists .......
News 23 October 2020
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Aviation leasing platform prepped
Sector developments and company hires
Aviation leasing platform prepped
PIMCO and GE Capital Aviation Services (GECAS) have reached a preliminary agreement to develop an aviation leasing platform to support up to US$3bn in aircraft asset financings, subject to customary closing conditions. This strategic investment platform will enable GECAS and PIMCO-advised accounts to acquire new and young fuel-efficient aircraft.The portfolio will initially focus on .......
Market Moves 21 October 2020
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Risk transfer round-up - 21 October
CRT sector developments and deal news
Lloyds is believed to still be attempting to execute its second transaction from the Fontwell programme. The deal is backed by agricultural loans and was expected to close in 3Q20, but the bank has allegedly found it hard to sell the mezzanine tranche at below 5%. The last Fontwell deal closed in December 2016 (see SCI’s capital relief trades .......
News 21 October 2020
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Jurisdiction expansion
European ABS market update
IPTs were released today for Mercedes-Benz's inaugural French auto ABS. Dubbed Silver Arrow France 2020-1, the €689.7m transaction is STS compliant and backed predominantly by auto leases.
The jurisdictions that Mercedes-Benz has previously issued in includes Australia, Germany, Italy and the UK. “As happened for other captive auto finance companies, Mercedes is broadening its business and replicating the successful model .......
News 21 October 2020
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Leasing ABS inked
Sector developments and company hires
Leasing ABS inked
The EIB and the EIF have provided Alba Leasing with €490m via an SME securitisation financing operation. Alba Leasing has undertaken to double this, increasing the total amount available to €980m for projects across all economic sectors, with a particular focus on environmental investments (for which 20% of the resources have been reserved).The EIB Group has subscribed .......
Market Moves 20 October 2020
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Risk transfer round-up - 20 October
CRT sector developments and deal news
Standard Chartered is rumoured to be prepping a capital relief trade backed by emerging market corporate loans from the START programme. The last START transaction closed in September 2015 (see SCI’s capital relief trades database).
....... News 20 October 2020
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CLO structures reviewed
Sector developments and company hires
CLO structures reviewed
Post-Covid crisis US BSL CLO structures differ in a range of ways from their predecessors, beyond shorter reinvestment periods, according to a new report from S&P.“We reviewed a sample of almost 40 US BSL CLOs that closed in Q2 and Q3, and compared their portfolio metrics (as of the start of Q4) to the statistics .......
Market Moves 19 October 2020
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SME CRT completed
Intesa finalises mezz guarantee
Intesa Sanpaolo, the EIF and the EIB have completed a €90m mezzanine guarantee that references a €1.8bn static Italian SME portfolio. Dubbed GARC SME 9, the capital relief trade will enable the bank to provide €450m of loans to Italian SMEs and midcaps in regions negatively impacted by the economic effects of the Covid-19 pandemic.
According to Intesa: “The transaction .......
News 15 October 2020
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Compromise pending
Parliament softens stance on 'problematic' proposals
The European Parliament will likely drop proposals for the exclusion of time calls and pro-rata amortisation from STS synthetic securitisations (SCI 6 October). The Parliament’s amendments were announced last week in response to the European Commission’s ‘quick fix’ framework (SCI 31 July). Compromise solutions are pending, with one potential option being time calls subject to regulatory approvals.
According .......
News Analysis 15 October 2020
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First EGF guarantee inked
Sector developments and company hires
First EGF guarantee inked
Market Moves 14 October 2020
The EIB has approved €5.1bn of new financing to support investment by companies most impacted by Covid-19, alongside backing clean energy, water, sustainable transport and urban development. This includes up to €2.66bn of support – comprising €1bn of EIB-linked risk-sharing products and €1.66bn EIF guarantee and equity products - backed by the new European Guarantee Fund, .......
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MPL platform ends note programme
Sector developments and company hires
MPL platform ends note programme
Market Moves 12 October 2020
LendingClub is winding down its retail note programme and has ceased accepting new accounts. The platform says it is no longer ‘economically practical’ to continue offering notes as it moves towards becoming a full-spectrum fintech bank. PeerIQ notes that the move is unsurprising, given that the programme exposed LendingClub to potential conflicts of interest and .......
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Risk transfer round-up - 12 October
CRT sector developments and deal news
Barclays is rumoured to be prepping a corporate capital relief trade that is set to close in 4Q20. The lender finalised its last corporate CRT from the Colonnade programme in June (see SCI’s capital relief trades database).
....... News 12 October 2020
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US CLO recovery continues
Sector developments and company hires
US CLO recovery continues
US CLO OC cushions are continuing to recover, according to the latest quarterly US manager report from JPMorgan CLO research.It says: “In the upcoming final quarterly October payment (majority of CLOs), we estimate as much as circa 92% equity will pay a cashflow compared to circa 89% in July and circa 40% during the GFC. .......
Market Moves 9 October 2020
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Growth opportunities
Chapter five of SCI's Autumn 2020 CRT Research Report
The fifth and final chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report outlines the need for sensible significant risk transfer rules and the growth opportunities for the synthetic securitisation market once these are achieved. This section of the report consists of interviews with representatives from Integer Advisors, PCS and PGGM.
The future seems bright for synthetic ......
News Analysis 9 October 2020Premium Content
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Litigation finance fund formed
Sector developments and company hires
Litigation finance fund formed
Tetragon and its diversified alternative asset management business TFG Asset Management have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital. The company – which is expected to formally launch on 1 November - is a multi-product global asset management business that will sponsor and manage litigation finance-related investment funds.Baer .......
Market Moves 8 October 2020
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Finnish lift off
Latest KIMI deal completed
Santander has completed a €650m full-stack significant risk transfer trade backed by Finnish auto loans. Dubbed KIMI 9, the transaction differs from previous post-Covid full-stack SRTs in that the first loss tranche was not preplaced or privately placed before the deal’s announcement.
Santander notes that given the track record of the KIMI programme, the firm was confident that .......
News 8 October 2020