ABS

  • ESG catalyst?

    Positive impact SRTs gaining traction

    Significant risk transfer is primarily associated with achieving favourable capital treatment. However, the utility of the instrument as a catalyst for ESG/positive impact financings - by enabling banks to redeploy capital from legacy ‘dirty’ assets into new ‘clean’ assets - is gaining traction, according to SCI’s latest CRT Research Report.

    “The capital relief trade market has a .......

    News Analysis 3 April 2020

  • Breathing space?

    EU banks benefit from Basel 3 delay

    The Basel Committee's decision last week to delay implementation of the final Basel 3 rules by a year (SCI 30 March) gives banks and supervisors some breathing space to respond to the coronavirus crisis. However, the delay is expected to be more beneficial for EU banks compared to US banks.

    Fitch, for one, notes that the delay .......

    News 2 April 2020

  • Development finance

    Securitisation mooted for SME house builders

    SME house builders struggle to access finance, despite being responsible for around 13% of new builds. Development finance securitisation is therefore being mooted as one way of helping the UK government achieve its target of building 300,000 new homes per annum.

    Gordon Kerr, head of European structured finance research at DBRS Morningstar, says: “We do think development finance .......

    News Analysis 2 April 2020

  • CRR compliance for NHG guarantee

    Sector developments and company hires

    EMEA
    Addleshaw Goddard has hired structured finance partner Rachel Kelly from McDermott Will & Emery. Kelly has three decades of experience at major international law firms, including as a partner at both Clifford Chance and Macfarlanes. Her work has been across the full spectrum of structured finance and debt capital markets transactions, public and private, national and international, advising the full .......

    Market Moves 1 April 2020

  • Real asset focus

    Stephane Delatte, ceo and cio of Pierfront Capital, answers SCI's questions

    Q: How and when did Pierfront Capital become involved in investment?
    A: Pierfront Capital was established in 2016. We have deep experience and expertise in structuring private credit investments in the Asia Pacific, with an investment team with an average of 15-20 years of relevant experience, with specific expertise across the real assets sectors. Our first fund, PCMF, which was .......

    The Structured Credit Interview 1 April 2020

  • Advancing assistance programme prepped

    Sector developments and company hires

    Advancing assistance mooted
    Ginnie Mae is tailoring the existing disaster pass-through assistance programmes to more suitably scale to the needs of mortgage issuers in response to the Covid-19 liquidity squeeze (SCI 30 March). The GSE anticipates implementing within the next two weeks - via an All Participants Memorandum (APM) - a Pass-Through Assistance Program (PTAP), through which issuers with .......

    Market Moves 31 March 2020

  • CECL delayed

    EU banks await IFRS 9 relief

    The US Fed, the FDIC and the OCC last week approved an extension of the new credit loss accounting standard CECL until 2022. No equivalent action has been taken for IFRS 9 on the EU side, however.

    According to the US regulators’ joint statement, banking organisations that are required under US accounting standards to adopt CECL this year .......

    News 31 March 2020

  • Basel 3 implementation deferred

    Sector developments and company hires

    APAC fund launch
    Pierfront Capital Fund Management has been awarded its capital market services license for fund management by the Monetary Authority of Singapore. It has also announced the first close of the Keppel-Pierfront Private Credit Fund, which aims to provide debt solutions to corporates or projects predominantly in the real asset sectors of the Asia-Pacific region. Sponsored by Pierfront .......

    Market Moves 30 March 2020

  • Capacity constraints

    Covid-19 not yet posing solvency issues

    Government and central bank actions have kept both the financial system and the real economy afloat in the short-term, amid the coronavirus disruption. The severity of this crisis for company and household finances will depend on the length of the current outbreak and political will, however.

    According to Rabobank credit analysts: “Covid-19 is now an imminent issue for .......

    News Analysis 30 March 2020

  • Testing times

    MPL platforms addressing coronavirus impact

    As an expansion-era product, marketplace lending securitisation is expected to be tested for the first time by the Covid-19 fallout. Joseph Cioffi, partner and chair of the insolvency, creditors’ rights and financial products practice group at Davis & Gilbert and author of Credit Chronometer, tells SCI how platforms are preparing for a potential recession.

    Q: Why and how .......

    Talking Point 27 March 2020

  • Euro CLO coronavirus exposure mitigated

    Sector developments and company hires

    Euro CLO coronavirus exposure mitigated
    A portion (15%) of European CLO collateral is derived from the industries most vulnerable to the coronavirus pandemic, according to Moody’s. However, the agency says that the relatively few near-term maturities of affected issuers will help mitigate the negative impact.

    The European CLOs that Moody’s rates have a median exposure of 14.7% to the sectors most .......

    Market Moves 27 March 2020

  • Liquidity risk

    Pandemic pressure on NPL performance

    Economic disruption caused by Covid-19 is expected to negatively impact the timing and amount of collections for non-performing loan securitisations from the euro-area periphery. NPL transactions are exposed not only to direct economic shocks, but also to the shutdown of non-essential activities, particularly the legal and real estate industries.

    Scope Ratings reports that the progress of NPL work-out strategies in .......

    News 27 March 2020

  • UK WBS hit expected

    Sector developments and company hires

    APAC
    Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and derivatives research team, based in Melbourne, Australia. Clark was previously senior portfolio manager in QIC’s global multi-asset team and has also worked at Suncorp Investment Management. He has experience in ILS manager and investment research.

    North Dock debuts
    Barclays Private Bank has closed North Dock No. .......

    Market Moves 26 March 2020

  • Closing the gap

    Audentia Global investor relations head Sophia Vanco and chi...

    Q: How and when did Audentia Global become involved in the capital relief trades market?
    NM: Audentia was founded 2.5 years ago by its co-chief investment officers Fasil Nasim and Chris Newman, who had previously worked together in commodity finance at BNP Paribas, in response to the global trade finance market’s US$1.5trn funding gap (as per Asian Development Bank figures). Their .......

    The Structured Credit Interview 26 March 2020

  • Call for TALF expansion

    Sector developments and company hires

    BlackRock hired
    The New York Fed has retained BlackRock Financial Markets Advisory as a third-party vendor to operationalise its purchases of agency CMBS and transact with primary dealers on behalf of the SOMA. BlackRock was selected on a short-term basis to serve as an investment manager after considering its expertise in trading and analysing agency CMBS in the secondary market, .......

    Market Moves 25 March 2020

  • TALF response mixed

    Fed facility could be found wanting

    The US Fed’s introduction of the new iteration of the Term Asset-Backed Securities Loan Facility, or TALF 2.0 (SCI 23 March), was one of the measures that contributed to some steadying of broader markets yesterday. However, the facility could meet with a mixed response from securitisation market participants and there are already calls for it to be expanded.

    News Analysis 24 March 2020

  • Fed revives the TALF programme

    Sector developments and company hires

    Return of the TALF
    The US Fed announced a slew of new measures to support the credit markets this morning, including the revival of the Term Asset-Backed Securities Loan Facility (TALF), first seen in the wake of the global financial crisis. Under the TALF, the New York Fed will commit to lend to an SPV on a recourse basis and .......

    Market Moves 23 March 2020

  • CRT deals disclosed

    Intesa publishes capital management strategy

    Intesa Sanpaolo has released details of its capital management strategy, following the release of its 2019 annual report on Friday (20 March). The lender has revealed the details of four capital relief trades that were completed last year. 

    Intesa Sanpaolo’s 2018-2021 business plan includes initiatives for credit portfolio management that fall within the remit of the active credit portfolio steering .......

    News 23 March 2020

  • Invoice ABS debuts

    First trade receivables securitisation for India

    Northern Arc Capital and fintech platform CredAble have closed a trade finance securitisation backed by invoice receivables. The transaction is the first rated and listed invoice receivables-backed ABS from India.

    Kshama Fernandes, md and ceo of Northern Arc Capital, says: “Banks and non-banking financial companies (NBFCs) have traditionally been present in this space and have been discounting these .......

    News 23 March 2020

  • NPL supervisory flexibility introduced

    Sector developments and company hires

    Canadian purchase programme
    The Canadian government has launched a revised Insured Mortgage Purchase Program (IMPP), under which it will purchase up to US$50bn of insured mortgage pools through the Canada Mortgage and Housing Corporation. The move aims to provide stable funding to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses. The first purchase .......

    Market Moves 20 March 2020

  • Economically efficient

    Study supports reduction of PD estimates

    A new study undertaken by Open Source Investor Services (OSIS) suggests that capital relief trades are a good alternative to traditional issuance of new capital in the majority (75%) of cases reviewed and in 40% of cases the instrument works well during a downturn scenario, even if investors are compensated for higher losses. The research investigates whether and when .......

    News Analysis 20 March 2020
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