ABS

  • HAPS halt?

    Greek NPE ABS plans disrupted

    The non-performing exposure reduction plans of the four systemic Greek banks are expected to be delayed by deteriorating market conditions. The banks had been ramping up preparations to execute around €32.5bn of securitisation volume in the coming quarters via the Hercules Asset Protection Scheme (HAPS).

    The NPE securitisation plans announced by Alpha Bank, Eurobank, National Bank of Greece .......

    News 9 April 2020

  • EIF calls for guarantee applications

    Sector developments and company hires

    EIF calls for guarantee applications
    The European Commission has unlocked €1bn from the European Fund for Strategic Investments (EFSI) that will serve as a guarantee to the EIF and allow it to issue special guarantees to incentivise lenders to provide liquidity to at least 100,000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic, .......

    Market Moves 8 April 2020

  • Modelling delinquency deluge

    Mortgage market advisers and consultants are struggling to f...

    “Our clients are modelling a range of scenarios but are preparing themselves for the worst case including sustained levels of unemployment. Hopefully it won’t be that bad, but they need to prepare themselves,” says Bernadette Kogler, chief executive officer of RiskSpan, a Washington, DC-based analytics and modelling firm which has particular expertise in mortgage markets.

    Riskspan clients include .......

    News 8 April 2020

  • Stochastic modelling

    IFRS 9 challenges persist amid pandemic

    Supervisors have advised banks to embed the effects of government programmes, such as payment moratoriums, when determining whether assets can be moved from stage one to stage two under IFRS 9. The move has been welcomed by capital relief trade issuers, since it means that payment holidays may not necessarily translate into credit events in transactions. Nevertheless, accounting and .......

    News Analysis 8 April 2020

  • Logistical challenges

    Container ABS disruption weighed

    The marine container industry is facing substantial logistical challenges due to the impact of Covid-19 on multiple aspects of global trade. The impact of stress in the supply chain on container ABS is expected to vary, depending on the concentrations of container types in the collateral pools, as well as the types and tenor of the underlying lease contracts.

    News 8 April 2020

  • CLO stress scenario updated

    Sector developments and company hires

    CLO stress scenario updated
    Fitch is set to apply an updated stress scenario to all CLO portfolios involving issuers with greater vulnerability to disruptions caused by coronavirus. The agency’s previous scenario focused on seven industries vulnerable to impacts from the pandemic, but will be expanded to include issuers with loans in CLOs from the automobile industry, as well as all .......

    Market Moves 7 April 2020

  • Improving sentiment

    European ABS market update

    European ABS secondary market sentiment improved last week, with the return of investor appetite, and spreads across most sectors stabilised or tightened. However, the primary market remains on hold, with no new publicly distributed transactions sold or added to the pipeline.

    “Spreads are much tighter than they have been since late-February. It does present a pretty interesting opportunity .......

    Market Reports 7 April 2020

  • Negative outlook for asset performance

    Sector developments and company hires

    Negative outlook for asset performance
    Fitch is updating its rating assumptions for all global structured finance sectors to incorporate the economic impact of the coronavirus and related mitigation measures. The agency expects the global pandemic to result in an unprecedented economic contraction and while the rating effects will vary meaningfully across asset classes, asset performance deterioration is anticipated in almost .......

    Market Moves 6 April 2020

  • 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
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