ABS

  • Consumer boost

    Santander completes innovative SRTs

    Santander has completed two synthetic securitisations of consumer loans. The transactions are the bank’s final consumer SRTs from 2019 and feature a number of innovations.

    One of the transactions is a mezzanine trade consisting of a €66m senior mezzanine tranche (10.5%-16.5%) and an €88m junior mezzanine tranche (2.5%-10.5%). Dubbed SC Germany Consumer Synthetic 2019, the financial guarantee references .......

    News 16 January 2020

  • Aircraft equity investment disclosed

    Sector developments and company hires

    Aircraft equity investment
    Floreat has disclosed that it invested US$25m in the equity certificates of Air Lease Corporation’s recent Thunderbolt III aircraft ABS. The securitisation is secured by a portfolio of 19 commercial aircraft on operating lease to 18 airlines in 15 countries. The airlines are diversified globally and over half are national flag carriers, including Vueling, Air France, China Airlines .......

    Market Moves 15 January 2020

  • Hong Kong ABS recommendations released

    Sector developments and company hires

    Alternative risk transfer
    Arthur J Gallagher has increased its interest in Capsicum Reinsurance Brokers from 33% to 100%. Capsicum Re launched in December 2013 through a strategic partnership with Gallagher. There are no management changes as a result of the deal.

    Gilles Dellaert, former co-president and cio of Global Atlantic, has been appointed global head of Blackstone Insurance Solutions .......

    Market Moves 14 January 2020

  • Under pressure

    US student loan ABS holding firm so far

    US student loan ABS faces a difficult year from both technical and political pressures. However, there is room for a little cautious optimism and for now at least spreads are holding up reasonably well.

    BofA global research analysts underline the broadly held market view, stating: “Libor transition will continue to pressure spreads for student loan ABS, especially for .......

    News Analysis 14 January 2020

  • Landmark quake bond closed

    Sector developments and company hires

    DLT legal analysis published
    ISDA, Clifford Chance, R3 and the Singapore Academy of Law have published a new whitepaper that provides analysis on the legal issues relating to the use of smart derivatives contracts on distributed ledger technology (DLT). Given the inherent uncertainty about where data, assets and even counterparties are located in a DLT environment, a key question is how .......

    Market Moves 13 January 2020

  • Landmark CLN finalised

    Santander completes undrawn RCF trade

    Santander has completed a €147m CLN that is backed entirely by undrawn corporate and financial institution revolving credit facilities. Dubbed Vespa 2019-1, the transaction is believed to be the first of its kind in the eurozone capital relief trades market.

    Undrawn corporate facilities are a typical product that banks have to provide to corporate and financial institution clients, despite the .......

    News 10 January 2020

  • Auto debut

    Further credit union issuance anticipated

    More credit unions are expected to tap the US securitisation market, following the closing in November of the US$147.44m GTE Auto Receivables Trust 2019-1. Of around US$1.1trn in outstanding credit union loans at end-3Q19, DBRS Morningstar figures show that auto loans accounted for 34% (or US$374.2bn), while residential mortgages represented roughly 43%.

    GART 2019-1 marks the first rated ABS issued .......

    News 10 January 2020

  • CLO losses expected after Constellis default

    Sector developments and company hires

    Constellis losses expected
    Moody’s warns that, at current prices, Constellis Holdings’ limited default could result in significant losses - realised or unrealised - for some CLOs. Over 200 CLOs the agency rates hold about US$600m of the firm’s debt, including 20 deals that have exposure of over 1% and are expected to report an average par loss of 88bp. Three of .......

    Market Moves 10 January 2020

  • Leasing guarantee

    EFL completes capital relief trade

    The EIF and Europejski Fundusz Leasingowy (EFL) have completed a synthetic securitisation of an unusual PLN2.1bn portfolio of Polish leasing assets. The transaction will unlock PLN3.1bn of additional funds for Polish SMEs.

    According to Georgi Stoev, head of Northern Europe & CEE, Securitisation at EIF: “It’s the first leasing company from the Polish market that has completed a synthetic securitisation, so .......

    News 9 January 2020

  • Real assets partnership inked

    Sector developments and company hires

    BWIC platform
    CLO auction technology platform KopenTech has launched its online BWIC service, which aims to streamline the BWIC process for both buyers and sellers. The first live BWIC was conducted on the platform in late December.

    EMEA
    Floreat has appointed Phil Griffiths as md within Floreat Aviation Capital, its specialist aircraft leasing investment arm. Griffiths has closed over US$10bn in aircraft .......

    Market Moves 8 January 2020

  • THEAT 2007-1 and 2007-2 set to repay

    Sector developments and company hires

    Asia Pacific
    ISDA has appointed Su Yen Chia as its new head of Asia-Pacific public policy. Chia previously served as alternate chief executive for Euroclear Bank (Hong Kong branch) from June 2017. In this role, she played an integral part in developing policy positions and interacting with regulatory and government authorities across the Asia-Pacific region. Prior to Euroclear, Chia was head .......

    Market Moves 7 January 2020

  • CQS SRT finalised

    Unusual reference pool securitised

    An unusual significant risk transfer transaction referencing a €1.78bn static portfolio of Italian payroll-deductible (CQS) loans has closed. The synthetic securitisation – dubbed Amalia SPV – was originated by BNL Finance, which is among the most experienced CQS loan originators in Italy, with a track record of above-average performance for its loan book.

    CQS loans are collateralised by the obligor’s .......

    News 24 December 2019

  • MNHD plans programmatic issuance

    Sector developments and company hires

    Egyptian securitisation debuts
    Egyptian real estate developer Madinet Nasr Housing and Development (MNHD) has closed its inaugural securitisation, issued by Financial Group for Securitization Company (FGS). The transaction is backed by an EGP370m receivables portfolio originated as part of the company's plan to monetise receivables from delivered units in the Primera, Tag Sultan and Waha projects. The three tranches of the .......

    Market Moves 23 December 2019

  • Nordic SRT inked

    Nordea returns with capital relief trade

    Nordea has priced a €5.1bn synthetic securitisation of Nordic corporate and SME loans. Dubbed Matador, the funded financial guarantee is the issuer’s first capital relief trade following the bank’s entry into the EU’s banking union in October 2018.

    According to Mark Kandborg, head of group treasury and ALM at Nordea: “We priced the transaction and freed up capital at an .......

    News 20 December 2019

  • SCI's latest podcast is now live!

    The editorial team discuss key issues in securitisation today...

    In this episode of the SCI podcast, Mark Pelham and Corinne Smith discuss our new research report on standardised banks' capital relief trades and where European securitisation investors are looking to find relative value in the year ahead.

    This podcast and previous episodes can be accessed via the SCI site, online here as well as wherever you usually get .......

    News 19 December 2019

  • Risk participation programme agreed

    Sector developments and company hires

    CLO vulnerabilities eyed
    The Financial Stability Board has published a report assessing the financial stability implications of developments in the global leveraged loan and CLO markets. Based on a combination of available data and analyses from FSB members, the report concludes that vulnerabilities in the sector have grown since the financial crisis. Specifically, it notes that: borrower leverage has increased; changes .......

    Market Moves 19 December 2019

  • GSE price-fixing lawsuit settled

    Sector developments and company hires

    CLO manager transfer
    Hunt Investment Management has assigned collateral manager duties for the Hunt CRE 2017-FL1 and Hunt CRE 2018-FL2 CRE CLOs to OREC Investment Management. Moody's has confirmed that the move will not result in any adverse rating action. For more CDO manager transfers, see SCI’s database.

    Credit opportunity fund
    Arrow Global’s new Arrow Credit Opportunities SCSp fund has raised €628.5m .......

    Market Moves 18 December 2019

  • UK auto SRT finalised

    Santander completes retained first-loss deal

    Santander has completed a synthetic securitisation of UK auto loans. Dubbed Motor Securities 2018-1, the financial guarantee is the lender’s first UK synthetic securitisation that features a retained first-loss tranche.

    According to Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and Investment Banking: “The transaction doesn’t feature any excess spread, so the only .......

    News 18 December 2019

  • NPL ABS pair inked

    Guber, UBI Banca hit the market

    A pair of Italian non-performing loan securitisations – dubbed Futura 2019 and Iseo SPV – have closed. The former is notable for being only the second Italian NPL ABS to not benefit from a GACS guarantee, following the issuance of Belvedere SPV in December 2018.

    Futura 2019 is the first issuance sponsored by Guber Banca and securitises assets with a .......

    News 17 December 2019

  • Structured credit pro returns to the buy-side

    Sector developments and company hires

    EMEA
    Kingswood Holdings has appointed Lindsey McMurray and Howard Garland to its board from Pollen Street Capital. The move is as per the terms of the investment completed in September, which saw up to £80m committed by way of an issue of irredeemable convertible preference shares to certain investors and funds managed or advised by Pollen Street.  McMurray founded Pollen Street in .......

    Market Moves 17 December 2019

  • Economic efficiency

    Standardised bank SRT pros, cons weighed

    Various factors should be considered when contemplating whether to execute a significant risk transfer transaction, especially from a standardised bank perspective. The key is to choose the most economically efficient portfolio and the rest is optimisation, according to SCI’s inaugural CRT Research Report.

    Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and .......

    News Analysis 16 December 2019
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