ABS
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SCI Capital Relief Trades Awards 2019
Personal Contribution to the Industry: Mascha Canio, Head of...
Heading up a team responsible for one of the largest investment portfolios in the sector that has driven market growth while setting a benchmark that others follow would perhaps be enough. But Mascha Canio’s personal contribution extends further as one of the most long-standing and visible investors and an advocate for a focus on risk-sharing and transparency to ensure the .......
News 6 November 2019
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NPL ABS inked
Sector developments and company hires
Eminent domain mods introduced
Market Moves 5 November 2019
To address the heightened risk to borrowers and investors of a multifamily property located in King County being taken by eminent domain (SCI 14 October), Fannie Mae has introduced a prospective modification to its multifamily loan and security agreement and its MBS prospectus for new transactions with properties located in the county. These modifications provide .......
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SCI Capital Relief Trades Awards 2019
Advisor/Service Provider of the Year: Scope Ratings
Scope Ratings has been selected as SCI’s Advisor/Service Provider of the Year, thanks to its involvement in innovative risk transfer transactions in unusual asset classes, such as project finance, and standardised bank deals. The rating agency’s work has been aided by a multidisciplinary approach to ratings.
According to Guillaume Jolivet, head of Scope Ratings: “The rating of these .......
News 5 November 2019
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SCI Capital Relief Trades Awards 2019
Credit Insurer of the Year: Arch Capital Group
Arch Capital Group Ltd (ACGL) is SCI’s Credit Insurer of the Year in recognition of its position as global leader in mortgage credit risk transfer and the completion of a first-of-its-kind transaction with ING. With US$300bn of assets under cover already, the firm has significant capacity in place to grow its presence further.
Based in Bermuda, ACGL had .......
News 4 November 2019
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Tactical opportunity?
Downturn could spur CRT secondary activity
Capital relief trade secondary market activity remains minimal. However, a credit downturn could spur trading opportunities if some investors are forced to sell bonds or choose to reallocate to other sectors.
“While some investors see relative value between exposures and have different views on the market, what really seems to be driving secondary CRT activity at the moment .......
News Analysis 4 November 2019
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RFC issued on disclosures
Sector developments and company hires
CDO transfer
CVP CLO Manager has resigned as investment manager to the CVP Cascade CLO-1 and CLO-2 transactions. It has been replaced by Barings. For more CDO manager transfers, see SCI’s database.Defeasance surge
Market Moves 1 November 2019
US CMBS 2.0 defeasance volume at end-3Q19 totalled US$10.89bn across 694 loans, exceeding the 2018 full-year total of US$10.88bn across 620 loans, according to Fitch. .......
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Cautious optimism
NPL ABS opinion welcomed, although challenges remain
The EBA’s recent opinion on non-performing loan securitisations (SCI 24 October) has been welcomed by market participants, given that it represents recognition by the authority that existing rules lead to punitive capital charges for NPL securitisation positions. Nevertheless, its impact will depend on the legal regimes of EU countries and the effect of the new Securitisation Regulation’s tough .......
News Analysis 1 November 2019
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Tough approach continues
RTS leaves disclosure challenges unresolved
The European Commission’s long-awaited regulatory technical standards on securitisation disclosures (SCI 18 October) fail to address challenges around confidentiality. Further, the ‘no data’ options that were initially posed by ESMA’s RTS on securitisation disclosures (SCI 22 February) have not been clarified.
According to David Saunders, structurer at Santander: “[The Commission’s RTS is] essentially identical to the .......
News Analysis 1 November 2019
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SRT report pending
EBA to propose harmonised excess spread treatment
The EBA is set to propose a harmonised regulatory treatment for excess spread in significant risk transfer transactions in its final SRT report next year. Since the publication of the EBA’s discussion paper on SRT two years ago, different supervisors have tackled the issue in various ways, partly due to gaps in the securitisation framework.
The EBA’s final .......
News Analysis 1 November 2019
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SCI Capital Relief Trades Awards 2019
Law Firm of the Year: Clifford Chance
Clifford Chance has been involved in the capital relief trades market from the beginning and the past year has underscored the firm’s dominance and influence across all sectors of the CRT business.
Explaining the firm's dominance in this sector, partner Jessica Littlewood says: "We have always been very active in this market, even before the financial crisis. In the aftermath .......
News 1 November 2019
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GARC deal expected
Sector developments and company hires
EMEA
Florent Trouiller has joined Norton Rose Fulbright as a partner in its Luxembourg office. Trouiller practises tax law, with a particular focus on cross-border private equity and real estate investments and securitisation transactions. He was previously a partner at Dechert and before that spent 10 years at Allen & Overy in Luxembourg.GARC deal expected
Market Moves 31 October 2019
Intesa Sanpaolo has acquired .......
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Risk transfer round-up - 31 October
CRT sector developments and deal news
Santander is rumoured to be readying two synthetic securitisations of consumer loans. The issuer has been active in the asset class this year, having closed thus far one synthetic US auto loan ABS in June and two true sale auto SRTs in October (see SCI’s capital relief trades database).
...... News 31 October 2019Premium Content
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SCI Capital Relief Trades Awards 2019
Investor of the Year: European Investment Fund
The European Investment Fund (EIF) provides an unparalleled level of support to the capital relief trades market in Europe, bringing numerous synthetic securitisations across the line. The EIF is not only a key driver of innovation, participating in numerous benchmark transactions across jurisdiction and asset class, but it has also helped open up the risk transfer market to a broader .......
News 31 October 2019
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Untapped potential?
New style reinsurance vehicles yet to take off
Almost a year since launch risk-remote reinsurance capacity vehicle Vermeer Re is yet to have any direct imitators. However, other similar structures across a wide variety of insurance risks could potentially still follow suit.
Vermeer was created by Renaissance Re and sole investor PGGM (SCI 19 December) to provide up to US$1bn of US property catastrophe capacity. .......
News 31 October 2019
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Anti-NSDA provisions welcomed
Sector developments and company hires
Anti-NSDA provisions welcomed
Market Moves 30 October 2019
The inclusion of anti-net short debt activism (NSDA) provisions in offering documentation has become more common in recent months, with Sirius Computer Solutions, Nexstar Broadcasting and Allied Universal Holdco deals incorporating such language. The purpose is to prevent net-short participants - whose interests are not aligned with those of other investors - from using their debtholder rights .......
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SCI Capital Relief Trades Awards 2019
Innovation of the Year: FCT Jupiter 2019
Societe Generale’s US$3.4bn FCT Jupiter 2019 transaction has won SCI’s Innovation of the Year Award for introducing a number of ground-breaking structural innovations in connection with the redeployment of released RWA. The deal not only frees up a dedicated capital envelope, whereby capital can be reallocated in favour of positive impact finance assets, but also debuts a pricing reduction feature .......
News 30 October 2019
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SCI Capital Relief Trades Awards 2019
Impact Deal of the Year: Room2Run
As the first-ever synthetic impact securitisation with a multilateral development bank (MDB), Room2Run helped to free up vital capital for the African Development Bank (AfDB) to fund infrastructure projects across multiple African countries. As well as setting the benchmark for how risk transfer technology can be deployed innovatively and to positive effect, the transaction overcame a number of structural and .......
News 29 October 2019
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SCI Capital Relief Trades Awards 2019
Transaction of the Year: Syon Securities 2019
Lloyds Banking Group’s synthetic UK RMBS Syon Securities 2019 was motivated by prudent risk management as part of the bank’s broader plan to support the UK economy, rather than potential regulatory capital benefits. However, Syon’s innovative use of a capital relief structure to achieve those risk transfer aims, combined with the deal’s scalability for the issuer and repeatability for .......
News 28 October 2019
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CMBS refi inked
Sector developments and company hires
CLO firm names IR head
Pemberton has hired Cary Gibson to the role of director and head of investor relations. Gibson was previously head of business development at Sand Grove Capital Management.
CMBS refi inked
Sabal Capital Partners has closed a US$70m refinancing of 17 low-LTV multifamily assets located in the Bronx borough of New York, 15 of which were originally .......
Market Moves 25 October 2019
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SCI's latest podcast is now live!
The editorial team discuss the hottest topics in securitisation today...
In this month's exciting edition of the SCI podcast, the team talks about standardised banks and the barriers they face when looking to enter the risk transfer market, Santander's latest securitisation of Finnish auto loans, Kimi 8, as well as a company that is looking to help companies in emerging markets tap synthetic securitisation to optimise their balance sheets.
Don't .......
News 25 October 2019
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One-stop shop
New firm offers range of innovative securitised products
Gessler Capital was recently launched with a view to meet increasing demands from issuers that want off-balance sheet securitisation solutions in a more flexible format than traditional methods. As such, the Swiss firm aims to offer a range of tailored products, including CLNs and actively managed certificates, which it also hopes will appeal to investors hungry for high-yielding alternative investments.
Vincent Gessler, .......
News Analysis 25 October 2019