ABS

  • Fully equipped

    US equipment ABS booming in primary and secondary

    With two deals pricing last week (Ascentium Equipment Receivables 2019-2 and CNH Equipment Trust 2019-C) and another - the US$675m SCF Equipment Leasing 2019-2 - already in the visible pipeline, the 2019 boom in US equipment ABS is rolling on. Primary issuance in the sector has already seen over US$17bn this year and secondary market activity continues to grow .......

    News 22 October 2019

  • Firm files Chapter 11

    Company hires and sector developments

    Chapter 11 filing

    Highland Capital Management LP (HCMLP) has commenced voluntary Chapter 11 proceedings, citing a judgment that is being sought against it in connection with the defunct Crusader fund. Although Highland Capital Management disputes the underlying claims and believes it acted in the interest of investors, entry of the judgment in its maximum potential amount could result .......

    Market Moves 22 October 2019

  • Positive outlook

    Italian non-performing lease ABS on the cards

    Italian non-performing lease securitisation volumes could reach €2bn next year, as investors seek new opportunities, following a slowdown in non-performing loan ABS issuance. However, a number of challenges remain (SCI 24 May).

    Several factors have improved the outlook for non-performing lease securitisations. First, there is a large stock of available assets.

    According to Scope Ratings, while .......

    News Analysis 21 October 2019

  • RTS draft published

    Sector developments and company hires

    The European Commission has published the Delegated Regulation on Regulatory Technical Standards (RTS) regarding the disclosure requirements in the Securitisation Regulation, detailing what information has to be disclosed by the sellers of European securitisations. Rabobank’s structured finance analysts comment that, although this new regulation does not contain much new information, the arrival of the act marks an important step .......

    Market Moves 18 October 2019

  • Risk transfer round-up - 18 October

    CRT sector developments and deal news

    Nordea is rumoured to be prepping a corporate capital relief trade for this year. The Nordic lender’s last risk transfer transaction - dubbed Archean I - closed in August 2016 (see SCI’s capital relief trades database).

    ......

    News 18 October 2019

    Premium Content

  • ESG scores launched

    New scoring system has "limited" credit rating impact

    Fitch has introduced new ESG Relevance scores for structured finance and covered bonds, which communicate how material an ESG factor is to a credit decision. The agency has assigned elevated scores to approximately 18% of structured finance and covered bond transactions and programmes, although these will have limited impact as a key driver but “widespread resonance” as a credit .......

    News Analysis 18 October 2019

  • Best in class

    SCI Capital Relief Trades Awards winners revealed

    The winners of SCI’s inaugural Capital Relief Trades Awards were revealed at a ceremony last night. The selections reflect the vibrancy and innovation evident across the risk transfer market over the last 12 months and emphasise the utility of synthetic securitisation - not only as a risk management tool, but also as a way of mobilising private capital .......

    News 18 October 2019

  • Inaugural French ABS prepped

    ABS is first SME deal from promotional bank

    Bpifrance is marketing a debut €2bn SME ABS. The transaction, dubbed Bpifrance 2019-1, is a three-year revolving cash securitisation of medium to long term secured and unsecured loans to SMEs and mid-cap companies located in France and originated by Bpifrance Financement.

    Bpifrance financement is the French national promotional bank responsible for the financing of companies within the Bpifrance group, with its .......

    News 18 October 2019

  • Positive impact

    Capital allocation factor debuts

    Societe Generale has completed an innovative risk transfer transaction that, for the first time, incorporates a capital allocation factor that incentivises additional positive impact finance lending. Mariner Investment Group has purchased the junior tranche of notes through its IIFC platform. 

    Dubbed Jupiter, the US$3.4bn transaction references more than 250 loans in over 40 countries across a variety of .......

    News 16 October 2019

  • Euro advisory firm boosts SF expertise

    Company hires and sector developments

    Euro advisory firm boosts SF expertise

    Zedra has hired Rens van Hoof as head of capital market solutions out of its Amsterdam offices. He has a range of experience covering special purpose vehicles for securitisation, structures for bond issues and commodity trade finance, as well as private equity, real estate and investment funds to serve financial institutions, asset .......

    Market Moves 16 October 2019

  • Indian ABS soars

    Sector developments and company hires

    CLO business announced

    AllianceBernstein has announced a new loan and CLO management business, hiring Scott Macklin to lead the effort. Macklin was previously head of research in Och-Ziff’s credit business and the new firm will be initially funded with investments from AXA Equitable Life Insurance Company, expanding on the existing relationship between AB and AXA Equitable Holdings.

    Market Moves 15 October 2019

  • Serbian NPL disposal plans announced

    Sector developments and company hires

    Associate appointed

    Channel Capital Advisors has hired Pouya Jafari as an associate in London. He was previously a credit analyst at Wells Fargo, in London.

    Serbian NPL disposal planned

    The Serbian Deposit Insurance Agency has invited bids for the sale of a €1.82bn NPL portfolio. Letters of interest can be submitted up to 8 November and .......

    Market Moves 14 October 2019

  • Auto SRT finalised

    Excess spread follows new regulatory guidance

    Santander has completed its eighth transaction from the Kimi programme. The €799m true sale significant risk transfer deal references Finnish auto loans and, unlike its predecessor Kimi 7, excess spread in the transaction flows all the way to the bottom of the waterfall following new regulatory guidance.

    Rated by Fitch and Moody’s, the transaction consists of €725.2m class .......

    News 14 October 2019

  • Meaningful constituent?

    Perceived difference between IRB, standardised banks narrowing

    Recent transactions imply that the difference between how IRB and standardised banks are perceived by capital relief trade market participants is narrowing. However, opinions vary on whether standardised banks can ever become a meaningful constituent in significant risk transfer, given the barriers to entry that remain.

    Synthetic securitisation only became a viable option for standardised banks when the .......

    News Analysis 14 October 2019

  • Hercules sets forth

    Greek asset protection scheme approved

    The European Commission has announced that the Greek government’s asset protection scheme - dubbed Hercules - complies with state aid rules, thereby paving the way for its implementation. Although the non-performing loan ABS scheme is expected to raise issuance volumes and facilitate the de-risking of bank balance sheets, the Greek market needs time to ramp up its servicing capacity.

    News Analysis 11 October 2019

  • Framework focus

    EBA synthetics paper welcomed, despite concerns

    Risk transfer market participants have welcomed the EBA’s discussion paper on STS synthetics (SCI 25 September); in particular, the standardisation that it espouses for capital relief trades. However, concerns remain over the absence of any preferential capital treatment, the collateral requirements and the banning of synthetic excess spread.

    Leanne Banfield, counsel at Linklaters, explains: “The discussion at .......

    News Analysis 11 October 2019

  • Structured finance head appointed

    Sector developments and company hires

    EBA’s agenda released

    The EBA has published its 2020 agenda, detailing its work activities for the coming year. On the securitisation side, its work will mainly be focused on STS-related mandates. In 4Q20, the authority plans to publish recommendations regarding significant risk transfer practices, as well as the hierarchy of approaches for calculating CRR risk weights. Before then, .......

    Market Moves 11 October 2019

  • CRT line-up finalised

    Awards ceremony to round off risk transfer event

    The line-up for SCI’s 5th Annual Capital Relief Trades Seminar on 17 October has been finalised. Hosted by Allen & Overy, the event will take place at One Bishops Square, London and features for the first time an industry awards ceremony. Other highlights include a fireside chat between Clifford Chance’s Jessica Littlewood and the EBA’s Christian Moor, as well .......

    News 11 October 2019

  • Risk transfer round-up - 10 October

    Capital relief trade sector developments and deal news

    RBS is rumoured to be readying a capital relief trade backed by project finance loans. According to SCI data, this would be the issuer’s first project finance risk transfer transaction (see SCI’s capital relief trades database).

    The most active issuer of project finance CRTs has been Santander. SCI data note that five out of the seven such ......

    News 10 October 2019

    Premium Content

  • Co-founder to depart

    Company hires and sector developments

    Co-founder moves on

    BlueMountain’s co-founder and co-president Stephen Siderow is set to leave the firm, but he will continue in his current management role through the end of this year to support an orderly transition. The firm was acquired by Assured Guaranty at the start of the month and is making a number of changes to its platform, .......

    Market Moves 10 October 2019

  • Credit system "positive" for China SF deals

    Sector developments and company hires

    Credit system a positive for China SF deals

    China’s plan to establish a comprehensive, nationwide credit information system by 2020 is credit positive for the country’s structured finance deals, because this system will reduce the risk of loan defaults and bolster recovery prospects, according to Moody’s. The rating agency says this development will also help break down credit information barriers .......

    Market Moves 9 October 2019
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