ABS
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Full-stack SRT boost
Opel, Sabadell achieve funding and capital relief
Banco Sabadell and Opel Bank last week priced respectively full stack consumer and auto ABS deals – dubbed Sabadell Consumo 1 and E-CARAT 10 – that achieve both funding and capital relief. The latest deals add to a growing trend of true sale significant risk transfer transactions, following the introduction of the STS framework.
According to Ruben van .......
News Analysis 27 September 2019
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Polish debut
STS ABS gains EIB support
PKO Leasing has closed Polish Lease Prime 1, the largest-ever Polish securitisation. The PLN2.5bn revolving lease ABS is also the first STS-eligible transaction issued on the Polish market and one of the first STS-eligible operations subscribed to by the EIB.
The cash transaction is backed by a portfolio of fully amortising lease receivables, with no residual value risk, granted mainly .......
News 26 September 2019
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Aussie auto ABS debut prepped
Sector developments and company hires
Aussie auto debut prepped
The first public term securitisation backed by collateral originated by Mercedes-Benz Financial Services Australia is marketing. The A$580m transaction is to be issued by Perpetual Corporate Trust as trustee of Silver Arrow Australia 2019-1 and is backed by a pool of commercial and consumer loan contracts backed by new and used motor vehicles, trucks .......
Market Moves 26 September 2019
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STS synthetics framework unveiled
EBA publishes landmark consultation
The EBA has published its long-awaited discussion paper on its proposals for an STS framework for synthetic securitisation (SCI 20 September). The discussion paper aims to enhance transparency and further standardise risk transfer trades - although, for the moment, STS synthetic securitisations won’t benefit from preferential capital treatment via a reduction in senior tranche risk weights.
According .......
News Analysis 25 September 2019
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US CLO firm leadership shake-up
Sector developments and company hires
CLO firm makes md appointment
MidOcean Partners has hired Natalya Michaels as md, focusing on marketing, investor relations and business development across both the private equity and credit businesses as MidOcean looks to grow the firm and expand its investor relationships. Michaels joins MidOcean with over two decades of industry experience and, most recently, she was an md at Artisan .......
Market Moves 25 September 2019
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Ceo appointed
Sector developments and company hires
Ceo appointed
CAC Specialty has appointed Michael Rice as ceo, bringing more than 25 years of experience in the insurance brokerage industry. Most recently, he served as the founding ceo and executive chairman of JLT Specialty USA. Previously, he spent more than 20 years at Aon, serving in various leadership capacities.
Morgan refis due
The August .......
Market Moves 24 September 2019
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Master trust margins amended
Sector developments and company hires
Holmes Master Trust margins amended
Moody’s comments that the proposed amendments to the 2017-1 Class A2 and 2018-1 Class A3 notes issued by Holmes Master Trust will not, in and of themselves and at this time, result in a reduction or withdrawal of all the notes ratings currently assigned to Holmes Master Issuer. The proposal is to change .......
Market Moves 23 September 2019
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Law firm nabs SF vet
Sector developments and company hires
Law firm beefs up
Orrick has hired structured finance lawyer Richard Hanson as a partner based in London. He joins from Ropes & Gray and advises on structured finance, securitisation and derivatives-based financings for funds, asset managers and investment trusts. His experience includes advising on funding structures backed by commercial real estate and other asset classes, including loan-on-loan .......
Market Moves 20 September 2019
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Investor reassurance
Spanish Supreme Court ruling assuages NPL ABS investor concerns
Spain’s Supreme Court has ruled that Spanish banks are obliged to wait until at least 12 monthly instalments are missed before initiating foreclosure proceedings on consumer mortgage contracts. The ruling should reassure investors in non-performing loan (NPL) securitisations by allowing lenders to foreclose on troubled home loans.
The guidance concerns procedures which have been lingering after early-termination clauses were declared .......
News Analysis 20 September 2019
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Credit-granting guidance outlined
"Bright-line" verification test still absent
The EBA recently published an answer to a question posed by AFME in relation to Article 9(3) of the Securitisation Regulation, pertaining to credit-granting criteria for exposures in a securitisation. While the answer provides some guidance on how those issuing securitisations may satisfy Article 9(3), it doesn’t provide a clear test for when extensive verification of credit-granting standards will .......
News 19 September 2019
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CMBS NOI slowing
Sector developments and company hires
Aircraft ratings review
Moody’s has published a new overview which examines ABS issued in the US since 2013, backed primarily by commercial aircraft and their associated leases. The report details an asset description and its structure as well as asset-related credit risks in securities backed by aircraft and related leases. In addition, Moody’s has issued a Request for .......
Market Moves 19 September 2019
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Broader base
New investors come to STS, but for what reason?
A growing number of new investors, including bank treasuries, are participating in European STS securitisations, according to panellists at KNect 365’s European Securitisation Regulation seminar today. They added, however, that there is uncertainty about whether this is due to STS or other factors, such as a lack of yield in other asset classes.
Nicholas Curmi, head of securitisation and .......
News 18 September 2019
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Drilling down
Opportunities on offer in consumer, despite downturn concerns
Consumer finance in the US is still a relatively untapped asset class among institutional investors, despite the relative value opportunities on offer. This is according to an asset manager in the space that suggests too that negative connotations pertaining to subprime lending are unfair, particularly when investors are largely being compensated for the risks they are taking on.
Ed Mallon, .......
News Analysis 17 September 2019
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CLO downgrade announced
Sector developments and company hires
CDS hire announced
Axiom Alternative Investments has appointed Bedis Gharbi as senior portfolio manager, to support the continued development and diversification of its growing London office and fund range. Gharbi brings over 20 years’ experience in the investment management industry, most recently as head of synthetic credit funds at RiverRock European Capital Partners. He will join Axiom’s London .......
Market Moves 16 September 2019
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SCI Start the week - 16 September
A review of securitisation activity over the past seven days
Transaction of the week
Alior Leasing has launched a 12 month revolving cash securitisation of auto leasing loans and leases extended to sole traders and SME obligors in Poland. Dubbed AL Poland Securitisation 01, the transaction is the first to receive a public rating by Moody's.
Moody's has assigned a rating of Baa2 on the PLN359.9m floating rate secured notes, .......
News 16 September 2019
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Targeting opportunities
Servicers continue hunt for Greek NPL ABS
Hipoges Iberia, the Iberian servicer, is targeting opportunities in the Greek non-performing loan market that include NPL securitisations. Servicers are targeting Greek NPL ABS deals (SCI 31 May) amid actual and pending completions of NPL ABS transactions, as well as the European Commission’s pending approval of a government-backed NPL securitisation programme (SCI 12 October 2018).
The .......
News Analysis 13 September 2019
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ECB stimulus announced
Sector developments and company hires
ECB stimulus package outlined
The ECB has announced that it is cutting the interest rate on the deposit facility will be decreased by 10 basis points to -0.50%. The interest rate on the main refinancing operations and the rate on the marginal lending facility will remain unchanged at their current levels of 0.00% and 0.25% respectively. Additionally, net purchases will .......
Market Moves 13 September 2019
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Green ABS recommendations outlined
Securitisation could be key tool in climate change battle
Green securitisation can play an important role in helping to close the yearly investment gap of almost €180bn needed to meet EU climate and energy targets by 2030, according to AFME. The industry body, and its members, “strongly support” the growth of a green ABS market but recommends the need for greater clarity around definitions of green securitisation, as well as .......
News 12 September 2019
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Risk transfer round-up - 12 September
CRT sector developments and deal news
Intesa Sanpaolo is rumoured to be prepping for 4Q19 two capital relief trades that reference respectively corporate and SME loans. The bank printed its last corporate and SME SRTs last year from the GARC programme (see SCI’s capital relief trades database).
The alleged transactions are riding a wave of Italian SRT issuance this year, fuelled by rising standardised bank ......
News 12 September 2019Premium Content
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Risk profile
Basel 4 impact to vary based on business model
The EBA last month published its advice on the implementation of Basel 4 in the EU, with its impact assessment suggesting that the full implementation of the new framework under conservative assumptions will increase the minimum capital requirement (MRC) by 24.4% on average. Although the resulting capital impact is highly dependent on the strategy of each bank, it is .......
News Analysis 12 September 2019
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Polish ABS inked
Securitisation features auto lease collateral
Alior Leasing has launched a 12 month revolving cash securitisation of auto leasing loans and leases extended to sole traders and SME obligors in Poland. Dubbed AL Poland Securitisation 01, the transaction is the first to receive a public rating by Moody’s.
Moody’s has assigned a rating of Baa2 on the PLN359.9m floating rate secured notes, while the .......
News 11 September 2019