ABS

  • 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

  • Opening up

    Platform hopes to securitise global banks' trade finance assets

    While trade finance assets are of growing interest to investors, due to the attractive risk-return profiles on offer, many non-bank investors are unable to easily access them, especially large institutions like pension funds. A new platform hopes to resolve this issue, however, by processing and securitising the trade finance books of multiple, major banks and so opening up the asset .......

    News Analysis 9 October 2019

  • Bank leaves CDS committee

    Sector developments and company hires

    Bank leaves CDS committee

    Societe Generale has decided to leave the Credit Determinations Committee. The bank is not however scaling back in flow credit trading but, while remaining active in the market and trading CDS, it is opting for a more selective strategy in terms of sector and clients.

    Firm nabs aviation vet

    PwC has appointed .......

    Market Moves 7 October 2019

  • Rating challenges

    Limited appetite for rated senior mezz

    Issuers have typically refrained from seeking ratings on the senior mezzanine tranches of dual-tranche capital relief trades, due to stricter eligibility criteria, cost considerations and the fact that most SRT investors don’t need ratings. Nevertheless, rating senior mezzanine tranches is one way of attracting new investors to the sector (SCI 26 January 2018), thereby helping to expand the .......

    News Analysis 7 October 2019

  • Risk transfer round-up - 4 October

    Capital relief trade sector developments and deal news

    HSBC is rumoured to be readying a corporate capital relief trade for 4Q19. According to SCI data, the lender’s last risk transfer transaction was completed in December 2015 and was dubbed Metrix Portfolio Distribution (see SCI’s capital relief trades database).

    ......

    News 4 October 2019

    Premium Content

  • Spanish SRT finalised

    Santander completes full-stack auto ABS

    Santander has priced a €555.5m true sale significant risk transfer transaction dubbed Santander Consumer Spain Auto 2019-1. The full-stack deal has been driven by new regulatory guidelines on excess spread and adds to this year’s healthy flow of full-stack SRT issuance (SCI passim).

    The transaction consists of €440m class A notes (which priced at 45bp), €57.7m class B notes (85bp), .......

    News 4 October 2019

  • ILS acquisition announced

    Company hires and sector developments

    Acquisition announced

    Artex Risk Solutions has announced that it has reached agreement to acquire Horseshoe Insurance Services Holdings., significantly strengthening its ILS operations. The transaction is subject to regulatory approval and expected to complete before the end of the year. On completion, Horseshoe will become the global brand of ILS services for Artex, which will operate as one .......

    Market Moves 3 October 2019

  • Nascent stages

    CRT mezz investor base needs time to develop

    The pace of growth of the risk transfer market is likely to be tied to the development of the synthetic mezzanine risk market, which is currently at a nascent stage (SCI 9 August). Traditional capital relief trade investors have limited appetite for mezz, as absolute returns are low, even though the risk/reward proposition is compelling.

    “There is .......

    News 3 October 2019
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