ABS

  • Broker charged over mispricing

    Sector developments and company hires

    Broker charged over mispricing

    The US SEC has charged New York-based broker-dealer AOC Securities and its former ceo Ronaldo Gonzalez with failing to supervise AOC broker Frank Dinucci, who provided inflated price quotes to Premium Point Investments (PPI). The orders find that PPI traders dictated to Dinucci the prices at which he should value certain MBS in PPI .......

    Market Moves 23 August 2019

  • Debut consumer securitisation prepped

    Australian non-bank markets inaugural ABS

    Wingate Consumer Finance is marketing an inaugural term securitisation of personal loans extended to borrowers in Australia. Dubbed NOW Trust 2019-1, the A$200m transaction is backed entirely by receivables originated by Wingate Consumer Finance, an established non-bank lender in the Australian personal loan market.

    Moody’s has provisionally rated the transaction as Aaa on the A$143m class A notes, .......

    News 23 August 2019

  • Counterintuitive results

    EBA consultation incentivises unfunded SRT format

    The EBA’s consultation on the determination of the weighted average maturity of a securitisation tranche (SCI 2 August) is seen as a positive step for synthetic securitisations, since it takes into account the conditional payments of the underlying assets. However, by not recognising the effect of prepayments and pool amortisations, the proposal creates counterintuitive results that incentivise banks .......

    News Analysis 23 August 2019

  • Warehouse line closed

    Company hires and sector developments

    CRE appointments

    Arbor Realty Trust has appointed Danny van der Reis as evp, structured asset management, reporting to Arbor president and ceo Ivan Kaufman. In this newly developed role, van der Reis will be responsible for managing the structured asset management department and loan restructurings for all of Arbor's balance sheet loans, as well as strategically developing and expanding the .......

    Market Moves 22 August 2019

  • Private market thriving

    Specialty finance firms find multiple benefits in private deals

    Private securitisations are thriving, particularly among specialty finance companies, as a flexible and economic funding option. Equally, many insurers are turning to the private market to securitise equity release mortgages, finding it the most cost-effective way to free up capital.

    According to Anton Krawchenko, associate partner, capital and debt advisory at EY, says private securitisations largely come in two forms .......

    News Analysis 22 August 2019

  • Volcker rule amended

    Company hires and sector developments

    Aviation firm appoints treasurer

    Wings Capital Partners has hired Jakob Gallagher as vp, treasurer and capital markets. Prior to joining Wings, Gallagher served as vp on the MUFG aviation team who covered originations for the Americas. Prior to joining MUFG, he worked at Aircastle where he focused on capital markets and joint ventures. Jakob raised secured and unsecured .......

    Market Moves 21 August 2019

  • CLO ESG impact assessed

    Sector developments and company hires

    ESG impact assessed

    The credit impact of environmental, social and governance (ESG) investment criteria on CLOs rated by Moody’s remains neutral, the agency says in a report. The firm adds that while restricting the pool of CLO eligible collateral has the potential to be credit negative, CLOs limited exposure to the industries subject to ESG restrictions largely mitigates .......

    Market Moves 19 August 2019

  • Whole biz downgrade announced

    Company developments and company hires

    Acquisitions

    Crescent Capital BDC is set to acquire Alcentra Capital Corp, a middle-market BDC. The transaction is the result of Alcentra Capital’s previously announced review of strategic alternatives led by an independent director committee. Under the terms of the transaction, in exchange for approximately 12.9 million shares of Alcentra Capital common stock, Alcentra Capital’s stockholders will receive approximately .......

    Market Moves 16 August 2019

  • Consent challenges

    Transactions losing value without Libor fallback language

    Investors are working with an asset registry and communication platform to obtain noteholder consent in order to insert Libor fallback language in certain securitisations, ahead of the 2021 deadline. This is driven by concerns that transactions without fallback language are losing value compared to newer deals with the necessary language to transition to a new reference rate.

    DealVector has been .......

    News 16 August 2019

  • Brexit impact gauged

    UK ABS expected to withstand no-deal

    A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS transactions. However, Brexit raises challenges by splitting UK and EU regulation.  

    One risk to ABS investors from a no-deal Brexit is the potential for a recession or a sharp downturn in the UK economy, and whether this would be severe enough to prevent a meaningful .......

    News Analysis 16 August 2019

  • Risk transfer round-up - 16 August

    CRT sector developments and deal news

    UBI Banca is rumoured to be prepping an SME and corporate SRT for 3Q19. The alleged transaction is riding a wave of Italian SRT issuance that includes a number of standardised banks.

    Banca Popolare di Bari completed the first SRTs between a standardised bank and a private investor last month (SCI 2 August). Banca Popolare dell'Alto Adige .......

    News 16 August 2019

  • Syncora Guarantee acquired

    Sector developments and company hires

    Syncora sale
    GoldenTree Asset Management entity Star Insurance Holdings is set to acquire Syncora Holdings’ New York financial guarantee insurance subsidiary Syncora Guarantee (SGI) for US$392.5m in cash, subject to adjustment. The cash purchase price for SGI represents a premium to the closing share price of Syncora’s common stock on 1 March 2019, the trading day prior to the announcement of .......

    Market Moves 15 August 2019

  • NPL disposals inked

    Sector developments and company hires

    ABSF tender

    The Australian Office of Financial Management is inviting tender submissions for the provision of investment management services for the Australian Business Securitisation Fund (ABSF) by 6 September (SCI 24 June). The AOFM is seeking to appoint an investment manager to assist with the evaluation of investment proposals and provide ongoing portfolio management services. The investment .......

    Market Moves 14 August 2019

  • Tweaking tradition

    Dutch securitisation evolving across established sectors

    The Dutch securitisation market is seeing innovation and growth away from its traditional strong focus on prime RMBS. This trend is evolutionary rather than revolutionary, as participants seek to build on the sector’s well-established foundations.

    Some asset classes are simply returning to life, notably CMBS. “CMBS has been picking up since last year and the two big issuers, .......

    News Analysis 13 August 2019

  • STS mirage

    "Still no level playing field" despite regulation

    Despite the high bar that issuers must clear to achieve the STS designation on securitisations, the deals continue to have unfair levels of capital treatment compared with other investment products, even backed by the same underlying collateral.  A lack of incentive to invest in securitisation - even STS deals – therefore continues to remain, but the task of addressing this .......

    News Analysis 12 August 2019

  • Venture ABS prepped

    Horizon Technology Finance hits the market

    Horizon Technology Finance is marketing an ABS backed by secured liens on non-investment grade performing loans made to growth stage companies in the technology, life sciences and healthcare sectors. Venture debt ABS is an emerging asset class, but is expected to remain constrained by the very nature of the market.

    The assets in venture debt ABS are distinct .......

    News 9 August 2019

  • AM acquisition

    Sector developments and company hires

    Asset management acquisition

    Assured Guaranty US Holdings is set to acquire all of the outstanding equity interests in BlueMountain Capital Management and its associated entities for approximately US$160m, subject to certain adjustments, as part of a strategic objective to diversify into fee-based revenue sources. The acquisition is expected to complete in 4Q19, subject to customary closing conditions. As .......

    Market Moves 9 August 2019

  • Senior mezz eyed

    CRT issuers target asset managers

    Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief trades, given that the market for the senior mezzanine remains less deep relative to that of the junior mezzanine tranche. Asset managers are drawn to the risk/return profile of the senior mezzanine, although their approach to capital relief trades will likely remain opportunistic going forward. .......

    News Analysis 9 August 2019

  • New ventures

    Asset manager building out structured credit strategies

    BlueBay is expanding its structured finance and CLO investment strategies. As well as aiming to launch a US focused structured credit strategy this year, the firm is looking at the possibility of issuing a debut CLO in 2020.

    In line with this expansion, BlueBay hired Sid Chhabra last year as partner and global head of structured credit and CLOs and, more recently, .......

    News Analysis 9 August 2019

  • Risk transfer round-up - 9 August

    CRT sector developments and deal news

    BNP Paribas is rumoured to be prepping a corporate capital relief trade for 3Q19. The lender’s last risk transfer transaction closed last month. Dubbed AutoFlorence 1, the true sale deal is its first post-crisis Italian SRT (SCI 22 July).

    The BNPP transaction follows rumours of another risk transfer trade from Societe Generale. The bank is believed to .......

    News 9 August 2019

  • NPL disposals sealed

    Two banks offload Italian loan portfolios

    Two disposals of Italian non-performing and performing loans (NPLs) originated by Unicredit and ING have been sealed. The first transaction comprises a portfolio of unsecured SME NPLs while the second, from ING, comprises performing and non-performing real estate leasing positions.

    ING’s disposal was valued at €1.6bn by gross book value, consists of 4,000 performing and non-performing real estate .......

    News 8 August 2019
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