ABS
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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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Branching out
UK marketplace lender brings US deal
Funding Circle Holdings is in the market with its first ABS collateralised by loans made to SMEs incorporated in the US. Dubbed Small Business Lending Trust 2019-A, the US$198.45m transaction is backed by 1,394 loans originated via the Funding Circle online lending platform, secured by a lien on the assets of each borrower and a personal guarantee.
In .......
News 7 August 2019
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Alt credit co-head hired
Company hires and sector developments
Alt credit co-head nabbed
Ares has hired Joel Holsinger to its credit group as co-head of alternative credit, effective immediately. Holsinger will serve on the Ares management committee and work alongside Keith Ashton as co-head of alternative credit to expand the firm's global coverage of the US$4trn alternative credit sector. Ares' alternative credit strategy pursues asset-focused direct investments primarily in North America and Europe across .......
Market Moves 7 August 2019
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JV agreed
Intesa readies UTP securitisation
Intesa San Paolo has reached an agreement with Prelios that involves the securitisation of a €3bn (GBV) corporate and SME unlikely-to-pay portfolio. The deal follows a similar NPL agreement with Intrum that was finalised last year and is part of a wider joint venture trend (SCI 14 December 2018).
The agreement consists of a 10-year contract for .......
News 7 August 2019
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Whole biz debut double
Early learning, pet supply franchises securitised
Two US whole business securitisations are marketing, representing debut transactions from both firms. The deals comprise the US$250m Primrose Funding 2019-1, from an early childcare education company and the second is a US$355m ABS dubbed PSP Funding 2019-1, from a company that provides pet supplies.
Primrose Funding 2019-1 comprises US$10m class A1 notes and US$265m class Bs, both provisionally rated .......
News 6 August 2019
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CLO partner appointed
Sector developments and company hires
CLO firm partner promotion
DFG Investment Advisers has promoted Timothy Milton to partner. Since joining the firm in 2014, Milton has been responsible for the management of the Vibrant Capital CLO platform in his capacity as co-portfolio manager. In addition, Eduardo Cabral has joined DFG’s credit research team as an md, having been a portfolio manager and senior .......
Market Moves 6 August 2019
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CLO head hired
Sector developments and company hires
BUMF 6 injunctions granted
Final injunctions have been granted against Greencoat Investments (GIL) (including against its directors, which include Clifden IOM No.1, Rizwan Hussain, Rajnish Kalia and Alfred Oyekoya), Greencoat Holdings (GHL), Portfolio Logistics (PLL), Patrick Anthony FitzSimons, Maria Stoica and Oyekoya in connection with Business Mortgage Finance 6 (SCI 17 July). A court order has also .......
Market Moves 2 August 2019
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Landmark SRTs inked
BP Bari completes capital relief trades
Banca Popolare di Bari has completed two capital relief trades that reference respectively a €1.1bn Italian SME portfolio and a €1.8bn Italian residential mortgage portfolio. This is the first time that transactions have been carried out between an Italian standardised bank and a private investor.
The risk transfer trades were arranged by Banca IMI and they are funded .......
News 2 August 2019
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COSME tapped
SME risk-sharing agreement signed
Italian national promotional bank Cassa Depositi e Prestiti (CDP) has tapped the EU's COSME loan guarantee facility that is managed by the EIF and backed by the European Fund for Strategic Investments, which provides first-loss guarantees. The agreement is expected to provide €3.75bn in counter-guarantees for Italy’s Guarantee Fund for SMEs, thereby facilitating up to €5.8bn of loans to .......
News 1 August 2019
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NPL SRT inked
Hoist Finance tackles backstop regulation
Hoist Finance has sold a €225m portfolio of Italian unsecured non-performing loans via an unrated securitisation to a fund managed by CarVal Investors. The significant risk transfer transaction is mainly carried out for capital relief purposes and will be followed by future NPL ABS deals.
The SPV will fund 95% of the net purchase price of the receivables .......
News Analysis 1 August 2019
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Affordable loan credit insurance risk transfer closed
Sector developments and company hires
Affordable CIRT closed
Fannie Mae has executed a new credit insurance risk transfer (CIRT) transaction that, for the first time, covers a pool of primarily single-family affordable loans. These covered loans are delivered to Fannie Mae with a short-term lender repurchase obligation, provided primarily by state housing finance agencies, which serves as the initial loan credit enhancement. Dubbed CIRT LR .......
Market Moves 31 July 2019
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New podcast now live
The operational steps to setting up a CRT and more...
In this week's podcast, the team discuss the operational steps taken when putting together a capital relief trade, as well as some of the concerns surrounding disclosure requirements in securitisation and capital relief trades. It then rounds off with an insight into the recent securitisation from impact investor, ResponsAbility, which helps fund small businesses in emerging markets, throughout the globe.
News 31 July 2019
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Turning point
Catastrophe bonds could see a redirection of spreads
The past two years of record-breaking reinsurance losses, along with technically-driven spread widening, have hampered the catastrophe bond market. Now, as this year’s hurricane season plays out, the market stands at what could be a turning point.
2017 was the most expensive year ever for the reinsurance industry, thanks to major losses from Mexican earthquakes, Hurricanes Harvey, Irma .......
News Analysis 31 July 2019
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Winding up order issued for Clifden
Company hires and sector developments
Clifden wind up
A winding-up order has been issued by the High Court of Justice of the Isle of Man, Chancery Division in respect of Clifden IOM No.1 and PricewaterhouseCoopers has been appointed official receiver of the firm. The move follows a Part 8 claim issued by Clifden, naming RMAC No. 1 series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 .......
Market Moves 29 July 2019
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BMO SRT launched
BMO expands mid-market exposure
Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian senior secured and unsecured corporate loans. Dubbed Manitoulin USD Algonquin 2019-1, the transaction differs from previous Manitoulin deals due to the additional numbers of mid-sized corporate borrowers in the portfolio.
The risk transfer trade features a replenishment period and complies with risk retention rules. .......
News 26 July 2019
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Mortgage firm completes residuals sale
Company hires and sector developments
Residual sale
Charter Mortgages is set to sell its residual economic interest in the Precise Mortgage Funding 2019-1B RMBS to JPMorgan - which managed the sale process and purchased the RC2 certificates for onward sale - for a cash consideration of £6.2m. The transaction is expected to complete on 31July and will generate a pre-tax gain of £28.8m and a .......
Market Moves 26 July 2019
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Funding trade
Trade finance fund utilises securitisation technology and assets
Finance securitisation specialist Channel Capital Advisors has launched its first trade finance fund. The fund is structured utilising securitisation technology and also invests in the instruments.
Paul Wilson, cio at Channel, says: “We have been looking to launch this for a number of years, but now we have a well-established track record in trade finance and customer confidence, the time .......
News 25 July 2019
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Making an impact
Debut impact ABS provides finance to EM microfinance & SME lenders
ResponsAbility Investments has closed its debut US$175m impact securitisation, backed by loans to 26 microfinance and SME finance firms in emerging markets across the globe. Arranged by JPMorgan, with initial capital from the Overseas Private Investment Corporation (OPIC), the transaction is set to be the first of many from the firm, with hopes of it also being replicated by .......
News Analysis 25 July 2019
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Risk transfer round-up - 24 July
CRT sector developments and deal news
Banca Popolare dell ‘Alto Adige is believed to be readying a capital relief trade that is expected to close in 4Q19. The transaction would be the bank’s first risk transfer transaction and is riding a wave of Italian securitisation issuance (SCI 24 July).
Indeed, as part of the same trend, BNP Paribas completed its debut Italian auto .......
News 24 July 2019
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Italian renaissance?
Spike in new issuance supported for now
The uptick in Italian ABS/MBS primary issuance in the past month or so gives the impression of a long-awaited re-start to the market. However, while there are a range of factors supporting the trend, old concerns remain.
Despite the flurry of deals recently, the total volume of Italian securitisations this year to date is actually slightly down .......
News Analysis 24 July 2019
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Esoteric ABS head announced
Sector developments and company hires
Esoteric ABS head named
MUFG has hired Keith Allman as md and head of esoteric ABS, effective August 14 and he will be responsible for the coverage of all US esoteric ABS assets. Allman brings 17 years of structured-finance and aviation experience as a banker at Deutsche Bank and Citigroup, and most recently as an investor at Loomis Sayles & .......
Market Moves 23 July 2019