ABS
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CLO director nabbed
Company hires and sector developments
Europe
Hermes Investment Management has hired Kevin Roche as a director for private debt and CLOs. Reporting to the head of direct lending, Laura Vaughan, Rochewill be based in London and will work across the private debt platform. He was previously a director at Allied Irish Banks, where he was responsible for delivering leveraged finance loans to mid-market private .......
Market Moves 17 May 2019
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US student loan sector 'in crisis'
Servicers 'unlikely' to handle big rise in distressed loans
The US student loan ABS sector continues to be dominated by deals backed by FFELP loans, while the growing number of private student loan securitisations continue to perform well, providing investors with comfort in the asset class. Despite this, some regard the US$1.5trn student loan sector as being ‘in crisis’, particularly for borrowers and also with regard to servicers that may struggle .......
News Analysis 17 May 2019
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Promising prospect
Synthetic UTPs contemplated as IFRS 9 hedge
Synthetic securitisations referencing unlikely-to-pay loans are a more promising prospect than synthetic securitisations of NPLs, given their potential as an IFRS 9 hedge, according to panellists at SCI’s recent NPL securitisation seminar in Milan. However, regulatory challenges and the issue of defining UTPs and credit events remain open questions.
One regulatory challenge is that, under current regulations, synthetic .......
News Analysis 17 May 2019
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Seeking refuge
NPL securitisation disclosed
Hoist Finance has confirmed in its latest 2019 interim report that it will securitise part of its non-performing loans, due to regulatory demands for higher risk weights for purchased defaulted assets. The securitisation option is unusual for debt collectors, given that they have to surrender some of the upside on their defaulted assets to third-party investors and - unlike .......
News Analysis 16 May 2019
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CMBS sees prompt prepayment
Company hires and sector developments
Auction platform
Mortgage Capital Trading has launched Trade Auction Manager (TAM) to enable more efficient bidding of TBA MBS used by lenders to hedge their open mortgage pipelines. The browser-based software module is accessible via MCTlive!, the company’s capital markets platform. TAM digitises a formerly manual communication process to confirm time-sensitive TBA trades that were once largely phone-based .......
Market Moves 16 May 2019
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Risk transfer round-up - 16 May
CRT sector developments and deal news
Caixabank has completed a synthetic securitisation of Spanish SMEs with the European Investment Fund. Dubbed Gaudi Synthetic III, the €100m mezzanine guarantee is for an existing loan portfolio and will enable the Spanish lender to mobilise up to €600m of additional financing to Spanish SMEs and mid-caps.
The deal is the first guarantee for a mezzanine tranche of .......
News 16 May 2019
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Senior appointments abound
Company hires and sector developments
Acquisition
Priority Income Fund has completed its acquisition of Stira Alcentra Global Credit Fund (SAGC), after the latter’s shareholders approved the transaction at a special meeting on 6 May. The exchange ratio at which common shares of SAGC were converted to common shares of Priority was based on the applicable class of SAGC shares and Priority’s most recent estimated net .......
Market Moves 14 May 2019
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SCI Start the week - 13 May
A review of securitisation activity over the past seven days
Transaction of the week
Last week saw an unusual Irish CMBS hit the European pipeline, from debut issuer Finance Ireland. Dubbed Pembroke Property Finance, the €228.6m transaction is backed by 139 loans on 244 seasoned small CRE loans located across Ireland and originated by Finance Ireland Credit Solutions.
Finance Ireland is jointly owned by the Ireland Strategic Investment Fund, Pimco .......
News 13 May 2019
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Irish debut CMBS prepped
Flurry of European ABS hit pipeline
A rush of European securitisations have hit the pipeline, across asset classes and jurisdictions. These include a debut Irish CMBS and an inaugural Italian STS-compliant transaction.
Finance Ireland is marketing it first CMBS, dubbed Pembroke Property Finance. It is a €228.6m transaction backed by 139 loans on 244 seasoned small CRE loans located across Ireland and originated by Finance Ireland Credit Solutions.
News 10 May 2019
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Energy expert nabbed
Company hires and sector developments
Energy expert nabbed
Energy Estate has hired Christian Krebs as one of the leaders in its transaction advisory practice and will be closely involved with debt and equity fund raising for projects and businesses, beginning 1 July. Krebs was previously at NordLB where he was head of structured finance origination Asia/Pacific.
Transaction gets green stamp of approval
Greenworks Lending recently received the very first Green Evaluation .......
Market Moves 8 May 2019
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NPL securitisation inked
Portuguese issuer returns to market
Caixa Montepio Geral has returned to the market with its second NPL securitisation, dubbed Gaia Finance. Unlike some NPL securitisations, the €70m deal features an SPV that purchases the pool, so the seller isn’t the originating bank.
Provisionally rated by Moody’s and DBRS, the transaction consists of €47.5m Baa3/BBB (low) rated class A notes, €7.6m Ca/CCC rated class B notes and €15m .......
News 8 May 2019
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STS 'not enough' for European ABS revival
Securitisation 'needs to be used more' as funding tool
At the start of last year, BNP Paribas Asset Management hired Michel Fryszman as its new head of structured finance to oversee three UCITS funds, each investing in securitisations and loan portfolios. While the funds have a fairly broad remit with regard to asset class, historical performance data is a key metric meaning first-time CLO managers are given a wide berth and .......
News Analysis 3 May 2019
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NPL acquisition completed
Hoist Finance purchases Getback portfolio
Hoist Finance has acquired a PLN400m non-performing loan portfolio from Polish servicer Getback. Over 95% of the assets are non-performing unsecured consumer loans, but a small proportion comprises secured consumer and SME loans. The acquisition concides with a wave of banking sector consolidation that is fuelling a growing supply of unsecured retail NPLs in the jurisdiction.
According .......
News 3 May 2019
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Challenges persist
Structuring issues put shipping SRTs on hold
Capital relief trades referencing shipping loans have long been discussed and planned by a small number of issuers and arrangers. However, low performing portfolios and structural complexities pertaining to mixed portfolios that include shipping loans pose challenges that are constraining volumes.
Nord LB, for one, has allegedly attempted a shipping SRT that was set to close in .......
News Analysis 3 May 2019
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Rating agency appoints new SF head
Company hires and sector developments
Bank bulks up
Macquarie has appointed Carolyn Porretta md, structured finance and real estate, based in London. She was previously head of portfolio services, investment portfolio management at AIG, where she was responsible for managing structured products and CRE debt in EMEA.
RA hires new SF head
Scope Ratings has hired David Bergman as its new .......
Market Moves 3 May 2019
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Servicing consolidation
Subprime auto portfolio transfers gain traction
US subprime auto loan portfolio sales activity is expected to increase as further lenders withdraw from the sector. Indeed, recent high-profile lender defaults underline the importance of having a proactive backup servicer in place.
“There is significant potential for consolidation among subprime auto portfolios, especially those originated by private equity-backed lenders,” confirms Jennifer Thomas, vp, senior consumer ABS .......
News Analysis 3 May 2019
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Line-up finalised
NPL event includes UTP workshop
The line-up for SCI’s 2nd Annual NPL Securitisation Seminar on 13 May has been finalised. Hosted by Orrick at Corso di Porta Romana 61, Milan, the event features a Distressed Technologies workshop highlighting new models of credit management in the unlikely-to-pay (UTP) loan sector.
Another seminar highlight is a panel on NPL investment trends, which focuses on emerging opportunities, .......
News 3 May 2019
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Risk transfer round-up - 3 May
CRT sector developments and deal news
Santander is rumoured to be readying an SME transaction from its Magdalena programme for 2Q19.The transaction would be the issuer’s third-ever Magdalena deal.
The second Magdalena deal, dubbed FT Pymes Magdalena, was completed last August. The €166.3m CLN referenced a €2.5bn Spanish SME portfolio and paid 8.85% (see SCI’s capital relief trades database).
....... News 3 May 2019
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First SOFR-indexed MBS tranche inked
Sector developments and company hires
Claims predictability to improve?
Market Moves 2 May 2019
The Florida legislature last month passed a bill to reform the requirements for the assignment of benefits of claims for residential and commercial property insurance, which could improve the predictability of claims and losses for Florida catastrophe bonds. According to a recent Cadwalader client memo, assignment of benefits in Florida has been a concern for the .......
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SFR issuer prepays class F notes
Sector developments and company hires
EMEA
Market Moves 30 April 2019
Alantra has reinforced its portfolio advisory capabilities with the addition of six senior professionals in Lisbon (Ana Almeida, as a director), London (Jim Fadel, md; Robin Michaels, director; and Meena Evans, vp), Madrid (Valerie Castro, director) and Milan (Renato Limuti, md). The firm has also hired former Carnegie md Sebastian Hougaard as an md in the Nordics, establishing its .......
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Risk transfer round-up - 26 April
CRT sector developments and deal news
The second quarter of this year is expected to be more active in terms of capital relief trade issuance, compared to previous years, as banks adapt to ESMA’s securitisation disclosure requirements and many uncompleted deals slated for 4Q18 move to this year. Among these transactions are said to be four SME and two leveraged loan risk transfer trades targeted .......
News 26 April 2019