ABS
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New fund for CDS recruit
Company hires and sector developments
ABL acquisition
Market Moves 28 February 2019
Benefit Street Partners affiliate Business Development Corporation of America has acquired a controlling interest in asset-based lender Siena Capital Finance from Solaia Capital Advisors. Siena was founded in 2012 by an ABL team backed by Solaia consisting of professionals from Bank of Ireland subsidiary Burdale Capital Finance. Siena will operate independently as a portfolio company of BDCA, with .......
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Debuting duo
New ILS peril, domicile introduced
GC Securities has placed a pair of innovative catastrophe bonds. Insurance Australia Group’s A$75m Orchard ILS transaction marks the first ILS issuance from Singapore, while Pool Re’s £75m Baltic PCC deal is the first-ever cat bond to cover terrorism risk exclusively and only the second to be issued under the UK’s new regulatory framework for ILS.
Baltic PCC ......
News 27 February 2019Premium Content
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'Long term solution needed'
Day three from SFIG Vegas
The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism.
One panel looked at UK firms looking to issue transactions into the US market. Brian Wiele, md at Barclays, commented that one of the steps needed at the moment to boost the sector is re-educating US investors on UK securitisations, as awareness of UK .......
News 27 February 2019
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Lights, camera, securitisation
Film rights ABS remains attractive to studios
The increasingly short length of time which films remain in movie theatres for these days may be frustrating for the average cinema-goer, but it is part of a trend which is optimising cashflows for film rights securitisations. This form of ABS allows the larger studios and their co-financiers to fund films, although smaller studios are expected to continue to .......
News Analysis 27 February 2019
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Structured finance 'well positioned' for downturn
Second day at SFIG Vegas sees continued optimism
Day two at SFIG Vegas saw a bountiful turnout of attendees, all looking to hear the latest on structured finance and to meet the main movers and shakers in the industry. A standout panel looked at how structured finance is prepared for a turn in the turn in the credit cycle, while other notable discussions looked at the revival of .......
News 26 February 2019
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CLO manager shake-up
Company hires and sector developments
Derivatives continuity
Market Moves 26 February 2019
The US CFTC and the Bank of England have issued a joint statement aimed at reassuring market participants of the continuity of derivatives trading and clearing activities between the UK and US, after the UK’s withdrawal from the EU. The measures that will be in place by end-March include: information-sharing and cooperation arrangements to support the effective cross-border .......
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Different strokes
PACE prepayment volatility on the rise
A new Morningstar Credit Ratings study reveals increased volatility and a generally accelerating trend in residential PACE prepayments. Against this backdrop, different prepayment patterns are emerging across PACE ABS originators.
Monthly annualised CPR averages have been fluctuating between increases and declines for the last six months, according to the Morningstar study. For example, after a decline in the .......
News 25 February 2019
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Model behaviour?
Accuracy of ILS loss predictions hinges on evolving models
Actual losses in the ILS market may be broadly in line with predictions, but there are sectors with significant divergence. These areas of divergence underline how important it is for ILS investors to remain aware of the implications of exposure to non-modelled and less well modelled perils.
Previous analysis by Lane Financial has shown that “what you see .......
News Analysis 25 February 2019
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A strong start
Day one at SFIG Vegas
Moods appear to be running high at the start of SFIG Vegas 2019. Despite being only a half day, attendance already seems to be strong and the panels have so far been near to full.
A highlight of the afternoon was the the CRE CLO market update, where panellists spoke to a well attended room and generally voiced positive sentiments about .......
News 25 February 2019
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Maintaining flexibility
Fiona Walden, vp, credit and financial lines at RenaissanceRe, answers SCI's questions
Q: How and when did RenaissanceRe became involved in the securitisation market?
The Structured Credit Interview 22 February 2019
A: We were set up 25 years ago as a property catastrophe company. We have a long track record of credit reinsurance for our insurance company clients. More recently, we applied this knowledge and expertise to structured credit transactions - including significant risk transfer transactions - by providing .......
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Restructuring incentive
Greece unveils mortgage NPL boost
The Greek government is working on a plan that aims to meet ECB non-performing loan reduction targets and help improve the attractiveness of non-performing portfolios, in particular, distressed mortgages. The plan includes subsidising monthly payments and protects borrowers from foreclosures under certain conditions, although this could render it antithetical to EU state aid rules.
According to George Kofinakos, md at .......
News Analysis 22 February 2019
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Law firm boosts derivatives capability
Company hires and sector developments
CLO firm promotions
Churchill has announced the promotion of Mat Linett, md, from deputy head of underwriting and portfolio management to head of underwriting and Eric Wieczorek to md, underwriting and portfolio management. Additionally, the firm announced several more promotions across the investment and finance teams, effective 1 March 2019.
Derivatives expansion
Dentons has expanded its derivatives practice with the .......
Market Moves 22 February 2019
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Tough stance
ESMA insists on private securitisation disclosures
On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS) on securitisation disclosures. The initial RTS covers both public and private securitisations and it was rejected by the European Commission, following a market backlash (SCI 5 October 2018).
The amendments take into account the Commission’s criticisms of the original RTS ......
News Analysis 22 February 2019Premium Content
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CLO partnership launched
Sector developments and company hires
CDS trends discussed
Mayer Brown has commented on trends in single-name CDS credit event determinations. It notes that the Sears CDS case cited “numerous examples of commercial practice and legislative history in support of the decision [and] raises serious questions as to the degree to which the determination committees (DCs) are (and will in future determinations be) influenced by such .......
Market Moves 21 February 2019
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Stand-out performer
Systematic role for structured credit
Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US structured credit funds tracked by Gapstow Capital Partners, 88% had a positive year, implying that there continues to be a role for structured credit more systematically in diversified credit portfolios.
The Gapstow Credit Index finished 2018 up by 1.5%, with steady .......
News Analysis 21 February 2019
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UK paper on the block
European secondary ABS market update
The European secondary ABS market has rallied since the beginning of the year. However, activity now appears to be on hold until after 28 February, when a large BWIC auction is due at 2pm London time.
“Secondary activity has dampened down in the run-up to the auction,” confirms one trader. “The BWIC has a good chance of ......
Market Reports 21 February 2019Premium Content
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Law firm nabs SF vet
Company hires and sector developments
Europe
Latham & Watkins has recruited Jeremiah Wagner as a partner in its finance department, based in London. Wagner’s practice focuses on advising banks, private equity funds, asset managers, insurance companies and pension funds on a variety of complex structured finance, securitisation and derivatives transactions. He joins the firm from Cadwalader’s London office, where he was a partner.
Market Moves 20 February 2019
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Lacking clarity
Libor transition still fraught with challenges
With only two years to go until Libor is officially phased out in 2021, a number of questions still remain about the ramifications for structured finance transactions. Aside from the lack of concrete replacement, there are also questions about legacy deals, assets and liabilities and swaps complications as well as the possibility for bondholder disputes.
One of the most pressing issues .......
News Analysis 19 February 2019
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CLO firm restructure
Company hires and sector developments
Acis restructuring confirmed
The US bankruptcy court in Dallas has confirmed Acis Capital Management's Chapter 11 restructuring plan, following its conversion from an involuntary bankruptcy case initiated by former head of Highland Capital Management's structured products team and founder/former partner in Acis Joshua Terry (SCI 9 November 2018). Upon emergence from bankruptcy, Acis will be owned and .......
Market Moves 19 February 2019
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Secondary focus
Investors sitting on cash with new European issuance drought
European structured finance traders continue to focus on the secondary market as they wait for regulatory clarification. Nevertheless, there have still been some standout new issues and a European CMBS is rumoured to be in the pipeline.
“In European RMBS we are focussing mainly on secondary paper,” says a trader. “The transactions that appeal at the moment are those with a .......
News 15 February 2019
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Risk transfer round-up - 15 February
CRT sector developments and deal news
The first quarter of this year is expected to see reduced capital relief trade issuance, due to ESMA’s securitisation disclosure requirements, although market sources expect volumes to pick up in Q2. Among the transactions that are believed to be closing next quarter is a US corporate capital relief trade from Mitsubishi. Another deal that is set to close this ......
News 15 February 2019Premium Content