ABS

  • LeaseCo boost

    Foundation laid for leasing NPL ABS

    Amendments to Italy’s securitisation law are expected to boost securitisations of non-performing leasing assets, with at least two transactions being readied for this year. Leasing NPL securitisations are rare, with the underlying assets of most NPL ABS being either corporate or SME loans.

    Annalisa Dentoni-Litta, partner at Orrick, explains: “The amendments allow for the creation of ancillary SPVs .......

    News Analysis 24 May 2019

  • Risk transfer round-up - 24 May

    CRT sector developments and deal news

    Santander is believed to be readying a capital relief trade consisting of auto loans for 2Q19. The Spanish lender’s last auto risk transfer transactions were closed in November and December of last year (see SCI’s capital relief trades database).

    In November 2018, the bank completed KIMI 7, a €665.3m true sale securitisation of Finnish auto loans. In December, Santander .......

    News 24 May 2019

  • Positive performance prompts upgrades

    Sector developments and company hires

    Director hired to rebranded CLO platform

    DFG Investment Advisers has hired John Hwang as a director and senior credit analyst on its leveraged credit team, responsible for analysing below-investment grade credit with a focus on leveraged loans for the Vibrant CLO platform. Hwang has 18 years of experience in the financial services industry and was previously an svp at Crescent .......

    Market Moves 22 May 2019

  • Real estate upside

    National Bank of Greece opts for NPL ABS

    The National Bank of Greece intends to securitise €3bn of non-performing mortgage loans by 2022. The securitisation option would allow the bank to benefit from any real estate upside and follows revelations of a government programme for the subsidising of mortgage NPL payments (SCI 22 February).

    “Securitisation would allow the bank to retain some senior exposure and therefore benefit .......

    News 20 May 2019

  • Goodwill hunting

    Higher recoveries from Interserve insolvency expected

    Interserve became the second UK outsourcer to suffer a credit event in a risk transfer transaction, following Carillion's liquidation last year (SCI 27 March). The former company's recoveries are expected to be higher than the latter's, given that it is in administration and owns some profitable subsidiaries. Nevertheless, both insolvencies raise questions as to how capital relief trade market .......

    News Analysis 20 May 2019

  • UK CMBS loan defaults

    Company hires and sector developments

    Euro CMBS 2.0 default

    Elizabeth Finance 2018 has become the second European CMBS 2.0 deal to suffer a loan EOD, after the Maroon Properties were valued at £86m - a decrease of £18.7m from the initial valuation in November 2017 – triggering an LTV covenant breach. Based on the updated valuation, the Maroon LTV is 77.7%, whereas the Maroon obligors .......

    Market Moves 20 May 2019

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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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