ABS

  • 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 2019

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  • Oil opportunities

    Royalty-backed future flow ABS to develop

    Oil and gas companies are expected to tap the securitisation market with a new structure. The first ABS backed by oil and gas royalties could hit the market this year.

    The diminished availability of traditional funding sources will lead to increased reliance on securitisations backed by oil and gas royalties to supplement traditional reserve based lending (RBL) facilities. Such securitisations .......

    News 15 February 2019

  • Italian auto firms fined

    Company hires and sector developments

    CLO hire

    Geoffrey Horton has joined Barclays as vp, CLO and loan strategist in London. He was previously a CLO and commercial ABS research associate at Wells Fargo in the US.

    Italian auto firms fined

    The Italian Competition and Markets Authority (Autorità Garante delle Concorrenza e del Mercato or the ICA) recently fined nine captive auto finance companies a total .......

    Market Moves 15 February 2019

  • Private placement

    Unusual tranched securitisation closed

    Fintex Capital has completed a structured finance transaction within its UK real estate lending business, Fintex Confluence. The transaction involved the refinancing of a portfolio of property loans - warehoused by Fintex - with senior financing provided by Europa Capital Debt Investment (ECDI) and junior financing by Fintex, with additional monies invested by Europa and Fintex to finance a .......

    News 14 February 2019

  • Bank expands credit derivatives business

    Company hires and sector developments

    Credit trading expansion

    HSBC has hired Asgar Rahemtulla as a director in credit trading. In his new role, Asgar will be responsible for trading European iTraxx index products. He joins HSBC from Bluecrest where he was a Partner and worked as a portfolio manager. Prior to this he spent eight years at Goldman Sachs in a variety of roles including .......

    Market Moves 14 February 2019

  • Insurance firm expansion

    Sector hires and company developments

    Insurance firm expansion

    Nassau Re is expanding into additional specialty finance asset classes as it grows assets under management in a three-pronged move. First, the firm has established Nassau Private Credit (NPC), which will invest directly in CLO equity and related investments for third-party institutional investors. Second, under its Nassau CorAmerica brand, it will expand its existing real estate .......

    Market Moves 12 February 2019

  • Juno 2 completed

    BNL closes NPL securitisation

    Banca Nazionale del Lavoro has completed a €968m (GBV) non-performing loan securitisation of both senior secured and unsecured loans. Dubbed Juno 2, the transaction has a short weighted average life for collections, compared to other NPL securitisations rated by Scope.

    “The vector is usually delayed compared to the business plan, but in this case the procedures are at .......

    News 11 February 2019

  • RMAC claim

    Company hires and sector developments

    The RMAC Securities No. 1 Series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 issuers have confirmed that they have been validly served with a Part 8 claim form by Clifden, naming them, the corporate services provider and the share trustee as defendants (SCI 28 January). The defendants consider the claim to be both procedurally defective and without merit, and .......

    Market Moves 8 February 2019

  • Leviticus closed

    Banco BPM completes NPL securitisation

    Banco BPM has completed a €7.4bn (GBV) securitisation of secured and unsecured Italian non-performing loans dubbed Leviticus SPV. The transaction involves the transfer of the bank’s servicing platform to Credito Fondiario, which is part of a broader joint-venture trend in the Italian NPL market (SCI 14 December 2018).

    “The trend is driven by the desire to monetise ......

    News 8 February 2019

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  • European middle market maturing

    US MM sector set to grow following BDC no-action letter

    The middle market securitisation sector is only set to grow in the US, with relaxed regulatory constraints paving the way for BDCs to securitise their exposures. While the equivalent European sector is some way behind the US, the private debt market is now regarded as a “vanilla” asset class with institutional investor buy-in, suggesting middle-market securitisations will result after further .......

    News Analysis 8 February 2019

  • Junior demand

    Credit enhancement concerns raised

    Last year saw more single-B rated auto ABS paper issued in the US than in all previous years combined. Indeed, demand remains strong for junior notes, despite growing concerns over auto lending practices to less creditworthy borrowers.

    Joseph Cioffi, partner and chair of the insolvency, creditors’ rights and financial products practice group at Davis & Gilbert, suggests that .......

    News 8 February 2019

  • Insurer boosts ILS capability

    Sector developments and company hires

    Acquisitions

    Eldridge Industries has increased its investment in Maranon, now holding a majority ownership position. In addition to the equity investment, affiliates of Eldridge have made further commitments to Maranon’s platform, which will support Maranon’s ongoing strategic initiatives, including expanding the company’s underwriting and hold capability. Eldridge will acquire the additional stake from Maranon’s co-founder and Managing Director .......

    Market Moves 6 February 2019

  • BoE, ESMA seal no-deal plan

    Company hires and sector developments

    No-deal agreement sealed

    ESMA has agreed Memoranda of Understanding (MoUs) with the Bank of England (BoE) for the recognition of central counterparties (CCPs) and of the central securities depository (CSD) established in the United Kingdom (UK), that would take effect should the UK leave the European Union (EU) without a withdrawal agreement, the no-deal Brexit scenario.

    US

    Market Moves 5 February 2019

  • SCI Start the week - 4 February

    A review of securitisation activity over the past seven days

    Transaction of the week

    Bank of Montreal has printed a US and Canadian leveraged loan capital relief trade dubbed Manitoulin. The US$92.5m 7.3-year financial guarantee pays Libor plus 12.75%.

    The transaction has been rated as triple-A on the class A notes, single-A on the class B notes and triple-B on the class C notes. Further features include the presence of .......

    News 4 February 2019

  • NPL securitisation flourishes

    Extention of GACS to UTPs to fuel further growth?

    European NPL securitisation has flourished over the past two years, reaching a total of €15bn in new issuance since 2016, with many deals coming from Italy since the introduction of the GACS guarantee. Further transactions are expected given the possibility of extending the guarantee to unable to pay (UTP) loans.

    DBRS notes that there have been 26 NPL securitisations since .......

    News Analysis 4 February 2019

  • Growing momentum

    Regulatory provisioning boosts shipping NPL prospects

    The European Central Bank’s provisioning push has led to a more positive sentiment around the prospects for the disposal of shipping non-performing loans (NPLs). However, the small size of the market compared to other NPL asset classes, alongside other market dynamics, renders a long-term deleveraging drive an unlikely scenario.

    2018 saw a significant uplift in shipping loan .......

    News Analysis 1 February 2019

  • Staying strong

    MetLife Investment Management speaks to SCI about the year ahead

    Q: What’s your general outlook for the structured finance sector in 2019?

    William Moretti, head of structured finance, MetLife Investment Management: “On the whole, I’d say that structured finance is in a much better position to face another potential downturn than it was in 2007, before the last crisis. There have been a number of structural improvements to transactions and .......

    The Structured Credit Interview 1 February 2019

  • Euro ABS deals mooted

    Company hires and sector developments

    European RMBS transactions mandated

    A pair of European RMBS transactions have been mandated, marking the first European securitisations of the year, barring CLOs. The first is a UK RMBS, dubbed Lanark 2019-1, from Clydesdale Bank, which has mandated BAML, BNP Paribas, Citi and Wells Fargo for the transaction, subject to market conditions. The second, from Italian lender Cassa di .......

    Market Moves 31 January 2019

  • CLO UCITS launched

    Company hires and sector developments

    CDS publication launched

    Jochen Felsenheimer, md at XAIA Investment, Wolfgang Klopfer, chairman of the management board of XAIA Investment and Ulrich von Altenstadt, md of XAIA Investment have co-authored a new publication looking at the evolution, functioning and regulatory environment of CDS. Titled, Credit default swaps: trading strategies, valuation and regulation, it also looks at the modeling and valuation of .......

    Market Moves 30 January 2019

  • Securitisation swaps book launched

    New publication aims to quench knowledge drought

    Spotting a gap in the market, a team of structured finance veterans have collaborated on a new publication on an under-explored topic, which bridges the gap between credit derivatives and securitisation. Titled Securitisation Swaps, the book is aimed at all securitisation and derivatives industry participants and is set to be published by Wiley on 18 February, with the e-book available .......

    News 30 January 2019

  • CMBS tender launched

    Company hires and sector developments

    BUMF tender

    Greencoat Investments has launched a tender offer for the Business Mortgage Finance 4, 5, 6 and 7 CMBS. Fixed purchase prices for the bonds range from 0.50% to 101% per £1,000/€1,000/US$1,000 in principal amount of notes and an additional 0.50%-10% per £1,000/€1,000/US$1,000 is available as an early tender premium. The early tender deadline is 8 February .......

    Market Moves 28 January 2019
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