ABS
-
CRT credit event
Company hires and sector developments
CRT credit event
HSBC’s Metrix series 2015-1 CLN has suffered another credit event. The issuer received a credit event notice confirming that a bankruptcy credit event occurred on 15 March with respect to a reference entity that is believed to be Interserve, which was recently sold out of administration after shareholders rejected a rescue deal for the company. .......
Market Moves 27 March 2019
-
Symbiotic relationship?
Marketplace lending enters the mainstream
The online lending sector has become mainstream, forcing marketplace platforms to better differentiate the experience they offer to borrowers. At the same time, the entrance of new players – such as Goldman Sachs’ Marcus offering – is putting pressure on incumbents to remain competitive and relevant. While online platforms were previously largely expected to replace – or at least .......
News Analysis 27 March 2019
-
Granite refinancing
Sector developments and company hires
Europe
Muzinich & Co has hired Laurence Kubli as structured credit specialist with immediate effect. Based in Zurich, Laurence will focus on creating the firm’s first structured credit strategies in this newly-created role. Laurence joins from GAM Investments, where she was senior pm, structured finance and corporate credit for 11 years. Prior to that, she held various roles at .......
Market Moves 25 March 2019
-
Purchase option to be exercised
Sector developments and company hires
EMEA
Market Moves 22 March 2019
Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 May 2019. Tourmente will join the firm as partner and will be part of its executive committee. In this newly created role, he will support the firm’s international development, pursue the diversification of its debt products and contribute to strengthening relationships with its investors. He brings .......
-
Goals aligned
Insurers target dual-tranche CRTs
Insurance firms are targeting mezzanine tranches in dual-tranche capital relief trades as banks warm up to unfunded insurance structures, given the lower cost of protection and the relative safety of the mezzanine tranches in these deals (SCI 10 January). Indeed, benchmark unfunded trades have already been completed, raising the prospects of further credit insurance deals going forward.
"The second-loss ......
News Analysis 22 March 2019Premium Content
-
GACS successor
New Italian NPL scheme launched
The Italian government has introduced a successor to the GACS scheme. The replacement guarantee features a longer extension period that provides more certainty for banks, raising the prospects for non-performing loan securitisation issuance going forward.
According to Gordon Kerr, head of European structured finance research at DBRS: “GACS had a short extension period to comply with state aid .......
News 22 March 2019
-
Control pursued
Indian distressed debt unit established
Deutsche Bank is setting up an asset reconstruction company (ARC) in India to buy and sell restructured non-performing loans. The move follows a trend whereby foreign investors either create or acquire existing ARCs. However, setting up such a unit from scratch is unusual and indicates a need to control the restructuring process once the NPLs have been bought.
News 21 March 2019
-
Majority stake acquired
Sector developments and company hires
Balance sheet normalisation
Market Moves 21 March 2019
The US Fed has confirmed it intends to continue to allow its holdings of agency debt and agency MBS to decline, consistent with the aim of holding primarily Treasury securities in the longer run. Beginning in October 2019, principal payments received from agency debt and agency MBS will be reinvested in Treasury securities, subject to a maximum .......
-
ERM debut
Seniors Money preps its return
The first publicly rated securitisation of Irish and Spanish equity release mortgages (ERMs) has hit the market. The €256.4m SMI Equity Release 2018-1 RMBS is backed by 2,233 loans originated by Seniors Money Ireland and Seniors Money Spain (collectively known as SMI).
The loans are generally seasoned more than 10 years and the properties are predominantly located in ......
News 20 March 2019Premium Content
-
Relative value
JFSA risk retention rules shift focus
The Japanese Financial Services Agency (JFSA) has published its final rules on regulatory capital requirements applicable to Japanese banks and other institutions that invest in securitisation transactions (SCI 16 January). The rules allow certain exemptions from risk retention for open-market CLOs, provided investors demonstrate due diligence for the underlying loan collateral - a positive development for US CLOs, .......
News 20 March 2019
-
Private credit firm launched
Sector developments and company hires
Firm launch
AGL Credit Management has launched, with Peter Gleysteen serving as ceo and cio, and Thomas Lee serving as non-executive chairman. AGL is a private credit investment firm specialising in innovative actively managed credit solutions based on bank loans and aims to build a leading CLO franchise. The firm’s institutional investment partners include a subsidiary of the .......
Market Moves 18 March 2019
-
Latest podcast now available
CRT themes and a Dutch RMBS first discussed
In this month's podcast, we explore some interesting themes within the CRT market: namely, eligibility criteria and replenishment conditions, as well as control rights within transactions. Additionally, we take a closer look at Domivest's debut securitisation of buy-to-let loans - a first for the Dutch market.
Click here to listen to the whole thing on our site. Alternatively, you .......
News 15 March 2019
-
GACS alternative?
Investor group completes NPL securitisation
A group of investors led by Värde, Guber and Barclays have acquired an approximately €734m GBV non-performing loan portfolio originated by 22 mutual, rural and cooperative Italian banks. The transaction is unusual for an Italian NPL securitisation, given that it has been achieved through mutualisation, as opposed to relying on a GACS guarantee.
Francesco Guarneri, ceo of Guber, .......
News 15 March 2019
-
Benchmark Sonia deal prepped
Unique UK RMBS transaction adds momentum to IBOR transition
The first third party hedged UK RMBS with Sonia-linked notes has been prepped by Principality Building Society. The £523.08m transaction, dubbed Friary 5, is a static cash securitisation of residential mortgage loans to 4,472 borrowers in the UK.
The transaction is unique in using Sonia as a reference rate for the note coupons, rather than sterling Libor. As a result, on ......
News 15 March 2019Premium Content
-
Inaugural online auto ABS prepped
Sector developments and company hires
Online auto ABS debuts
Carvana, an online platform for buying used cars launched in 2012 by DriveTime Automotive Group, is marketing an inaugural securitisation. The US$338m transaction, dubbed Carvana Auto Receivables Trust 2019-1, comprises seven classes of notes provisionally rated by KBRA as triple-A on the class A1 and A2 notes, through to double-B on the class E notes.
According ......
Market Moves 15 March 2019Premium Content
-
Servicing strength
Debut Spanish NPL securitisations anticipated
The Spanish non-performing loan market is reaching maturation, with the first securitisations from the sector expected this year. Developing an appropriate servicing capacity in the country has played a key role in facilitating this process.
“The fact that we envisage securitisation issuance going forward is a consequence of the maturity of the Spanish NPL market,” observes Antonio Casado, ......
News Analysis 15 March 2019Premium Content
-
'Steady stream' of STS deals needed
Market reacts positively to inaugural STS ABS
The market has generally reacted positively to the news that Volkswagen’s VCL 28 auto lease ABS transaction is the first ABS to receive the STS label. Some participants note, however, that more STS-verified transactions are needed to give the European sector the boost it needs after months of subdued activity.
Rabobank’s ABS analysts comment that VCL 28 .......
News 14 March 2019
-
Mixed performance
Semi-annual NPL securitisation update debuts
Moody’s has published the first in a series of semi-annual updates on European non-performing loan securitisations, which shows that six out of eight Italian NPL securitisations it has rated that have performance history are exhibiting cumulative gross collections around or below those anticipated by their business plan, while two exceed it. Cumulative gross collections for the Evora Portuguese NPL .......
News 14 March 2019
-
Formative stages
Greek NPL momentum continues
Of the investors surveyed in Ashurst’s latest global non-performing loan report, 39% state that they have already invested in Greece - a higher percentage than anticipated, given that the Greek market remains in its formative stages. This figure may be indicative of investors having acquired assets in Greece under single-name transactions or other smaller private transactions. Nonetheless, appetite remains .......
News 13 March 2019
-
Auto ABS looks set to receive first STS verification
Sector developments and company hires
Auto ABS looks set to receive first STS verification
The first European ABS that looks set to receive STS verification, by True Sale International’s STS Verification International, is being marketed by Volkswagen. The €719.9m auto lease ABS transaction is dubbed VCL Multi-Compartment, Compartment VCL 28 and is provisionally rated by Moody’s and Fitch as Aaa/AAA on the €705.7m class A notes .......
Market Moves 13 March 2019
-
UMBS trades to be accepted
Sector developments and company hires
UMBS trades to be accepted
In support of the Single Security Initiative, Fannie Mae will begin accepting forward Uniform Mortgage-Backed Security trades with a trade date on or after 12 March, 2019 and settlement dates on or after 3 June, 2019. The announcement follows confirmation on 7 March, 2019 from SIFMA that their To-Be-Announced (TBA) Guidelines Advisory Council approved revisions .......
Market Moves 12 March 2019