ABS

  • Cerberus explores RMBS options

    Sector developments and company hires

    Granite alternatives

    Cerberus European Residential Holdings is exploring strategic alternatives with respect to the mortgage loans held in the Towd Point Mortgage Funding 2016-Granite1 and 2016-Granite2 RMBS, which will become eligible for optional redemption from April and May of 2019 respectively. The firm has engaged Morgan Stanley and Bank of America Merrill Lynch as its financial advisors to .......

    Market Moves 17 December 2018

  • Wetherby 2 completed

    SONIA-linked synthetic securitisation debuts

    Lloyds has completed a £142.5m 7.25-year financial guarantee referencing a £1.5bn UK commercial real estate portfolio. Dubbed Wetherby 2 Securities 2018, the transaction is the first synthetic securitisation to reference the new SONIA interest rate benchmark and the third structured as a dual tranche trade (SCI 26 January).

    The £82.5m first loss tranche (0%-5.5%) pays SONIA plus ......

    News 17 December 2018

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  • Landmark transaction launched

    UK RMBS is first securitisation tied to SONIA rate

    The first securitisation with liabilities tied to the Sterling Overnight Index Average (SONIA) rate has been issued by Lloyd’s Bank, which is opting to retain the deal. The £7.6bn transaction, dubbed Elland RMBS 2018, is backed by owner-occupied residential mortgages in England and Wales, originated by Bank of Scotland under the Halifax brand.

    While the assets in the transaction are .......

    News 17 December 2018

  • ABSPP plans published

    Sector developments and company hires

    APP reinvestment set

    The ECB has outlined the technical parameters for the reinvestment of the principal payments from maturing securities purchased under its asset purchase programmes after net asset purchases cease at end-December 2018. It expects to reinvest ABSPP redemptions back into the ABS market and CBPP3 redemptions back into the covered bond market. The bank says it will aim .......

    Market Moves 14 December 2018

  • JV trend continues

    Landmark NPL transactions agreed

    Banco BPM announced this week a non-performing loan securitisation with Elliott International and Credito Fondiario for a nominal value of €7bn-€7.8bn, while Intesa Sanpaolo and Intrum completed a similar transaction last week. The agreements involve the sale and co-ownership of servicing platforms, which is part of a broader trend in Italian NPL disposals.

    According to Massimo Famularo, board .......

    News Analysis 14 December 2018

  • STS guidelines published

    Sector developments and company hires

    P2P head hired

    Dynamic Credit has hired Giles Andrews as chairman of its supervisory board. The board will have three members and serves to strengthen the corporate governance of Dynamic Credit Group (DCG), which comprises of the asset manager and direct lender Dynamic Credit and the investor servicing platform LoanClear. Andrews is co-founder of Zopa and, in addition to his .......

    Market Moves 13 December 2018

  • Concerns ignited

    Wildfire peril pricing questioned

    ILS market participants are re-evaluating whether the pricing of wildfire risk in catastrophe bonds is adequate, after the 8 November US wildfires caused between US$9bn-US$13bn worth of damage. However, the picture is likely to only become clear over 2019 as the claims are counted and the full scale of loss across multiple perils is measured.

    “It has generally ......

    News Analysis 13 December 2018

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  • Libor consultation launched

    Sector developments and company hires

    ILS

    Peak Reinsurance Company has launched Asia’s first sidecar transaction via a new Bermuda-domiciled special purpose insurer, Lion Rock, to provide collateralised retrocession for part of Peak Re’s global property reinsurance risk portfolio. The establishment of this special financial structure, referred to as a “reinsurance sidecar”, allows investors to take on the risk and benefit from specific books .......

    Market Moves 11 December 2018

  • Risks remain

    Termination risks persist for SF transactions in no-deal scenario

    Contingency plans being implemented by financial institutions will help to avoid many derivatives risks associated with a no-deal Brexit, according to a report from Fitch. However, termination risks still persist for structured finance transactions, should issues around uncleared derivatives not be mitigated.

    As it stands, a no-deal Brexit would result in a lapse of EU authorisation for UK financial services, .......

    News 10 December 2018

  • Corporate finance partner hired

    Sector developments and company hires

    CDO manager transfer

    Dock Street Capital Management has replaced Deerfield Capital Management as collateral manager for the Buckingham CDO II and III ABS CDOs. Under the terms of the appointment, Dock Street agrees to assume all the responsibilities, duties and obligations of the collateral manager under the indenture. Moody's has confirmed that the move will not result in .......

    Market Moves 7 December 2018

  • Bid scarcity

    European ABS market update

    A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to widen in the CLO and ABS primary markets.

    “We are running a few private processes, which are keeping us busy, and we will hopefully conclude them over the next couple of days,” says a trader.

    The trader comments that .......

    Market Reports 7 December 2018

  • BTL securitisation planned

    Sector developments and company hires

    Europe

    Accunia has promoted Mads Romild as head of Accunia’s CLO platform. Romild will continue as cio and head all Accunia investment strategies. Andres Garcia Bartolome and Rajiv Thaker are also promoted to senior portfolio managers and will be responsible for the portfolio management of the three existing and all new Accunia CLOs. Romild previously held a position as chief portfolio .......

    Market Moves 6 December 2018

  • TRAFIN relaunched

    Deutsche Bank replaces trade finance CRT

    Deutsche Bank has refinanced its TRAFIN 2015-1 deal with the issuance of a new trade finance capital relief trade dubbed TRAFIN 2018-1. The US$216.125m five-year CLN references a US$3.5bn trade finance portfolio.

    Deutsche Bank called and replaced the 2015 transaction last month with a new deal in order to lock in a better coupon. “High demand for trade finance CRTs .......

    News Analysis 5 December 2018

  • Colonnade issuance continues

    Barclays completes corporate capital relief trade

    Barclays has completed Colonnade Global 2018-2, a US$110m financial guarantee that references a US$1.33bn portfolio of mostly US corporate loans (see SCI's capital relief trades database). The transaction is typical of Colonnade Global risk transfer deals in the sense that the credit protection covers both principal and accrued interest.

    Rated by DBRS, the transaction consists of US$1.1bn triple-A rated .......

    News 5 December 2018

  • Enforcement uncertainty

    Set-back for STS-eligible issuance

    The recent statement issued by the Joint Committee of the ESAs (SCI 4 December) is unlikely to be sufficient to assuage securitisation market concerns on its own. Such regulatory uncertainty is expected to further delay the emergence of STS-eligible securitisations in the pipeline.

    “The statement by the Joint Committee of the ESAs acknowledges the concerns about the .......

    News 5 December 2018

  • Activity upsurge

    European ABS market update

    The European primary and secondary ABS markets are seeing a surge in activity, due to uncertainty over the next quarter.

    “After the high volatility last month, I was expecting a slow-down,” says one trader, surprised by the activity.

    He suggests that market ambiguity around the next quarter is driving it. “The consensus is that things will only get choppy from .......

    Market Reports 4 December 2018

  • BDC merger announced

    Sector developments and company hires

    BDC merger

    Golub Capital BDC (GBDC) has merged with Golub Capital Investment Corporation (GCIC), with GBDC as the surviving company, subject to certain stockholder approvals and customary closing conditions. The combined company will remain externally managed by GC Advisors and all current GBDC officers and directors will remain in their current roles. The transaction is expected to close .......

    Market Moves 4 December 2018

  • Proportional approach

    ESAs tackle delay in transparency requirements

    The joint European Supervisory Authorities (ESAs) - which consist of the EBA, ESMA and the European Insurance and Occupational Pensions Authority - have published a letter reiterating market concerns over ESMA’s disclosure requirements (SCI 5 October) and Article 14 (SCI 9 July) of the CRR. The authorities have also called on EU national regulators to apply a ......

    News 4 December 2018

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  • ESAs suggest 'proportion'

    Sector developments and company hires

    Aussie securitisation fund

    The Australian government has introduced a A$2bn Australian Business Securitisation Fund, which will provide significant additional funding to smaller banks and non-bank lenders to on-lend to small businesses on more competitive terms. The fund will be administered by the Australian Office of Financial Management (AOFM), consistent with its prior involvement in the RMBS market in .......

    Market Moves 3 December 2018

  • NPL plans accelerated

    Company hires and sector developments

    Eurobank merger

    Eurobank is merging with Grivalia in a bid to accelerate the reduction of non-performing exposures to a ratio of approximately 15% by end-2019 and single-digits by 2021. The transaction envisages an NPE deconsolidation of approximately €7bn, with all shareholders keeping potential upside from the assets. The merger will create the best capitalised bank in Greece, with .......

    Market Moves 30 November 2018

  • Tighter pricing

    Latest Elvetia trade completed

    Credit Suisse has completed a Swiss corporate and SME significant risk transfer trade from its Elvetia programme, dubbed Elvetia Finance Series 2018-6. The trade printed at tighter levels compared to previous Elvetia corporate and SME deals, due to wide syndication. The transaction was completed under the new securitisation framework, which stipulates thicker tranches and was also a driver of the ......

    News 30 November 2018

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