Complete news archive
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Litmus test
European CMBS momentum set to last
Nine European CMBS have been issued so far this year and two are currently marketing, pointing to growing confidence in the sector amid a post-coronavirus recovery. Indeed, current momentum in the market - exemplified by the volume of activity and investor interest in a variety of assets and jurisdictions - appears set to last.
“2021 was unsurprisingly looking .......
News Analysis 30 June 2021
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Innovative NPL ABS inked
CF opts for ReoCo rather than GACS
Credito Fondiario has finalised an unusual Italian non-performing loan securitisation that falls outside the GACS scheme. Dubbed Palatino SPV, the transaction features a ReoCo with much larger firepower compared to previous non-GACS deals.
According to Monica Curti, vp and senior credit officer at Moody’s: ‘’It’s an unusual transaction, given that it’s a non-GACS deal - although these sorts .......
News Analysis 30 June 2021
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Energy-efficiency tax credit ABS debuts
Sector developments and company hires
Energy-efficiency tax credit ABS debuts
UniCredit has executed the first securitisation of tax credits arising from the Italian ‘Eco-Sisma-SuperEcosisma Bonus’ scheme. Under one of Italy's Covid-recovery laws (the Decreto Rilancio), tax credits accrued in the context of energy-efficiency and/or seismic risk reduction works are allows to be transferred to other entities, such as banks and other financial intermediaries.The .......
Market Moves 29 June 2021
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Finish line
ESMA designates securitisation repositories
ESMA has announced the European DataWarehouse (EDW) and SecRep as the EU’s official securitisation repositories. The decision addresses an important element of the disclosure framework under the Securitisation Regulation that was long left open. More saliently, originators of synthetic securitisations will now have to submit data to the repositories as part of the new ESMA rules, albeit there is .......
News Analysis 29 June 2021
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UK to review Securitisation Regulation
Sector developments and company hires
UK to review Securitisation Regulation
The UK government has issued a call for evidence in connection with the Securitisation Regulation. Under the consultation, the government is seeking views on updating the regulation to ensure that it “best delivers” for the UK’s financial sector and real economy.Responses to this call for evidence will inform the government’s review of the Securitisation Regulation, .......
Market Moves 28 June 2021
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Strong technical
WFH lifestyle boosts RMBS market
The UK stamp duty land tax (SDLT) break, which was introduced by the government in July 2020 to support the housing market during the pandemic, is being scaled back at the end of this month. Although the tax break has had a positive impact on the RMBS sector, other factors have also contributed to boost the market.
“There .......
News Analysis 28 June 2021
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SCI Start the Week - 28 June
A review of SCI's latest content
CLO seminar tomorrow
SCI’s 1st Annual CLO Special Opportunities Seminar is taking place virtually tomorrow, 29 June. The event examines the key areas in which investors and managers can enhance returns, from deal structures and pricing to unusual asset classes.Last week's news and analysis
News 28 June 2021
Adopting change
Class A loan note attracts attention
Back into the fold
CRT returns to centre stage with FHFA changing .......
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Back into the fold
CRT returns to centre stage with FHFA changing of the guard
The appointment of Sandra Thompson as the new acting director of the Federal Housing Finance Authority (FHFA) following the dismissal of Mark Calabria signals a radical change of direction for the agency and one that is likely to mean an enhanced role for credit risk transfer (CRT) mechanisms, agree market sources.
Firstly, the Biden administration has made clear that extending affordable housing .......
News Analysis 25 June 2021
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Aussie green RMBS bags Nochu support
Sector developments and company hires
Aussie green RMBS bags Nochu support
Market Moves 25 June 2021
Firstmac has closed a groundbreaking A$750m green RMBS, backed by the Clean Energy Finance Corporation (CEFC) and Norinchukin. The underlying properties will be among the most energy efficient in Australia, meeting or exceeding a seven-star rating under the Nationwide House Energy Rating Scheme (NatHERS). The seven-star rating materially exceeds the minimum standards of the .......
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Leading the pack
UniCredit tops NPL sales
UniCredit has topped the list for European non-performing loan sales since 2019, according to new data released by KPMG. Indeed, Italian banks overall remain the most active sellers across the sector.
The European NPL market is highly concentrated, with only a few players conducting the majority of deals. The top 20 sellers account for 74% of GBV transacted .......
News 25 June 2021
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Volatility hedge
Bart Bakx, head of ABS and mortgages at NN Investment Partne...
Q: Do you believe private credit will take on a more significant role in investor portfolios in 2021? If so, which factors are driving this forward?
The Structured Credit Interview 25 June 2021
A: We see that many investors are undertaking searches and these are increasing towards private credit. Looking for opportunities to allocate, investors seek alternatives in the private market space in view of continued volatility .......
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CLO opportunities seminar line-up finalised
Electronification, alternative structures on the agenda
SCI’s 1st Annual CLO Special Opportunities Seminar is taking place virtually on 29 June. The event examines the key areas in which investors and managers can enhance returns, from deal structures and pricing to unusual asset classes.
The seminar begins with a panel on ESG and CLOs, focusing on whether investors can achieve enhanced yield through ESG-compliant CLOs. .......
News 25 June 2021
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Riding a wave
BNP Paribas executes capital call SRT
BNP Paribas has finalised a significant risk transfer transaction backed by capital call facilities. Dubbed Wagner 2021-1, the deal is the French lender’s first such transaction and is riding a wave of capital call SRTs.
Banks that have successfully executed such deals over the last 18 months include Credit Agricole, Standard Chartered, Citi and Societe Generale (SCI .......
News 25 June 2021
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RFC issued on NPL treatment
Sector developments and company hires
RFC issued on NPL treatment
Market Moves 24 June 2021
The EBA has launched a public consultation on amendments to its regulatory technical standards on credit risk adjustments in the context of the calculation of the risk weight (RW) of defaulted exposures under the standardised approach (SA). The proposed amendments come in the wake of the European Commission’s Action Plan to tackle non-performing loans in .......
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Ever tighter?
European ABS/MBS market update
European ABS/MBS primary spreads continue to edge in on heavy investor demand. That looks unlikely to change, especially in core Europe, as supply begins to ease into the summer.
“The most notable development of the past four months for me has been that spreads keep going tighter and tighter,” says one core Europe ABS trader. “Current pricing levels .......
News 24 June 2021
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US is coming
Stand by for more US regional bank deals, say panellists at IMN conference
Citigroup is currently having discussions with more US regional banks about issuing CRT transactions, following the lead established by the groundbreaking deal from Texas Capital Bank three months ago, it was revealed at the IMN risk transfer conference at the end of last week.
Seeing Texas Capital achieve regulatory appproval constituted a green light to other banks that have been hovering .......
News 23 June 2021
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Calabria exits
FHFA director removed, GSE stocks nosedive; Fannie comeback?
The Biden administration fired Federal Housing Finance Authority (FHFA) director Mark Calabria this afternoon (June 23) after the much-awaited Supreme Court ruling concerning the FHFA was delivered today.
Little time was wasted in getting rid of Calabria, a Trump appointee, after the Court decided that the FHFA was indeed structured unconstitutionally in that the director is insufficiently accountable to the executive, echoing .......
News 23 June 2021
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Apollo, illimity form NPE JV
Sector developments and company hires
Apollo, illimity form NPE JV
Market Moves 23 June 2021
illimity Bank has entered into a binding heads of terms to form a 50:50 joint venture with certain funds managed by Apollo Global Management aimed at investing up to €500m in single-name distressed credit exposure secured by real estate assets in Italy. The JV - which will have an initial investment period of two years, .......
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Digital investment ABS prepped
Sector developments and company hires
Digital investment ABS prepped
DigitalBridge Group is in the market with its debut securitisation, the US$500m DigitalBridge Issuer Series 2021-1. The unusual transaction is secured by the firm’s digital investment management fees and carried interest, including from future investment vehicles.The triple-B rated notes will be issued in two classes: a US$300m class A2 secured fund fee revenue tranche, .......
Market Moves 22 June 2021
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SRT debut
LBBW prints first capital relief trade
The EIB Group and LBBW have executed a €95m mezzanine guarantee that references a €1.8bn portfolio of SME and midcap loans. The transaction is the German lender’s first capital relief trade and will enable it to provide up to €570m of SME and midcap financing.
According to Rainer Bohn, head of structured finance at LBBW: ‘’The transaction is .......
News 22 June 2021
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