Complete news archive
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SFDR to spur Article 8 CLOs
Sector developments and company hires
SFDR to spur Article 8 CLOs
Market Moves 7 September 2021
CLOs may soon be structured as Article 8 funds under the EU Sustainable Finance Disclosure Regulation (SFDR), as part of the rotation of capital towards assets that promote ESG objectives, according to White & Case. The firm notes in a recent client memo that Article 8 funds that invest in CLOs are already emerging and .......
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Assured wraps Euro CLO pair
Sector developments and company hires
Assured wraps Euro CLO pair
Market Moves 6 September 2021
Assured Guaranty has over the last month wrapped a portion of debt issued by two European CLOs for European investors. Assured Guaranty (Europe) guaranteed €125m of triple-A rated class A notes issued by NIBC Bank’s North Westerly V CLO, while Assured Guaranty Corp and Assured Guaranty UK co-guaranteed €100m – in aggregate – across the .......
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SCI Start the Week - 6 September
A review of SCI's latest content
Last week's news and analysis
News 6 September 2021
Cliff edge looms
400,000 loans face forbearance expiry
CMBS vigour
CMBS issuance for rest of 2021 to keep everyone busy
Forward strides
Middle East Islamic finance market looks good into 2022
High LTV Italian SRT inked
Intesa executes capital relief trade
Libor worries
UK RMBS transition to leave ratings unshaken
Low delinquencies - for now
Delinquencies give few alarms but asset quality .......
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Cliff edge looms
400,000 loans face forbearance expiry
The number of mortgages in active forbearance continued to tick down last week, but this month the market is set to be buffeted by the termination of plans that commenced at the beginning of the pandemic.
Some 400,000 mortgages hit the expiration date on September, based on the current allowable term lengths which were extended in June.
It is not clear what proportion .......
News 3 September 2021
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High LTV Italian SRT inked
Intesa executes capital relief trade
Intesa Sanpaolo has finalized a significant risk transfer (SRT) transaction from the GARC programme that references a €1.3bn portfolio of high loan-to-value (LTV) residential mortgages.
The deal is the first high LTV mortgage SRT in the Italian market. The mortgages in the pool have a LTV ratio that is 80% or higher.
The trade features a €33.3m upper junior tranche (1.5%-4%), a €70.6m .......
News 3 September 2021
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Libor worries
UK RMBS transition to leave ratings unshaken
The transition from sterling LIBOR to risk-free rates is unlikely to have negative rating consequences for UK RMBS transactions, a Standard & Poor's (S&P) report notes.
Even though the 31 December phase-out deadline is less than four months away and with mounting general uncertainty around transition plans, S&P estimates that current ratings will prove resilient.
Its analysis, centred around transition patterns and amended terms .......
News 3 September 2021
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Scope concerns
SFA underlines concerns in UK government call for regulation opinion
The SFA has highlighted problems in regulatory jurisdictional scope in its response to Her Majesty’s Treasury’s Call for Evidence on UK securitisation regulations.
Earlier this year, the UK government had issued a call for evidence in connection with securitisation regulation. Under the terms of the consultation, it is seeking views to ensure that it “best delivers” for the UK’s financial sector and .......
News 3 September 2021
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CMBS vigour
CMBS issuance for rest of 2021 to keep everyone busy
Issuance in the European CMBS market for the remainder of this year is to exceed 2018 figures despite the uncertainty emanating from the pandemic, say market experts.
“Covid-19 has hit the CMBS market very hard. Thanks to the vaccine and re-openings we have seen this market is back on the road to recovery. The CMBS market in terms of assets – we .......
News 3 September 2021
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Ready to launch
Norway readies SRT take off
The Norwegian banking market is getting ready for a pick-up in significant risk transfer (SRT) issuance next year following the pending incorporation into law of the new Securitisation Regulation, say market experts.
Nevertheless, the first deals are expected to be relatively simple vanilla structures, given the scepticism of local supervisors.
The Norwegian market has been slow to adopt the SRT mechanism for .......
News Analysis 3 September 2021
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Low delinquencies - for now
Delinquencies give few alarms but asset quality slump pending
While aggregate delinquency data currently looks benign, asset quality is expected to deteriorate as support programmes come to an end.
Up to date aggregate delinquency data, while masking some divergence, holds no terrors, notes Scope Ratings. The NPL ratio for EU-headquartered banks fell to just 2.5% at the end of 1Q21, according to ECB numbers, while gross euro area NPLs more than .......
News 2 September 2021
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Forward strides
Middle East Islamic finance market looks good into 2022
The Islamic finance Middle Eastern market has achieved notable progress over the last four or five years and sentiment remains very positive, say analysts.
"It's been a strong year so far - we have seen five years of growht in the sukuk markets. On the Islamic banking side, growth has continued to surpass conventional banks. We have seen the industry grow significantly, .......
News Analysis 2 September 2021
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Risk transfer round up - 31 August
CRT sector developments and deal news
Alpha bank confirmed in last week’s 1H21 statements further details of a significant risk transfer trade that the Greek lender intends to execute in 4Q21 (SCI 5 March).
Dubbed Aurora, the transaction references a €2bn corporate and SME portfolio, and is expected to release €1bn of RWAs. Piraeus Bank opened the Greek SRT market in March (SCI 18 March) and .......
News 31 August 2021
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Student housing sponsor accused of 'Ponzi-like' scheme
Sector developments and company hires
Student housing sponsor accused of ‘Ponzi-like’ scheme
The US$36m SkyLoft Austin loan - securitised in the UBSCM 2019-C16 CMBS - is over 30 days delinquent in payment, as of the August 2021 remittance period. The loan is sponsored by Patrick Nelson, who is reportedly being sued by dozens of minority investors involved in the acquisition of the property.Nelson .......
Market Moves 27 August 2021
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Tight deadline
PRA NPE ABS consultation to 'provide momentum'
The UK PRA’s consultation - which ended earlier this month – regarding the implementation of Basel standards in connection with non-performing loan securitisations has been welcomed by the industry. The authority is seeking to introduce a framework for non-performing exposure ABS, following the implementation last year of a revised securitisation capital framework via the CRR and the publication of .......
News 27 August 2021
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Angel MBS
Angel Oak Mortgage completes first sole MBS at new low coupons
Angel Oak Mortgage REIT, the sister company of Angel Oak Capital, has closed a $316m RMBS offering, designated AOMT 2021-4, which represents the first sole securitization by the firm.
It placed notes with a face value of $306.4m at a weighted average cost of funding of 1.12%. This represents a sharp narrowing of pricing compared to recent deals, pointed out chief .......
News 26 August 2021
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CLO control equity fund closed
Sector developments and company hires
CLO control equity fund closed
Market Moves 26 August 2021
Lakemore Partners has successfully closed Aquatine IV at US$400m, due to strong investor demand. Aquatine IV is Lakemore’s fourth CLO fund within the Aquatine platform, which invests in control equity positions in US CLOs. Investors in the fund comprise a diverse group of institutional investors, representing private banks, fund of funds, insurance companies, family offices .......
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Driving decarbonisation
EUA securitisation platform poised for growth
Tramontana Asset Management recently breached US$5bn in assets through its innovative carbon ABS platform. The programme is poised for further growth, as the rise in EU Allowance (EUA) prices is increasing the need for carbon credit hedging and financing solutions among corporates.
Established in 2019, the Tramontana carbon ABS programme securitises EUAs - each EUA representing an entitlement .......
News 24 August 2021
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Solar LDA partnership inked
Sector developments and company hires
Solar LDA partnership inked
dv01 has partnered with GoodLeap with the aim of further promoting data transparency and accountability within the solar ABS market. Through this partnership, dv01 will serve as loan data agent (LDA) for Carbon Level Mitigation Trust (CLMTE) pass-through certificates.The shelf currently comprises CLMTE 2021-1 and CLMTE 2021-2, with an aggregate notional value of US$53.6m .......
Market Moves 23 August 2021
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SCI Start the Week - 23 August
A review of SCI's latest content
Last week's news and analysis
News 23 August 2021
Bullish sentiment
CLO, loan opportunity set to continue outperforming
Chowa finalised
NatWest executes leveraged loan SRT
Financing boost
EGF extended to synthetics
Pretium steps out
New hires signal new products and added depth to old ones
Robust recovery
Bumper "summer" for Aussie securitisation
The puzzling case of the disappearance of Fannie Mae
FNMA's absence from CRT investigated
There's gold in them thar .......
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Pretium steps out
New hires signal new products and added depth to old ones
The three key hires that specialist mortgage and real estate investment manager Pretium announced earlier this month signal its intention to widen its footprint in the US residential mortgage space by adding depth in existing product ranges but also adding new instruments to the roster.
Sarah Kong joins the resi credit trading team as head of mortgage whole loan trading from .......
Provider Profile 20 August 2021