Complete news archive

  • Moving forward

    Positive consumer sentiment emerging post-pandemic

    As the European securitisation market moves beyond the coronavirus crisis, an overall positive picture appears to be emerging. However, the withdrawal of governmental support measures remains a risk for many jurisdictions in the region.  

    “As we came out of the financial crisis in 2009, lending was picking up, both net and gross levels. The pandemic hit and there .......

    News 28 May 2021

  • End of the line?

    SRT issuers mull dropping synthetic excess spread

    The requirement to fully capitalise synthetic excess spread is expected to result in SRT issuers dropping the feature from their transactions. This CRT Premium Content article weighs the relative benefits of synthetic securitisations versus those of full-stack cash deals, in which originators can use excess spread.

    The EBA and the European Commission’s decision last year to fully capitalise synthetic ......

    News Analysis 28 May 2021

    Premium Content

  • CRT return for FNMA?

    Supreme Court ruling on Calabria's future imminent

    A US Supreme Court decision about whether President Biden can remove Mark Calabria as director of the Federal Housing Finance Authority (FHFA) may arrive as soon as next week, say well-placed sources.

    Following recent precedent, it seems likely that the court will rule that Calabria can be removed by the executive ‘for cause’. This will have profound ramifications .......

    News Analysis 27 May 2021

  • CLO manager ESG policies polled

    Sector developments and company hires

    CLO manager ESG policies polled
    A recent survey conducted by Fitch shows that 84% of the 117 CLO managers it polled have a stated ESG policy, while 60% are part of an organisation that is a signatory to the United Nations Principles for Responsible Investment (UNPRI). Managers reported generally sparse ESG information for leveraged loan issuers, but some responses highlighted .......

    Market Moves 27 May 2021

  • Landmark SRTs finalised

    Cash collateralised insurer deals debut

    Credit Risk Transfer Solutions (CRTS) has executed three synthetic securitisations that have broken new ground in the market. Indeed, the firm has structured the first cash collateralised capital relief trades that involve insurer counterparties.

    According to Andy Garston, director at CRTS: ‘’Most SRT deals require cash investors, which is problematic for insurers. But we now have a structure .......

    News Analysis 27 May 2021

  • Missed opportunity

    ESA report disappoints on securitisation treatment

    The recent European Supervisory Authorities (ESA) report on the implementation and functioning of the EU Securitisation Regulation (SCI 17 May) disappointed many in the industry, since it avoided tackling long-standing issues in the treatment of securitisations. In particular, the lack of a level playing field in terms of disclosure and due diligence remains a concern.

    The ESA .......

    News Analysis 27 May 2021

  • Focal point

    Arb rather than NAV in focus

    European CLO equity performance has held strong despite the unprecedented Covid shock and significant shifts in loan market pricing in the last 12 months, supporting the view that a diversified portfolio of CLO equity can deliver strong and consistent returns through the credit cycle and attract new investors. To build on that, CLO managers now need to shift their focus, .......

    News 25 May 2021

  • Actuarial approach

    Alphidem co-founder Ken Sutter outlines how the quantitative...

    In light of the current regulatory and interest rate environment, it could be assumed that capital relief trades enjoy great popularity, even outside of the dedicated investor community. However, despite growth and positive market trends, the asset class still leads a niche existence and sticks to its esoteric label. This is even more astonishing considering that many alternative credit managers .......

    Talking Point 25 May 2021

  • CLO conflicts of interest eyed

    Sector developments and company hires

    CLO conflicts of interest eyed
    IOSCO has issued four questionnaires for industry participants on conduct risks in leveraged loans (LLs) and CLOs targeting bank lenders, CLO investors, CLO managers and LL sponsors. Through its Committee 3 on Regulation of Market Intermediaries and its Committee 5 on Investment Management, IOSCO is conducting work to understand the potential conflicts of interest and .......

    Market Moves 24 May 2021

  • Climate risks disclosed

    EBA publishes landmark banking study

    The EBA has published the first EU-wide pilot exercise on climate risk for the banking sector. The exercise shows that over half of banks’ exposures are allocated to sectors that might be sensitive to climate transition risk. However, the study qualifies that limited data availability and reliability can affect results in terms of comparability.  

    The revised CRR/CRD .......

    News 24 May 2021

  • SCI Start the Week - 24 May

    A review of securitisation activity over the past seven days

    Last week's stories
    Gaining momentum
    European solar ABS issuance tipped to emerge
    Revving up
    Strong demand continues for CRE CLOs
    SRT boost
    Barclays expands Colonnade platform

    Other deal-related news

    • OneMain has become the first US securitisation issuer to offer a SOFR-linked floating-rate tranche (SCI 17 May).
    • US CMBS loan refinancings are likely to remain under pressure over the next 18 months, given continued business interruption at .......

      News 24 May 2021

  • RFC issued on benchmark regulation powers

    Sector developments and company hires

    RFC issued on benchmark regulation powers
    The UK FCA has published a consultation on its proposed policy framework for exercising two of its new powers under the Benchmarks Regulation (BMR), which will be introduced by the Financial Services Act 2021. These powers aim to facilitate an orderly wind-down of critical benchmarks like Libor and help users that cannot transition to .......

    Market Moves 21 May 2021

  • Strategic credit commitment inked

    Sector developments and company hires

    Strategic credit commitment inked
    The Investment Management Corporation of Ontario (IMCO) has closed a US$500m commitment with a new strategic partner, Ares Management Corporation. IMCO has allocated US$400m of the commitment to a fund of one structure and US$100m to Ares Pathfinder Fund, a flagship global alternative credit fund. Pathfinder pursues a differentiated strategy of providing tailored financial solutions for .......

    Market Moves 20 May 2021

  • Revving up

    Strong demand continues for CRE CLOs

    Sentiment in the US CRE CLO market remains relatively positive (SCI 10 May), with the multifamily sector in particular seeing robust demand. The outlook for the office sector is mixed, however.

    “The CRE CLO market is hitting all cylinders. There is strong investor demand for new issuance and issuers have a strong origination pipeline,” says John Amman, .......

    News Analysis 20 May 2021

  • SRT boost

    Barclays expands Colonnade platform

    News 20 May 2021

  • Data centre leverage 'inconsistent' with ratings

    Sector developments and company hires

    Data centre leverage ‘inconsistent’ with ratings
    A number of wholesale data centre securitisations issued in recent years carry elevated leverage that is inconsistent with the single-A rating category, Fitch suggests. The rating agency states that these transactions have weaker credit characteristics and substantially higher leverage multiples than other comparable digital real estate securitisations, such as wireless tower transactions, and higher .......

    Market Moves 19 May 2021

  • Blue investable markets study underway

    Sector developments and company hires

    Blue investable markets study underway
    The European Commission and the EIB Group have increased their cooperation to implement a new EU Sustainable Blue Economy policy. Under the agreement, both institutions will work jointly with EU Member States to meet financing needs to reduce pollution in European seas and support investment for blue innovation and blue bioeconomy.

    As such, the .......

    Market Moves 18 May 2021

  • Gaining momentum

    European solar ABS issuance tipped to emerge

    The development of a European solar ABS market is gaining momentum, with the first few securitisations potentially anticipated to emerge over the next 12-18 months. The first structures to market are expected to have many of the features observed on US solar transactions.

    “We could envisage a situation where we would see the inaugural public transaction in the .......

    News Analysis 18 May 2021

  • OMFIT debuts SOFR-linked notes

    Sector developments and company hires

    OMFIT debuts SOFR-linked notes
    OneMain has become the first US securitisation issuer to offer a SOFR-linked floating-rate tranche. The US$500m OneMain Financial Issuance Trust 2021-1 includes triple-A rated class A2 notes - that will be sized to demand – linked to a rate that will be set in advance using 30-day compounded SOFR, although the deal documentation has provision to switch .......

    Market Moves 17 May 2021

  • SCI Start the Week - 17 May

    A review of securitisation activity over the past seven days

    Last week's stories
    Biden bonanza
    Vast infrastructure package to energise project finance CLOs
    CRE CLO surge
    Record issuance expected
    Demand drivers
    Fundamentals and technicals support US CLOs for now
    Geographical divergence
    CSEE moratoria more likely to underperform
    Lone Star rising
    A soup to nuts profile of TCBI's inaugural CRT (Premium content)
    Mortgage-backed SRT priced
    Credit Suisse executes Elvetia refinancing
    Virtuous circle?
    Bullish sentiment underpins securitisation opportunity
    Bad weather .......

    News 17 May 2021

  • Biden bonanza

    Vast infrastructure package to energise project finance CLOs

    The project finance CLO market, somnolent for a decade, will receive a shot in the arm from the Biden administration’s ambitious infrastructure spending programme, say market-watchers.

    Around $600bn of the planned $2trn package is earmarked for improvement of transport networks, and another $200bn or more will go on housing. The details of how and in what form this money will be distributed .......

    News 14 May 2021
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