Complete news archive

  • US CLOs assessed

    Sector developments and company hires

    US CLOs assessed
    As US CLO primary volumes continue to fall, JPMorgan CLO research has taken stock of the market’s current standing. It finds the US$1trn benchmark is edging within sight, despite a deceleration in the number of new managers, and strong risk/reward credentials keeping the CLO space attractive.

    JPMorgan reports that global CLO market outstanding notional is currently .......

    Market Moves 5 May 2021

  • Tight pricing

    Standard Chartered prints CRT

    Standard Chartered has finalised a US$180m CLN that references a US$2bn portfolio of around 130 US and European corporate exposures. Dubbed Chakra Five, the capital relief trade is the most tightly priced Chakra deal to date.

    The trade printed in the high single-digits and features tranches that amortise sequentially over a an approximately three-year weighted average life and .......

    News 5 May 2021

  • Hong Kong ILS pilot unveiled

    Sector developments and company hires

    Hong Kong ILS pilot unveiled
    The Hong Kong Insurance Authority has released details of the two-year Pilot Insurance-linked Securities Grant Scheme promulgated in the jurisdiction’s 2021-2022 Budget. The scheme provides an incentive for onshore and offshore issuers and sponsors to issue ILS in Hong Kong, while efforts are being made in parallel to map out a new regulatory regime for .......

    Market Moves 4 May 2021

  • RFC issued on LGD proposal

    Sector developments and company hires

    RFC issued on LGD proposal
    The EBA has published a consultation paper on draft Regulatory Technical Standards specifying the types of factors to be considered when assessing the appropriateness of risk weights and minimum loss given default (LGD) values for exposures secured by immovable property. Relevant authorities, as designated by a Member State, may set higher risk weights or impose .......

    Market Moves 30 April 2021

  • Balancing act

    Alexander Batchvarov, md, head of international structured f...

    Q: How would you describe European investor appetite for esoteric securitisations currently?
    A: We have a situation on the market, where corporate spreads are moving very tight and at present high yield spreads are in the 300bp area in Europe. Investors seek beta, but also keep an eye over their shoulders – ECB reaction function is of concern. 

    With .......

    Talking Point 30 April 2021

  • Greek investment partnership inked

    Sector developments and company hires

    Greek investment partnership inked
    Mount Street Group has formed a strategic partnership in Greece and Cyprus with Technical Olympic, a Greek real estate, construction and investment group. As part of the partnership and through its subsidiary PFC Premier Finance Corporation (Cyprus), Technical Olympic has entered into a Memorandum of Understanding to acquire a stake in Mount Street’s businesses in Greece .......

    Market Moves 29 April 2021

  • Convexity clues

    CLOs hold firm but opportunities arise

    Booming CLO primary activity either side of the Atlantic continues to be met with sufficient demand to keep supporting spreads. However, there are still opportunities for investors in some areas.  

    “Mezz in particular has continued to come in over the past couple of weeks,” says one investor. “The only area where we are seeing a hint of .......

    News Analysis 29 April 2021

  • Vertical structure

    Rare Spanish NPL ABS closed

    Morgan Stanley last month closed a rare Spanish non-performing loan securitisation, dubbed Retiro Mortgage Securities. The €470m transaction features a vertical structure for the management of four sub-portfolios, with a mortgage lender, an SPV with credit rights over the loan collateral and a respective propco with security rights over the REO assets.

    The NPL collateral has a total .......

    News Analysis 29 April 2021

  • Irish RPL refi prepped

    Sector developments and company hires

    Irish RPL refi prepped
    A refinancing of two Irish reperforming RMBS - European Residential Loan Securitisation 2019-PL1 and Grand Canal Securities 1 - has hit the market. Dubbed Primrose Residential 2021-1, the transaction is backed by a €869.8m portfolio of seasoned first lien performing and reperforming mortgages secured by majority owner occupied (accounting for 57.6% of the pool) and buy-to-let .......

    Market Moves 28 April 2021

  • Marco Polo returns

    Credit Agricole finalises landmark SRT

    News 28 April 2021

  • Funded reinsurance roll-out

    Pass-through longevity swap completed

    Prudential Insurance Company of America’s (PICA) international reinsurance business last month closed an innovative longevity swap with a UK pension scheme using a UK-regulated insurer, Zurich Assurance, as intermediary. The transaction - which transfers longevity risk associated with £6bn of pensioner liabilities - features a limited recourse structure, whereby the longevity and default risks can be passed through the .......

    News 28 April 2021

  • APAC ESG expansion eyed

    Sector developments and company hires

    APAC ESG expansion eyed
    Moody’s is set to expand its Singapore office with the aim of spearheading ESG, climate and sustainable finance efforts in the Asia Pacific region, as well as fostering the ESG ecosystem in Singapore. Included in the firm’s plans are several initiatives, such as the establishment of an ESG Centre of Excellence for investor outreach, engagement and .......

    Market Moves 27 April 2021

  • Risk transfer round-up - 27 April

    CRT sector developments and deal news

    Credit Suisse has redeemed and delisted two Magnolia Finance Five transactions. Magnolia Finance Five Series 2017-1 is a US$400m CLN that matures in 2024. The other transaction, dubbed Magnolia Finance Five series 2017-2, is a US$75m CLN that matures in 2025. 

    .......

    News 27 April 2021

  • Democratising data

    Stephane Michel, senior portfolio manager at the internation...

    Q: How does Federated Hermes integrate ESG in its CLO business?
    A: CLOs are still very much a universe where we are trying to build an analytical framework that is comparable to what our equity colleagues have been able to do for much longer, due to the provision of data that we haven’t got. That’s the challenge for ESG across .......

    The Structured Credit Interview 27 April 2021

  • Downgrades for 'lower quality' mall CMBS

    Sector developments and company hires

    Downgrades for ‘lower quality’ mall CMBS
    Moody's has downgraded 119 principal and interest, 26 interest-only and 11 exchangeable classes from 36 US CMBS and placed eleven P&I, one exchangeable and three IO classes under review for possible downgrade from a further two CMBS. The rating actions affect approximately US$6.2bn of securities and were prompted primarily by increased loss expectations and .......

    Market Moves 26 April 2021

  • Non-prime pick-up

    UK RMBS driving European volumes

    UK RMBS led European placed securitisation volume in 1Q21, rising to €12.7bn-equivalent from €300m-equivalent in 4Q20, according to AFME data. The non-prime sector, in particular, saw a significant pick-up in activity during the quarter.

    The UK RMBS market appears to be diverging across different issuer segments - fintech and new money lenders, private equity players and the large .......

    News Analysis 26 April 2021

  • SCI Start the Week - 26 April

    A review of securitisation activity over the past seven days

    Last week's stories
    Bottoming out
    EU NPL ratios improve
    Climate concerns
    The nexus between insurance risk transfer and ESG
    Investor interest
    European CLOs attracting new investors to mezz and equity
    Regional resilience
    Structural enhancements for debut aircraft ABS
    RWA boost
    ECB reveals TRIM findings
    Third 2021 STACR prints
    With Fannie Mae still on the sidelines, Freddie corners CRT space
    Uncertainty highlighted
    UK banks unclear on project finance .......

    News 26 April 2021

  • Texas template

    TCB CRT establishes blueprint for US banks, say SCI speakers

    The recent $275m 3-year CLN capital relief trade from Texas Capital Bank (TCB) has established a precedent that all US banks in the US should be scrutinizing, agreed panellists involved in the roundtable discussion of the deal at SCI’s fifth annual risk transfer and synthetics seminar.

    The seminar was held April 21-22, and the speakers at the .......

    News 23 April 2021

  • CLO investment firm formed

    Sector developments and company hires

    CLO investment firm formed
    York Capital Management and Kennedy Lewis Investment Management have formed a strategic partnership and established a new entity called Generate Advisors. Under the agreement, York’s approximately US$4bn CLO business and team - led by Rizwan Akhter - will transition to Generate Advisors and continue to manage York’s current CLO portfolio, as well as any future CLOs .......

    Market Moves 23 April 2021

  • Uncertainty highlighted

    UK banks unclear on project finance slotting

    The application of the slotting approach to synthetic securitisations referencing project finance assets remains unclear. The other option for UK banks is ratings, but that approach is accompanied by its own challenges.      

    According to Steve Gandy, head of private debt mobilisation, notes and structuring at Santander Corporate and Investment Banking: ‘’The PRA has stated publicly that it .......

    News Analysis 23 April 2021

  • Investor interest

    European CLOs attracting new investors to mezz and equity

    European CLO primary activity continues to roll, with seemingly unwavering investor demand supporting prices at the top of the stack. Now, investor interest is growing across the capital structure, as new players look to enter the lower tranche space.  

    As of yesterday’s close, an impressive 87 European CLOs had priced this year. Nevertheless, the three resets that printed .......

    News Analysis 22 April 2021
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