Complete news archive
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Amortization antics
Vehicle inventory shortage forces ABS issuers to forestall amortization
Ford Motor Credit last week amended the terms of its excess funding account (EFA) to prevent early amortization of ABS notes issued by its master floorplan trust following a similar move by Nissan and market experts say other captive finance vehicles are examining similar options.
Ford upped the percentage of the adjusted investment account that can be deposited into the EFA before .......
News Analysis 12 August 2021
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Downward trend
Corporate defaults continue to drop
Corporate default rates continue to fall across the globe, according to the latest data. However, the declining pace will likely slow by end-December and then stabilise in January to July 2022.
According to the latest Moody’s data, the number of corporate defaults globally remains low this year, reflecting the strong economic recovery and abundant liquidity in capital markets. .......
News 12 August 2021
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Equity ownership
Dan Norman, md at Lakemore Partners, discusses his plans to...
Q: Tell us about your new role at Lakemore Partners (SCI 4 August)?
The Structured Credit Interview 12 August 2021
A: I joined the team in March this year and I am very happy to be part of Lakemore’s global expansion. We are in the process of building a US business and the primary steps are to build a US and global product distribution system for .......
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CMBS fillip
Hotel sector leads recovery in US CMBS but retail still depressed
Delinquency rates in US CMBS have fallen appreciably in July, led by a robust performance in the hotel sector, reports Fitch Ratings.
But the retail sector, and particularly regional malls, remains a problem area where delinquency rates and volatility are expected to remain elevated.
The overall CMBS delinquency rate fell 22bp from 3.81% in June to 3.59% in July due to a combination .......
News 11 August 2021
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Sponsor momentum
Record-setting quarter for the ILS market
The second quarter of 2021 was record-setting for the ILS market on numerous fronts. With around US$5.6bn across 20 catastrophe bonds issued in Q2 – bringing total issuance to US$8.5bn so far this year - volume already surpasses by US$181 the previous record set in 1H17.
Of the 35 classes of notes issued in Q2, 70% were both upsized .......
News 11 August 2021
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FTB RMBS hits the market
Sector developments and company hires
FTB RMBS hits the market
An unusual UK prime RMBS has hit the market. Blitzen Securities No.1 is backed by a pool of owner-occupied mortgages extended to first-time buyers (FTBs) with original LTVs between 85% and 95%, originated by Santander between 2014 and 2020.An undisclosed investor acquired the pool from Santander through a bidding process and will sell .......
Market Moves 10 August 2021
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Insurer appetite for CLO mezz on the rise
Sector developments and company hires
Insurer appetite for CLO mezz on the rise
Market Moves 9 August 2021
A new New York Fed Staff Report documents an increasing preference among insurance companies for CLO investments vis-a-vis corporate bond investments, based on data regarding their asset holdings during 2003-2019. The report shows that the preference is particularly strong for investment grade rated mezzanine tranches, which it suggests is driven by a .......
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SCI Start the Week - 9 August
A review of SCI's latest content
Last week's news and analysis
News 9 August 2021
ABS-lite appetite
Insured trade receivables notes in vogue
Issuance boost
STS synthetic securitisations taking off
Positive results
Stress tests raise SRT prospects
Record Freddie
Freddie Mac churns out STACR and ACIS at highest yet seen volumes
Revival of the fittest
Euro CMBS continues to gain traction
Robust performance
Freddie Mac K-Series defaults, losses tracked
Scalabis strikes
Algebra brings Portuguese NPL ABS
SME SRT .......
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Debt servicing spin-off inked
Sector developments and company hires
Debt servicing spin-off inked
Credito Fondiario Banking Group has demerged its debt purchasing and servicing activities in favour of the newly established Gardant Group. As part of this reorganisation, it has redefined the bank's mission as a challenger bank, specialising in financing solutions for SMEs and corporates. The two companies will operate independently going forward.Panfilo Tarantelli has been .......
Market Moves 6 August 2021
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Positive prospects
Risk sharing remains promising, despite due diligence burden
Risk-sharing deals involving the EIF and private investors are yet to gain ground. This CRT Premium Content article surveys the likelihood of such collaborations going forward.
Significant risk transfer transactions between banks on the one hand and insurers and hedge funds on the other have grown substantially over the last two years in deal count terms. However, risk-sharing deals ......
News Analysis 6 August 2021Premium Content
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Scalabis strikes
Algebra brings Portuguese NPL ABS
Algebra Capital is in the market with an unusual Portuguese non-performing loan ABS. Dubbed Scalabis STC (compartment Panda), the securitisation is backed by a €1.47bn portfolio that was acquired through two investment vehicles – LX Investment Partners II and III – from Banco BPI, Banco Comercial Português, Caixa Geral de Depósitos, Caixa Leasing e Factoring and Novo Banco between .......
News 6 August 2021
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Summer reflections
Euro ABS/MBS new issuance pricing trends
From now on, SCI will publish regular case studies and reports on the European ABS/MBS market in addition to our usual news stories on the sector and the first can be found here for free.
This time, we examine the demand and consequent pricing dynamics seen across European and UK ABS, CMBS and RMBS new issuance in .......
News 6 August 2021
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Record Freddie
Freddie Mac churns out STACR and ACIS at highest yet seen volumes
Freddie Mac today (August 5) announced that its CRT programme, including both STACR and ACIS, achieved record H1 issuance of $9.9bn, protecting $418.9bn of unpaid principal balance of mortgage loans.
This was comprised of $6.4bn of issuance in Q1 - a new quarterly record - and $3.5bn in Q2. There were five STACR deals and seven ACIS transactions in H1. So far .......
News 5 August 2021
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Risk assessment platform bolstered
Sector developments and company hires
Risk assessment platform bolstered
Market Moves 5 August 2021
Moody's is set to acquire climate and natural disaster risk modeling and analytics firm RMS from Daily Mail and General Trust for approximately US$2bn. The acquisition will immediately increase Moody’s insurance data and analytics business to nearly US$500m in revenue and accelerate the development of the company’s global integrated risk capabilities to address the next generation of .......
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Pretium strengthens resi credit capabilities
Sector developments and company hires
Pretium strengthens resi credit capabilities
Market Moves 4 August 2021
Sarah Kong, Andrew Miller and Peter Morreale have joined Pretium as mds, based in New York. Kong will be responsible for mortgage whole loan trading at Pretium and joins from Goldman Sachs, where she spent 15 years in the firm's mortgage business. Miller was previously at Fortress Investment Group and will be responsible for the .......
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Positive results
Stress tests raise SRT prospects
The results of the latest EU bank stress tests demonstrate that European banks are able to withstand severe shocks. Indeed, the tests were the most severe to date and - following the ECB’s lifting of dividend restrictions in late July - banks are now able to boost dividend payments. The latest developments raise the issuance prospects for significant risk .......
News Analysis 4 August 2021
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Issuance boost
STS synthetic securitisations taking off
The pipeline of STS synthetic securitisations continues to grow (SCI 5 March), with at least a dozen such transactions expected to price by year-end. Banks that are new to the significant risk transfer market, as well as regular capital relief trade issuers are readying deals, with Santander believed to be first off the blocks (SCI 4 August).
News 4 August 2021
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SOFR term rates recommended
Sector developments and company hires
SOFR term rates recommended
Market Moves 2 August 2021
The Alternative Reference Rates Committee (ARRC) is now formally recommending CME Group’s forward-looking SOFR term rates, following the completion of a key change in interdealer trading conventions on 26 July under the SOFR First initiative. SOFR term rates marks a major milestone in the transition away from US dollar Libor and the completion of the paced .......