Complete news archive

  • Disposals pending

    Irish NPL activity set for rebound

    The Irish non-performing loan market is set for a rebound in the second half of the year, following a hiatus due to the coronavirus crisis. Indeed, owner-occupied residential mortgages are expected to be a major area of focus for banks as they develop their future strategies against the backdrop of a post-Covid economy.

    Ireland has been one of .......

    News 23 July 2021

  • CRC in French portfolio sale

    Sector developments and company hires

    CRC in French portfolio sale
    French financial guarantee provider Crédit Logement has expanded its non-performing loan servicing capabilities to begin partnering with third parties for the assignment of real estate NPL receivables. The firm’s external servicing business launched with an NPL portfolio sale to Christofferson Robb & Company, with Société Générale acting as adviser.

    Crédit Logement has more than .......

    Market Moves 23 July 2021

  • Risk transfer round-up - 23 July

    CRT sector developments and deal news

    News 23 July 2021

  • Credit events

    US moratoria challenges highlighted

    The capital relief trades market has adapted to the existence of payment holidays by either excluding them from portfolios or limiting their presence in them. Nevertheless, payment holidays have raised challenges for US synthetic securitisations - although their removal isn’t expected to have a negative impact on US deals, given that the bulk of take-up rates occurred last year .......

    News 23 July 2021

  • Pension scheme taps credit managers

    Sector developments and company hires

    Pension scheme taps credit managers
    Local government pension scheme Brunel Pension Partnership has launched a multi-asset credit fund, to which its clients have committed approximately £2.1bn of funds that will be spread across three separate mandates. The fund is split between three separate sub-funds: 60% is allocated to Neuberger Berman Brunel Multi Asset Credit Fund (an Irish QIAIF), 20% to .......

    Market Moves 22 July 2021

  • Credit engagement

    Raj Shourie, from Lockton's political and credit risks divis...

    Q: Your role means that you will be responsible for leading the engagement with financial institutions internationally out of London, for both credit mitigation and country risk protection.  Tell us more about what that will entail.
    A: I’ll be responsible for originating business dialogue with banks and funds, targeting new users of credit and political risk insurance and existing users .......

    Provider Profile 22 July 2021

  • Collateral Chase

    JPMC visits CRT space again with trade referencing prime mortgages

    JP Morgan Chase is back in the regulatory capital relief market with a trade referencing 4,862 fixed rate prime mortgages almost a year to the day since its last, and first, similar such deal.

    The trade, designated Chase Mortgage Reference Notes 2021-CL1, comprises five tranches which transfer mortgage risk through tranched credit default swaps. The pool of mortgages has a total balance .......

    News 21 July 2021

  • Asset quality boon

    EU bank credit conditions normalise

    Credit conditions for European banks are normalising and prospects for the second half of the year look positive. A return to pre-coronavirus crisis operating income with higher loss absorption buffers accumulated during the pandemic should facilitate the management of non-performing loans.

    According to Scope Ratings, credit risk has frozen in time, due to the extraordinary support measures available .......

    News 21 July 2021

  • Angel eyes

    Angel Oak Capital Advisors' Sam Dunlap talks value in non-agency MBS

    Atlanta-based Angel Oak Capital Advisors’ flagship multi-strategy income fund (ANGLX),  this year celebrates its 10-year anniversary.  The ANGLX is a dedicated structured credit mutual fund, focussing chiefly on US non-agency residential MBS, and was launched after the Financial Crisis of 2007/2008. In the last decade, ANGLX has achieved average annualised returns of 5.66%, as of 6/30/21, and now has approximately $7bn .......

    The Structured Credit Interview 20 July 2021

  • Six STACRs - UPDATE

    Freddie's sixth STACR of 2021 prints inside previous two

    Freddie Mac late yesterday (July 19) priced its sixth STACR deal of the year, designated STACR 2021-DNA5, at levels inside recent DNA and HQA trades.

    “Freddie Mac’s single family CRT programme continued to attract strong investor demand, with 66 unique investors participating in the STACR 2021-DNA5 transaction, the most since 2017.  The B1 tranche drew 39 investors, the most in programme history.  .......

    News 20 July 2021

  • Jamaica in cat bond first

    Sector developments and company hires

    Jamaica in cat bond first
    The World Bank/IBRD has priced a catastrophe bond that will provide the government of Jamaica with financial protection of up to US$185m against losses from named storms for three Atlantic tropical cyclone seasons ending in December 2023. The government of Jamaica is the first government in the Caribbean region, and the first of any small island .......

    Market Moves 20 July 2021

  • Social factors

    Tina De Baere, head of ESG and macro strategy at Cairn Capit...

    Q: How consistent can ESG issues be? Ultimately, how subjective is ESG and ESG analysis?
    A: Yes, this is a question that comes up all the time. ESG topics will always be subjective; it is the nature of the beast in many ways.

    Given that there are so many values and opinions on those topics, it would be unreasonable .......

    Talking Point 20 July 2021

  • Euro CLO BWICs down, but staying strong

    Sector developments and company hires

    Euro CLO BWICs down, but staying strong
    European CLO 2.0 BWIC activity contracted sharply in the first half of 2021 versus 1H20. However, secondary liquidity remains more sustained compared to pre-pandemic levels, reflecting the market's maturity and expansion in recent years, according to Bank of America European CLO research analysts.

    BofA estimates overall BWIC volumes of €5.3bn for 1H21, .......

    Market Moves 19 July 2021

  • Minor deterioration

    Spanish payment holidays buck the trend

    The end of payment holidays for Spanish mortgages could lead to a minor deterioration in the collateral performance of Spanish RMBS. However, an impact on credit ratings is not expected.

    “The collateral performance has experienced a very minor deterioration and the impact on credit ratings is unlikely. Once payment holidays schemes have ended, no ratings impact should happen .......

    News 19 July 2021

  • Recovery trade

    Pub credit quality to diverge amid changing consumer behaviour

    The UK pub sector has been one of the most severely affected areas of hospitality during the last 15 months. However, despite the turmoil during the pandemic, panelists participating in a recent S&P webinar expect a recovery to return to this sector within the next two years.

    “It will take even longer to return to 2019 leverage levels .......

    News 19 July 2021

  • SCI Start the Week - 19 July

    A review of SCI's latest content

    Last week's news and analysis
    Back in vogue?
    Reverse equity to test market appetite
    Bridging the gap
    Sustainable SRTs to spur ESG securitisation growth?
    Endless cash
    European ABS/MBS market update
    Foreclosure fears
    CFPB's new rule curtailing foreclosures complicates mortgage market
    Lift off
    BMO programme details revealed
    Loss mitigation mechanics
    Euro CLO primary practice around LML documentation discussed
    MPL rewards
    Generous MPL returns stand out in parsimonious ABS market
    ....

    News 19 July 2021

  • Structured products dealer acquired

    Sector developments and company hires

    Structured products dealer acquired
    Santander Holdings USA is set to acquire independent broker-dealer Amherst Pierpont Securities - through the acquisition of its parent holding company Pierpont Capital Holdings - for a total consideration of approximately US$600m. Well known for its fixed-income and structured product franchise, Amherst Pierpont will become part of the Santander Corporate & Investment Banking global business line.

    Market Moves 16 July 2021

  • Foreclosure fears

    CFPB's new rule curtailing foreclosures complicates mortgage market

    The final rule on foreclosures introduced this week by the Consumer Financial Protection Burea (CFPB) is unlikely to interrupt MBS issuance in the short term but problems likely lie round the corner, say experts.

    At the moment, record refinancing are contributing to healthy MBS issuance but if rates rise - as looks likely - then refinancing will become less popular and the .......

    News Analysis 15 July 2021

  • New CLO committee to tackle 'greenwashing'

    Sector developments and company hires

    New CLO committee to tackle ‘greenwashing’
    The European Leveraged Finance Association (ELFA) has created a new committee to establish industry best practice and serve investors in the CLO market. The CLO Investor Committee will provide a forum for members to identify CLO investors’ requirements, facilitate discussion on general market progress and key issues, and contribute to the regulatory dialogue on .......

    Market Moves 15 July 2021

  • Back in vogue?

    Reverse equity to test market appetite

    Another UK RMBS backed predominantly by legacy Northern Rock assets has hit the market. The Towd Point Mortgage Funding 2021-Hastings 1 transaction marks the first public securitisation of UK equity release mortgages since the financial crisis.

    Acquired by Cerberus in 2018, the £215.68m portfolio comprises 86.5% Northern Rock loans and 12.9% Legal & General loans, with the remainder .......

    News 15 July 2021

  • MPL rewards

    Generous MPL returns stand out in parsimonious ABS market

    ABS investors in the US searching for value in an environment otherwise starved of this should look at the marketplace loans (MPL) sector, suggest analysts.

    One year AAA-rated unsecured consumer MPL ABS currently trade at around 40bp against the EDSF curve while three year A-rated MPLs are about 90bp to swaps.

    “Nothing else is close to that. If you’re looking for value, unsecured .......

    News Analysis 14 July 2021
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