Complete news archive

  • Provisioning boost

    Moratoria decline amid stage two rise

    Loans under EBA-eligible moratoria nearly halved in 4Q20. Nevertheless, banks have markedly increased their stage two classifications, particularly for stage two loans under moratoria. The latter might indicate that loans that are still under moratoria maybe those with higher risks going forward, but it is too early to draw conclusions.    

    According to the latest EBA data, loans .......

    News 1 April 2021

  • Risk transfer round-up - 1 April

    CRT sector developments and deal news

    News 1 April 2021

  • ESG endeavours

    Social bonds gaining traction

    Yorkshire Building Society’s recent Brass 10 RMBS marked the second social bond to hit the UK securitisation market, following Kensington’s social RMBS from February (SCI 3 February). While a ‘greenium’ has emerged for deals categorised as green, the trajectory for social bonds appears to be more nuanced, however.

    “The mortgages backing the YBS deal will form part .......

    News Analysis 1 April 2021

  • Follow-up funding for Raiffeisen-Leasing

    Sector developments and company hires

    Follow-up funding for Raiffeisen-Leasing
    The EIB Group has provided €200m funding to Raiffeisen-Leasing Austria via a true sale securitisation dubbed ROOF AT. The transaction’s €462.8m triple-A rated class A notes were preplaced with EIB (which subscribed to €150m) and EIF (€50m), as well as other market funding partners. Raiffeisen-Leasing Group subscribed to the €75m class B notes.

    The €538m .......

    Market Moves 31 March 2021

  • A turning point for investors

    KopenTech looks at US CLO trading trends in 2020 and their likely future impact

    In a period defined by a pandemic, social turmoil and an election, CLO investors increased their use of electronic trading to engage in a more efficient exchange of securities.

    With this increase in volume came an increase in data.  We highlight some of the US CLO market trends, including how increases in trading volumes have been handled by investors, and expectations for .......

    Talking Point 31 March 2021

  • SOFR ABS model presented

    Sector developments and company hires

    SOFR ABS model presented
    The Alternative Reference Rates Committee (ARRC) has published a white paper that outlines a model for using SOFR in ABS products. The paper describes how new securitisation issuances could use 30-day average SOFR, with a monthly reset, set in advance of the interest accrual period. This methodology uses the actual SOFR rates from the 30-day period .......

    Market Moves 30 March 2021

  • Structural protections

    Buyer's market limiting Euro CMBS 2.0 defaults?

    Lessons learned from the European CMBS 1.0 market are arguably helping in the post-pandemic environment, with far fewer defaults seen during the current crisis than occurred in the wake of the financial crisis. A buyer’s market has also meant that investors have a greater ability to dictate structural protections.

    “Pre-credit crunch, banks were big CMBS investors, particularly in .......

    News Analysis 30 March 2021

  • Mission possible

    Securitisation critical to UKAR success

    UK Asset Resolution (UKAR) last month completed its final asset sale (SCI 26 February), marking the end of over a decade of state ownership of Bradford & Bingley (B&B) and Northern Rock Asset Management (NRAM) that saw the vast majority of the two lenders’ legacy mortgage loans securitised across 13 transactions. Indeed, without a functioning securitisation market, these assets .......

    News Analysis 30 March 2021

  • Show me the money

    Debut US regional bank CRT yields too thin for traditional buyers

    Traditional capital relief trade buyers would not have been attracted to the recent Texas Capital Bank deal, as the yield was insufficiently alluring, say investors.

    “Libor plus 400bp is too low; we’re looking at an absolute return of 8%-12%. We’d have to use leverage to get it up to those levels and we don’t do that. This .......

    News Analysis 29 March 2021

  • Equity return boost touted

    Sector developments and company hires

    Equity return boost touted
    US CLO equity is poised to deliver double-digit returns to investors this year, paring back the underperformance seen over the past four years, according to new research from Bank of America.

    Analysts at the bank base their expectations on the fact that CLO equity market prices continue to lag, despite CLO NAV and interest distributions .......

    Market Moves 29 March 2021

  • SCI Start the Week - 29 March

    A review of securitisation activity over the past seven days

    CLO pricing service selected
    SCI Valuations has been selected by Bloomberg's Enterprise Data business to provide daily CLO debt pricing to integrate with Bloomberg's Liquidity Assessment (LQA) tool. The integration of this data with LQA will enable Bloomberg customers to more effectively and easily view and manage their portfolios, the companies say.
    SCI Valuations provides automated valuations for US and European CLO .......

    News 29 March 2021

  • STS amendments passed

    Sector developments and company hires

    STS amendments passed
    The European Parliament has passed amendments to the existing STS Regulation and concomitant changes to the CRR, including allowing certain synthetic on-balance sheet securitisations to achieve STS status. PCS notes that to qualify for this status though, a synthetic securitisation will need to meet 145-160 criteria, depending on the type of transaction. The new rules also amend .......

    Market Moves 26 March 2021

  • SRT upsized

    Reverse enquiry for agricultural loan trade

    News 26 March 2021

  • Flexible financing

    Alternative auto ABS structures eyed

    Due to the digitalisation of the auto finance industry, many buyers of vehicles are able to start and complete their purchases online, which is driving a switch from vehicle ownership to usage. Accelerated by the impact of the coronavirus pandemic, these changes could pave the way for alternative structural features in auto ABS.

    New auto finance products have .......

    News Analysis 26 March 2021

  • Short-lived slowdown?

    CLO primary volumes temporarily ease but set to return

    The CLO primary market is slightly easing up into quarter-end, albeit from hitherto unseen volumes. However, any slowdown is likely to be short-lived as the market’s supply-demand dynamics kick back in in Q2, amid an increased ESG focus.

    JPMorgan CLO research reports that to the end of last week, 19 March 2021, 199 US CLOs have priced year-to-date totalling US$90.3bn .......

    News Analysis 26 March 2021

  • CLO pricing service selected

    Sector developments and company hires

    CLO pricing service selected
    SCI Valuations has been selected by Bloomberg’s Enterprise Data business to provide daily CLO debt pricing to integrate with Bloomberg’s Liquidity Assessment (LQA) tool. The integration of this data with LQA will enable Bloomberg customers to more effectively and easily view and manage their portfolios, the companies say.

    SCI Valuations provides automated valuations for US .......

    Market Moves 25 March 2021

  • Corporate failures

    Default study sheds light on governance

    Governance failures have been shown to be a contributing factor in a large percentage of corporate defaults, according to a new study. Nevertheless, economic downturns remain the driving factor for most defaults.

    According to a new Fitch study, economic downturns are the driving factor for most corporate defaults. However, in the observed period, weaknesses in governance were also .......

    News 25 March 2021

  • Securitisation tax consultation underway

    Sector developments and company hires

    Securitisation tax consultation underway
    The UK HMRC has launched a consultation seeking views on the taxation of securitisation companies. The UK government says it has identified - through ongoing dialogue with the industry - areas where it may be beneficial to make changes to such tax regulations and is therefore keen to explore the associated benefits and potential difficulties.

    Market Moves 24 March 2021

  • Red Cross in humanitarian cat bond first

    Sector developments and company hires

    Red Cross in humanitarian cat bond first
    The first-ever humanitarian catastrophe bond covering pure volcanic eruption risk has been completed using a Guernsey ILS structure. Sponsored by the Danish Red Cross, the US$3m issuance was privately placed by Replexus and Howden Capital Markets via Dunant Re IC, an incorporated cell of Replexus ICC (Guernsey), which is managed in Guernsey by .......

    Market Moves 23 March 2021

  • CLO fallback language reviewed

    Sector developments and company hires

    CLO fallback language reviewed
    S&P has reviewed the indentures of the 870 CLOs it rates to assess Libor fallback language governing a transaction's liabilities. The majority (76%) of its rated CLO transactions closed between 2018 and 2020.

    ARRC-like fallback language can be found in 26% of the agency’s overall transactions, including 76% of the transactions that closed in 2020. .......

    Market Moves 22 March 2021

  • Landmark NPL ABS inked

    Banca Ifis completes salary assignment securitisation

    Banca Ifis has finalised a securitisation backed by a €1.3bn non-performing loan portfolio in gross book value terms. The transaction is the first Italian NPL ABS to be secured directly by salary and pension assignment loans.

    Rated by Moody’s and Scope, the transaction consists of €158.7m A2/A- rated class Ax notes, €206.2m A2/A- rated class Ay notes, €74.4m B2/B+ rated class .......

    News 22 March 2021
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