Complete news archive
-
-
SCI Start the Week - 15 March
A review of securitisation activity over the past seven days
Last week's stories
News 15 March 2021
Alignment issues
EEM performance concerns emerge
Cladding issues
Fire-safety requirements to have 'marginal' impact on RMBS
CLOs/CBOs solid
US CLO primary rumbles on as CBOs perform strongly
Collection hitch
January NPL collections fall
Strategic expansion
Capital Four answers SCI's questions
Supply fatigue?
European ABS market update
Texas blazes the trail
The first CRT deal from a US regional fires the starting gun
Texas two-step
TCBI's .......
-
Texas two-step
TCBI's debut is the curtain raiser for a new CRT strategy
Texas Capital Bank’s (TCBI) debut in the CRT market - making it the first US regional bank to successfully execute such a deal (SCI 11 March) - is not a none-off but the beginning of a long-term strategy, Madison Simm, evp, business optimisation in Dallas, told SCI yesterday (11 March).
The deal carries a three-year term, but .......
News Analysis 12 March 2021
-
Collection hitch
January NPL collections fall
Italian non-performing loan collections in January have plunged, following a December boost (SCI 26 February). Given a third pandemic wave that is about to hit the Italian economy, NPL ABS collections are still 46% below pre-Covid levels - a trend that is not expected to revert in the medium term.
According to Scope Ratings, January collections were .......
News 12 March 2021
-
Strategic expansion
Capital Four ceo Sandro Naef and Capital Four US ceo Jim Wiant answer SCI's questions
Q: How and when did Capital Four become involved in the structured credit market?
The Structured Credit Interview 12 March 2021
A: We have been investing in CLO liabilities for more than a decade. In terms of managing CLOs ourselves, it was a natural evolution a couple of years ago to also start managing CLOs ourselves, as we have been managing senior loans and bonds a long .......
-
Texas blazes the trail
The first CRT deal from a US regional fires the starting gun
Texas Capital Bank has become the first US regional bank to issue a credit risk transfer deal, breaking the ice in what is expected to be an increasingly active area of the US CRT market.
A $275m CLN references a $2.2bn mortgage loan exposure and the deal was oversubscribed, says the bank. It closed on March 9.
News Analysis 11 March 2021
-
Third wheels
JPMorgan takes to the road again with another auto-linked credit note
JP Morgan Chase is to issue its third auto loan-linked CRT transaction in the last eight months, designated Chase Auto Credit-Linked Notes Series 2021-1, in another indication of the growth of the CRT market in the US.
The note references 161,885 reference obligations for a notional amount of $3.98bn.
The pool is composed of high quality credits, as is common for US CRT .......
News 11 March 2021
-
BDC fair value assessed
Sector developments and company hires
BDC fair value assessed
On the back of tightening BDC spreads and growing investor interest, JPMorgan CLO research analysts have published a report aiming to assess fair value in the sector. In addition, they compare BDCs to their closest relative – middle market CLOs.“Differentiating between BDCs is a challenge; thus, we used attachment points as a reference point .......
Market Moves 11 March 2021
-
Alignment issues
EEM performance concerns emerge
The European Mortgage Federation-European Covered Bond Council (EMF-ECBC) last month formally launched its Energy Efficient Mortgage (EEM) label. However, concerns are emerging that the label is being driven forward potentially at the expense of environmental performance.
Across the 27 European Member States, 200 million dwellings were built last century, representing a significant challenge in terms of renovating existing .......
News Analysis 11 March 2021
-
ESG engagement underway
Sector developments and company hires
ESG engagement underway
Market Moves 10 March 2021
All EU-based open-ended funds managed by Leadenhall Capital Partners have been categorised as being investment products that promote environmental and social characteristics in accordance with the criteria recently set out in Article 8 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). The firm says it has committed to embed ESG considerations in its investment process for a .......
-
Supply fatigue?
European ABS market update
Execution for the two UK securitisations priced last week indicated a limited appetite for paper, following the heavy supply seen in previous weeks (SCI 23 February). A weaker tone in European ABS secondary spreads also emerged.
“The market is a little bit softer, due to a combination of factors - the amount of supply that we have .......
News 10 March 2021
-
Asset and liability origination tie-up agreed
Sector developments and company hires
Asset and liability origination tie-up agreed
Apollo and Athene have entered into a definitive agreement to merge in an all-stock transaction that implies a total equity value of approximately US$11bn for Athene. Upon closing of the merger, current Apollo shareholders will own approximately 76% of the combined company on a fully diluted basis and Athene shareholders will own approximately 24%.Market Moves 9 March 2021
-
CLOs/CBOs solid
US CLO primary rumbles on as CBOs perform strongly
The US CLO refi/reset machine rolled on last week with primary spreads narrowing at the top of the stack. At the same time, the CBO sub-sector continues to perform well.
The US CLO primary saw another bumper week last week, with 15 refis/resets and nine new issues pricing. Investment grade primary spreads tightened yet again on the week, .......
News Analysis 9 March 2021
-
-
Loyalty programme financing prepped
Sector developments and company hires
Loyalty programme financing prepped
American Airlines is prepping an unusual US$7.5bn secured financing backed by license-payment obligations from American and cashflow generated by the AAdvantage Loyalty programme. AAdvantage Loyalty IP is an SPV incorporated under the laws of the Cayman Islands and has a maximum programme capacity of US$10bn.As part of the financing structure, the intellectual property (IP) .......
Market Moves 8 March 2021
-
Cladding issues
Fire-safety requirements to have 'marginal' impact on RMBS
DBRS Morningstar has investigated the pervasiveness of the impact on UK mortgage borrowers of cladding on high-rise apartment blocks, following the Grenfell Tower fire in June 2017. The study is based on an analysis of 64 securitised UK mortgage portfolios, comprising 670,000 loans.
“Fallout from the Grenfell fire tragedy continues to be felt by tenants and leaseholders across .......
News 8 March 2021
-
-
SCI Start the Week - 8 March
A review of securitisation activity over the past seven days
Last week's stories
News 8 March 2021
Benchmark legislation
Congress to rescue Libor-based contracts, but questions remain
Ever-changing moves
Euro CLOs remain fluid
Middle market opportunities
MM CLOs still offer relative value and continued innovation
NPL ABS inked
Vega securitisation underway
Pattern recognition?
New issue and secondary CLO double-B disparity discussed
Promising pipeline
STS synthetic securitisations slated
Residential rise
Mortgage SRT motivations examined
Stepping up
Indian banks change gear on Libor transition
The .......
-
Libor announcements to 'accelerate' transition
Sector developments and company hires
Libor announcements to ‘accelerate’ transition
Market Moves 5 March 2021
The UK FCA has confirmed that all Libor settings will either cease to be provided by any administrator or no longer be representative immediately after 31 December 2021 - in the case of all sterling, euro, Swiss franc and Japanese yen settings, as well as the one-week and two-month US dollar settings – and immediately .......
-
Middle market opportunities
MM CLOs still offer relative value and continued innovation
One of the key attractions of middle market CLOs is the relative value opportunity they offer investors. While the sector has rallied in recent months alongside broader markets, it still offers trading opportunities, according to the participants in the Trading Opportunities Roundtable at SCI's 2nd Annual Middle Market CLO Seminar last week.
MM CLOs are positioned favourably against .......
News Analysis 5 March 2021
-