Complete news archive
-
Triple-starred first for BMO
BMO brings innovative C$ CRT trade referencing Canadian CRE
A groundbreaking Canadian dollar denominated regulatory capital relief trade from Bank of Montreal (BMO) closed earlier today (June 15), say well-placed market sources.
Not only does the deal constitute the first Canadian dollar CRT trade, it will also be the first to reference a pool of Canadian commercial real estate (CRE) loans.
In another debut feature, the deal possesses a hybrid structure, incorporating .......
News 15 June 2021
-
Innovative SME securitisation fund inked
Sector developments and company hires
Innovative SME securitisation fund inked
SGR-CESGAR, the Spanish guarantee society (SGR) association, has launched a pioneering securitisation fund that aims to provide Spanish SMEs with access to the capital markets. Dubbed Aquisgrán, the programme is structured by Intermoney and backed by the Ministry of Industry through CERSA, with initial financing from the EIF, Instituto de Crédito Oficial (ICO) and Banco Caminos.Market Moves 15 June 2021
-
NPL ABS return
Government guarantees dominate 2020 NPE activity
Government guaranteed non-performing loan securitisations in Italy and Greece dominated NPL transaction issuance last year. However, overall volumes were well below their 2018 and 2019 peaks.
Most NPL transaction activity came to a halt during 2H20 as the first wave of the coronavirus pandemic spread throughout Europe. According to the latest data from Deloitte, €53.8bn gross book value .......
News 15 June 2021
-
Super narrow Arch prices
New Bellemeade comes at spreads well inside previous CRT trade
Arch Capital has priced its latest Bellemeade CRT transaction at levels significantly tighter than the last such deal in March, and to a more broadly syndicated pool of investors than ever before, confirms evp, alternative markets Jim Bennison.
The deal, designated Bellemeade 2021-2, consisted of five tranches for a total value of $522.8m. In addition, $93m was placed in the reinsurance market, .......
News 14 June 2021
-
Financing football
James Paul, head of sport at Blackstar Capital, discusses ho...
Q: Which sports are you seeing structured financing in?
A: In Europe, football is the most mature sport commercially and hence attracts most of the opportunities for structured debt financing. That isn’t to say that there aren’t things done in other sports, particularly on the equity side, but it’s certainly much more opportunistic.The impact of the pandemic has .......
Provider Profile 14 June 2021
-
Auto turnover dampens DFP issuance
Sector developments and company hires
Auto turnover dampens DFP issuance
Market Moves 14 June 2021
Accelerated dealer auto inventory turnover has resulted in insufficient collateral available for US dealer floorplan (DFP) ABS master trusts in 2021, Fitch reports. The agency notes that this is indirectly accounted for by deal structures, for the most part, through the use of excess funding accounts (EFAs). EFAs are meant to protect trusts against inventory .......
-
Smoother transition?
US CLO secondary looks to be taking this quarter-end in its stride
Current market technicals typically indicate a spike in volatility at the bottom of the US CLO debt stack, as trading hots up into quarter-end. However, Q2 looks set to be a smoother ride than Q1 and secondary market focus has shifted towards equity.
“We’re coming to quarter end and there is a large volume of primary deals in .......
News Analysis 14 June 2021
-
SCI Start the Week - 14 June
A review of securitisation activity over the past seven days
Last week's stories
News 14 June 2021
Arch markets MILN
Second Bellemeade deal of 2021 in the market, pricing soon
Execution queries
Questions linger over funded insurer SRTs
Positive prospects
Rating upgrades boost default outlook
Rebound continues
Second trade finance SRT inked
Low flying aircraft
Aircraft ABS remain slowest to recover from Covid
Aircraft lease ABS remains the black spot of the US ABS market, and has been the slowest to .......
-
Low flying aircraft
Aircraft ABS remain slowest to recover from Covid
Aircraft lease ABS remains the black spot of the US ABS market, and has been the slowest to recover from the pandemic sell-off, note analysts.
While spreads in every other sector have now recovered from the pandemic sell-off, and, in fact are now trending at 24-month lows, the aircraft ABS market is still mired in the doldrums.
At the end of May 2021, .......
News 11 June 2021
-
Sustainable infrastructure exposure offered
Sector developments and company hires
Sustainable infrastructure exposure offered
Bayfront Infrastructure Management has priced an infrastructure ABS via Bayfront Infrastructure Capital II (BIC II), a wholly owned and newly incorporated distribution vehicle. The transaction is backed by a US$401.2m portfolio of 27 project and infrastructure loans, diversified across 13 countries and eight industry sub-sectors, with approximately 46% of the portfolio considered eligible sustainable assets.The deal .......
Market Moves 11 June 2021
-
Execution queries
Questions linger over funded insurer SRTs
Originators of significant risk transfer transactions have welcomed the trio of innovative funded insurer trades from Credit Risk Transfer Solutions (SCI 27 May). Even though all three deals were successfully executed, questions have been raised about the potential cost and pricing of future transactions, however.
CRTS’s deals are generally mezzanine trades and involve an investment platform managed by the broker .......
News Analysis 11 June 2021
-
NPL secondary market measures agreed
Sector developments and company hires
NPL secondary market measures agreed
Market Moves 10 June 2021
The European Parliament and European Council have agreed on common EU standards regulating the transfer of non-performing loans from banks to secondary buyers while protecting borrowers’ rights. The measures are designed to foster the development of secondary markets for credit agreements originally issued by banks and qualified as non-performing, enabling third parties to purchase such .......
-
Arch markets MILN
Second Bellemeade deal of 2021 in the market, pricing soon
Arch is currently in the market its second mortgage insurance-linked note (MILN) of the year, and the trade is expected to price tomorrow or Friday, say sources.
The transaction, dubbed Bellemeade Re 2021-2, should close next week or the week after.
Overall deal size is expected to be around $500m, and it will consist of five tranches: the M-1A M-1B, M-1C, .......
News 9 June 2021
-
Positive prospects
Rating upgrades boost default outlook
The number of ‘weakest links’ – issuers rated single-B-minus or lower with negative outlooks or ratings on credit watch with negative implications – decreased to 353 as of 30 April 2021 and is nearing pre-pandemic levels of 282, according to a new report from S&P. Indeed, accommodative financing and an economic recovery contributed to an increase in positive rating .......
News 9 June 2021
-
-
SCI Start the Week - 7 June
A review of securitisation activity over the past seven days
Last week's stories
News 7 June 2021
Canuck rumours
Canadian banks said to be circling CRT
Capital cushions
Buoyant CET1 levels explain CRT reluctance
Domi debut
Domivest transaction attracts strong investor appetite
FHFA under fire
Arch takes aim at FHFA report on GSE CRT
New moves
Angel Oak Capital discusses its issuance of the first US non-agency social bond securitisation
Pandemic hedges
CRT solutions for pandemic events mulled
Positive prospects
Italian .......
-
Euro CLOs could still soften
Sector developments and company hires
Euro CLOs could still soften
European CLO new issue triple-A spreads are now out to 87bp-88bp from their post-Covid tights of 79bp-80bp. While there appears to be considerable support at current levels, technicals could yet push them to the low-90s, according to Bank of America European CLO research analysts.Offsetting factors currently at play include broader credit market direction, rates moves .......
Market Moves 7 June 2021
-
-
Revised expectations
Italian NPL business plans underperform
Italian NPL transaction collections are largely underperforming expectations, partly due to the impact of the pandemic, according to the latest data. Some 21 Italian NPL securitisation servicers have updated their business plan at least once and only two servicers have revised their latest gross collection expectations upwards, while ten trades have been downgraded due to a combination of Covid-related factors, .......
News 4 June 2021
-
New moves
Rob McDonough, director of ESG and regulatory initiatives at...
1./Can you provide more detail on the framework you developed to quantify the deal’s social impact at the loan level?
The core strategy underpinning the formation of Angel Oak’s Non-QM mortgage lending operations in 2011 was to address the material social inequities caused by the tightening of mortgage underwriting standards under the Dodd-Frank Act and other legislation in the aftermath of the .......
The Structured Credit Interview 4 June 2021
-
Pandemic hedges
CRT solutions for pandemic events mulled
Munich Re’s Epidemic Risk Solutions (ERS) unit is targeting credit risk transfer solutions that incorporate pandemic events, although the initiative remains in its early stages and coverage will for now amount to only an economic hedge without capital benefit.
The latter is currently not available to banks under existing Basel rules, but this could change as the ESG agenda across credit markets .......
News 4 June 2021