Complete news archive

  • SCI Start the Week - 24 May

    A review of securitisation activity over the past seven days

    Last week's stories
    Gaining momentum
    European solar ABS issuance tipped to emerge
    Revving up
    Strong demand continues for CRE CLOs
    SRT boost
    Barclays expands Colonnade platform

    Other deal-related news

    • OneMain has become the first US securitisation issuer to offer a SOFR-linked floating-rate tranche (SCI 17 May).
    • US CMBS loan refinancings are likely to remain under pressure over the next 18 months, given continued business interruption at .......

      News 24 May 2021

  • RFC issued on benchmark regulation powers

    Sector developments and company hires

    RFC issued on benchmark regulation powers
    The UK FCA has published a consultation on its proposed policy framework for exercising two of its new powers under the Benchmarks Regulation (BMR), which will be introduced by the Financial Services Act 2021. These powers aim to facilitate an orderly wind-down of critical benchmarks like Libor and help users that cannot transition to .......

    Market Moves 21 May 2021

  • Strategic credit commitment inked

    Sector developments and company hires

    Strategic credit commitment inked
    The Investment Management Corporation of Ontario (IMCO) has closed a US$500m commitment with a new strategic partner, Ares Management Corporation. IMCO has allocated US$400m of the commitment to a fund of one structure and US$100m to Ares Pathfinder Fund, a flagship global alternative credit fund. Pathfinder pursues a differentiated strategy of providing tailored financial solutions for .......

    Market Moves 20 May 2021

  • Revving up

    Strong demand continues for CRE CLOs

    Sentiment in the US CRE CLO market remains relatively positive (SCI 10 May), with the multifamily sector in particular seeing robust demand. The outlook for the office sector is mixed, however.

    “The CRE CLO market is hitting all cylinders. There is strong investor demand for new issuance and issuers have a strong origination pipeline,” says John Amman, .......

    News Analysis 20 May 2021

  • SRT boost

    Barclays expands Colonnade platform

    News 20 May 2021

  • Data centre leverage 'inconsistent' with ratings

    Sector developments and company hires

    Data centre leverage ‘inconsistent’ with ratings
    A number of wholesale data centre securitisations issued in recent years carry elevated leverage that is inconsistent with the single-A rating category, Fitch suggests. The rating agency states that these transactions have weaker credit characteristics and substantially higher leverage multiples than other comparable digital real estate securitisations, such as wireless tower transactions, and higher .......

    Market Moves 19 May 2021

  • Blue investable markets study underway

    Sector developments and company hires

    Blue investable markets study underway
    The European Commission and the EIB Group have increased their cooperation to implement a new EU Sustainable Blue Economy policy. Under the agreement, both institutions will work jointly with EU Member States to meet financing needs to reduce pollution in European seas and support investment for blue innovation and blue bioeconomy.

    As such, the .......

    Market Moves 18 May 2021

  • Gaining momentum

    European solar ABS issuance tipped to emerge

    The development of a European solar ABS market is gaining momentum, with the first few securitisations potentially anticipated to emerge over the next 12-18 months. The first structures to market are expected to have many of the features observed on US solar transactions.

    “We could envisage a situation where we would see the inaugural public transaction in the .......

    News Analysis 18 May 2021

  • OMFIT debuts SOFR-linked notes

    Sector developments and company hires

    OMFIT debuts SOFR-linked notes
    OneMain has become the first US securitisation issuer to offer a SOFR-linked floating-rate tranche. The US$500m OneMain Financial Issuance Trust 2021-1 includes triple-A rated class A2 notes - that will be sized to demand – linked to a rate that will be set in advance using 30-day compounded SOFR, although the deal documentation has provision to switch .......

    Market Moves 17 May 2021

  • SCI Start the Week - 17 May

    A review of securitisation activity over the past seven days

    Last week's stories
    Biden bonanza
    Vast infrastructure package to energise project finance CLOs
    CRE CLO surge
    Record issuance expected
    Demand drivers
    Fundamentals and technicals support US CLOs for now
    Geographical divergence
    CSEE moratoria more likely to underperform
    Lone Star rising
    A soup to nuts profile of TCBI's inaugural CRT (Premium content)
    Mortgage-backed SRT priced
    Credit Suisse executes Elvetia refinancing
    Virtuous circle?
    Bullish sentiment underpins securitisation opportunity
    Bad weather .......

    News 17 May 2021

  • Biden bonanza

    Vast infrastructure package to energise project finance CLOs

    The project finance CLO market, somnolent for a decade, will receive a shot in the arm from the Biden administration’s ambitious infrastructure spending programme, say market-watchers.

    Around $600bn of the planned $2trn package is earmarked for improvement of transport networks, and another $200bn or more will go on housing. The details of how and in what form this money will be distributed .......

    News 14 May 2021

  • ESG incorporation challenges highlighted

    Sector developments and company hires

    ESG incorporation challenges highlighted
    The Principles for Responsible Investment (PRI) has published a report that examines the challenges associated with incorporating ESG in securitised products. The report notes that investors are grappling with two issues: building a rigorous framework for assessing ESG factors in mainstream securitisations and enhancing credit risk assessment beyond traditional fundamental analysis; and promoting standards within the .......

    Market Moves 14 May 2021

  • Virtuous circle?

    Bullish sentiment underpins securitisation opportunity

    A strong rebound in global growth appears to be underpinning the opportunity in securitised credit, notwithstanding the ongoing impact of the coronavirus pandemic. As economic activity picks up and more collateral is available to be securitised, further supply should hit the market and generate increased interest from investors.

    Sentiment in the securitisation market remains bullish, according to Mark .......

    News 14 May 2021

  • Lone Star rising

    A soup to nuts profile of TCBI's inaugural CRT

    It took Texas Capital Bank nine months to finalise its landmark capital relief trade, becoming the first US regional bank to tap the risk transfer market (SCI passim). This CRT Premium Content article tracks the deal’s progress from inception to launch.

    When Texas Capital Bank began to contemplate issuing a capital relief trade in late spring of ......

    News Analysis 13 May 2021

    Premium Content

  • Asset managers partner on pensions initiative

    Sector developments and company hires

    Asset managers partner on pensions initiative
    DWS has launched the DWS Secured Income Fund, aimed at small to medium-sized defined benefit pension plans seeking stable, long-term returns. The fund provides a diversified portfolio of secured income assets, including ABS and CLO bonds.

    Over half of UK defined benefit pension plans are in deficit, with insufficient assets to meet their .......

    Market Moves 13 May 2021

  • Demand drivers

    Fundamentals and technicals support US CLOs for now

    On the back of the exceptionally heavy supply in Q1, US CLO spreads softened, but had reversed back to one-year tights at the end of last week. The move was driven by continuing voracious investor demand, unlikely to be diminished even by expected record primary issuance, unless macro events intervene.

    “Most people still see CLOs as pretty good .......

    News Analysis 13 May 2021

  • Bad weather bonds

    Utilities to make use of ABS to rebuild after extreme weather

    This year has already seen two utility recovery charge (URC) ABS transactions in the US and, say analysts, more will be priced as extreme weather becomes more common – which some climate modellers predict.

    “We’ve seen two so far this year and there is rumbling of more to come due to legislation already in place, as well as .......

    News Analysis 12 May 2021

  • Iberian RMBS investment disclosed

    Sector developments and company hires

    Iberian RMBS investment disclosed
    The EIB has disclosed that it invested €50m in UCI’s latest RMBS, Prado VIII, aimed at promoting the renovation of existing residential buildings in Spain and Portugal, as well as the purchase of new near zero energy housing. The project is expected to contribute to climate change mitigation, delivering energy savings of almost 57GWh a year .......

    Market Moves 12 May 2021

  • STS BTL RMBS prepped

    Sector developments and company hires

    STS BTL RMBS prepped
    Domivest is in the market with the first-ever STS buy-to-let RMBS. Dubbed Domi 2021-1, the €352.2m transaction is backed by a €370.7m provisional pool of Dutch BTL mortgage loans, including €30.61m in prefunding.

    Interest-only loans comprise 93.5% of the pool, according to Moody’s. Loans with initial LTVs above 70% amortise linearly to either the 70% .......

    Market Moves 11 May 2021

  • Geographical divergence

    CSEE moratoria more likely to underperform

    EU banks set aside large provisions in 2020 in anticipation of Covid-induced higher default rates, but most loans that benefited from payment holidays in the region resumed regular payment schedules during 2020 with less than expected difficulty. However, the credit performance of loans exiting moratoria weakened in the last quarter of the year, indicating that loans under long-running moratoria .......

    News Analysis 11 May 2021

  • Risk transfer round-up - 11 May

    CRT sector developments and deal news

    Bank of Montreal has called Muskoka Series 2020-1. The US$132m financial guarantee was executed in April 2020, becoming the first post-Covid capital relief trade (SCI 15 May 2020). The lender exercised another call option on 9 February for Muskoka Series 2017-2 (SCI 9 February).   

    .......

    News 11 May 2021
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