Complete news archive
-
Origination innovation
Fintechs, specialist mortgage lenders gaining traction
The coronavirus fallout appears to be accelerating innovation in mortgage products and origination practices. At the same time, complexity surrounding borrower circumstances is facilitating increased activity by capital markets-funded specialist mortgage lenders.
“There is certainly potential for growth in the non-conforming market, as customers increasingly have complex situations. For example, the self-employed. In times like these, it is .......
News Analysis 3 February 2021
-
Big Brother Biden
Democrat control of key committees puts securitized market on alert
The US structured finance industry will feel the hand of the new administration of President Biden most heavily through Democratic control of key financial Congressional committees rather than legislation, says Andrew Olmem, a partner in Mayer Brown’s Washington, DC office.
Olmem was speaking during Mayer Brown’s webinar “Securitization - what to expect in 2021” recorded at the end of last week.
Democrats have .......
News Analysis 3 February 2021
-
Biomedical credit opps fund launched
Sector developments and company hires
Biomedical credit opps fund launched
Multi-strategy life sciences investment firm Catalio Capital Management has launched a credit opportunities strategy to meet the growing demand for non-dilutive growth capital within the biomedical sector. The Catalio Credit Opportunities fund seeks to provide senior-secured structured credit to breakthrough biomedical companies, targeting well-capitalised, pre-cashflow businesses with significant support from institutional investors.The strategy .......
Market Moves 2 February 2021
-
Leasing CRT inked
Sector developments and company hires
Leasing CRT inked
Market Moves 1 February 2021
The EIB Group has completed its first synthetic securitisation in Romania with a financial services partner. The operation - between the EIB, EIF and Deutsche Leasing Romania - will enable local SMEs across Romania to benefit from €370m of additional leasing finance, predominantly in the agriculture and equipment segments. The majority of borrowers are in rural areas .......
-
SCI Start the Week - 1 February
A review of securitisation activity over the past seven days
Last week's stories
News 1 February 2021
2021 STACR debut
Freddie Mac prints first CRT trade of 2021 inside guidance
Consumer SRT prepped
Santander readies full-stack ABS
Liquidity impact
Post-Brexit divergence highlighted
Mind the gap
Innovative ILS structures creating Asian capacity
NPL pipeline builds
European asset disposals intensify
Positive prospects
Secondary CRT market gains traction
SME SRT debut
Montepio inks first synthetic securitisation
Supply issues
A tale of two markets for Dutch RMBS?
....
-
Euro CLO shift
Primary market comes into focus
A buoyant start to the year for the European CLO market has been supported by strong secondary market activity driving spreads to new tights in January. Meanwhile, the primary market got off to a slow start, but over the past week has begun to attract increasing attention.
“The overall recovery in the European CLO market from the Covid-driven .......
News Analysis 1 February 2021
-
ABS at the races
Fundamental and technical factors power US ABS, led by autos
Fuelled by very healthy technicals and fundamentals, the US ABS market has entered 2021 at a gallop, led by the auto loan sector, agree ABS analysts.
Barring an unforeseen and drastic pandemic-related downturn, there is little to derail the market at the moment. Spread levels in many sectors are already at the lowest prints seen for a decade, but the market appears .......
News Analysis 29 January 2021
-
PHEAA investor forum formed
Sector developments and company hires
PHEAA investor forum formed
Market Moves 29 January 2021
PHEAA has launched a series of consent solicitations seeking investor approval to amend the terms of indentures related to its outstanding tax-exempt bonds and notes issued by various PHEAA student loan ABS trusts, for which the organisation acts as administrator. The amendments would provide for the flexibility to sell the student loans pledged under certain indentures .......
-
-
Positive prospects
Secondary CRT market gains traction
The coronavirus crisis has increased the prospects for a more active secondary market for capital relief trades. Nevertheless, relatively small clip sizes and a dearth of syndicated transactions means that it will be some time before activity matches last year’s all-time record.
According to investor data, approximately US$1bn notional in CRT paper was traded last year as the .......
News Analysis 28 January 2021
-
Liquidity impact
Post-Brexit divergence highlighted
Liquidity is one area of concern following the UK’s withdrawal from the EU, given that UK securitisations are no longer considered eligible collateral at the ECB. Potential divergence over the revised retention regulatory technical standards is another.
“The ECB will look at EU deals and data templates. UK securitisations are no longer eligible collateral, which may impact liquidity. .......
News 28 January 2021
-
Equity boost for Olympus spin-off
Sector developments and company hires
Equity boost for Olympus spin-off
Singapore-based direct lender Orion Credit Capital Asia has received an equity investment from OMERS, the pension plan for municipal employees in Ontario, Canada. The move follows last month’s spin-off and rebranding of the business by the management team that spearheaded the private credit efforts of Olympus Capital Asia.Orion Capital Asia manages investment vehicles that provide .......
Market Moves 28 January 2021
-
-
2021 STACR debut (update)
Freddie Mac prints first CRT trade of 2021 inside guidance
Freddie Mac yesterday priced STACR 2021-DNA1, its first CRT debt markets transaction of 2021, the GSE has informed SCI. The underwriters were Bank of America and Barclays.
The trade consists of four tranches for a final size of $970m. The 208m M-1, rated BBB/BBB+, printed at SOFR plus 65bp, carries a 2% credit enhancement (CE) and a weighted average life (WAL) of .......
News 27 January 2021
-
UK social bond debuts
Sector developments and company hires
UK social bond debuts
Kensington is prepping its inaugural STS and what is believed to be the UK market’s first ESG RMBS. Dubbed Gemgarto 2021-1, the £472m transaction is labelled as a social bond and is backed by a pool of UK specialist prime, performing, first-ranking owner-occupied mortgages.The loans are made to underserved borrowers with complex incomes and .......
Market Moves 27 January 2021
-
Mind the gap
Innovative ILS structures creating Asian capacity
MS Amlin’s recent Phoenix 1 Re deal marks the tenth catastrophe bond issued in Singapore (SCI 11 January). The transaction is also an example of how innovative ILS structures can help narrow the insurance protection gap in Asia.
Asia leads the world in economic growth but is also the continent that experiences the largest number of natural .......
News Analysis 27 January 2021
-
US CLO rally rolls on
Current focus on mezz looks set to move down the stack
Strong demand continues to drive secondary spreads tighter across the US CLO capital stack. But – similar to triple-As before them – as mezz tranche prices near par, trading is becoming stickier and the focus is likely to shift down to equity.
“Demand for floating rate assets has continued this year so far, with distressed loans and .......
News Analysis 27 January 2021
-
Call for aircraft ABS protections
Sector developments and company hires
Call for aircraft ABS protections
Market Moves 26 January 2021
Fitch reports that a material number of aircraft failed to be novated to two aircraft ABS - START III and Lunar 2020-1 – last year, following closing. The failure of aircraft to novate in START III resulted in the asset count falling to just two aircraft from 19 initially, while six of 18 initial aircraft .......
-
Supply issues
A tale of two markets for Dutch RMBS?
Dutch prime RMBS volumes hit a historic low of around €1.9bn in 2020, while the buy-to-let RMBS sector saw record issuance of around €1.4bn. Although activity is expected to pick up this year in both segments, the Dutch RMBS market remains characterised by a lack of supply.
Adjusting for the Covid-19 period, NIBC Bank portfolio manager Peter van .......
News Analysis 26 January 2021
-
NPL pipeline builds
European asset disposals intensify
The European banking system’s disposal of non-performing loans intensified in 4Q20, particularly in December, closing the year at €38bn in NPLs sold. An additional €40bn of NPLs could be sold on the market in 2021, with around €30bn of this amount already announced for imminent disposal, according to the latest Banca Ifis Market Watch NPL report. Transaction volumes involving .......
News 26 January 2021
-
CLO outlook updated
Sector developments and company hires
CLO outlook updated
Market Moves 25 January 2021
Fitch says it expects to change a significant portion of its CLO outlooks to stable from negative, following the revision of its CLO coronavirus stress scenario to assume half of the corporate exposure on negative outlook is downgraded by one notch instead of 100%. Approximately one-third of corporate issuers with loans in CLOs currently have a negative .......