Complete news archive
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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 .......
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SCI Start the Week - 25 January
A review of securitisation activity over the past seven days
Last week's stories
News 25 January 2021
CMBS sailing
Stormy waters ahead and astern, but the US CMBS market has avoided the iceberg
Eviction limitations extended
New law poses risk for Spanish asset quality
Issuer substitutions
VAT reversal results in redomiciled CLOs
Italian green SRT debuts
GARC programme broadened further
Libor lives on
Likely postponement of USD Libor expiry gives structured finance market breathing space
Litigation on the cards?
SLABS default .......
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Libor lives on
Likely postponement of USD Libor expiry gives structured finance market breathing space
The demise of USD Libor seems likely to be delayed until mid-2023, which gives the structured finance market another two and a half years to gets its house in order - but the time must be used wisely, stress well-placed market observers.
A December 1 announcement by the ICE Benchmark Administration, which administers Libor, that it was seeking an extension of life .......
News Analysis 22 January 2021
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Litigation on the cards?
SLABS default rates causing concern
Rising US student loan ABS default rates have sparked concern among securitisation investors. In order to recover losses, investors may resort to lawsuits.
Philip Stein, partner and litigation practice group leader at Bilzin Sumberg, says: “Some uptick in litigation is likely as investors may want to use lawsuits, or at least the threat of lawsuits, as recourse to .......
News 22 January 2021
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'Unique' CMBX reflects Covid trends
Sector developments and company hires
‘Unique’ CMBX reflects Covid trends
The IHS Markit CMBX.14 index is expected to launch on 25 January, uniquely referencing 25 conduit CMBS issued between September 2019 and December 2020. All five of the 2019 deal constituents are also referenced in CMBX.13, creating collateral overlap between the two series.Morgan Stanley CMBS strategists note that on average, CMBX.14's original credit .......
Market Moves 21 January 2021
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Issuer substitutions
VAT reversal results in redomiciled CLOs
A number of CLO managers have redomiciled their European deals from the Netherlands to Ireland, following the change in interpretation of VAT law by the Dutch tax authorities in connection with CLO management and administration fees (SCI 24 February 2020). Most of the transactions affected by this change – estimated to account for around 30% of European CLO .......
News Analysis 21 January 2021
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CMBS sailing
Stormy waters ahead and astern, but the US CMBS market has avoided the iceberg
Although performance of the US CMBS sector has been better than would have been predicted at the start of the pandemic lockdown, there are still areas of acute concern, say analysts at Fitch Ratings, speaking to SCI as the CRE Finance Conference begins.
"We have bonds on negative outlook and have already downgraded a number of classes in deals, especially those below .......
News 20 January 2021
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CLO team finds new home
Sector developments and company hires
CLO team finds new home
Fidelity International has established a new private credit capability with experienced hires from AnaCap-owned MeDirect Bank. Concurrently, the firm has been awarded the delegation of management for the €400m Grand Harbour CLO 2019-1 transaction. Fidelity says it will continue to engage with MeDirect to explore further strategic opportunities.The private credit team will continue .......
Market Moves 20 January 2021
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Eviction limitations extended
New law poses risk for Spanish asset quality
Royal Decree-Law 37/2020, introduced last month by the Spanish government, extends the limitations on evictions of vulnerable residential tenants until May 2021. The regulations are expected to negatively impact RMBS and non-performing loan ABS performance by prolonging the time lag until property repossession, as well as reducing the incentive for private-sector investment in Spanish residential real estate and adversely .......
News 19 January 2021
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Euro CLO equity yields dip
Sector developments and company hires
Euro CLO equity yields dip
Market Moves 18 January 2021
Annualised equity dividend yields across European CLOs averaged 12.9% in 2020, down from 15.1% in 2019 and below the 15% yearly average for the 2014-2020 2.0 era, according to research from Bank of America. However, the research suggests that in light of the pandemic disruption, the dip was moderate and mainly driven by a drop .......
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SCI Start the Week - 18 January
A review of securitisation activity over the past seven days
Last week's stories
Canadian CRT in the wings
Canadian bank said to ready CRT
Capital boost
Greek banks eye CRTs to tackle NPLs (Premium Content)
Expanding footprint
Hayfin answers SCI's questions
Forbearance falters
Decline in loan removal from forbearance suggests large unknowns ahead
Libor linkage
UK RMBS transition risks highlighted
Strong opening
UK RMBS market update
QM queue
New seasoned QM category could open door to increased MBSNews 18 January 2021
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QM queue
New seasoned QM category could open door to increased MBS
On December 10, the Consumer Finance Protection Bureau (CFPB) issued the final rule for the criteria which define a Qualified Mortgage, and the introduction of an innovative seasoned loan category could provide a route for increased lending and greater MBS issuance, say market observers.
Under the new ruling, mortgages which do not initially meet the qualification benchmarks for QMs may become a .......
News Analysis 15 January 2021
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Strong opening
UK RMBS market update
The first public European securitisation of the year, dubbed Hops Hill 1, is expected to price today. Sponsored by UK Mortgages, the UK buy-to-let RMBS has received strong demand across the capital stack.
The £332.6m deal is backed by 1,465 mortgage loans. Guidance for the senior notes was set at SONIA plus 100bp area, while guidance for .......
News 15 January 2021
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Expanding footprint
Jordan Milman, global head of structured products at Hayfin, answers SCI's questions
Q: How and when did Hayfin become involved in the structured credit market?
A: Hayfin launched a structured credit offering in 2012 and since then has invested over €1.7bn through more than 200 transactions, generating gross returns of 11.9% for 2H20.In June 2020, I joined the firm - along with John Hanisch - to lead the expansion of .......
The Structured Credit Interview 15 January 2021
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illimity inks NPL ABS duo
Sector developments and company hires
illimity inks NPL ABS duo
Market Moves 15 January 2021
illimity Bank has finalised two non-performing loan transactions, including the sale to Phinance Partners and SOREC involving a €129m GBV portfolio related to around 4,500 debtors. The portfolio consists of unsecured loans related to granular mainly retail exposures that were acquired by illimity during 2019 as part of an investment transaction in a large portfolio .......
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Lloyd's ILS platform unveiled
Sector developments and company hires
Lloyd’s ILS platform unveiled
Market Moves 14 January 2021
Lloyd's has established London Bridge Risk PCC, the first UK ILS structure to be approved by the PRA for use for multiple, market-wide transactions for Lloyd's members. Clifford Chance worked with Lloyd's and the regulators to devise a structure and set of market standard template documentation with flexibility to accommodate a range of individual investment models and .......