Complete news archive

  • Alternative support

    Infrastructure ABS boosts Italian direct lending

    Further details have emerged regarding the debut syndication of an Italian infrastructure loan via a securitisation vehicle (SCI 4 May). The transaction was undertaken with aim of enabling alternative lenders to access the Italian credit market.

    “The objective of the deal was to syndicate both drawn and undrawn loan commitments to non-banking institutions that were not licensed .......

    News 7 May 2021

  • Green railcar ABS debuts

    Sector developments and company hires

    Green railcar ABS debuts
    Trinity Industries has priced its inaugural green railcar ABS, following the publication of its green financing framework in January. The US$355m TRP Series 2021-1 transaction is backed by a US$482.68m portfolio comprising 6,350 railcars.

    The notes constitute green bonds based on the generally accepted market principles for such classification published by ICMA. Sustainalytics, acting as an external .......

    Market Moves 7 May 2021

  • Niche exposure

    CFE Finance business development manager Duccio Duranti and...

    Q: How and when did CFE Finance become involved in the securitisation market?
    DD: CFE Finance was founded by Mario Cordoni in 2001 to support the trade of commercial transactions both to and from emerging markets, including pre-export finance and export credit agency (ECA) financing. As a metals trader, Mario often faced credit risk exposure when dealing with emerging market .......

    The Structured Credit Interview 7 May 2021

  • Landmark Romanian CRT upgraded

    Sector developments and company hires

    Landmark Romanian CRT upgraded
    Scope Ratings has upgraded to single-A from single-A minus the two tranches issued under the SME Initiative Uncapped Guarantee Instruments (SIUGI) for Romania deal (SCI 5 May 2020), an EIF risk transfer transaction referencing 60% of a €1.369bn portfolio – which is still ramping up – of SME credit rights originated by eight Romanian banks. .......

    Market Moves 6 May 2021

  • NPL rebound?

    Secured loan sales set for 2022 return

    European secured loan sales witnessed their sharpest contraction last year as the coronavirus pandemic rocked markets. Nevertheless, a broad-based rebound is anticipated for the non-performing loan market in 2022.  

    According to the latest CBRE data, the market just saw €40.4bn of European secured loan volumes in 2020. The total represents a marked decrease from the €162bn record .......

    News 6 May 2021

  • US CLOs assessed

    Sector developments and company hires

    US CLOs assessed
    As US CLO primary volumes continue to fall, JPMorgan CLO research has taken stock of the market’s current standing. It finds the US$1trn benchmark is edging within sight, despite a deceleration in the number of new managers, and strong risk/reward credentials keeping the CLO space attractive.

    JPMorgan reports that global CLO market outstanding notional is currently .......

    Market Moves 5 May 2021

  • Tight pricing

    Standard Chartered prints CRT

    Standard Chartered has finalised a US$180m CLN that references a US$2bn portfolio of around 130 US and European corporate exposures. Dubbed Chakra Five, the capital relief trade is the most tightly priced Chakra deal to date.

    The trade printed in the high single-digits and features tranches that amortise sequentially over a an approximately three-year weighted average life and .......

    News 5 May 2021

  • Hong Kong ILS pilot unveiled

    Sector developments and company hires

    Hong Kong ILS pilot unveiled
    The Hong Kong Insurance Authority has released details of the two-year Pilot Insurance-linked Securities Grant Scheme promulgated in the jurisdiction’s 2021-2022 Budget. The scheme provides an incentive for onshore and offshore issuers and sponsors to issue ILS in Hong Kong, while efforts are being made in parallel to map out a new regulatory regime for .......

    Market Moves 4 May 2021

  • RFC issued on LGD proposal

    Sector developments and company hires

    RFC issued on LGD proposal
    The EBA has published a consultation paper on draft Regulatory Technical Standards specifying the types of factors to be considered when assessing the appropriateness of risk weights and minimum loss given default (LGD) values for exposures secured by immovable property. Relevant authorities, as designated by a Member State, may set higher risk weights or impose .......

    Market Moves 30 April 2021

  • Balancing act

    Alexander Batchvarov, md, head of international structured f...

    Q: How would you describe European investor appetite for esoteric securitisations currently?
    A: We have a situation on the market, where corporate spreads are moving very tight and at present high yield spreads are in the 300bp area in Europe. Investors seek beta, but also keep an eye over their shoulders – ECB reaction function is of concern. 

    With .......

    Talking Point 30 April 2021

  • Greek investment partnership inked

    Sector developments and company hires

    Greek investment partnership inked
    Mount Street Group has formed a strategic partnership in Greece and Cyprus with Technical Olympic, a Greek real estate, construction and investment group. As part of the partnership and through its subsidiary PFC Premier Finance Corporation (Cyprus), Technical Olympic has entered into a Memorandum of Understanding to acquire a stake in Mount Street’s businesses in Greece .......

    Market Moves 29 April 2021

  • Convexity clues

    CLOs hold firm but opportunities arise

    Booming CLO primary activity either side of the Atlantic continues to be met with sufficient demand to keep supporting spreads. However, there are still opportunities for investors in some areas.  

    “Mezz in particular has continued to come in over the past couple of weeks,” says one investor. “The only area where we are seeing a hint of .......

    News Analysis 29 April 2021

  • Vertical structure

    Rare Spanish NPL ABS closed

    Morgan Stanley last month closed a rare Spanish non-performing loan securitisation, dubbed Retiro Mortgage Securities. The €470m transaction features a vertical structure for the management of four sub-portfolios, with a mortgage lender, an SPV with credit rights over the loan collateral and a respective propco with security rights over the REO assets.

    The NPL collateral has a total .......

    News Analysis 29 April 2021

  • Irish RPL refi prepped

    Sector developments and company hires

    Irish RPL refi prepped
    A refinancing of two Irish reperforming RMBS - European Residential Loan Securitisation 2019-PL1 and Grand Canal Securities 1 - has hit the market. Dubbed Primrose Residential 2021-1, the transaction is backed by a €869.8m portfolio of seasoned first lien performing and reperforming mortgages secured by majority owner occupied (accounting for 57.6% of the pool) and buy-to-let .......

    Market Moves 28 April 2021

  • Marco Polo returns

    Credit Agricole finalises landmark SRT

    News 28 April 2021

  • Funded reinsurance roll-out

    Pass-through longevity swap completed

    Prudential Insurance Company of America’s (PICA) international reinsurance business last month closed an innovative longevity swap with a UK pension scheme using a UK-regulated insurer, Zurich Assurance, as intermediary. The transaction - which transfers longevity risk associated with £6bn of pensioner liabilities - features a limited recourse structure, whereby the longevity and default risks can be passed through the .......

    News 28 April 2021

  • APAC ESG expansion eyed

    Sector developments and company hires

    APAC ESG expansion eyed
    Moody’s is set to expand its Singapore office with the aim of spearheading ESG, climate and sustainable finance efforts in the Asia Pacific region, as well as fostering the ESG ecosystem in Singapore. Included in the firm’s plans are several initiatives, such as the establishment of an ESG Centre of Excellence for investor outreach, engagement and .......

    Market Moves 27 April 2021

  • Risk transfer round-up - 27 April

    CRT sector developments and deal news

    Credit Suisse has redeemed and delisted two Magnolia Finance Five transactions. Magnolia Finance Five Series 2017-1 is a US$400m CLN that matures in 2024. The other transaction, dubbed Magnolia Finance Five series 2017-2, is a US$75m CLN that matures in 2025. 

    .......

    News 27 April 2021

  • Democratising data

    Stephane Michel, senior portfolio manager at the internation...

    Q: How does Federated Hermes integrate ESG in its CLO business?
    A: CLOs are still very much a universe where we are trying to build an analytical framework that is comparable to what our equity colleagues have been able to do for much longer, due to the provision of data that we haven’t got. That’s the challenge for ESG across .......

    The Structured Credit Interview 27 April 2021

  • Downgrades for 'lower quality' mall CMBS

    Sector developments and company hires

    Downgrades for ‘lower quality’ mall CMBS
    Moody's has downgraded 119 principal and interest, 26 interest-only and 11 exchangeable classes from 36 US CMBS and placed eleven P&I, one exchangeable and three IO classes under review for possible downgrade from a further two CMBS. The rating actions affect approximately US$6.2bn of securities and were prompted primarily by increased loss expectations and .......

    Market Moves 26 April 2021

  • Non-prime pick-up

    UK RMBS driving European volumes

    UK RMBS led European placed securitisation volume in 1Q21, rising to €12.7bn-equivalent from €300m-equivalent in 4Q20, according to AFME data. The non-prime sector, in particular, saw a significant pick-up in activity during the quarter.

    The UK RMBS market appears to be diverging across different issuer segments - fintech and new money lenders, private equity players and the large .......

    News Analysis 26 April 2021
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