Complete news archive
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Regional resilience
Structural enhancements for debut aircraft ABS
Falko Regional Aircraft has priced its debut aircraft ABS, marking the first post-pandemic securitisation to be exclusively backed by regional aircraft assets. Dubbed Regional 2021-1, the deal includes new structural features designed to address market concerns resulting from the adverse impact of Covid-19 on the aviation sector.
“The regional aircraft segment has demonstrated resilience in the last year, .......
News 19 April 2021
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SCI Start the Week - 19 April
A review of securitisation activity over the past seven days
Last week's stories
News 19 April 2021
Income opportunities
Angel Oak Capital Advisors, answers SCI's questions
Leverage boost
Dual-tranche SRT prepped
Robust sentiment
Positive outlook for Dutch RMBS market
Servicing hitch
Italian NPL ABS collections drop
Shifting trends
Differing ESG impacts on credit quality considered
Trailing Texas
Banks with large warehouse loan books set to follow TCBI
Consumer warriors
Setback for CFPB, but warning shots at securitisation market fired
The March 26 dismissal .......
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GSE Patch to end
Sector developments and company hires
GSE Patch to end
Market Moves 16 April 2021
Fannie Mae and Freddie Mac have announced that any loans purchased after 1 July must meet the standards set out in the most recent amendments to the Preferred Stock Purchase Agreements, which stipulate that the GSEs will only purchase qualified mortgage loans that meet the new general ATR/QM Rule. The move effectively ends the use of .......
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Federal preemption challenges continue
Sector developments and company hires
Federal preemption challenges continue
Market Moves 15 April 2021
Two US courts have heard actions that are of significance to marketplace lenders and their funding sources so far this month, Chapman and Cutler reports. In Maryland, a state regulatory action purporting to require licensing of a sponsor bank and its fintech service providers has been removed to federal court. Conversely, a California federal court has dismissed .......
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Shifting trends
Differing ESG impacts on credit quality considered
ESG considerations pose higher credit risk to certain securitisation asset classes and certain global regions, with evolving regulations and shifting consumer demand exposing transactions to potential declines in asset values or cashflow. Nevertheless, structural features, short loan tenors and asset diversification can help minimise such credit negative effects.
ESG credit considerations include a broad range of qualitative and .......
News 15 April 2021
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Trailing Texas
Banks with large warehouse loan books set to follow TCBI
Regional banks with large warehouse mortgage lending books will be soon following the lead of TCBI in the CRT market, suggest analysts that follow the sector closely.
In particular, First Horizon, headquartered in Memphis, Tennessee, Flagstar Bank, based in Michigan, Texas-based Independent Bank Corporation and Veritex Community Bank, headquartered in Dallas, Texas, have been singled out as especially likely suspects.
“I bet we .......
News 14 April 2021
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Second IIG exec charged with fraud
Sector developments and company hires
Second IIG exec charged with fraud
Market Moves 14 April 2021
International Investment Group (IIG) managing partner and coo Martin Silver has pled guilty before US District Judge Alvin Hellerstein to investment adviser fraud, securities fraud and wire fraud offenses in connection with an over US$100m scheme to defraud IIG’s investment advisory fund clients and investors (SCI 29 January). In connection with his plea .......
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Income opportunities
Clayton Triick, CFA, senior portfolio manager at Angel Oak Capital Advisors, answers SCI's questions
Q: How and when did you become involved in the securitisation market?
A: Angel Oak Capital Advisors has a long history within the US securitised markets. Originally as a distressed credit investor during the global financial crisis, Angel Oak was able to invest capital targeting deeply discounted private-label RMBS.As markets continued to improve over the subsequent decade, we .......
The Structured Credit Interview 14 April 2021
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Robust sentiment
Positive outlook for Dutch RMBS market
Sentiment in the Dutch RMBS market remains robust, according to panelists in a recent DBRS Morningstar webinar. While government support has been helpful in shoring up the sector during the Covid crisis, inflation is a growing concern among market participants.
“House prices didn’t fall as widely as expected during the pandemic,” said Ketan Thaker, svp and head of .......
News Analysis 13 April 2021
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Green auto feasibility assessments underway
Sector developments and company hires
Green auto feasibility assessments underway
Market Moves 13 April 2021
CO2 emissions data reporting by auto loan lenders is likely to be crucial to classifying auto loan securitisations as ‘sustainable’ or ‘green’, in order to tap demand from ESG-oriented investors, Fitch says. However, the rating agency notes that discussions with lenders imply that creating the basis for detailed CO2 emissions reporting is challenging, as the .......
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Benchmark issuance
PPC finalises NPL ABS
Greece’s Public Power Corporation (PCC) has finalised a €325m non-performing loan securitisation backed by 90 days past due receivables. Such a benchmark transaction is highly unusual for a corporate entity and paves the way for future NPL ABS to be issued in Greece.
The landmark transaction has a total duration of five years and includes a two-year replenishment .......
News 13 April 2021
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Consumer warriors
Setback for CFPB, but warning shots at securitization market fired
The March 26 dismissal of a lawsuit brought by the Consumer Financial Protection Bureau (CFPB) against a student loan trust is good news for the securitization market, but may be only the first skirmish between it and a more bellicose CFPB.
In fact, the manner in which CFPB appears to interpret elements of the 2010 Dodd-Frank Act now means that the structured .......
News Analysis 12 April 2021
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Multi-dealer CLO platform unveiled
Sector developments and company hires
Multi-dealer CLO platform unveiled
Citi and Bank of America have announced they are working together on building a new data and execution platform, initially focused on CLOs and syndicated loans. The proposed multi-dealer platform, which is currently in a testing phase, is expected to launch later this year.BofA and Citi say they initiated the project to address challenges seen throughout .......
Market Moves 12 April 2021
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SCI Start the Week - 12 April
A review of securitisation activity over the past seven days
Last week's stories
News 12 April 2021
Collection boost?
NPL sales increase pending amid uncertain timing
Inclusive approach
ABCP to facilitate sustainable asset transition
Positive prospects
Margin loan CRTs on the agenda
Pockets of value
Patient investors can find bargains in depressed CMBS sector
No area of the US securitisation market has been as severely punished by the events of the last year as the CMBS market, and prices .......
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Servicing hitch
Italian NPL ABS collections drop
Median gross collections for Italian non-performing loan securitisations in 2020 were 21% lower, compared to 2019, according to the latest estimates. The situation is further complicated due to a ban on evictions that will slow cashflows for some months. However, note sales could partially compensate for delays in judicial recoveries (SCI passim).
Starting over a year ago, European .......
News 12 April 2021
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Innovative UTP fund launched
Sector developments and company hires
Innovative UTP fund launched
illimity Group asset management company illimity SGR has completed the first closing of its illimity Credit & Corporate Turnaround (iCCT) fund, dedicated to investments in unlikely-to-pay (UTP) loans to SMEs with revival and relaunch prospects. The initial portfolio consists of loans for a total of over €200m made to 33 companies operating in diversified sectors.Market Moves 9 April 2021
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Inclusive approach
ABCP to facilitate sustainable asset transition
An inclusive approach to transitioning assets is considered crucial to developing a functioning ESG securitisation market. In this context, ABCP is expected to play an active role in financing the move towards a low-carbon economy.
A recent AFME discussion paper - entitled ‘ESG Disclosure and Diligence Practices for the European Securitisation Market’ – notes that two elements are important for .......
News Analysis 9 April 2021
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Non-resident Aussie RMBS debuts
Sector developments and company hires
Non-resident Aussie RMBS debuts
Market Moves 8 April 2021
Brighten Home Loan is readying its inaugural RMBS - the A$250m Solaris Trust 2021-1 – which is backed by loans predominantly to non-Australian resident borrowers. S&P notes that the portfolio is not only exposed to macroeconomic events and policies that affect Australia, but also to events and policies that affect the borrowers’ countries of residence. Consequently, .......