Complete news archive
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SCI CRT Awards 2020
Analytics Firm of the Year: Mark Fontanilla & Company
Mark Fontanilla & Company (MF&Co), founded in Charlotte, North Carolina, in 2017, provides a host of financial market advisory and consultancy services. The CRTx Total Return Index and its associated data/analytics suite is the firm’s flagship offering.
Unveiled in April 2018, the CRTx is the first and, as yet the only, commercial index that tracks the daily total return performance of all .......
News 3 December 2020
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SCI CRT Awards 2020
Advisor/Service Provider of the Year: US Bank
US Bank’s global corporate trust team has established a strong presence in Europe over the past 10 years, ranking as the region’s top structured finance trustee by deal volume, according to multiple sources including Moody’s and S&P. Indeed, the firm has built a reputation for helping clients navigate complex deals and is trustee on a significant number of risk transfer trades .......
News 3 December 2020
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Covid communications
The pandemic has meant greater negotiation over terms between CRT buyers and sellers
Discussions between CRT issuers and potential investors have become more protracted in 2020 as a result of Covid 19, with borrowers more willing to give way on areas such as term sheets and credit exposure limitations, notes Kaelyn Abrell, a partner and portfolio manager at ArrowMark Partners, a $20bn asset manager based in Colorado.
“Negotiations have reached even higher levels of depth .......
News 2 December 2020
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Pre-pandemic trends persist for US CLOs
Sector developments and company hires
Pre-pandemic trends persist for US CLOs
Market Moves 2 December 2020
Pre-pandemic trends in US leveraged lending - including high leverage, weak covenants and declining recoveries - resumed by 3Q20 and should continue into 2021, absent a renewed downturn, according to Moody’s. Consequently, the agency expects that in 2021 US CLOs will include structural features for maintaining loan workout and trading flexibility to help manage .......
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SCI CRT Awards 2020
North American Law Firm of the Year: Clifford Chance
The burgeoning development of the US bank capital relief trade (CRT) market has been one of the major talking points of the sector in 2020 – perhaps the major talking point – and Clifford Chance has been at the forefront of this business.
This coming of age of the US CRT market has been talked of for several .......
News 2 December 2020
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Tech solution
Peter Jasko, ceo at Semeris, answers SCI's questions
Q: How and when did you become involved in the securitisation market?
A: Semeris launched last month (SCI 4 November), but I started getting involved in securitisation and CLOs in particular in 2001. I had been involved in the credit derivatives market for a couple of years prior to that, looking at basket trades and cranking the .......
The Structured Credit Interview 2 December 2020
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Innovative SRT inked
Belgian synthetic RMBS finalised
AXA Bank Belgium has completed a synthetic RMBS that references a static €730m portfolio of Belgian prime mortgages. Dubbed CASPR-1, the significant risk transfer trade is unusual due to the underlying asset class and the amortisation structure.
Rated by Fitch and S&P, the transaction consists of a €23.575m AA/AA- rated class A tranche (which priced at three-month Euribor .......
News 2 December 2020
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SCI CRT Awards 2020
Law Firm of the Year: Allen & Overy
In a highly disrupted year, Allen & Overy (A&O) has distinguished itself by not only maintaining its significant market share, but also by being able to expand its offering into new markets, advising on a variety of deals in numerous geographies as well as a variety of first-of-their-kind deals. At the same time, A&O has played a key role .......
News 2 December 2020
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SCI CRT Awards 2020
North American Arranger of the Year: BMO Capital Markets
BMO Capital Markets (BMO) has led the way in true risk sharing trades outside of Europe for over four years. Its well-established programmes, combined with strong investor connections enabled it to be the first to close a deal after the declaration of the global Covid-19 pandemic and seal its place as SCI’s North American Arranger of the Year.
BMO completed .......
News 1 December 2020
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IBA to consult on Libor transition proposal
Sector developments and company hires
IBA to consult on Libor transition proposal
Market Moves 1 December 2020
The US Fed, the OCC, the FDIC and the UK FCA have welcomed a proposal by ICE Benchmark Administration (IBA), the administrator for Libor, that lays out a path forward in which banks should stop writing new US Libor contracts by end-2021 while enabling most legacy contracts to mature before the cessation of .......
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SCI CRT Awards 2020
Arranger of the Year: Credit Suisse
Credit Suisse completed two significant risk transfer transactions during 2Q20 that differ significantly from the typical capital relief trades executed during the height of the coronavirus crisis and were placed with different investor bases. The bank is SCI’s CRT Arranger of the Year in light of its proven placing power, structuring capabilities and motivation to bring the SRT market .......
News 1 December 2020
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Test case
JPMorgan CRT details revealed
Further details have emerged in connection with a corporate capital relief trade that was completed last month between JPMorgan and PGGM and Alecta (SCI 27 November). The transaction was motivated less by capital needs, given the US lender’s strong capital position, but more from a desire to test the trade from an efficiency standpoint.
The cash collateralised deal references .......
News 1 December 2020
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Information giants to combine
Sector developments and company hires
Information giants to combine
Market Moves 30 November 2020
S&P Global and IHS Markit have entered into a definitive merger agreement to combine in an all-stock transaction that values IHS Markit at an enterprise value of US$44bn, including US$4.8bn of net debt. Under the terms of the agreement, which has been unanimously approved by the boards of both companies, each share of IHS Markit common .......
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SCI CRT Awards 2020
North American Issuer of the Year: Freddie Mac
Freddie Mac has several claims to fame over the last 12 months. One of the most arresting is that the GSE rejuvenated the credit risk transfer sector following the most traumatic period of market turbulence and investor alarm in the last decade.
On 8 July, over three months after its previous STACR deal and when this period of acute market .......
News 30 November 2020
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SCI CRT Awards 2020
Issuer of the Year: Intesa Sanpaolo
Intesa Sanpaolo has won the Issuer of the Year category at SCI’s Capital Relief Trades Awards for drastically expanding both its investor base and the asset classes it securitises via significant risk transfer transactions. Key to this success has been the holistic approach of the active credit portfolio steering (ACPS) unit.
Intesa Sanpaolo began its famous GARC programme .......
News 30 November 2020
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SCI Start the Week - 30 November
A review of securitisation activity over the past seven days
Last week's stories
Double trouble
Two - not one - JP Morgan corporate loan CRT trades have been in the market
Emergency exit
Taking the GSEs back to private hands in two months is the tallest of tall orders
Excess spread harmonised
EBA's SRT recommendations released
Generation change?
Investor, issuer ESG engagement surveyed
Offshore demand
Chinese securitisation continues to gain traction
Restructuring boost
Project Galaxy portfolio ....... News 30 November 2020
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Double trouble
Two - not one - JP Morgan corporate loan CRT trades have been in the market
A CRT transaction between JP Morgan and a club of investors referencing corporate loans, believed to be chiefly SME-related assets, is poised to close imminently, say well-placed market sources.
This trade is in addition to the bilateral corporate loan CRT deal involving Dutch asset manager PGGM and co-investor Alecta, a Swedish pension provider, which also closed recently. The .......
News 27 November 2020
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NPL ABS capital treatment amended
Sector developments and company hires
NPL ABS capital treatment amended
The Basel Committee has published a technical amendment in connection with the capital treatment of non-performing loan securitisations. The rule aims to close a gap in the Basel framework by setting out prudent and risk-sensitive capital requirements for NPL ABS.The Committee consulted publicly on the technical amendment during the summer (SCI 24 .......
Market Moves 27 November 2020
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Excess spread harmonised
EBA's SRT recommendations released
The EBA’s long-awaited final report on significant risk transfer details a set of recommendations to the European Commission regarding the harmonisation of practices and processes applicable to the assessment of SRT transactions (SCI 23 November). Most notably, the report harmonises the regulatory treatment of excess spread, ending a three-year uncertainty over the use of the structural feature in .......
News Analysis 27 November 2020
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SCI CRT Awards 2020
Credit Insurer of the Year: RenaissanceRe
RenaissanceRe (RenRe) has won the Credit Insurer of the Year category in SCI’s Capital Relief Trades Awards for breaking new ground on several fronts. The firm was the first reinsurer to execute an SRT guarantee over two years ago and has been pushing the frontier as an investor ever since.
Fiona Walden, svp and global head of credit .......
News 27 November 2020