Complete news archive
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Significant piece of regulation
The PRA's latest consultation paper introduces consequential developments for the SRT market
While the Prudential Regulation Authority’s (PRA) latest consultation paper (CP13/24 – Remainder of CRR: Restatement of assimilated law) focuses more broadly on capital requirements, three significant developments for the SRT community have clearly emerged.
The meaningful proposals include a new formula based p factor, (still) no STS for synthetics and a widely softened stance for unfunded SRTs.
News Analysis 29 October 2024
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Yield-seekers' paradise
Esoteric ABS set to shine amid stable rates and digital surge, say Miami speakers
Esoteric ABS issuance has surged to represent nearly a third of the US securitisation market so far this year, reaching US$96bn of cumulative volume. At Invisso’s ABS East conference in Miami last week, panellists forecasted strong growth across niche asset classes through 2025 - with anticipated interest rate stability pushing investors towards the digital infrastructure, whole business securitisation (WBS), .......
Talking Point 28 October 2024
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SCI CRT Awards: Service Provider of the Year
Winner: Credit Benchmark
Adoption of Credit Benchmark as a service provider has steadily grown among the SRT community in the last year, with nearing 40 major SRT participants now utilising Consensus Credit Ratings and Analytics to improve their transactional, decision-support and workflow productivity. The company fills a critical information gap by offering a timely, comprehensive and independent view of credit risk. These .......
News 28 October 2024
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Tried and true
Michelle Manuel and Michael Schewitz, portfolio managers at Investec, answer SCI's questions
Q: What do you look for in a CLO manager?
The Structured Credit Interview 28 October 2024
Michelle Manuel: With a 70% US middle market portfolio, we tend to look for managers who we know have been through a number of credit cycles. When we look at Europe, we choose managers we know or are comfortable with. However, we mainly tend to buy in Europe when the .......
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SCI CRT Awards: North American Law Firm of the Year
Winner: Mayer Brown
That Mayer Brown is the most active firm in the North American CRT market today is no surprise. While the uptick in the volume of CRT transactions in North America may be relatively new, Mayer Brown’s role in this market is historic and longstanding.
“We have been involved in the US CRT market from the earliest synthetic securitisation .......
News 28 October 2024
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SCI CRT Awards: European Law Firm of the Year
Winner: Clifford Chance
In Europe, Clifford Chance continues to act for the originator bank as structuring and drafting counsel on the majority of CRT transactions in the market. It is in this role as structuring and drafting counsel that the firm has set the standard that the rest of the market follows.
As has been the case now for many years, .......
News 25 October 2024
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Job swaps weekly: Kirkland names two new partners
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Kirkland & Ellis hiring two partners for its structured finance and structured private credit practice. Elsewhere, NPL Markets has made two senior appointments to its team, while Piper Sandler has named a new head of structured products trading.
Kirkland & Ellis has hired Jared Axelrod and Suril Patel as partners .......
Market Moves 25 October 2024
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SCI CRT Awards: North American Arranger of the Year
Winner: BMO
As last year’s North American Issuer of the Year, Bank of Montreal (BMO) has set a high bar for itself. Thanks to a series of key issuances across multiple SRT platforms, the bank has continued its impressive run this year. As such, with its dedicated team of risk transfer experts, a mix of asset classes and experience in this .......
News 25 October 2024
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Teutonic tenacity
German consumer ABS sees strong investor demand despite rising challenges
Despite rising interest rates and escalating costs of living across Europe, the consumer ABS market shows little sign of distress. Issuance levels remain robust, with investors continuing to demonstrate confidence in this sector, even as economic conditions tighten. According to Sam Lee, portfolio manager at TwentyFour Asset Management, "there is no sign as yet of any impact on issuance .......
News 24 October 2024
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Optimisation optimism
SRT activity set to soar as banks adjust to Basel 4
Panellists at SCI’s 10th Annual Capital Relief Trades Seminar in London last week widely agreed that banks are set to ramp up their use of SRT transactions to optimise balance sheets and improve capital efficiency ahead of sweeping regulatory changes under Basel 4.
"I expect further growth in SRTs as banks adjust to Basel 4, using these transactions .......
Talking Point 24 October 2024
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SCI CRT Awards: European Arranger of the Year
Winner: UniCredit
UniCredit completed nine SRT transactions during the awards period, across four jurisdictions and five asset classes, referencing underlying portfolios totaling €13bn. For supporting eight clients, five of which were external, the bank is SCI’s pick for European Arranger of the Year.
Between 1 July 2023 and 30 June 2024, UniCredit continued to develop innovative and efficient structures for .......
News 24 October 2024
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SCI CRT Awards: North American Issuer of the Year
Winner: JPMorgan
Project Appia, which JPMorgan closed on the final business day of 2023, represented perhaps the largest and most complex set of SRT transactions the market has yet seen. For its efforts in bringing this landmark deal to the market, JPMorgan is SCI’s North American Issuer of the Year.
The reference pool in Project Appia was huge, perhaps unprecedently .......
News 24 October 2024
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Here comes the sun
Enpal passes €5bn ahead of Europe's debut public solar ABS deal
Enpal has passed another milestone, as it surpassed €5bn in renewable energy financing commitments. The announcement comes ahead of the issuing of the much anticipated €240m Enpal-originated solar ABS transaction, ABS Golden Ray 1 (SCI 23 October) – a watershed moment as it represents the first ever publicly rated European solar ABS deal.
The German greentech firm, .......
News 23 October 2024
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Milestone deal
IDB Invest lays off risk to private investors
IDB Invest – the Inter-American Development Bank (IDB) Group's private sector institution – has completed a US$1bn securitization for private sector investors to buy multilateral development bank (MDB) assets from Latin America and the Caribbean.
The transaction follows IDB Invest’s new originate to share business model, connecting development assets with global investors to scale impact in Latin America and .......
News 23 October 2024
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SCI CRT Awards: European Issuer of the Year
Winner: BNP Paribas
BNP Paribas issued an eye-watering 12 SRT transactions referencing €26.3bn of exposures across six asset classes during the awards period, including via the launch of three new European programmes. For continuing to push the boundaries and expand its SRT franchise, the bank is SCI’s pick for European Issuer of the Year.
Between 1 July 2023 and 30 .......
News 23 October 2024
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SCI CRT Awards: (Re)insurer of the Year
Winner: RenaissanceRe
Over the company’s 30-year history, RenaissanceRe has evolved from a property catastrophe reinsurer to a multiline, global reinsurer with access to the best casualty, specialty, credit and property risks. Last year, the company acquired Validus Re from AIG, bringing together two highly skilled underwriting teams and enhancing RenaissanceRe’s scale and offerings.
RenaissanceRe’s credit business is an important contributor .......
News 23 October 2024
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SCI CRT Awards: Investor of the Year
Winner: Magnetar
The 2023/2024 awards year marks a period of transformative growth in the significant risk transfer (SRT) market. Amid a dynamic landscape characterised by new issuers, growth in the US SRT market and an influx of new investors, Magnetar distinguished itself with historically high investment volumes across varied deal structures and underlying asset classes and a commitment to thought leadership.
News 22 October 2024
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Summer in the city
European ABS and CLO markets defy summer lull with €34bn Q3 issuance
The European securitisation market saw significant activity through the third quarter of 2024, defying the typical summer slowdown, according to a market update issued by TwentyFour Asset Management.
Aza Teeuwen, partner and portfolio manager at TwentyFour, attributes this to increased funding needs, tighter pricing and a rush to secure funding ahead of the upcoming US elections.
"Volumes .......
News Analysis 22 October 2024
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SCI CRT Awards: Innovation of the Year
Winner: Granular Portfolio Insurance Product
The Granular Portfolio Insurance Product (GPIP) has won Innovation of the Year in this year’s SCI Capital Relief Trades Awards. This product is the first insurance structure of its kind and was developed by BNP Paribas (the bank), Liberty (the insurer) and Howden (the broker).
This innovation is in response to various operational limitations when using credit .......
News 22 October 2024