Complete news archive
-
Supply fatigue?
European ABS market update
Execution for the two UK securitisations priced last week indicated a limited appetite for paper, following the heavy supply seen in previous weeks (SCI 23 February). A weaker tone in European ABS secondary spreads also emerged.
“The market is a little bit softer, due to a combination of factors - the amount of supply that we have .......
News 10 March 2021
-
Asset and liability origination tie-up agreed
Sector developments and company hires
Asset and liability origination tie-up agreed
Apollo and Athene have entered into a definitive agreement to merge in an all-stock transaction that implies a total equity value of approximately US$11bn for Athene. Upon closing of the merger, current Apollo shareholders will own approximately 76% of the combined company on a fully diluted basis and Athene shareholders will own approximately 24%.Market Moves 9 March 2021
-
CLOs/CBOs solid
US CLO primary rumbles on as CBOs perform strongly
The US CLO refi/reset machine rolled on last week with primary spreads narrowing at the top of the stack. At the same time, the CBO sub-sector continues to perform well.
The US CLO primary saw another bumper week last week, with 15 refis/resets and nine new issues pricing. Investment grade primary spreads tightened yet again on the week, .......
News Analysis 9 March 2021
-
-
Loyalty programme financing prepped
Sector developments and company hires
Loyalty programme financing prepped
American Airlines is prepping an unusual US$7.5bn secured financing backed by license-payment obligations from American and cashflow generated by the AAdvantage Loyalty programme. AAdvantage Loyalty IP is an SPV incorporated under the laws of the Cayman Islands and has a maximum programme capacity of US$10bn.As part of the financing structure, the intellectual property (IP) .......
Market Moves 8 March 2021
-
Cladding issues
Fire-safety requirements to have 'marginal' impact on RMBS
DBRS Morningstar has investigated the pervasiveness of the impact on UK mortgage borrowers of cladding on high-rise apartment blocks, following the Grenfell Tower fire in June 2017. The study is based on an analysis of 64 securitised UK mortgage portfolios, comprising 670,000 loans.
“Fallout from the Grenfell fire tragedy continues to be felt by tenants and leaseholders across .......
News 8 March 2021
-
-
SCI Start the Week - 8 March
A review of securitisation activity over the past seven days
Last week's stories
News 8 March 2021
Benchmark legislation
Congress to rescue Libor-based contracts, but questions remain
Ever-changing moves
Euro CLOs remain fluid
Middle market opportunities
MM CLOs still offer relative value and continued innovation
NPL ABS inked
Vega securitisation underway
Pattern recognition?
New issue and secondary CLO double-B disparity discussed
Promising pipeline
STS synthetic securitisations slated
Residential rise
Mortgage SRT motivations examined
Stepping up
Indian banks change gear on Libor transition
The .......
-
Libor announcements to 'accelerate' transition
Sector developments and company hires
Libor announcements to ‘accelerate’ transition
Market Moves 5 March 2021
The UK FCA has confirmed that all Libor settings will either cease to be provided by any administrator or no longer be representative immediately after 31 December 2021 - in the case of all sterling, euro, Swiss franc and Japanese yen settings, as well as the one-week and two-month US dollar settings – and immediately .......
-
Middle market opportunities
MM CLOs still offer relative value and continued innovation
One of the key attractions of middle market CLOs is the relative value opportunity they offer investors. While the sector has rallied in recent months alongside broader markets, it still offers trading opportunities, according to the participants in the Trading Opportunities Roundtable at SCI's 2nd Annual Middle Market CLO Seminar last week.
MM CLOs are positioned favourably against .......
News Analysis 5 March 2021
-
-
Promising pipeline
STS synthetic securitisations slated
Appetite for STS synthetic securitisations is emerging ahead of the publication of the final legislative text, which is anticipated in April, with several transactions expected to hit the market this year. Indeed, panellists at IMN’s recent Virtual Investors’ Conference on Significant Risk Transfer agreed that the deal pipeline – and overall environment for SRT - is promising.
Pascale .......
News Analysis 5 March 2021
-
General QM delay proposed
Sector developments and company hires
General QM delay proposed
Market Moves 4 March 2021
The CFPB has released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from 1 July 2021 to 1 October 2022 (SCI 24 February). The CFPB is proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the Covid-19 .......
-
Stepping up
Indian banks change gear on Libor transition
The State Bank of India and ICICI Bank undertook their first alternative risk-free rate transactions in January. This utilisation of SOFR is expected be instructive in helping the Indian securitisation market move towards Libor cessation, having initially been slower to react than other jurisdictions.
“Libor is a central issue in Europe and the US, but the impact is .......
News Analysis 4 March 2021
-
Benchmark legislation
Congress to rescue Libor-based contracts, but questions remain
Federal Reserve chairman Powell’s endorsement last week of federal legislation to ease the transition to non-dollar Libor benchmarks has been hailed as a positive step for the structured finance industry. Powell was speaking in front of the House of Representatives Financial Services Committee and predicted that there will be a “hard tail” to the exit from Libor, to which .......
News Analysis 3 March 2021
-
-
Residential rise
Mortgage SRT motivations examined
An increase in European synthetic RMBS volume is anticipated, following the issuance of three mortgage risk transfer deals in the last two months of 2020. In this latest CRT Premium Content article, we examine the different issuer motivations for executing synthetic RMBS.
The motivation for an issuer to execute a residential mortgage significant risk transfer deal differs ......
News Analysis 3 March 2021Premium Content
-
-
SCI Start the Week - 1 March
A review of securitisation activity over the past seven days
Last week's stories
News 1 March 2021
Democratising access
Debut Indian wealth-tech bond repaid
Morgan mulled
Latest JP Morgan CRT trade cited as fresh evidence of US take-off
Pandemic uplift
Covid-19 boosts NPL note sales
Record fundraising
Chorus exceeds SRT fund targets
Strong pipeline
European ABS market update
Supply issues
STS volumes concentrated in auto loans
Through thick and thin
JPMorgan set to price its new CRT at wafer thin margins
US .......
-
Ever-changing moves
Euro CLOs remain fluid
The European CLO market is in a far more fluid state than the headline refi/reset boom suggests. As such, investor vigilance over potential market changes is as important as ever.
“We’ve got upwards of 50 cleansing notices at the moment and with that kind of supply, you’ve got to consider what the demand is and whether we are going to .......
News Analysis 1 March 2021
-
Pattern recognition?
New issue and secondary CLO double-B disparity discussed
SCI publishes regular case studies and reports on the CLO market in addition to our usual news stories on the sector and the latest can be found here.
This time, we examine the double-B pricing patterns in CLO primary and secondary markets amid November to January’s textbook new issue boom and rally. Read this free report to discover the .......
News 1 March 2021