Complete news archive
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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
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Offshore demand
Chinese securitisation continues to gain traction
A growing number of Chinese securitisation issuers are attempting to tap offshore investors, the most recent being China Merchants Bank, with its RMB4.75bn Zhaoyin HeJia 2002-5 RMBS. In the next few quarters, it is expected that offshore investors will have a wider variety of asset types available.
Jerry Fang, senior director and analytical manager for North Asia .......
News Analysis 27 November 2020
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SCI CRT Awards 2020
Investor of the Year: Alecta-PGGM
The coming together of Alecta and PGGM to focus on credit risk sharing transactions (CRS), as they term capital relief trades, is undoubtedly a major event for the sector. However, it is the sizeable voice they have created with the intention of influencing the adoption of high quality transaction standards and thereby stimulate the healthy growth of the market .......
News 27 November 2020
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Jumbo BDC merger agreed
Sector developments and company hires
Jumbo BDC merger agreed
Market Moves 26 November 2020
FS/KKR Advisor, a partnership between FS Investments and KKR Credit Advisors (US), has announced that FS KKR Capital Corp and FS KKR Capital Corp II - two publicly traded BDCs advised by FS/KKR - have entered into a definitive merger agreement. The merger will create one of the largest BDCs in the US, with US$14.9bn in .......
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SCI CRT Awards 2020
Innovation of the Year: Vale Securities Finance 2019-1
Unfunded protection has historically been focused on capital relief trade senior mezzanine exposures, but Bank of Ireland Group (BOIG) debuted a pari passu unfunded tranche alongside a funded junior mezzanine tranche in its €265m Vale 2019-1 deal from December 2019. The transaction also facilitated the refinancing of 2016’s Grattan Securities, which had reached the end of its replenishment period. .......
News 26 November 2020
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Bridge financing inked
Hertz set to re-fleet under bankruptcy emergence plan
Hertz Corporation, in conjunction with affiliates of Apollo Capital Management, has established an interim fleet financing programme to provide up to US$4bn of ABS bridge financing. Dubbed Hertz Vehicle Interim Financing Series 2020-1, the delayed draw note issuance will allow Hertz to ‘re-fleet’ as part of its bankruptcy emergence plan, prior to establishing a longer-term ABS financing programme next .......
News 26 November 2020
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SCI CRT Awards 2020
Impact Deal of the Year: Project Grasshopper
NatWest has raised the bar for impact investment capital relief trades with December 2019’s Project Grasshopper. A number of sector firsts - from its collateral to structural features - combined with a close fit to the bank’s broader strategy make the deal a new benchmark.
Project Grasshopper is the only 100% green significant risk transfer transaction executed in .......
News 26 November 2020
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SCI CRT Awards 2020
North American Transaction of the Year: Chase 2019-CL1
It would take a brave man, or woman, to argue that JPMorgan’s Chase Mortgage Reference Notes 2019-CL1 was not the most eye-catching CRT deal of the last 12 months in North America. As such, it is a worthy winner of the SCI North American Transaction of the Year award.
Of course, it was by no means certain after .......
News 25 November 2020
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SCI CRT Awards 2020
Transaction of the Year: Resonance 5
The winners and honourable mentions of the 2020 SCI Capital Relief Trades Awards were unveiled during a virtual ceremony yesterday. We will be publishing write-ups for each category over the coming days.
Top of the bill is Transaction of the Year, which was won by BNP Paribas’ Resonance Five. The significant risk transfer (SRT) trade stands out .......
News 25 November 2020
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Emergency exit
Taking the GSEs back to private hands in two months is the tallest of tall orders
The difficulties in pulling the Fannie Mae and Freddie Mac out of conservatorship and into private hands before the new administration assumes the reins of office are close to insuperable, say sources in the agency MBS market.
There are a large number of moving parts to such a process, and to tick every box in less than two months, with Thanksgiving, Christmas .......
News 24 November 2020
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UK STS notification portal launched
Sector developments and company hires
UK STS notification portal launched
Market Moves 24 November 2020
The UK FCA has launched its new STS notification platform, with the aim of allowing UK securitisation originators and sponsors to ‘pre-populate’ the STS list in anticipation of the end of the Brexit transition period on 31 December. The FCA states that during the transition period, UK firms should continue to notify ESMA where a .......
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Restructuring boost
Project Galaxy portfolio acquired
Alpha Bank has selected US investment fund Davidson Kempner as its preferred bidder over PIMCO for its Project Galaxy portfolio. The €10.8bn pool includes the disposal of the bank’s servicing unit Cepal and is expected to clear the way for further non-performing loan restructurings (SCI 3 June).
The Greek lender launched the bidding process this year, drawing interest from .......
News 24 November 2020
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EBA SRT report released
Sector developments and company hires
EBA SRT report released
Market Moves 23 November 2020
The EBA has published its long-awaited report on significant risk transfer in securitisations, which includes a set of detailed recommendations to the European Commission on the harmonisation of practices and processes applicable to the SRT assessment. The EBA proposals aim to enhance the efficiency, consistency and predictability of the supervisory SRT assessment within the current securitisation .......
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Generation change?
Investor, issuer ESG engagement surveyed
The vast majority (81%) of ABS issuers polled in a recent Structured Finance Association survey currently incorporate ESG in their overall business operations, with 73% doing so in their asset origination and underwriting practices. The survey assesses the extent ESG principles are incorporated at both the enterprise level and at the structured finance business unit level.
Michael Bright, .......
News 23 November 2020
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SCI Start the Week - 23 November
A review of securitisation activity over the past seven days
SRT seminar TODAY
News 23 November 2020
Join SCI today and tomorrow, 23 and 24 November, for its virtual 6th Annual Capital Relief Trades Seminar, which will explore a number of recent regulatory developments that underline European policymaker support for balance sheet synthetic securitisation. The event also examines the latest trends and activity across the significant risk transfer sector.
Highlights of this year's seminar include .......
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Highland trio launch new firm
Sector developments and company hires
Highland trio launch new firm
Market Moves 20 November 2020
Ex-Highland Capital Management executives Mark Okada, Jack Yang and Trey Parker have launched Sycamore Tree Capital Partners, an asset management firm specialising in private and alternative credit. Okada will serve as ceo, Yang will serve as president and head of business development, and Parker will serve as cio. John Muse and Ken Hersh are strategic .......
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Greek synthetics eyed
Alantra targets CRTs, new jurisdictions
Alantra has evolved to become one of the premier players in the non-performing loan markets by utilising a combination of services, including credit portfolio advisory and asset management. However, following the recent hiring of Francesco Dissera (SCI 3 November), the arranger is now eyeing capital relief trades, including in the currently untapped Greek market.
Alantra’s services .......
News Analysis 20 November 2020
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Positive outlook
DoValue signs NPL MoU
DoValue has signed a memorandum of understanding with Bain Capital Credit for the exclusive management of a portfolio of non-performing loans originated in Cyprus for a total claim of approximately €650m. Following this agreement, the total volume of servicing mandates won by doValue in Southern Europe so far this year has reached €9.3bn. The latter is in line with .......
News 20 November 2020
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Capital headache
The finalized GSE capital rules give with one hand whilst the other takes
The finalized capital rule for the GSEs, released yesterday afternoon (November 19) by the Federal Housing Finance Agency (FHFA), increases the amount of dollar relief afforded by CRT mechanisms from that envisaged by the rules released in May, but the effect is offset by higher overall risk weightings the amended rules impose, observe sources.
“CRT is more effective because the .......
News 19 November 2020
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Automated alternative
CLO tax solution getting traction
An automated alternative to the traditional season-and-sell process that enables tax efficiency for CLOs is starting to gain traction. Smaller firms are expected to be the earliest adopters, though the programme’s efficiencies could benefit all collateral managers.
Season and sell is utilised by US CLOs that are typically Cayman corporations designed not to be engaged in a US trade or .......
News Analysis 19 November 2020