Complete news archive
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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
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UKAR pair preplaced
Sector developments and company hires
UKAR pair preplaced
Market Moves 26 February 2021
Citi has preplaced a pair of UK non-conforming RMBS backed by a portfolio it acquired from UKAR. The transactions – the £2.898bn Jupiter Mortgage No. 1 and the £1.559bn Stratton Mortgage Funding 2021-2 - securitise a pool of first-lien owner-occupied and buy-to-let loans originated by NRAM, GMAC-RFC, Mortgage Express, Kensington, Keystone Property Finance, Bradford & Bingley, Legal .......
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Pandemic uplift
Covid-19 boosts NPL note sales
Non-performing loan note sales have increased by 70% since the start of the coronavirus pandemic and now account for an average of 12% of total collections. Servicers have increased note sales to compensate for lower judicial proceeds, given limited court activity during lockdowns, and a decline in collateral liquidity. However, uncertainties pertaining to NPL trading platforms and the EU’s .......
News 26 February 2021
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Injunction sought over Blue Owl combination
Sector developments and company hires
Injunction sought over Blue Owl combination
Market Moves 25 February 2021
Golub Capital Partners, one of 17 partner managers in the Dyal Capital Partners IV fund, has brought a lawsuit against the fund, Neuberger Berman Group (NBG) and NB Alternatives Advisers, seeking an injunction against the Blue Owl transaction (SCI 4 December 2020). Sixth Street previously filed a lawsuit against the Dyal Capital Partners .......
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Democratising access
Debut Indian wealth-tech bond repaid
The debut bond structured by Indian wealth-tech platform GrowFix has been fully repaid, with investors earning a 10% yearly return on the asset. The firm seeks to democratise investor access to fixed income assets yielding returns of 200bp-400bp over fixed deposits and intends to eventually launch multiple bonds on a monthly basis, depending on the demand.
Secured by .......
News 25 February 2021
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Record fundraising
Chorus exceeds SRT fund targets
Chorus Capital has concluded fundraising for Chorus Capital Credit Fund IV, its latest dedicated significant risk transfer fund. The firm has amassed US$1.4bn of capital commitments, well above the initial target of US$1bn. The fund represents Chorus Capital’s largest commingled investment vehicle to date and one of the largest private credit funds raised in Europe since the start of .......
News Analysis 25 February 2021
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Morgan mulled
Latest JP Morgan CRT trade cited as fresh evidence of US take-off
The new JP Morgan Chase capital relief trade, for which Moody’s released the pre-sale report at the end of last week, continues to attract market comment. While the US CRT market is still some way behind the European CRT market, this latest trade has been cited as further evidence that the US market is at take-off stage.
"This latest deal shows .......
News Analysis 24 February 2021
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QM final rules revisit mulled
Sector developments and company hires
QM final rules revisit mulled
Market Moves 24 February 2021
The CFPB is considering whether to initiate a rulemaking to revisit the Seasoned QM Final Rule. If the bureau decides to do so, it expects that it will consider in that rulemaking whether any potential final rule revoking or amending the Seasoned QM Final Rule should affect covered transactions for which an application was received .......
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MM CLO seminar line-up finalised
AI networking opportunities offered
The line-up for SCI’s 2nd Annual Middle Market CLO Seminar has been finalised. The event takes place virtually tomorrow (25 February).
A panel on measuring performance will assess how the middle market CLO sector fared during the Covid-19 crisis, while another panel will explore structural innovation across the market. The trading opportunities panel will focus on secondary market relative value .......
News 24 February 2021
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Strong pipeline
European ABS market update
Bank of America’s Taurus 2021-1 UK has priced at tight levels for UK CMBS transactions on the back of significant demand (SCI 10 February). Against this backdrop, the European securitisation pipeline appears to be gaining strength.
“Generally, the market feels pretty busy. The pipeline is quite full, including new issuance and refinancings,” says one trader.
He .......
News 23 February 2021
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Fintech lender hires SRT pro
Sector developments and company hires
Fintech lender hires SRT pro
European consumer credit platform auxmoney has appointed Boudewijn Dierick md of auxmoney Investments, a newly established investment arm of the company based in Dublin. Reporting to auxmoney cfo Daniel Drummer, Dierick will lead the local operations and drive the expansion of auxmoney’s international capital markets footprint.He joins from BNP Paribas, where he was .......
Market Moves 23 February 2021
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US CLOs stay strong
Resets active as participants also address other issues
Reset activity continues apace in the US CLO primary market. At the same time, other aspects of the market are regaining focus.
Yesterday saw another US reset price – Dryden 75, with its triple-As coming in at 104bp over three-month Libor – alongside one new issue and a partial refinancing. This brings the total number of primary deals .......
News Analysis 23 February 2021
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Supply issues
STS volumes concentrated in auto loans
Of the securitisation asset classes that qualify for STS status, auto loan ABS is where the label has been applied most frequently. In contrast, mortgage collateral is often diverted to support covered bond issuance or STS RMBS are retained.
Consumer and auto loan ABS, as well as prime and buy-to-let RMBS are eligible for the STS label. However, .......
News Analysis 23 February 2021
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Through thick and thin
JPMorgan set to price its new CRT at wafer thin margins
The tightness of the pricing and the thinness of the tranches of JPMorgan’s latest capital relief trade, designated JP Morgan Wealth Management Reference Notes Series 2021-CL1 (SCI 17 February), has raised eyebrows in the marketplace.
According to well-placed sources, the deal’s first loss tranche covers losses between 0% and 0.40%, and price talk is SOFR plus 775bp-825bp. .......
News Analysis 22 February 2021
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Irish NPE portfolio offloaded
Sector developments and company hires
Irish NPE portfolio offloaded
AIB Group is set to sell a non-performing loan portfolio in long-term default to Mars Capital Finance Ireland as part of a consortium arrangement with Mars and affiliates of Apollo Global Management. At completion, AIB will receive a cash consideration of approximately €400m.As at September 2020, the loan portfolio had a gross NPE value .......
Market Moves 22 February 2021
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Galaxy securitisation finalised
Alpha and Davidson Kempner sign deal
Alpha Bank has signed a definitive agreement with Davidson Kempner with respect to its €10.8bn Galaxy portfolio (SCI 24 November 2020). The deal is the second largest rated non-performing loan securitisation in Europe and will reduce the lender’s NPE and NPL ratio in Greece by 24% and 13% respectively.
According to the terms of the transaction, Alpha .......
News 22 February 2021
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SCI Start the Week - 22 February
A review of securitisation activity over the past seven days
MM CLO seminar this week
Join SCI on Thursday 25 February for our second Middle Market CLO seminar for the opportunity to meet and discuss performance patterns and expectations, new structuring trends, relative value opportunities and what the post-new normal future is for the sector. Book now or find a full conference overview here.Last week's stories
News 22 February 2021
Consumer SRT prints
Santander finalises .......
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Small balance UK CMBS prepped
Sector developments and company hires
Small balance UK CMBS prepped
Together Commercial Financial Services is marketing an unusual securitisation backed by small balance commercial assets. Dubbed Together Asset Backed Securitisation 2021-CRE1 (TABS 2021-CRE1), the £328.8m transaction is backed by 1,482 loans provided to 1,399 borrowers.The average outstanding principal balance per borrower is £235,020 and approximately 41.9% of the underlying properties are either fully .......
Market Moves 19 February 2021
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Private role?
Benefits of tokenisation weighed
As investment trends shift more towards private financings, tokenisation could play an important role in facilitating transactions. However, obstacles remain to a more widespread adoption of blockchain technology.
“A small revolution is going on that could significantly improve the investment process in the private industry, in particular. As the focus is shifting from public financing to private financing, .......
News Analysis 19 February 2021