Complete news archive
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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
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Synthetic RMBS priced
Lloyds finalises Syon transaction
Lloyds has priced the third transaction from its Syon programme. The seven-year significant risk transfer trade is motivated by prudent risk management within the context of providing support to first-time buyers, in line with the bank’s Helping Britain Prosper Plan. After withdrawing high LTV mortgage products in March 2020, the UK lender is now seeking to re-enter that market .......
News 19 November 2020
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Democrats and CRT
Banks, GSEs eye Washington for policy clues
It is, probably, a reasonable assumption that US President-elect Joe Biden has never given a second thought to credit risk transfer mechanisms. But for this market and particularly the GSEs, the new administration represents a sea-change in philosophy and policy.
The potential extent of any legislative innovation depends, firstly, on whether the Senate will approve or block action .......
News Analysis 19 November 2020
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APAC capital advisory formed
Sector developments and company hires
APAC capital advisory formed
Aon has launched an Asia Pacific Capital Advisory unit to deliver a holistic approach to capital optimisation for re/insurers. The initiative follows Aon’s launch of similar units in the UK and US.At the same time, actuary Seewon Oh has joined the unit from Smartkarma Innovations, where she was an analyst researching the insurance sector across Asia Pacific. .......
Market Moves 18 November 2020
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Maturity wall eyed
Mall loans face financing difficulties
US CMBS mall delinquencies have reached approximately US$9.65bn across 93 non-defeased loans secured by regional malls and large anchored retail assets, according to a new DBRS Morningstar analysis. The overall delinquency rate for this cohort of loans is 18.7%, with circa 69.8% of the balance within the 2011-2014 vintage, including the largest delinquent loan – the Mall of America .......
News 18 November 2020
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CRT seminar line-up finalised
Fireside chats, awards presentation on the agenda
The line-up for SCI’s 6th Annual Capital Relief Trades Seminar has been finalised. Hosted virtually on 23 and 24 November, highlights of the event include fireside chats with PGGM’s Mascha Canio and EBA policy expert Pablo Sinausía.
A market overview panel will outline how the Covid-19 fallout has affected performance, activity and issuance levels across the CRT market, while another .......
News 18 November 2020
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CRE data initiative launched
Sector developments and company hires
CRE data initiative launched
Market Moves 17 November 2020
Moody's Analytics has formed a new partnership with The Business School (formerly Cass) at City, University of London, to build a database of loan-level commercial real estate information covering the UK and Europe. The initiative will extend The Business School's UK CRE lending survey under the Moody’s Analytics Data Alliance framework. By participating in this initiative, lenders .......
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Record print
VW's latest Chinese ABS oversubscribed
Volkswagen Financial Services has completed its largest-ever Chinese auto ABS, despite challenging market conditions. Dubbed Driver China Eleven Trust, the RMB8bn (circa €1bn) is backed by a diversified pool of receivables from over 134,000 financing contracts.
Bernd Bode, head of group treasury and investor relations at Volkswagen Financial Services, says: “We have now placed 11 Driver transactions in the Chinese .......
News 16 November 2020
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SCI Start the Week - 16 November
A review of securitisation activity over the past seven days
SRT seminar NEXT WEEK
News 16 November 2020
Join SCI on 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 fireside chats .......
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Garrison CLO platform acquired
Sector developments and company hires
Garrison CLO platform acquired
Market Moves 13 November 2020
Mount Logan Capital subsidiary Mount Logan Management (ML Management) has acquired from Garrison Investment Management (GIM) and other sellers the rights under certain interests and agreements relating to Garrison Funding 2018-1 and Garrison MML CLO 2019-1, as well as the rights under certain side letter agreements, for a purchase price of US$3m. As of 30 June .......
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Transition revamp?
Legacy language amendments remain challenging
Standard Libor fallback language has been agreed and adopted by some new transactions ahead of the benchmark transition next year (SCI passim). However, language amendments for legacy transactions remains challenging.
“Government agencies have been pretty clear on the fact that Libor will not be extended. For several years now, new transactions have been printed with satisfactory fallback language. .......
News Analysis 13 November 2020
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Shortfalls hitting rated CMBS notes
Sector developments and company hires
Shortfalls hitting rated CMBS notes
KBRA reports that over 85% (225) of the 263 deals in its rated US conduit CMBS universe have been impacted by interest shortfalls to varying degrees. Prior to the coronavirus pandemic, shortfalls occurred in just over 40% (110) of the transactions, as of February 2020.“The increase is not surprising, as interest shortfalls are .......
Market Moves 12 November 2020
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CLO resurgence?
Primary spike contingent on sustained positivity
The US CLO market’s presidential election lull continued into this week ahead of yesterday’s holiday, despite the rally in equity and broader credit, with no new deals priced since 2 November. However, issuance could now take-off if a variety of factors align and positive sentiment can be sustained.
“The ferocity of the broad market rally has taken everyone .......
News 12 November 2020
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Dutch BTL aggregator deal prepped
Sector developments and company hires
Dutch BTL aggregator deal prepped
Citi is in the market with a new Dutch buy-to-let RMBS. Dubbed Jubilee Place 2020-1, the transaction is backed by a €212.9m portfolio comprising 669 loans originated by Dutch Mortgage Services, DNL 1 and Community Hypotheken.These three platforms focus on the non-consumer segment of the BTL market – in other words, professional landlords – according .......
Market Moves 11 November 2020
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Revised stance
Parliament backtracks on structural features
The European Parliament’s Economic and Monetary Affairs Committee (ECON) has approved the inclusion of time calls and pro-rata amortisation for STS synthetic securitisations, as part of a review of the European Commission’s ‘quick fix’ proposals (SCI 31 July). The committee had initially suggested an exclusion of these features from the final framework, but revised its stance last month .......
News 11 November 2020
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ESG-focused CLO manager formed
Sector developments and company hires
ESG-focused CLO manager formed
Market Moves 10 November 2020
A trio of ex-Ares Management partners have formed a new independent alternative credit investment firm that plans to adopt an active ESG screening approach. Founded by Americo Cascella, Daniel Hall and Shane Mengel, Pacific & Plains Capital is based in Dallas, Texas, with a presence also in Los Angeles, California. The firm will invest in loans .......
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Utility ABS returns
Innovative minibond deal gains wider reception
A consortium of six Italian utility companies has closed its third securitisation backed by minibonds secured by water service assets in the Veneto region of the country. The EIB has acted as anchor investor in all of the programme’s issuances, but the latest transaction saw a broader investor base participate.
The €248m Viveracqua Hydrobond 2020 operation involved the .......
News 10 November 2020
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