Complete news archive
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SCI Start the Week - 9 November
Last week's stories
ESG philosophy
Federated Hermes answers SCI's questions
Finish line
Galaxy nears completion
Ramping up
Synthetic RMBS prepped
Storming STACR
Freddie Mac shrugs off the lockdown effect to go to town in 3Q and since
Synthetic CMBS eyed
Pension funds target CRE CRTsOther deal-related news
- Semeris has today launched a document library called Semeris Docs for CLOs (SCI 4 November).
- Fitch ....... News 9 November 2020
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Hertz in line with settlement plan
Sector developments and company hires
Hertz in line with settlement plan
Market Moves 6 November 2020
Fitch reports that Hertz had disposed of nearly 170,000 non-program vehicles (NPVs) over the past five months, which is in line with its bankruptcy settlement plan. These dispositions amounted to approximately US$3.3bn of proceeds, with a combined net book value (NBV) of US$2.8bn. Per the Hertz Vehicle Financing II liquidation event, these sales proceeds .......
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Synthetic CMBS eyed
Pension funds target CRE CRTs
Pension funds are targeting synthetic securitisations of commercial real estate loans, despite the challenges of the Coronavirus crisis (SCI 9 July). However, going forward, portfolio composition will be key for real money investors.
According to Chris Redmond, head of manager research at Willis Towers Watson: “Since mid-July, the screamingly cheap has gone and so now we are .......
News Analysis 6 November 2020
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Storming STACR
Freddie Mac shrugs off the lockdown effect to go to town in 3Q and since
Freddie Mac's new CRT issuance credit-protected more unpaid principal mortgage balance at a higher maximum coverage in 3Q 2020 than in any other quarter since it began reporting these numbers, according to Mike Reynolds, vice president of single family CRT at the GSE.
It is striking that this should have occurred in a quarter when market uncertainty occasioned by Covid .......
News 5 November 2020
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CLO library launched
Sector developments and company hires
CLO library launched
Semeris has today launched a document library called Semeris Docs for CLOs. The service initially covers European CLO documents and summaries on over 75 transactions, which will continue to grow and see a US CLO library launched in 1Q21.Semeris Docs is built on NLP (natural language processing) and the latest AI techniques, combined with human .......
Market Moves 4 November 2020
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Strategic partnership expanded
Sector developments and company hires
Strategic partnership expanded
Pretium has entered into an expanded strategic partnership with American Equity Investment Life Insurance Company (AEL), building upon AEL's prior investment commitments with the firm and increasing total commitments to US$1bn, with pre-agreed terms for expansion to US$2.25bn. The investments will initially be primarily deployed into attractive residential credit assets sourced and managed by Pretium.In .......
Market Moves 3 November 2020
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Finish line
Galaxy nears completion
Alpha Bank has received two binding offers for its Galaxy project (SCI 6 August). The transaction will involve a non-performing loan securitisation and the sale of the bank’s loan servicing platform Cepal.
Several sources note that that the binding offers come from PIMCO and Davidson Kempner, as momentum in the Greek NPL ABS market continues to gather .......
News 2 November 2020
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ESG philosophy
Andrew Lennox, senior portfolio manager at the international...
Q: How and when did the international business of Federated Hermes become involved in the securitisation market?
A: The Federated Hermes European structured credit team consists of senior portfolio manager Stephane Michel, me and two analysts covering the universe of ABS and CLOs. I arrived at the firm 2.5 years ago.One of the attractions of moving to work .......
The Structured Credit Interview 2 November 2020
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Risk transfer round-up - 2 November
CRT sector developments and deal news
BDK has priced its seventh full-stack capital relief trade from the Red & Black Germany programme. The transaction is broadly in line with R&B Six, but changes have been made to the composition of the portfolio and payment triggers (SCI 23 October).
The €935m class A notes pay one-month Euribor plus 70bp, the €25m class Bs pay .......
News 2 November 2020
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SCI Start the Week - 2 November
A review of securitisation activity over the past seven days
Last week's stories
Best-of-breed network
Arrow Global Group answers SCI's questions
Diverse portfolio
Private equity CDO completed
Election focus
US CLOs hold up for now
Measurement uncertainty
Inclusion of climate exposures in ICAAPs explored
Mind the gap
CLO equity price and NAV data examined
Risk transfer boost
US CRT market picks upOther deal-related news
- Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse ....... News 2 November 2020
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UKML shareholder consultation continues
Sector developments and company hires
UKML shareholder consultation continues
Market Moves 30 October 2020
The board of UK Mortgages (UKML) has completed the strategic review that it commenced following the withdrawal of proposals by M&G Investment Management (MAGIM) (SCI 14 August). The review has identified two potential options that will provide a clear path to the company’s objectives of enhanced liquidity, as well as a narrowing and removal of .......
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Risk transfer boost
US CRT market picks up
SCI publishes regular in-depth analysis of trends and developments across the capital relief trades market, in addition to our usual news output. In this latest CRT Premium Content article, we investigate US banks' attempts to manage coronavirus-related higher capital requirements via capital relief trades.
To upgrade your subscription to access all CRT premium content for a year, .......
News Analysis 29 October 2020
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Election focus
US CLOs hold up for now
Next week’s US presidential election is holding the attention of the credit market, along with the rest of the world. However, the US CLO sector appears to be dealing with short-term concerns reasonably well, though longer-term issues continue to lurk in the background.
“We’ve seen lower secondary trading volumes this week and last week, and at the same time spreads .......
News Analysis 29 October 2020
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Pan-European logistics CMBS prepped
Sector developments and company hires
Pan-European logistics CMBS prepped
Blackstone Real Estate Partners is in the market with a €318.6m single-loan pan-European CMBS. Dubbed Pearl Finance 2020, the transaction is secured by 61 predominantly last-mile logistics assets across Denmark, Finland, France, Germany, Ireland and the Netherlands.The assets are valued by Cushman & Wakefield at €576.9m, as of 31 July 2020. Portfolio occupancy currently .......
Market Moves 28 October 2020
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Mind the gap
CLO equity price and NAV data examined
From now on SCI will be publishing regular case studies and reports on the CLO market in addition to our usual news stories on the sector. Here, we examine how CLO equity prices have fared so far over this most tumultuous of years and their relationship to their underlying NAVs.
While this first article is available to .......
News 28 October 2020
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Best-of-breed network
Zach Lewy, founder and group cio of Arrow Global Group, answers SCI's questions
Q: How and when did Arrow Global Group become involved in the non-performing loan market?
The Structured Credit Interview 27 October 2020
A: Arrow Global was established in 2005 as the European principal investment arm of Sallie Mae and was tasked with investing in distressed assets across the region. It was apparent that there were amazing opportunities for local champions to be successful, given that they remained .......
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Measurement uncertainty
Inclusion of climate exposures in ICAAPs explored
Many banks are planning to include climate exposures in their internal capital adequacy assessment processes (ICAAPs), but which pillar their assessments should fall under remains unclear. Nevertheless, bounding and monitoring metrics could help quantify climate risks better.
A recent PwC survey notes that 59% of respondents are planning to include material climate exposures in their ICAAPs, but .......
News 27 October 2020
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AMCO deal completed
Sector developments and company hires
AMCO deal completed
Market Moves 26 October 2020
Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as .......
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Risk transfer round-up - 26 October
CRT sector developments and deal news
RBS is believed to be prepping a corporate capital relief trade that is expected to close in 4Q20. The UK lender’s last significant risk transfer transaction settled earlier this year and referenced project finance loans (SCI 31 January).
....... News 26 October 2020