Complete news archive
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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
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Diverse portfolio
Private equity CDO completed
CMFG Life Insurance Company has completed a rare private equity collateralised fund obligation (PE CFO). Dubbed MCA Fund III Holding 2020-1, the transaction is structured as a dual SPV and is backed by a diverse pool of private equity funds, with approximately US$574.7m in net asset value and US$189.7m of unfunded capital commitments.
The predominantly static portfolio comprises .......
News 26 October 2020
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SCI Start the Week - 26 October
A review of securitisation activity over the past seven days
Last week's stories
Corona kickstart
Constellation of factors coalesced to push the US CRT market forward
JAAA launched
New triple-A CLO ETF well received
Jurisdiction expansion
European ABS market update
Mezz opportunity
'Rare' bonds on offer via large BWIC
Restructuring capacity
LMLs introduced to European CLOs
Risk transfer return
BDK preps capital relief tradeOther deal-related news
- Post-Covid crisis US BSL CLO structures differ in a ....... News 26 October 2020
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Corona kickstart
Constellation of factors coalesced to push the US CRT market forward
Covid 19 may have given the US CRT market the kick start it needed, suggests David Felsenthal, a New York-based partner at leading global law practice Clifford Chance.
“Coronavirus has underlined the value of capital. People are sensitive to the fact that they might need capital going forward, and CRT gives you capital relief,” he says.
Over the past seven or eight months, .......
News 23 October 2020
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Environmental risk score rolled out
Sector developments and company hires
CMBS environmental risk score rolled out
Market Moves 23 October 2020
Trepp has implemented a new data integration with Risk Management Solutions (RMS) that aims to help evaluate and manage global risk from natural and man-made catastrophes. The solution provides an environmental risk score for properties backing CMBS loans, ranging from one to five, that measure the likelihood of property damage and business interruption from .......
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Risk transfer return
BDK preps capital relief trade
Bank Deutsches Kraftfahrzeuggewerbe (BDK) is marketing a full-stack capital relief trade backed by a static €1bn German auto loan portfolio. Dubbed Red & Black Auto Germany Seven, the deal is broadly similar to R&B Six, although changes have been made to the composition of the portfolio and the payment triggers.
Rated by S&P and Fitch, the transaction consists .......
News 23 October 2020
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Aviation leasing platform prepped
Sector developments and company hires
Aviation leasing platform prepped
PIMCO and GE Capital Aviation Services (GECAS) have reached a preliminary agreement to develop an aviation leasing platform to support up to US$3bn in aircraft asset financings, subject to customary closing conditions. This strategic investment platform will enable GECAS and PIMCO-advised accounts to acquire new and young fuel-efficient aircraft.The portfolio will initially focus on .......
Market Moves 21 October 2020
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Risk transfer round-up - 21 October
CRT sector developments and deal news
Lloyds is believed to still be attempting to execute its second transaction from the Fontwell programme. The deal is backed by agricultural loans and was expected to close in 3Q20, but the bank has allegedly found it hard to sell the mezzanine tranche at below 5%. The last Fontwell deal closed in December 2016 (see SCI’s capital relief trades .......
News 21 October 2020
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Jurisdiction expansion
European ABS market update
IPTs were released today for Mercedes-Benz's inaugural French auto ABS. Dubbed Silver Arrow France 2020-1, the €689.7m transaction is STS compliant and backed predominantly by auto leases.
The jurisdictions that Mercedes-Benz has previously issued in includes Australia, Germany, Italy and the UK. “As happened for other captive auto finance companies, Mercedes is broadening its business and replicating the successful model .......
News 21 October 2020
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JAAA launched
New triple-A CLO ETF well received
The Janus Henderson AAA CLO ETF (JAAA) launched on Monday, 19 October, amid positive investor feedback. The ETF seeks to provide capital preservation and current income by investing at least 90% of its net assets in CLOs of any maturity that are rated triple-A or equivalent at the time of purchase.
“We came to market with seed capital from six .......
News Analysis 21 October 2020
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Leasing ABS inked
Sector developments and company hires
Leasing ABS inked
The EIB and the EIF have provided Alba Leasing with €490m via an SME securitisation financing operation. Alba Leasing has undertaken to double this, increasing the total amount available to €980m for projects across all economic sectors, with a particular focus on environmental investments (for which 20% of the resources have been reserved).The EIB Group has subscribed .......
Market Moves 20 October 2020
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Restructuring capacity
LMLs introduced to European CLOs
Recently issued Deer Park CLO was the first European deal to provide for loss mitigation loans (LMLs) and enable its manager to invest outside of eligibility criteria during restructuring events, according to a new report from Fitch.
“This concept, alongside the existing corporate rescue loan mechanism, bolsters the transaction's ability to play an active role in restructurings, while .......
News 20 October 2020
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Risk transfer round-up - 20 October
CRT sector developments and deal news
Standard Chartered is rumoured to be prepping a capital relief trade backed by emerging market corporate loans from the START programme. The last START transaction closed in September 2015 (see SCI’s capital relief trades database).
....... News 20 October 2020
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CLO structures reviewed
Sector developments and company hires
CLO structures reviewed
Post-Covid crisis US BSL CLO structures differ in a range of ways from their predecessors, beyond shorter reinvestment periods, according to a new report from S&P.“We reviewed a sample of almost 40 US BSL CLOs that closed in Q2 and Q3, and compared their portfolio metrics (as of the start of Q4) to the statistics .......
Market Moves 19 October 2020
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Mezz opportunity
'Rare' bonds on offer via large BWIC
A sizeable UK mezzanine 2.0 RMBS BWIC is due on 22 October and is being seen as a good opportunity to source risk. The portfolio is believed to be being divested by a large US-based seller.
“The seller is a large US-based institution that has been active in the UK for a number of years,” says one ABS .......
News 19 October 2020
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SCI Start the Week - 19 October
A review of securitisation activity over the past seven days
Last week's stories
Compromise pending
Parliament softens stance on 'problematic' proposals
Made in the USA
Speakers at SCI conference herald dawn of new era for US CRT
Movie magic
Rare securitisation of film library future revenues finds buyers
SME CRT completed
Intesa finalises mezz guaranteeOther deal-related news
- LendingClub is winding down its retail note programme and has ceased accepting new ....... News 19 October 2020
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Made in the USA
Speakers at SCI conference herald dawn of new era for US CRT
"Every year I join these conferences and I say 'This is the year of the USA,' and I'm always made a liar because I'm still waiting for it, but this year we'll see real uptick in activity in the US and I expect this will continue," said Jessica Littlewood, a partner at Clifford Chance in London, specialising in credit .......
News 16 October 2020
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Collateralised loan overlap
Sector developments and company hires
Collateralised loan overlap
Market Moves 16 October 2020
Diversification risk across the US CLO market has increased this year, due to the 18% decline in US leveraged loan net supply over 2019 versus 79 different managers issuing deals in 2020. Consequently, JPMorgan CLO research analysts have published a new report looking at US CLO asset inter-overlap (to other managers), intra-overlap (across portfolios of the same .......
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SME CRT completed
Intesa finalises mezz guarantee
Intesa Sanpaolo, the EIF and the EIB have completed a €90m mezzanine guarantee that references a €1.8bn static Italian SME portfolio. Dubbed GARC SME 9, the capital relief trade will enable the bank to provide €450m of loans to Italian SMEs and midcaps in regions negatively impacted by the economic effects of the Covid-19 pandemic.
According to Intesa: “The transaction .......
News 15 October 2020
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Compromise pending
Parliament softens stance on 'problematic' proposals
The European Parliament will likely drop proposals for the exclusion of time calls and pro-rata amortisation from STS synthetic securitisations (SCI 6 October). The Parliament’s amendments were announced last week in response to the European Commission’s ‘quick fix’ framework (SCI 31 July). Compromise solutions are pending, with one potential option being time calls subject to regulatory approvals.
According .......
News Analysis 15 October 2020
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Movie magic
Rare securitization of film library future revenues finds buyers
The $421.5m three-tranche securitization of film distribution revenue by Vine 2020-1, currently in pre-sale, will close on 29 October, according to analysts at Morningstar DBRS.
There are four listed co-issuers, all of which are units of Village Roadshow Entertainment Group (VREG), a movie financer and producer founded in 1986. A majority stake in the firm was acquired by private equity firm Vine .......
News 14 October 2020