Complete news archive
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Lockdown exposure gauged
Geographic footprint to shape pub performance
The estate securing the Mitchells & Butlers Finance transaction has the most diversified geographic footprint of the UK pub whole business securitisations S&P rates, while Marston’s Issuer’s is the least diversified. Approximately 56% of the Marston’s pub estate is spread across the East and West Midlands, with additional pockets in the North West, Yorkshire and the Humber, according to .......
News 9 February 2021
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Muskoka called
BMO exercises call option
Bank of Montreal has decided to call a capital relief trade backed by senior secured and senior unsecured US and Canadian corporate loans. Dubbed Muskoka Series 2017-2, the transaction was finalised in 2017 and was first eligible to be called in September 2020.
Capital relief trades often feature time calls, which allow banks to call their trades following .......
News 9 February 2021
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NPL SRT agreement inked
Sector developments and company hires
NPL SRT agreement inked
Hoist Finance has signed a co-operation agreement with Magnetar Capital that provides for new portfolio investments on a pan-European level and will create a framework for future purchases in the current regulatory environment. The aim is to make securitisation an integral part of a sustainable business model for Hoist and strengthen its purchase capabilities.The .......
Market Moves 8 February 2021
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True to form
Top tier CLO managers lead the way, but some distinguish themselves further
Leading US CLO managers for the most part continued to retain their position as the most consistent top performers throughout last year in the face of Covid-driven volatility. However, four managers managed to distinguish themselves still further by combining top-tier returns with outstanding risk management.
“The better CLO managers performed throughout the Covid crisis much better than the .......
News Analysis 8 February 2021
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SCI Start the Week - 8 February
A review of securitisation activity over the past seven days
Last week's stories
News 8 February 2021
Beware the ides of March
The end of mortgage forbearance schemes is ominous for MBS
Big Brother Biden
Democrat control of key committees puts securitised market on alert
Origination innovation
Fintechs, specialist mortgage lenders gaining traction
Euro CLO shift
Primary market comes into focus
A buoyant start to the year for the European CLO market has been supported by strong secondary market activity .......
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Fly or goodbye - can airlines survive without taking to the skies?
Contributed thought leadership by Ocorian
As once profitable airlines look to survive and raise liquidity to weather the turbulence of the Covid-19 pandemic, Ocorian director Abigail Holladay and Watson Farley & Williams aviation partner Patrick Moore assess the use of alternative assets as a means to raise finance.
With airlines having lost an estimated US$118.5bn in 2020, it's easy to forget the aviation industry had been .......
Talking Point 8 February 2021
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Iberian NPL ABS performance eyed
Sector developments and company hires
Iberian NPL ABS performance eyed
Market Moves 5 February 2021
The cumulative collection ratio for the DUERO 1 non-performing loan securitisation has consistently breached its trigger level for an interest subordination event – which is set at 90% - since the April 2020 reporting period, according to JPMorgan’s latest Portuguese & Spanish NPL ABS Performance Tracker publication. After dropping to 68.4% in April from 106.1% .......
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Beware the ides of March
The end of mortgage forbearance schemes is ominous for MBS
Mortgage-related forbearance has been a lifeline for borrowers and the MBS market, but for many debtors that lifeline will run out at the end of the March. Without additional action from the new government, over 600,000 seriously delinquent borrowers will reach the end of the forbearance period in less than eight weeks.
This means that even with the current rate of improvement .......
News 4 February 2021
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Motor insurer preps ILS strategy
Sector developments and company hires
Motor insurer preps ILS strategy
Market Moves 4 February 2021
UK specialist motor insurer ERS Group is set to launch an integrated ILS offering as part of its plans to progress its commercial expansion. Three complementary investment strategies will be offered: an open-ended mandate with a remit to invest across both public, private and non-life ILS, with semi-annual liquidity; a closed-ended, higher risk and higher .......
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Credit manager merger
Sector developments and company hires
Credit manager merger
Market Moves 3 February 2021
Cairn Capital Group is set to acquire and merge with Bybrook Capital, a specialist distressed credit manager based in London. The merger will create a diversified alternative credit manager with approximately US$8bn in assets under management across public, private, performing and distressed investment opportunities. Through the transaction, Mediobanca will reaffirm its position as a majority shareholder in .......
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Origination innovation
Fintechs, specialist mortgage lenders gaining traction
The coronavirus fallout appears to be accelerating innovation in mortgage products and origination practices. At the same time, complexity surrounding borrower circumstances is facilitating increased activity by capital markets-funded specialist mortgage lenders.
“There is certainly potential for growth in the non-conforming market, as customers increasingly have complex situations. For example, the self-employed. In times like these, it is .......
News Analysis 3 February 2021
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Big Brother Biden
Democrat control of key committees puts securitized market on alert
The US structured finance industry will feel the hand of the new administration of President Biden most heavily through Democratic control of key financial Congressional committees rather than legislation, says Andrew Olmem, a partner in Mayer Brown’s Washington, DC office.
Olmem was speaking during Mayer Brown’s webinar “Securitization - what to expect in 2021” recorded at the end of last week.
Democrats have .......
News Analysis 3 February 2021
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Biomedical credit opps fund launched
Sector developments and company hires
Biomedical credit opps fund launched
Multi-strategy life sciences investment firm Catalio Capital Management has launched a credit opportunities strategy to meet the growing demand for non-dilutive growth capital within the biomedical sector. The Catalio Credit Opportunities fund seeks to provide senior-secured structured credit to breakthrough biomedical companies, targeting well-capitalised, pre-cashflow businesses with significant support from institutional investors.The strategy .......
Market Moves 2 February 2021
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Leasing CRT inked
Sector developments and company hires
Leasing CRT inked
Market Moves 1 February 2021
The EIB Group has completed its first synthetic securitisation in Romania with a financial services partner. The operation - between the EIB, EIF and Deutsche Leasing Romania - will enable local SMEs across Romania to benefit from €370m of additional leasing finance, predominantly in the agriculture and equipment segments. The majority of borrowers are in rural areas .......
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SCI Start the Week - 1 February
A review of securitisation activity over the past seven days
Last week's stories
News 1 February 2021
2021 STACR debut
Freddie Mac prints first CRT trade of 2021 inside guidance
Consumer SRT prepped
Santander readies full-stack ABS
Liquidity impact
Post-Brexit divergence highlighted
Mind the gap
Innovative ILS structures creating Asian capacity
NPL pipeline builds
European asset disposals intensify
Positive prospects
Secondary CRT market gains traction
SME SRT debut
Montepio inks first synthetic securitisation
Supply issues
A tale of two markets for Dutch RMBS?
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Euro CLO shift
Primary market comes into focus
A buoyant start to the year for the European CLO market has been supported by strong secondary market activity driving spreads to new tights in January. Meanwhile, the primary market got off to a slow start, but over the past week has begun to attract increasing attention.
“The overall recovery in the European CLO market from the Covid-driven .......
News Analysis 1 February 2021
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ABS at the races
Fundamental and technical factors power US ABS, led by autos
Fuelled by very healthy technicals and fundamentals, the US ABS market has entered 2021 at a gallop, led by the auto loan sector, agree ABS analysts.
Barring an unforeseen and drastic pandemic-related downturn, there is little to derail the market at the moment. Spread levels in many sectors are already at the lowest prints seen for a decade, but the market appears .......
News Analysis 29 January 2021
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PHEAA investor forum formed
Sector developments and company hires
PHEAA investor forum formed
Market Moves 29 January 2021
PHEAA has launched a series of consent solicitations seeking investor approval to amend the terms of indentures related to its outstanding tax-exempt bonds and notes issued by various PHEAA student loan ABS trusts, for which the organisation acts as administrator. The amendments would provide for the flexibility to sell the student loans pledged under certain indentures .......
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Positive prospects
Secondary CRT market gains traction
The coronavirus crisis has increased the prospects for a more active secondary market for capital relief trades. Nevertheless, relatively small clip sizes and a dearth of syndicated transactions means that it will be some time before activity matches last year’s all-time record.
According to investor data, approximately US$1bn notional in CRT paper was traded last year as the .......
News Analysis 28 January 2021
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Liquidity impact
Post-Brexit divergence highlighted
Liquidity is one area of concern following the UK’s withdrawal from the EU, given that UK securitisations are no longer considered eligible collateral at the ECB. Potential divergence over the revised retention regulatory technical standards is another.
“The ECB will look at EU deals and data templates. UK securitisations are no longer eligible collateral, which may impact liquidity. .......
News 28 January 2021