Complete news archive
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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
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First EGF guarantee inked
Sector developments and company hires
First EGF guarantee inked
Market Moves 14 October 2020
The EIB has approved €5.1bn of new financing to support investment by companies most impacted by Covid-19, alongside backing clean energy, water, sustainable transport and urban development. This includes up to €2.66bn of support – comprising €1bn of EIB-linked risk-sharing products and €1.66bn EIF guarantee and equity products - backed by the new European Guarantee Fund, .......
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MPL platform ends note programme
Sector developments and company hires
MPL platform ends note programme
Market Moves 12 October 2020
LendingClub is winding down its retail note programme and has ceased accepting new accounts. The platform says it is no longer ‘economically practical’ to continue offering notes as it moves towards becoming a full-spectrum fintech bank. PeerIQ notes that the move is unsurprising, given that the programme exposed LendingClub to potential conflicts of interest and .......
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Risk transfer round-up - 12 October
CRT sector developments and deal news
Barclays is rumoured to be prepping a corporate capital relief trade that is set to close in 4Q20. The lender finalised its last corporate CRT from the Colonnade programme in June (see SCI’s capital relief trades database).
....... News 12 October 2020
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SCI Start the Week - 12 October
A review of securitisation activity over the past seven days
Last week's stories
Absolute attraction
Absolute 2021-1 shows growth of US CRT market and pass-through appetite
Capital preservation
Kartesia answers SCI's questions
Comeback king
Container ABS weathers the storm
Direct access
For-profit social housing provider debuts
Finnish lift off
Latest KIMI deal completed
Fix-and-flip profits
Low interest rates, inventory levels driving demand
Olympic debut
Largest non-banking Greek ABS closed
Plunging forbearance
Mortgage forbearances enjoy biggest single Covid ....... News 12 October 2020
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Plunging forbearance
Mortgage forbearances enjoy biggest single Covid era weekly tumble
The number of US home loans in active forbearance schemes has nosedived by 649,000 over the last seven days, according to data released today by mortgage data and analysis firm Black Knight.
This represents an 18% reduction in the number of forbearances, which is the largest single week decline since the beginning of the Covid 19 lockdown.
The first forbearances initiated last April .......
News 9 October 2020
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US CLO recovery continues
Sector developments and company hires
US CLO recovery continues
US CLO OC cushions are continuing to recover, according to the latest quarterly US manager report from JPMorgan CLO research.It says: “In the upcoming final quarterly October payment (majority of CLOs), we estimate as much as circa 92% equity will pay a cashflow compared to circa 89% in July and circa 40% during the GFC. .......
Market Moves 9 October 2020
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Direct access
For-profit social housing provider debuts
Deutsche Bank is in the market with an unusual UK CMBS. Dubbed Sage AR Funding No. 1, the £220m transaction is sponsored by a for-profit social housing provider owned by Blackstone.
“It is quite an unusual deal because it is not common for a registered provider of social housing to access the capital market directly. This used to .......
News 9 October 2020
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Growth opportunities
Chapter five of SCI's Autumn 2020 CRT Research Report
The fifth and final chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report outlines the need for sensible significant risk transfer rules and the growth opportunities for the synthetic securitisation market once these are achieved. This section of the report consists of interviews with representatives from Integer Advisors, PCS and PGGM.
The future seems bright for synthetic ......
News Analysis 9 October 2020Premium Content
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Capital preservation
Sharif Anbar-Colas, head of structured credit at Kartesia, answers SCI's questions
Q: How and when did Kartesia become involved in the securitisation market?
The Structured Credit Interview 9 October 2020
A: Kartesia has been involved in the securitisation market for more than 10 years and made investments in securitised products from the first fund raised in 2010. This involvement came from an appreciation of how the securitised tranches of portfolios were trading at a discount to the actual .......
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Litigation finance fund formed
Sector developments and company hires
Litigation finance fund formed
Tetragon and its diversified alternative asset management business TFG Asset Management have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital. The company – which is expected to formally launch on 1 November - is a multi-product global asset management business that will sponsor and manage litigation finance-related investment funds.Baer .......
Market Moves 8 October 2020
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Finnish lift off
Latest KIMI deal completed
Santander has completed a €650m full-stack significant risk transfer trade backed by Finnish auto loans. Dubbed KIMI 9, the transaction differs from previous post-Covid full-stack SRTs in that the first loss tranche was not preplaced or privately placed before the deal’s announcement.
Santander notes that given the track record of the KIMI programme, the firm was confident that .......
News 8 October 2020
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Transatlantic challenges
Contributed thought leadership by Mayer Brown
Complying with EU and US CRT rules simultaneously
A number of law firms have developed excellent synthetic securitisation practices in Europe, but few firms are at the forefront of developing synthetic securitisation in the US, and even fewer have a practice which can navigate EU and US synthetic securitisation rules at the same time. Mayer Brown stands out as the .......
Talking Point 8 October 2020
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Stepping up
Chapter four of SCI's Autumn 2020 CRT Research Report
The fourth chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report highlights the role of the EIF in supporting European SMEs via synthetic securitisation and guarantees. This section of the report covers the EIF’s Covid-19 support measures, as well as its efforts to promote new lending and catalyse private capital across the European SME sector. For further information ......
News Analysis 8 October 2020Premium Content
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Absolute attraction
Absolute 2021-1 shows growth of US CRT market and pass-through appetite
The sale of Absolute 2021-1‘s pass-throughs - the $184.8m repack of two CLNs from Goldman Sachs which closed on September 25 - represents further evidence that investor appetite for higher yielding repackaged pass-through securities is growing.
An S&P analyst who worked on the rating of the deal confirmed that the CLNs were reconfigured as a repack to suit investor needs, but .......
News 7 October 2020
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IP transaction debuts
Sector developments and company hires
IP transaction debuts
Market Moves 7 October 2020
Aon has launched an intellectual property (IP) capital market solution with the close of an IP-backed ILS transaction, believed to be the largest such deal ever consummated. The deal involves agriculture technology company Indigo, which is borrowing over US$100m utilising its IP as collateral, with the value of that collateral insured by a group of insurance markets led .......
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Structured finance solutions
Contributed thought leadership by Ocorian
Sonal Patel, md, head of sales - Americas, Bermuda and Caribbean, and Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlight how structured finance solutions are coming to the fore across securitisation markets
Q: How is the securitisation industry responding to the Covid-19 fallout and .......
Talking Point 7 October 2020
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Seeking clarity
Chapter three of SCI's Autumn 2020 CRT Research Report
The third chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report examines the impact of payment holidays on the SME significant risk transfer sector, as well as concerns over performance and data availability, and the emergence of multi-bank portfolios. This section of the report comprises interviews with representatives from Chorus Capital, the EIF, Integer Advisors, Intesa Sanpaolo, Latham & ......
News Analysis 7 October 2020Premium Content
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Fix-and-flip profits
Low interest rates, inventory levels driving demand
The US fix-and-flip sector has experienced an increase in demand, fuelled by securitisation. Historic low interest rates and inventory levels are further boosting the market.
William Tessar, president of CIVIC Financial Services, says: “These are non-owner occupied investor property loans, not subject to regulations that owner occupied properties are subject to. Overall, interest rates are at historic lows. .......
News 7 October 2020
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'Quick fix' draft legislation published
Sector developments and company hires
‘Quick fix’ draft legislation published
The European Parliament has published draft legislative resolutions on amendments to the Securitisation Regulation and CRR in connection with STS synthetics and non-performing exposures.Among the proposals is a tightening of the definition of an NPE securitisation and the introduction of stricter language on risk retention, according to Rabobank credit analysts. The regulatory treatment .......
Market Moves 6 October 2020
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Olympic debut
Largest non-banking Greek ABS closed
Avis has completed a €186m securitisation of Greek auto leases and related residual value (RV) claims. Dubbed Cronus Finance, it is the first transaction from the jurisdiction since 2010 to achieve an investment grade rating by two major rating agencies and the largest non-banking ABS ever implemented in Greece.
The receivables were originated by Olympic Commercial & Tourist .......
News 6 October 2020