Complete news archive
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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
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SRT for the real economy
Chapter two of SCI's Autumn 2020 CRT Research Report
The second chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report explores how significant risk transfer can drive economic growth, supported by the recent High Level Forum recommendations, the European Commission’s Covid-19 recovery package and the STS synthetics framework. This section of the report comprises interviews with representatives from AFME, the High Level Forum, Intesa Sanpaolo, PCS and Santander.
News Analysis 6 October 2020
Premium Content
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Synthetics seminar line-up finalised
Fireside chat, CRT workshop on the agenda
The line-up for SCI’s 4th Annual Risk Transfer & Synthetics Seminar has been finalised. Hosted virtually on 7 and 8 October, highlights of the event include a fireside chat between Clifford Chance’s Timothy Cleary and Christofferson Robb & Co’s Richard Robb, as well as a Mark Fontanilla & Co workshop on the US credit risk transfer market.
A market overview .......
News 6 October 2020
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Range of moratoria take-up 'stark'
Sector developments and company hires
Range of moratoria take-up ‘stark’
Market Moves 5 October 2020
With payment holiday concentrations having fallen over the past few remittance periods, the range of payment holiday take-up across UK RMBS is stark, according to JPMorgan’s latest Covid-19 Payment Holiday Tracker. Reflecting data reported primarily through September and August, the report identifies zero percent (in the case of the MORTI 2020-1 deal) and 0.6% (TWIN .......
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Risk transfer round-up - 5 October
CRT sector developments and deal news
Lloyds is rumoured to be readying its third mortgage significant risk transfer trade from the Syon programme for 4Q20. The last Syon transaction closed in February (see SCI’s capital relief trades database). Fitch placed Syon Securities 2019 and 2020 under rating watch negative (RWN) in April, but removed them from RWN last month (SCI 25 September).
....... News 5 October 2020
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Transmitting credit
SRT and the real economy explored
SCI will be publishing a chapter of our Autumn 2020 CRT Research Report each day this week. While today’s instalment - the introduction – is available to all subscribers, the subsequent chapters will be available to premium subscribers only.
To enquire about SCI’s premium content, email [email protected] (new subscribers) or [email protected] (existing customers). For further information on the risk transfer and synthetic .......
News 5 October 2020
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Comeback king
Container ABS weathers the storm
US container ABS volume has made a roaring comeback over the last month, after an absence of issuance that lasted for over a year. Limited expansion in capacity and supply in both the container leasing and container shipping markets has helped the sector weather the coronavirus-related reduction in trade volumes earlier this year.
Container lease ABS issuance accounts .......
News Analysis 5 October 2020
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SCI Start the Week - 5 October
A review of securitisation activity over the past seven days
SCI Risk Transfer Seminar This Week
News 5 October 2020
Join SCI on 7 and 8 October for its Risk Transfer & Synthetics Virtual Seminar, which will explore the micro and macro drivers behind JPMorgan's landmark capital relief trades and whether this flurry of business could spur further risk transfer activity across a broader range of US originators and asset classes.
The seminar also examines innovation .......
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SME boost
Commerzbank completes CRT
Commerzbank, the EIF and the EIB have completed a €125m mezzanine guarantee that references a €1.9bn German SME and midcap portfolio. The guarantee will enable Commerzbank to provide new lending of up to €500m to SMEs and mid-caps in Germany as a countermeasure to the ongoing Covid-19 crisis.
The transaction benefits from the support of the European Fund .......
News 2 October 2020
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Repack returns
Optionality, yield a hit with investors
The appeal of repackagings during times of economic stress became apparent during the Covid-related shutdown. Repack issuance is gaining traction among Asian investors in particular, due to the search for yield and the instruments’ customisability.
“The repack product becomes more attractive in times of stress when investors are looking for opportunities more quickly. With the continued low interest .......
News 2 October 2020
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New IMA inked
Sector developments and company hires
New IMA inked
Market Moves 2 October 2020
Pollen Street Secured Lending (PSSL) has appointed Waterfall Asset Management as its investment manager, replacing PSC. An investment management agreement has also been signed with a new AIFM, Mirabella Financial Services. PSSL has agreed to pay PSC a sum representing the approximate balance of the unpaid base management fee, including the unexpired notice period. The PSSL board believes that .......
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Repayments rated
CLO debt repayment rates could act as a manager differentiator
Manager differentiation has become ever more important as the Covid-crisis and its resultant CLO market impact continues to play out. Real repayment rates could become the latest tool in the manager selection process as well as an important pricing input.
"Examining how quickly CLO rated debt is being paid down post reinvestment end date on a deal by deal basis .......
News Analysis 1 October 2020
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'Dual-track' approach touted for SRT
Sector developments and company hires
‘Dual-track’ approach touted for SRT
Market Moves 1 October 2020
The EBA is finalising its report on significant risk transfer and hopes to be able to publish it by year-end, according to Pablo Sinausia, policy expert at the authority. He disclosed during a TSI Congress 2020 panel today that the report builds on the EBA’s recent report on STS synthetics and will address structural features that .......
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SME ABS debut for Italian fintech
Sector developments and company hires
SME ABS debut for Italian fintech
Market Moves 30 September 2020
Banca Valsabbina has supported fintech BorsadelCredito.it as arranger, account bank and subscriber - together with other institutional investors – of ABS notes in a €100m securitisation backed by trade receivables granted to SMEs and guaranteed by the Central Guarantee Fund for SMEs. This is the first unrated securitisation operation listed on Borsa Italiana’s ExtraMOT-PRO .......
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Double-B disparity
US CLO lower mezz misses out
Last week saw high levels of activity across the bulk of the US CLO primary and secondary markets. However, new and very recent double-B paper has missed out.
“The majority of the new issue debt stack has been very actively bid, but double-B spreads have not been moving as tighter as expected,” says one trader. “In the secondary, .......
News Analysis 30 September 2020
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Programmatic approach
Chinese ABCP market gaining traction
Four public ABCP programmes have launched in China since the market opened in June. However, there are a number of differences between Chinese ABCP programmes and those in more developed jurisdictions.
“It is a new market, so at the moment both the programme structure and the underlying assets are less diverse in comparison to the more developed markets .......
News 30 September 2020
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Mezz CLO fund closed
Sector developments and company hires
Mezz CLO fund closed
Market Moves 29 September 2020
Pearl Diver Capital has completed the final closing of its eighth closed-end CLO investment fund, PDC Opportunities VIII, at US$400m. Launched with a target raise of US$300m, the fund hit its hard cap, with LPs represented by public pension systems, corporate pension plans, high net-worth family offices and endowments. The fund is designed to invest opportunistically .......
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Latest Magdalena finalised
Santander prices first post-Covid SME SRT
Santander, the EIF and the EIB have completed a €55m and €143m CLN that references a €2.2bn Spanish SME portfolio. Dubbed Magdalena Four, the transaction is Santander’s first post-Covid SME significant risk transfer trade.
The transaction consists of a €1.969bn retained senior tranche, a €55m senior mezzanine tranche (priced at three-month Euribor plus 1.6%), a €143m junior mezzanine tranche (plus 6%) and a €33m retained first loss tranche. .......
News 29 September 2020
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Cashflow concerns
WFH shift highlighted in office, multifamily CMBS
Both the US office and multifamily CMBS sectors will be impacted by the coronavirus-induced working-from-home (WFH) trend. The consequent need for the reconfiguration of physical properties, as well as leases, is highlighted by Fitch in a new report.
Many workers will continue to choose to WFH, due to concerns about mass transit during the commute to work and .......
News 28 September 2020
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Risk transfer round up - 28 September
CRT sector developments and deal news
BNP Paribas is rumoured to be readying a full-stack consumer significant risk transfer trade for 2H20.The transaction would be the lender’s first post-Covid full stack SRT following the finalisation of E-CARAT 11 in February (see SCI’s capital relief trades database).
....... News 28 September 2020
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SCI Start the Week - 28 September
A review of securitisation activity over the past seven days
SCI Risk Transfer & Synthetics Virtual Seminar
News 28 September 2020
Join SCI on 7 and 8 October for its Risk Transfer & Synthetics Virtual Seminar, which will explore the micro and macro drivers behind JPMorgan's landmark capital relief trades and whether this flurry of business could spur further risk transfer activity across a broader range of US originators and asset classes.
The seminar also .......