Complete news archive

  • CLO team finds new home

    Sector developments and company hires

    CLO team finds new home
    Fidelity International has established a new private credit capability with experienced hires from AnaCap-owned MeDirect Bank. Concurrently, the firm has been awarded the delegation of management for the €400m Grand Harbour CLO 2019-1 transaction. Fidelity says it will continue to engage with MeDirect to explore further strategic opportunities.

    The private credit team will continue .......

    Market Moves 20 January 2021

  • Eviction limitations extended

    New law poses risk for Spanish asset quality

    Royal Decree-Law 37/2020, introduced last month by the Spanish government, extends the limitations on evictions of vulnerable residential tenants until May 2021. The regulations are expected to negatively impact RMBS and non-performing loan ABS performance by prolonging the time lag until property repossession, as well as reducing the incentive for private-sector investment in Spanish residential real estate and adversely .......

    News 19 January 2021

  • Italian green SRT debuts

    GARC programme broadened further

    News 19 January 2021

  • Euro CLO equity yields dip

    Sector developments and company hires

    Euro CLO equity yields dip
    Annualised equity dividend yields across European CLOs averaged 12.9% in 2020, down from 15.1% in 2019 and below the 15% yearly average for the 2014-2020 2.0 era, according to research from Bank of America. However, the research suggests that in light of the pandemic disruption, the dip was moderate and mainly driven by a drop .......

    Market Moves 18 January 2021

  • SCI Start the Week - 18 January

    A review of securitisation activity over the past seven days

    Last week's stories
    Canadian CRT in the wings
    Canadian bank said to ready CRT
    Capital boost
    Greek banks eye CRTs to tackle NPLs (Premium Content)
    Expanding footprint
    Hayfin answers SCI's questions
    Forbearance falters
    Decline in loan removal from forbearance suggests large unknowns ahead
    Libor linkage
    UK RMBS transition risks highlighted
    Strong opening
    UK RMBS market update
    QM queue
    New seasoned QM category could open door to increased MBS

    News 18 January 2021

  • Risk transfer round-up - 18 January

    CRT sector developments and deal news

    News 18 January 2021

  • QM queue

    New seasoned QM category could open door to increased MBS

    On December 10, the Consumer Finance Protection Bureau (CFPB) issued the final rule for the criteria which define a Qualified Mortgage, and the introduction of an innovative seasoned loan category could provide a route for increased lending and greater MBS issuance, say market observers.

    Under the new ruling, mortgages which do not initially meet the qualification benchmarks for QMs may become a .......

    News Analysis 15 January 2021

  • Strong opening

    UK RMBS market update

    The first public European securitisation of the year, dubbed Hops Hill 1, is expected to price today. Sponsored by UK Mortgages, the UK buy-to-let RMBS has received strong demand across the capital stack.  

    The £332.6m deal is backed by 1,465 mortgage loans. Guidance for the senior notes was set at SONIA plus 100bp area, while guidance for .......

    News 15 January 2021

  • Expanding footprint

    Jordan Milman, global head of structured products at Hayfin, answers SCI's questions

    Q: How and when did Hayfin become involved in the structured credit market?
    A: Hayfin launched a structured credit offering in 2012 and since then has invested over €1.7bn through more than 200 transactions, generating gross returns of 11.9% for 2H20.

    In June 2020, I joined the firm - along with John Hanisch - to lead the expansion of .......

    The Structured Credit Interview 15 January 2021

  • illimity inks NPL ABS duo

    Sector developments and company hires

    illimity inks NPL ABS duo
    illimity Bank has finalised two non-performing loan transactions, including the sale to Phinance Partners and SOREC involving a €129m GBV portfolio related to around 4,500 debtors. The portfolio consists of unsecured loans related to granular mainly retail exposures that were acquired by illimity during 2019 as part of an investment transaction in a large portfolio .......

    Market Moves 15 January 2021

  • Lloyd's ILS platform unveiled

    Sector developments and company hires

    Lloyd’s ILS platform unveiled
    Lloyd's has established London Bridge Risk PCC, the first UK ILS structure to be approved by the PRA for use for multiple, market-wide transactions for Lloyd's members. Clifford Chance worked with Lloyd's and the regulators to devise a structure and set of market standard template documentation with flexibility to accommodate a range of individual investment models and .......

    Market Moves 14 January 2021

  • Capital boost

    Greek banks eye CRTs to tackle NPLs

    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 explore how Greek banks are utilising synthetic securitisation to generate capital to offload their non-performing loans.

    To upgrade your subscription to access all CRT premium content for a year, .......

    News Analysis 14 January 2021

  • Libor linkage

    UK RMBS transition risks highlighted

    A number of UK RMBS issuers are initiating consent solicitation processes to amend notes and swap contracts from Libor to SONIA ahead of the cessation of Libor. Legacy transactions without active sponsors or those comprising US dollar-denominated notes are at the highest risk of disorderly transition, according to Fitch.

    Fitch expects logistical challenges to arise this year in .......

    News 12 January 2021

  • Ocwen, CFPB mediation unresolved

    Sector developments and company hires

    Ocwen, CFPB mediation unresolved
    Ocwen Financial Corporation has issued a statement expressing its disappointment that settlement discussions with the CFPB have not been resolved (SCI 21 April 2017). The move is in response to the mediator’s notice that the company’s court-ordered mediation with the bureau has concluded, after the parties were unable to reach a settlement.

    The company .......

    Market Moves 12 January 2021

  • Landmark Pan-Asian ILS launched

    Sector developments and company hires

    Landmark Pan-Asian ILS launched
    MS Amlin Underwriting has launched Phoenix 1 Re, the first locally issued ILS to provide capacity to a local cedant, solely focused on the Pan-Asia region. The special purpose reinsurance vehicle (SPRV) is domiciled in Singapore and provides US$42m of collateralised capacity to support MS Amlin Syndicate 2001’s Asia reinsurance portfolio through its Singapore-based underwriting platform.
    Phoenix .......

    Market Moves 11 January 2021

  • Forbearance falters

    Decline in loan removal from forbearance suggests large unknowns ahead

    There has been a “troubling slowdown” in the rate of improvement of the number of mortgages in forbearance plans, says housing data provider Black Knight. This slowdown indicates the mortgage-backed sector enters a period of considerable uncertainty in less than three months, it adds.

    There was a 3% drop in the first week of January, or 92,000, and was underpinned by the .......

    News 8 January 2021

  • Canadian CRT in the wings

    Canadian bank said to ready CRT

    A Canadian bank, rumoured to be Scotia, is working on a new CRT trade, say well-placed market sources.

    Timing is uncertain, and it is also not clear if the bank has gone out to investors yet.The asset base is believed to be SME or large corporate loans, but, again, this is surmise at the moment.

    Scotia Bank has declined to comment.

    There is a .......

    News 6 January 2021

  • CRT consolation

    It's a more credit-positive story for CRT than delinquency data indicates

    Just before Christmas, Fitch Ratings placed 372 classes of GSE-issued CRT bonds on ratings watch negative, but the agency concedes that many of these securities will do better than this action might suggest.

    “We take the view that cure rates will likely be better than we indicate. We’re being a bit conservative with our loss projections but we have a limited amount .......

    News 29 December 2020

  • Agricultural SRT priced

    Lloyds finalises Fontwell II

    Lloyds has priced the second transaction from its Fontwell programme. Dubbed Fontwell II Securities 2020, the eight-year synthetic securitisation is backed by a static £1.4bn portfolio of UK agricultural mortgages (SCI 17 December). Despite significant headwinds from the Brexit negotiations, the notes were successfully placed with UK and international investors.

    Rated by Fitch and KBRA, the transaction consists of .......

    News 24 December 2020

  • Trilogue agreement finalised

    Excess spread concerns highlighted

    The trilogue agreement on the European Commission’s ‘quick fix’ proposals was finalised last week and has received an overall positive reception from capital relief trades players, given that it extends the STS framework to synthetic ABS structures and provides greater standardisation. However, market participants have raised concerns about the proposed treatment of excess spread as a first loss tranche.

    News Analysis 24 December 2020

  • RFC issued on GSE living wills

    Sector developments and company hires

    RFC issued on GSE living wills
    The US FHFA is seeking comment on a notice of proposed rulemaking that would require Fannie Mae and Freddie Mac to develop resolution plans (or ‘living wills’) that would facilitate a rapid and orderly resolution, should the authority have to be appointed their receiver under the Housing and Economic Recovery Act of 2008. The .......

    Market Moves 24 December 2020
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