Complete news archive
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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 .......
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European evolution
European CLO market changing post-Covid
European CLO structures are evolving post-crisis, including the introduction of static deals only previously seen in the US. Such innovation combined with relative value opportunities could spur further market growth.
Dasha Sobornova, partner at Mayer Brown, says: “When the market opened up there were features that were quite different to what we were used to seeing in CLO .......
News Analysis 28 September 2020
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Under pressure
CRE uncertainty persists
Commercial real estate companies backed by exposure to retail face difficult months ahead, following renewed downward pressure on rental income and non-prime property values amid the prolonged economic fallout of the Covid-19 crisis. Indeed, as the uncertainty over the sector continues, one question is what sort of approach investors should follow in their attempts to gauge the outlook for .......
News Analysis 28 September 2020
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Calabrian calibration
FHFA silent on the implication of the director's comments about GSE CRT last week
The Federal Housing Finance Authority (FHFA) has been unable provide more details about what director Mark Calabria’s meant at last week’s Congressional hearings when he apppeared to envisage a reduced place for CRT deals offered by the GSEs in the future.
Calabria was speaking before the House Financial Services Committee at a hearing entitled “Prioritizing Fannie’s and Freddie’s Capital over America’s Homeowners .......
News Analysis 25 September 2020
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Tight pricing
BNP Paribas completes SRT
BNP Paribas has finalised a €324m funded financial guarantee and is scheduled to complete a €100m insurance policy before the end of 3Q20. Dubbed Resonance Five, the tranches reference a static €8bn global corporate portfolio that consists of both drawn and undrawn commitments. The transaction is so far the most tightly priced corporate capital relief trade of the year.
The .......
News 25 September 2020
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Revolver exposures on offer
Sector developments and company hires
Revolver exposures on offer
Goldman Sachs is in the market with a balance sheet synthetic securitisation referencing a portfolio of predominantly investment-grade senior unsecured revolving loan facilities. Dubbed Goldman Sachs Bank USA credit-linked notes due 2025, the transaction comprises two classes of S&P-rated CLNs for a total of US$184.8m.The transaction documentation links the ability of Goldman Sachs to .......
Market Moves 25 September 2020
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Risk transfer round-up - 25 September
CRT sector developments and deal news
Goldman Sachs is rumoured to be prepping two US corporate significant risk transfer deals for 4Q20 and the lender is believed to have closed another corporate deal in 3Q20. The trades would be the bank’s first SRTs (see SCI’s capital relief trades database).
....... News 25 September 2020
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Syon safe
Fitch affirms ratings for Lloyds SRTs
Fitch has removed the Syon Securities 2019 and 2020 transactions from rating watch negative (RWN), after having placed them there in April following the coronavirus outbreak. The class C and D notes of Syon 2019 and class C notes of Syon 2020 were placed on RWN due to an expectation of weakening asset performance.
Syon Securities 2019 and .......
News 25 September 2020
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JP Morgan at CRT again
The US bank is reportedly readying a corporate/SME loan deal
JP Morgan Chase is preparing a capital relief trade (CRT) referencing corporate and SME loans, say well-placed market sources.
It is getting ready to place the trade among a “small club” of investors before the end of financial year, add the sources.
JP Morgan has been unavailable for comment.
The deal represents a broadening of asset classes referenced by risk transfer deals .......
News 24 September 2020
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Spread compression
European securitisation market update
European auto and consumer ABS have seen a strong reception this week, despite renewed virus-related concerns. The first German auto ABS since May printed at tight levels, for example, while a rare UK consumer ABS from Premium Credit has entered the pipeline.
One trader notes: “Over the last session, we had seen a slight pause in the market .......
News 23 September 2020
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Private credit fund formed
Sector developments and company hires
Private credit fund formed
FrontWell Capital Partners has launched with committed seed capital of more than US$350m from a group of international investors. Headquartered in Toronto, the firm aims to provide transitionary senior debt financing - including asset-based and cashflow loans - to middle-market companies in the US and Canada.FrontWell is led by founder and ceo Patrick Dalton, who previously .......
Market Moves 23 September 2020
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Doubling up
Record year anticipated for the EIF
The bulk of European SME capital relief trades in 1H20 were public, with the EIF a particularly active participant, given its mandate to support the sector. Indeed, it is shaping up to be a record year for the organisation in terms of synthetic securitisation, with easily double the volumes than issued under normal circumstances.
“Part of the EIF’s .......
News Analysis 22 September 2020
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Into the light?
European CLOs continue to improve
The European CLO market is seeking to build on its relatively stable foundations of recent months as prices move ever-tighter. Notwithstanding the broader ramifications of a continuing global pandemic, the sector looks set to be leaving the darkest days of March and April behind.
Last Friday saw the tightest post-Covid print yet in the European CLO primary market, .......
News 21 September 2020
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SCI Start the Week - 21 September
A review of securitisation activity over the past seven days
REMINDER: SCI CRT Awards
News 21 September 2020
The submissions period for the 2020 SCI CRT Awards is now open. The qualifying period for the awards is the 12 months to 30 September 2020.
Pitches and/or any queries should be emailed to [email protected] by 9 October. Click here for information on categories and the submissions process.
Final selections will be made by the SCI .......
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Moody's move mezz positive
Sector developments and company hires
Moody’s move mezz positive
Moody's has issued a request for comment on proposed changes to its methodology for rating CLOs that adjust its analytical treatment of corporate obligors with a negative outlook or whose ratings are on review for upgrade or downgrade. If the proposal is adopted, Moody’s expects an overall positive impact of a one-notch upgrade that will affect .......
Market Moves 21 September 2020
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Forbearance crossroads
Mortgages in forbearance well off the peaks but uncertainty beckons
The number of US home loans in forbearance plans declined for the fourth week in succession and is now more than 22% lower than the peak seen in late May, according to data released by Black Knight today (18 September).
As of September 15, 3.7m loans, representing $7.81bn in unpaid principal, are in Covid 19 forbearances plans compared to 4.7m by May .......
News 18 September 2020
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Tech crazy
Securitizations of tech assets finding favour in Covid world
Securitizations of technology assets are proving popular with US investors in the Covid marketplace, according to a new Moody’s report based on interviews with “dozens” of structured finance issuers, arrangers and investors around the world.
In particular, securitizations of data centres, both as a constituent asset of CMBS transactions and corporate ABS deals, have caught the eye of buyers, say .......
News Analysis 18 September 2020
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Restructuring inked
Attica Bank restructures NPL ABS
Attica Bank has restructured a Greek NPL securitisation that was executed over three years ago and dubbed Artemis (SCI 7 July 2017). Due to the evolution of the underlying portfolio, the noteholders opted for a restructuring in order to ensure consistency of cash flows.
According to the new terms, the transaction now comprises a €487m class A1 tranche, a €62m class .......
News 18 September 2020
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Risk transfer round up-17 September
CRT sector developments and deal news
BNP Paribas is believed to have priced a corporate capital relief trade from the Resonance programme this week. The transaction would be the fifth from the programme (see SCI’s capital relief trades database).
....... News 17 September 2020
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Pagaya on hiring spree
Sector developments and company hires
Pagaya brings in new blood
Pagaya, the data-driven asset manager, has made five key hires across all areas of its business. It has hired Jeff Andrews and Paul Limanni as, respectively, head of originations and head of structured products. Andrews joins from LendingClub where he was vp of strategic partnerships, and Limanni joins from Shelter Growth Capital Partners. Limanni will oversee all .......
Market Moves 17 September 2020
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Auto SRT priced
Santander unveils its first post-Covid Spanish auto SRT
Santander this week priced a full stack auto significant risk transfer trade (SRT) referencing a static €520m portfolio of Spanish auto loans, constituting the bank’s first post-Covid lockdown Spanish auto SRT.
Dubbed Santander Consumer Spain 2020-1, marketing for the deal began in last month (SCI 28 August).
Class A pays three-month Euribor plus 39bp, class B pays three-month Euribor plus 95bp, class .......
News 16 September 2020