Complete news archive
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CMBS value deficiencies compared
Sector developments and company hires
CMBS value deficiencies compared
Market Moves 7 December 2020
DBRS Morningstar has identified US$9.79bn in US CMBS loans transferred to special servicing since March, whose collateral was subsequently reappraised. Although updated appraisals on properties backing these loans suggest an average value decline of 24% since origination, only about 17% have a loan-to-value ratio of 100% or higher, resulting in a value deficiency. The analysis also .......
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Next step
Call for greater EPC data disclosure
The European Commission last month launched a consultation on the first two sets of criteria for economic activities to qualify as economically sustainable under the EU's Taxonomy classification system, including for the first time a formal definition of what constitutes an energy efficient building. The move has been welcomed as part of industry efforts to progress green mortgage lending.
News Analysis 7 December 2020
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SCI Start the Week - 7 December
A review of securitisation activity over the past seven days
Last week's stories
News 7 December 2020
Collections conundrum
Italian NPL ABS amortisation eyed (Full story below)
Covid communications
The pandemic has meant greater negotiation over terms between CRT buyers and sellers
High-quality counterparties
Insurer involvement in SRT on the rise
Innovative SRT inked
Belgian synthetic RMBS finalised
SCI CRT Awards 2020
Advisor/Service Provider of the Year: US Bank
SCI CRT Awards 2020
Analytics Firm of the Year: Mark Fontanilla .......
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Leveraged finance: stepping into the void
Contributed thought leadership by Ocorian
As funds continue to reallocate capital to direct lending strategies, Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlights the crucial role of independent loan service providers in streamlining fund loan portfolios
In a continuation of the legacy of the 2007-2008 global financial crisis, large commercial banks .......
Talking Point 7 December 2020
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Dark fibre first
Sector developments and company hires
Dark fibre first
Summit Issuer Series 2020-1, the first securitisation backed by dark fibre communication infrastructure assets, is being marketed by Barclays on behalf of sponsor and manager Summit Infrastructure Group (SummitIG). The deal comprises four classes of notes: US$50m (notional maximum) A1 VFN, US$122.7m A2, US$18.9m B and US$33.6m C.SummitIG is able to draw on the Class .......
Market Moves 4 December 2020
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High-quality counterparties
Insurer involvement in SRT on the rise
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 examine how insurers are gaining traction as high-quality counterparties to significant risk transfer transactions.
To upgrade your subscription to access all CRT premium content for a year, .......
News Analysis 4 December 2020
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Collections conundrum
Italian NPL ABS amortisation eyed
The number of Italian non-performing loan securitisations with lagging collections is set to rise to 17 by 1Q21, Scope predicts. If the slowdown continues, the average time for deals to amortise will exceed 10 years, according to the agency’s NPL Dynamic Coverage Index.
The index is based on the median of the net yearly proceeds by outstanding liabilities .......
News 4 December 2020
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SCI CRT Awards 2020
Personal Contribution to the Industry: Steve Gandy, md and h...
At the helm of arguably the most active and diverse capital relief trades arranging team, Steve Gandy has demonstrated strong leadership in innovation and the introduction of new asset classes and jurisdictions to the market. However, this award also recognises his significant contribution to the industry in terms of thought leadership and advocacy with policymakers and regulators on significant .......
News 4 December 2020
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STACR due
BofA and Wells Fargo to underwrite imminent STACR deal
Freddie Mac has mandated Bank of America and Wells Fargo as joint bookrunners for its imminent STACR REMIC 2020-DNA6, due to be priced in the week beginning December 14th, the GSE made known today.
This is the fifth STACR trade Freddie has brought to market since it re-opened the CRT market with its 2020-DNA3 in July. In fact, 3Q was its busiest .......
News 3 December 2020
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SCI CRT Awards 2020
Analytics Firm of the Year: Mark Fontanilla & Company
Mark Fontanilla & Company (MF&Co), founded in Charlotte, North Carolina, in 2017, provides a host of financial market advisory and consultancy services. The CRTx Total Return Index and its associated data/analytics suite is the firm’s flagship offering.
Unveiled in April 2018, the CRTx is the first and, as yet the only, commercial index that tracks the daily total return performance of all .......
News 3 December 2020
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SCI CRT Awards 2020
Advisor/Service Provider of the Year: US Bank
US Bank’s global corporate trust team has established a strong presence in Europe over the past 10 years, ranking as the region’s top structured finance trustee by deal volume, according to multiple sources including Moody’s and S&P. Indeed, the firm has built a reputation for helping clients navigate complex deals and is trustee on a significant number of risk transfer trades .......
News 3 December 2020
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Covid communications
The pandemic has meant greater negotiation over terms between CRT buyers and sellers
Discussions between CRT issuers and potential investors have become more protracted in 2020 as a result of Covid 19, with borrowers more willing to give way on areas such as term sheets and credit exposure limitations, notes Kaelyn Abrell, a partner and portfolio manager at ArrowMark Partners, a $20bn asset manager based in Colorado.
“Negotiations have reached even higher levels of depth .......
News 2 December 2020
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Pre-pandemic trends persist for US CLOs
Sector developments and company hires
Pre-pandemic trends persist for US CLOs
Market Moves 2 December 2020
Pre-pandemic trends in US leveraged lending - including high leverage, weak covenants and declining recoveries - resumed by 3Q20 and should continue into 2021, absent a renewed downturn, according to Moody’s. Consequently, the agency expects that in 2021 US CLOs will include structural features for maintaining loan workout and trading flexibility to help manage .......
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SCI CRT Awards 2020
North American Law Firm of the Year: Clifford Chance
The burgeoning development of the US bank capital relief trade (CRT) market has been one of the major talking points of the sector in 2020 – perhaps the major talking point – and Clifford Chance has been at the forefront of this business.
This coming of age of the US CRT market has been talked of for several .......
News 2 December 2020
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Tech solution
Peter Jasko, ceo at Semeris, answers SCI's questions
Q: How and when did you become involved in the securitisation market?
A: Semeris launched last month (SCI 4 November), but I started getting involved in securitisation and CLOs in particular in 2001. I had been involved in the credit derivatives market for a couple of years prior to that, looking at basket trades and cranking the .......
The Structured Credit Interview 2 December 2020
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Innovative SRT inked
Belgian synthetic RMBS finalised
AXA Bank Belgium has completed a synthetic RMBS that references a static €730m portfolio of Belgian prime mortgages. Dubbed CASPR-1, the significant risk transfer trade is unusual due to the underlying asset class and the amortisation structure.
Rated by Fitch and S&P, the transaction consists of a €23.575m AA/AA- rated class A tranche (which priced at three-month Euribor .......
News 2 December 2020
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SCI CRT Awards 2020
Law Firm of the Year: Allen & Overy
In a highly disrupted year, Allen & Overy (A&O) has distinguished itself by not only maintaining its significant market share, but also by being able to expand its offering into new markets, advising on a variety of deals in numerous geographies as well as a variety of first-of-their-kind deals. At the same time, A&O has played a key role .......
News 2 December 2020
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SCI CRT Awards 2020
North American Arranger of the Year: BMO Capital Markets
BMO Capital Markets (BMO) has led the way in true risk sharing trades outside of Europe for over four years. Its well-established programmes, combined with strong investor connections enabled it to be the first to close a deal after the declaration of the global Covid-19 pandemic and seal its place as SCI’s North American Arranger of the Year.
BMO completed .......
News 1 December 2020
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IBA to consult on Libor transition proposal
Sector developments and company hires
IBA to consult on Libor transition proposal
Market Moves 1 December 2020
The US Fed, the OCC, the FDIC and the UK FCA have welcomed a proposal by ICE Benchmark Administration (IBA), the administrator for Libor, that lays out a path forward in which banks should stop writing new US Libor contracts by end-2021 while enabling most legacy contracts to mature before the cessation of .......
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SCI CRT Awards 2020
Arranger of the Year: Credit Suisse
Credit Suisse completed two significant risk transfer transactions during 2Q20 that differ significantly from the typical capital relief trades executed during the height of the coronavirus crisis and were placed with different investor bases. The bank is SCI’s CRT Arranger of the Year in light of its proven placing power, structuring capabilities and motivation to bring the SRT market .......
News 1 December 2020