Complete news archive
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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
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Test case
JPMorgan CRT details revealed
Further details have emerged in connection with a corporate capital relief trade that was completed last month between JPMorgan and PGGM and Alecta (SCI 27 November). The transaction was motivated less by capital needs, given the US lender’s strong capital position, but more from a desire to test the trade from an efficiency standpoint.
The cash collateralised deal references .......
News 1 December 2020
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Information giants to combine
Sector developments and company hires
Information giants to combine
Market Moves 30 November 2020
S&P Global and IHS Markit have entered into a definitive merger agreement to combine in an all-stock transaction that values IHS Markit at an enterprise value of US$44bn, including US$4.8bn of net debt. Under the terms of the agreement, which has been unanimously approved by the boards of both companies, each share of IHS Markit common .......
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SCI CRT Awards 2020
North American Issuer of the Year: Freddie Mac
Freddie Mac has several claims to fame over the last 12 months. One of the most arresting is that the GSE rejuvenated the credit risk transfer sector following the most traumatic period of market turbulence and investor alarm in the last decade.
On 8 July, over three months after its previous STACR deal and when this period of acute market .......
News 30 November 2020
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SCI CRT Awards 2020
Issuer of the Year: Intesa Sanpaolo
Intesa Sanpaolo has won the Issuer of the Year category at SCI’s Capital Relief Trades Awards for drastically expanding both its investor base and the asset classes it securitises via significant risk transfer transactions. Key to this success has been the holistic approach of the active credit portfolio steering (ACPS) unit.
Intesa Sanpaolo began its famous GARC programme .......
News 30 November 2020
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SCI Start the Week - 30 November
A review of securitisation activity over the past seven days
Last week's stories
Double trouble
Two - not one - JP Morgan corporate loan CRT trades have been in the market
Emergency exit
Taking the GSEs back to private hands in two months is the tallest of tall orders
Excess spread harmonised
EBA's SRT recommendations released
Generation change?
Investor, issuer ESG engagement surveyed
Offshore demand
Chinese securitisation continues to gain traction
Restructuring boost
Project Galaxy portfolio ....... News 30 November 2020
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Double trouble
Two - not one - JP Morgan corporate loan CRT trades have been in the market
A CRT transaction between JP Morgan and a club of investors referencing corporate loans, believed to be chiefly SME-related assets, is poised to close imminently, say well-placed market sources.
This trade is in addition to the bilateral corporate loan CRT deal involving Dutch asset manager PGGM and co-investor Alecta, a Swedish pension provider, which also closed recently. The .......
News 27 November 2020
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NPL ABS capital treatment amended
Sector developments and company hires
NPL ABS capital treatment amended
The Basel Committee has published a technical amendment in connection with the capital treatment of non-performing loan securitisations. The rule aims to close a gap in the Basel framework by setting out prudent and risk-sensitive capital requirements for NPL ABS.The Committee consulted publicly on the technical amendment during the summer (SCI 24 .......
Market Moves 27 November 2020
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Excess spread harmonised
EBA's SRT recommendations released
The EBA’s long-awaited final report on significant risk transfer details a set of recommendations to the European Commission regarding the harmonisation of practices and processes applicable to the assessment of SRT transactions (SCI 23 November). Most notably, the report harmonises the regulatory treatment of excess spread, ending a three-year uncertainty over the use of the structural feature in .......
News Analysis 27 November 2020
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SCI CRT Awards 2020
Credit Insurer of the Year: RenaissanceRe
RenaissanceRe (RenRe) has won the Credit Insurer of the Year category in SCI’s Capital Relief Trades Awards for breaking new ground on several fronts. The firm was the first reinsurer to execute an SRT guarantee over two years ago and has been pushing the frontier as an investor ever since.
Fiona Walden, svp and global head of credit .......
News 27 November 2020
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Offshore demand
Chinese securitisation continues to gain traction
A growing number of Chinese securitisation issuers are attempting to tap offshore investors, the most recent being China Merchants Bank, with its RMB4.75bn Zhaoyin HeJia 2002-5 RMBS. In the next few quarters, it is expected that offshore investors will have a wider variety of asset types available.
Jerry Fang, senior director and analytical manager for North Asia .......
News Analysis 27 November 2020
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SCI CRT Awards 2020
Investor of the Year: Alecta-PGGM
The coming together of Alecta and PGGM to focus on credit risk sharing transactions (CRS), as they term capital relief trades, is undoubtedly a major event for the sector. However, it is the sizeable voice they have created with the intention of influencing the adoption of high quality transaction standards and thereby stimulate the healthy growth of the market .......
News 27 November 2020
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Jumbo BDC merger agreed
Sector developments and company hires
Jumbo BDC merger agreed
Market Moves 26 November 2020
FS/KKR Advisor, a partnership between FS Investments and KKR Credit Advisors (US), has announced that FS KKR Capital Corp and FS KKR Capital Corp II - two publicly traded BDCs advised by FS/KKR - have entered into a definitive merger agreement. The merger will create one of the largest BDCs in the US, with US$14.9bn in .......
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SCI CRT Awards 2020
Innovation of the Year: Vale Securities Finance 2019-1
Unfunded protection has historically been focused on capital relief trade senior mezzanine exposures, but Bank of Ireland Group (BOIG) debuted a pari passu unfunded tranche alongside a funded junior mezzanine tranche in its €265m Vale 2019-1 deal from December 2019. The transaction also facilitated the refinancing of 2016’s Grattan Securities, which had reached the end of its replenishment period. .......
News 26 November 2020
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Bridge financing inked
Hertz set to re-fleet under bankruptcy emergence plan
Hertz Corporation, in conjunction with affiliates of Apollo Capital Management, has established an interim fleet financing programme to provide up to US$4bn of ABS bridge financing. Dubbed Hertz Vehicle Interim Financing Series 2020-1, the delayed draw note issuance will allow Hertz to ‘re-fleet’ as part of its bankruptcy emergence plan, prior to establishing a longer-term ABS financing programme next .......
News 26 November 2020
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SCI CRT Awards 2020
Impact Deal of the Year: Project Grasshopper
NatWest has raised the bar for impact investment capital relief trades with December 2019’s Project Grasshopper. A number of sector firsts - from its collateral to structural features - combined with a close fit to the bank’s broader strategy make the deal a new benchmark.
Project Grasshopper is the only 100% green significant risk transfer transaction executed in .......
News 26 November 2020
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SCI CRT Awards 2020
North American Transaction of the Year: Chase 2019-CL1
It would take a brave man, or woman, to argue that JPMorgan’s Chase Mortgage Reference Notes 2019-CL1 was not the most eye-catching CRT deal of the last 12 months in North America. As such, it is a worthy winner of the SCI North American Transaction of the Year award.
Of course, it was by no means certain after .......
News 25 November 2020
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SCI CRT Awards 2020
Transaction of the Year: Resonance 5
The winners and honourable mentions of the 2020 SCI Capital Relief Trades Awards were unveiled during a virtual ceremony yesterday. We will be publishing write-ups for each category over the coming days.
Top of the bill is Transaction of the Year, which was won by BNP Paribas’ Resonance Five. The significant risk transfer (SRT) trade stands out .......
News 25 November 2020
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Emergency exit
Taking the GSEs back to private hands in two months is the tallest of tall orders
The difficulties in pulling the Fannie Mae and Freddie Mac out of conservatorship and into private hands before the new administration assumes the reins of office are close to insuperable, say sources in the agency MBS market.
There are a large number of moving parts to such a process, and to tick every box in less than two months, with Thanksgiving, Christmas .......
News 24 November 2020
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UK STS notification portal launched
Sector developments and company hires
UK STS notification portal launched
Market Moves 24 November 2020
The UK FCA has launched its new STS notification platform, with the aim of allowing UK securitisation originators and sponsors to ‘pre-populate’ the STS list in anticipation of the end of the Brexit transition period on 31 December. The FCA states that during the transition period, UK firms should continue to notify ESMA where a .......