Complete news archive
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Garrison CLO platform acquired
Sector developments and company hires
Garrison CLO platform acquired
Market Moves 13 November 2020
Mount Logan Capital subsidiary Mount Logan Management (ML Management) has acquired from Garrison Investment Management (GIM) and other sellers the rights under certain interests and agreements relating to Garrison Funding 2018-1 and Garrison MML CLO 2019-1, as well as the rights under certain side letter agreements, for a purchase price of US$3m. As of 30 June .......
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Transition revamp?
Legacy language amendments remain challenging
Standard Libor fallback language has been agreed and adopted by some new transactions ahead of the benchmark transition next year (SCI passim). However, language amendments for legacy transactions remains challenging.
“Government agencies have been pretty clear on the fact that Libor will not be extended. For several years now, new transactions have been printed with satisfactory fallback language. .......
News Analysis 13 November 2020
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Shortfalls hitting rated CMBS notes
Sector developments and company hires
Shortfalls hitting rated CMBS notes
KBRA reports that over 85% (225) of the 263 deals in its rated US conduit CMBS universe have been impacted by interest shortfalls to varying degrees. Prior to the coronavirus pandemic, shortfalls occurred in just over 40% (110) of the transactions, as of February 2020.“The increase is not surprising, as interest shortfalls are .......
Market Moves 12 November 2020
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CLO resurgence?
Primary spike contingent on sustained positivity
The US CLO market’s presidential election lull continued into this week ahead of yesterday’s holiday, despite the rally in equity and broader credit, with no new deals priced since 2 November. However, issuance could now take-off if a variety of factors align and positive sentiment can be sustained.
“The ferocity of the broad market rally has taken everyone .......
News 12 November 2020
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Dutch BTL aggregator deal prepped
Sector developments and company hires
Dutch BTL aggregator deal prepped
Citi is in the market with a new Dutch buy-to-let RMBS. Dubbed Jubilee Place 2020-1, the transaction is backed by a €212.9m portfolio comprising 669 loans originated by Dutch Mortgage Services, DNL 1 and Community Hypotheken.These three platforms focus on the non-consumer segment of the BTL market – in other words, professional landlords – according .......
Market Moves 11 November 2020
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Revised stance
Parliament backtracks on structural features
The European Parliament’s Economic and Monetary Affairs Committee (ECON) has approved the inclusion of time calls and pro-rata amortisation for STS synthetic securitisations, as part of a review of the European Commission’s ‘quick fix’ proposals (SCI 31 July). The committee had initially suggested an exclusion of these features from the final framework, but revised its stance last month .......
News 11 November 2020
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ESG-focused CLO manager formed
Sector developments and company hires
ESG-focused CLO manager formed
Market Moves 10 November 2020
A trio of ex-Ares Management partners have formed a new independent alternative credit investment firm that plans to adopt an active ESG screening approach. Founded by Americo Cascella, Daniel Hall and Shane Mengel, Pacific & Plains Capital is based in Dallas, Texas, with a presence also in Los Angeles, California. The firm will invest in loans .......
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Utility ABS returns
Innovative minibond deal gains wider reception
A consortium of six Italian utility companies has closed its third securitisation backed by minibonds secured by water service assets in the Veneto region of the country. The EIB has acted as anchor investor in all of the programme’s issuances, but the latest transaction saw a broader investor base participate.
The €248m Viveracqua Hydrobond 2020 operation involved the .......
News 10 November 2020
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SCI Start the Week - 9 November
Last week's stories
ESG philosophy
Federated Hermes answers SCI's questions
Finish line
Galaxy nears completion
Ramping up
Synthetic RMBS prepped
Storming STACR
Freddie Mac shrugs off the lockdown effect to go to town in 3Q and since
Synthetic CMBS eyed
Pension funds target CRE CRTsOther deal-related news
- Semeris has today launched a document library called Semeris Docs for CLOs (SCI 4 November).
- Fitch ....... News 9 November 2020
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Hertz in line with settlement plan
Sector developments and company hires
Hertz in line with settlement plan
Market Moves 6 November 2020
Fitch reports that Hertz had disposed of nearly 170,000 non-program vehicles (NPVs) over the past five months, which is in line with its bankruptcy settlement plan. These dispositions amounted to approximately US$3.3bn of proceeds, with a combined net book value (NBV) of US$2.8bn. Per the Hertz Vehicle Financing II liquidation event, these sales proceeds .......
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Synthetic CMBS eyed
Pension funds target CRE CRTs
Pension funds are targeting synthetic securitisations of commercial real estate loans, despite the challenges of the Coronavirus crisis (SCI 9 July). However, going forward, portfolio composition will be key for real money investors.
According to Chris Redmond, head of manager research at Willis Towers Watson: “Since mid-July, the screamingly cheap has gone and so now we are .......
News Analysis 6 November 2020
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Storming STACR
Freddie Mac shrugs off the lockdown effect to go to town in 3Q and since
Freddie Mac's new CRT issuance credit-protected more unpaid principal mortgage balance at a higher maximum coverage in 3Q 2020 than in any other quarter since it began reporting these numbers, according to Mike Reynolds, vice president of single family CRT at the GSE.
It is striking that this should have occurred in a quarter when market uncertainty occasioned by Covid .......
News 5 November 2020
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CLO library launched
Sector developments and company hires
CLO library launched
Semeris has today launched a document library called Semeris Docs for CLOs. The service initially covers European CLO documents and summaries on over 75 transactions, which will continue to grow and see a US CLO library launched in 1Q21.Semeris Docs is built on NLP (natural language processing) and the latest AI techniques, combined with human .......
Market Moves 4 November 2020
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Strategic partnership expanded
Sector developments and company hires
Strategic partnership expanded
Pretium has entered into an expanded strategic partnership with American Equity Investment Life Insurance Company (AEL), building upon AEL's prior investment commitments with the firm and increasing total commitments to US$1bn, with pre-agreed terms for expansion to US$2.25bn. The investments will initially be primarily deployed into attractive residential credit assets sourced and managed by Pretium.In .......
Market Moves 3 November 2020
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Finish line
Galaxy nears completion
Alpha Bank has received two binding offers for its Galaxy project (SCI 6 August). The transaction will involve a non-performing loan securitisation and the sale of the bank’s loan servicing platform Cepal.
Several sources note that that the binding offers come from PIMCO and Davidson Kempner, as momentum in the Greek NPL ABS market continues to gather .......
News 2 November 2020
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ESG philosophy
Andrew Lennox, senior portfolio manager at the international...
Q: How and when did the international business of Federated Hermes become involved in the securitisation market?
A: The Federated Hermes European structured credit team consists of senior portfolio manager Stephane Michel, me and two analysts covering the universe of ABS and CLOs. I arrived at the firm 2.5 years ago.One of the attractions of moving to work .......
The Structured Credit Interview 2 November 2020
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Risk transfer round-up - 2 November
CRT sector developments and deal news
BDK has priced its seventh full-stack capital relief trade from the Red & Black Germany programme. The transaction is broadly in line with R&B Six, but changes have been made to the composition of the portfolio and payment triggers (SCI 23 October).
The €935m class A notes pay one-month Euribor plus 70bp, the €25m class Bs pay .......
News 2 November 2020