Complete news archive
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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
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SCI Start the Week - 2 November
A review of securitisation activity over the past seven days
Last week's stories
Best-of-breed network
Arrow Global Group answers SCI's questions
Diverse portfolio
Private equity CDO completed
Election focus
US CLOs hold up for now
Measurement uncertainty
Inclusion of climate exposures in ICAAPs explored
Mind the gap
CLO equity price and NAV data examined
Risk transfer boost
US CRT market picks upOther deal-related news
- Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse ....... News 2 November 2020
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UKML shareholder consultation continues
Sector developments and company hires
UKML shareholder consultation continues
Market Moves 30 October 2020
The board of UK Mortgages (UKML) has completed the strategic review that it commenced following the withdrawal of proposals by M&G Investment Management (MAGIM) (SCI 14 August). The review has identified two potential options that will provide a clear path to the company’s objectives of enhanced liquidity, as well as a narrowing and removal of .......
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Risk transfer boost
US CRT market picks up
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 investigate US banks' attempts to manage coronavirus-related higher capital requirements via capital relief trades.
To upgrade your subscription to access all CRT premium content for a year, .......
News Analysis 29 October 2020
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Election focus
US CLOs hold up for now
Next week’s US presidential election is holding the attention of the credit market, along with the rest of the world. However, the US CLO sector appears to be dealing with short-term concerns reasonably well, though longer-term issues continue to lurk in the background.
“We’ve seen lower secondary trading volumes this week and last week, and at the same time spreads .......
News Analysis 29 October 2020
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Pan-European logistics CMBS prepped
Sector developments and company hires
Pan-European logistics CMBS prepped
Blackstone Real Estate Partners is in the market with a €318.6m single-loan pan-European CMBS. Dubbed Pearl Finance 2020, the transaction is secured by 61 predominantly last-mile logistics assets across Denmark, Finland, France, Germany, Ireland and the Netherlands.The assets are valued by Cushman & Wakefield at €576.9m, as of 31 July 2020. Portfolio occupancy currently .......
Market Moves 28 October 2020
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Mind the gap
CLO equity price and NAV data examined
From now on SCI will be publishing regular case studies and reports on the CLO market in addition to our usual news stories on the sector. Here, we examine how CLO equity prices have fared so far over this most tumultuous of years and their relationship to their underlying NAVs.
While this first article is available to .......
News 28 October 2020
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Best-of-breed network
Zach Lewy, founder and group cio of Arrow Global Group, answers SCI's questions
Q: How and when did Arrow Global Group become involved in the non-performing loan market?
The Structured Credit Interview 27 October 2020
A: Arrow Global was established in 2005 as the European principal investment arm of Sallie Mae and was tasked with investing in distressed assets across the region. It was apparent that there were amazing opportunities for local champions to be successful, given that they remained .......
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Measurement uncertainty
Inclusion of climate exposures in ICAAPs explored
Many banks are planning to include climate exposures in their internal capital adequacy assessment processes (ICAAPs), but which pillar their assessments should fall under remains unclear. Nevertheless, bounding and monitoring metrics could help quantify climate risks better.
A recent PwC survey notes that 59% of respondents are planning to include material climate exposures in their ICAAPs, but .......
News 27 October 2020
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AMCO deal completed
Sector developments and company hires
AMCO deal completed
Market Moves 26 October 2020
Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as .......
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Risk transfer round-up - 26 October
CRT sector developments and deal news
RBS is believed to be prepping a corporate capital relief trade that is expected to close in 4Q20. The UK lender’s last significant risk transfer transaction settled earlier this year and referenced project finance loans (SCI 31 January).
....... News 26 October 2020
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Diverse portfolio
Private equity CDO completed
CMFG Life Insurance Company has completed a rare private equity collateralised fund obligation (PE CFO). Dubbed MCA Fund III Holding 2020-1, the transaction is structured as a dual SPV and is backed by a diverse pool of private equity funds, with approximately US$574.7m in net asset value and US$189.7m of unfunded capital commitments.
The predominantly static portfolio comprises .......
News 26 October 2020
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SCI Start the Week - 26 October
A review of securitisation activity over the past seven days
Last week's stories
Corona kickstart
Constellation of factors coalesced to push the US CRT market forward
JAAA launched
New triple-A CLO ETF well received
Jurisdiction expansion
European ABS market update
Mezz opportunity
'Rare' bonds on offer via large BWIC
Restructuring capacity
LMLs introduced to European CLOs
Risk transfer return
BDK preps capital relief tradeOther deal-related news
- Post-Covid crisis US BSL CLO structures differ in a ....... News 26 October 2020
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Corona kickstart
Constellation of factors coalesced to push the US CRT market forward
Covid 19 may have given the US CRT market the kick start it needed, suggests David Felsenthal, a New York-based partner at leading global law practice Clifford Chance.
“Coronavirus has underlined the value of capital. People are sensitive to the fact that they might need capital going forward, and CRT gives you capital relief,” he says.
Over the past seven or eight months, .......
News 23 October 2020
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Environmental risk score rolled out
Sector developments and company hires
CMBS environmental risk score rolled out
Market Moves 23 October 2020
Trepp has implemented a new data integration with Risk Management Solutions (RMS) that aims to help evaluate and manage global risk from natural and man-made catastrophes. The solution provides an environmental risk score for properties backing CMBS loans, ranging from one to five, that measure the likelihood of property damage and business interruption from .......
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Risk transfer return
BDK preps capital relief trade
Bank Deutsches Kraftfahrzeuggewerbe (BDK) is marketing a full-stack capital relief trade backed by a static €1bn German auto loan portfolio. Dubbed Red & Black Auto Germany Seven, the deal is broadly similar to R&B Six, although changes have been made to the composition of the portfolio and the payment triggers.
Rated by S&P and Fitch, the transaction consists .......
News 23 October 2020
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Aviation leasing platform prepped
Sector developments and company hires
Aviation leasing platform prepped
PIMCO and GE Capital Aviation Services (GECAS) have reached a preliminary agreement to develop an aviation leasing platform to support up to US$3bn in aircraft asset financings, subject to customary closing conditions. This strategic investment platform will enable GECAS and PIMCO-advised accounts to acquire new and young fuel-efficient aircraft.The portfolio will initially focus on .......
Market Moves 21 October 2020
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Risk transfer round-up - 21 October
CRT sector developments and deal news
Lloyds is believed to still be attempting to execute its second transaction from the Fontwell programme. The deal is backed by agricultural loans and was expected to close in 3Q20, but the bank has allegedly found it hard to sell the mezzanine tranche at below 5%. The last Fontwell deal closed in December 2016 (see SCI’s capital relief trades .......
News 21 October 2020
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Jurisdiction expansion
European ABS market update
IPTs were released today for Mercedes-Benz's inaugural French auto ABS. Dubbed Silver Arrow France 2020-1, the €689.7m transaction is STS compliant and backed predominantly by auto leases.
The jurisdictions that Mercedes-Benz has previously issued in includes Australia, Germany, Italy and the UK. “As happened for other captive auto finance companies, Mercedes is broadening its business and replicating the successful model .......
News 21 October 2020
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JAAA launched
New triple-A CLO ETF well received
The Janus Henderson AAA CLO ETF (JAAA) launched on Monday, 19 October, amid positive investor feedback. The ETF seeks to provide capital preservation and current income by investing at least 90% of its net assets in CLOs of any maturity that are rated triple-A or equivalent at the time of purchase.
“We came to market with seed capital from six .......
News Analysis 21 October 2020
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Leasing ABS inked
Sector developments and company hires
Leasing ABS inked
The EIB and the EIF have provided Alba Leasing with €490m via an SME securitisation financing operation. Alba Leasing has undertaken to double this, increasing the total amount available to €980m for projects across all economic sectors, with a particular focus on environmental investments (for which 20% of the resources have been reserved).The EIB Group has subscribed .......
Market Moves 20 October 2020