Complete news archive
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Litigation finance fund formed
Sector developments and company hires
Litigation finance fund formed
Tetragon and its diversified alternative asset management business TFG Asset Management have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital. The company – which is expected to formally launch on 1 November - is a multi-product global asset management business that will sponsor and manage litigation finance-related investment funds.Baer .......
Market Moves 8 October 2020
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Finnish lift off
Latest KIMI deal completed
Santander has completed a €650m full-stack significant risk transfer trade backed by Finnish auto loans. Dubbed KIMI 9, the transaction differs from previous post-Covid full-stack SRTs in that the first loss tranche was not preplaced or privately placed before the deal’s announcement.
Santander notes that given the track record of the KIMI programme, the firm was confident that .......
News 8 October 2020
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Transatlantic challenges
Contributed thought leadership by Mayer Brown
Complying with EU and US CRT rules simultaneously
A number of law firms have developed excellent synthetic securitisation practices in Europe, but few firms are at the forefront of developing synthetic securitisation in the US, and even fewer have a practice which can navigate EU and US synthetic securitisation rules at the same time. Mayer Brown stands out as the .......
Talking Point 8 October 2020
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Stepping up
Chapter four of SCI's Autumn 2020 CRT Research Report
The fourth chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report highlights the role of the EIF in supporting European SMEs via synthetic securitisation and guarantees. This section of the report covers the EIF’s Covid-19 support measures, as well as its efforts to promote new lending and catalyse private capital across the European SME sector. For further information ......
News Analysis 8 October 2020Premium Content
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Absolute attraction
Absolute 2021-1 shows growth of US CRT market and pass-through appetite
The sale of Absolute 2021-1‘s pass-throughs - the $184.8m repack of two CLNs from Goldman Sachs which closed on September 25 - represents further evidence that investor appetite for higher yielding repackaged pass-through securities is growing.
An S&P analyst who worked on the rating of the deal confirmed that the CLNs were reconfigured as a repack to suit investor needs, but .......
News 7 October 2020
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IP transaction debuts
Sector developments and company hires
IP transaction debuts
Market Moves 7 October 2020
Aon has launched an intellectual property (IP) capital market solution with the close of an IP-backed ILS transaction, believed to be the largest such deal ever consummated. The deal involves agriculture technology company Indigo, which is borrowing over US$100m utilising its IP as collateral, with the value of that collateral insured by a group of insurance markets led .......
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Structured finance solutions
Contributed thought leadership by Ocorian
Sonal Patel, md, head of sales - Americas, Bermuda and Caribbean, and Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlight how structured finance solutions are coming to the fore across securitisation markets
Q: How is the securitisation industry responding to the Covid-19 fallout and .......
Talking Point 7 October 2020
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Seeking clarity
Chapter three of SCI's Autumn 2020 CRT Research Report
The third chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report examines the impact of payment holidays on the SME significant risk transfer sector, as well as concerns over performance and data availability, and the emergence of multi-bank portfolios. This section of the report comprises interviews with representatives from Chorus Capital, the EIF, Integer Advisors, Intesa Sanpaolo, Latham & ......
News Analysis 7 October 2020Premium Content
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Fix-and-flip profits
Low interest rates, inventory levels driving demand
The US fix-and-flip sector has experienced an increase in demand, fuelled by securitisation. Historic low interest rates and inventory levels are further boosting the market.
William Tessar, president of CIVIC Financial Services, says: “These are non-owner occupied investor property loans, not subject to regulations that owner occupied properties are subject to. Overall, interest rates are at historic lows. .......
News 7 October 2020
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'Quick fix' draft legislation published
Sector developments and company hires
‘Quick fix’ draft legislation published
The European Parliament has published draft legislative resolutions on amendments to the Securitisation Regulation and CRR in connection with STS synthetics and non-performing exposures.Among the proposals is a tightening of the definition of an NPE securitisation and the introduction of stricter language on risk retention, according to Rabobank credit analysts. The regulatory treatment .......
Market Moves 6 October 2020
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Olympic debut
Largest non-banking Greek ABS closed
Avis has completed a €186m securitisation of Greek auto leases and related residual value (RV) claims. Dubbed Cronus Finance, it is the first transaction from the jurisdiction since 2010 to achieve an investment grade rating by two major rating agencies and the largest non-banking ABS ever implemented in Greece.
The receivables were originated by Olympic Commercial & Tourist .......
News 6 October 2020
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SRT for the real economy
Chapter two of SCI's Autumn 2020 CRT Research Report
The second chapter of SCI’s Autumn 2020 Capital Relief Trades Research Report explores how significant risk transfer can drive economic growth, supported by the recent High Level Forum recommendations, the European Commission’s Covid-19 recovery package and the STS synthetics framework. This section of the report comprises interviews with representatives from AFME, the High Level Forum, Intesa Sanpaolo, PCS and Santander.
News Analysis 6 October 2020
Premium Content
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Synthetics seminar line-up finalised
Fireside chat, CRT workshop on the agenda
The line-up for SCI’s 4th Annual Risk Transfer & Synthetics Seminar has been finalised. Hosted virtually on 7 and 8 October, highlights of the event include a fireside chat between Clifford Chance’s Timothy Cleary and Christofferson Robb & Co’s Richard Robb, as well as a Mark Fontanilla & Co workshop on the US credit risk transfer market.
A market overview .......
News 6 October 2020
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Range of moratoria take-up 'stark'
Sector developments and company hires
Range of moratoria take-up ‘stark’
Market Moves 5 October 2020
With payment holiday concentrations having fallen over the past few remittance periods, the range of payment holiday take-up across UK RMBS is stark, according to JPMorgan’s latest Covid-19 Payment Holiday Tracker. Reflecting data reported primarily through September and August, the report identifies zero percent (in the case of the MORTI 2020-1 deal) and 0.6% (TWIN .......
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Risk transfer round-up - 5 October
CRT sector developments and deal news
Lloyds is rumoured to be readying its third mortgage significant risk transfer trade from the Syon programme for 4Q20. The last Syon transaction closed in February (see SCI’s capital relief trades database). Fitch placed Syon Securities 2019 and 2020 under rating watch negative (RWN) in April, but removed them from RWN last month (SCI 25 September).
....... News 5 October 2020
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Transmitting credit
SRT and the real economy explored
SCI will be publishing a chapter of our Autumn 2020 CRT Research Report each day this week. While today’s instalment - the introduction – is available to all subscribers, the subsequent chapters will be available to premium subscribers only.
To enquire about SCI’s premium content, email [email protected] (new subscribers) or [email protected] (existing customers). For further information on the risk transfer and synthetic .......
News 5 October 2020
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Comeback king
Container ABS weathers the storm
US container ABS volume has made a roaring comeback over the last month, after an absence of issuance that lasted for over a year. Limited expansion in capacity and supply in both the container leasing and container shipping markets has helped the sector weather the coronavirus-related reduction in trade volumes earlier this year.
Container lease ABS issuance accounts .......
News Analysis 5 October 2020
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SCI Start the Week - 5 October
A review of securitisation activity over the past seven days
SCI Risk Transfer Seminar This Week
News 5 October 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 examines innovation .......
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SME boost
Commerzbank completes CRT
Commerzbank, the EIF and the EIB have completed a €125m mezzanine guarantee that references a €1.9bn German SME and midcap portfolio. The guarantee will enable Commerzbank to provide new lending of up to €500m to SMEs and mid-caps in Germany as a countermeasure to the ongoing Covid-19 crisis.
The transaction benefits from the support of the European Fund .......
News 2 October 2020
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Repack returns
Optionality, yield a hit with investors
The appeal of repackagings during times of economic stress became apparent during the Covid-related shutdown. Repack issuance is gaining traction among Asian investors in particular, due to the search for yield and the instruments’ customisability.
“The repack product becomes more attractive in times of stress when investors are looking for opportunities more quickly. With the continued low interest .......
News 2 October 2020
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New IMA inked
Sector developments and company hires
New IMA inked
Market Moves 2 October 2020
Pollen Street Secured Lending (PSSL) has appointed Waterfall Asset Management as its investment manager, replacing PSC. An investment management agreement has also been signed with a new AIFM, Mirabella Financial Services. PSSL has agreed to pay PSC a sum representing the approximate balance of the unpaid base management fee, including the unexpired notice period. The PSSL board believes that .......