Complete news archive
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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 .......
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Repayments rated
CLO debt repayment rates could act as a manager differentiator
Manager differentiation has become ever more important as the Covid-crisis and its resultant CLO market impact continues to play out. Real repayment rates could become the latest tool in the manager selection process as well as an important pricing input.
"Examining how quickly CLO rated debt is being paid down post reinvestment end date on a deal by deal basis .......
News Analysis 1 October 2020
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'Dual-track' approach touted for SRT
Sector developments and company hires
‘Dual-track’ approach touted for SRT
Market Moves 1 October 2020
The EBA is finalising its report on significant risk transfer and hopes to be able to publish it by year-end, according to Pablo Sinausia, policy expert at the authority. He disclosed during a TSI Congress 2020 panel today that the report builds on the EBA’s recent report on STS synthetics and will address structural features that .......
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SME ABS debut for Italian fintech
Sector developments and company hires
SME ABS debut for Italian fintech
Market Moves 30 September 2020
Banca Valsabbina has supported fintech BorsadelCredito.it as arranger, account bank and subscriber - together with other institutional investors – of ABS notes in a €100m securitisation backed by trade receivables granted to SMEs and guaranteed by the Central Guarantee Fund for SMEs. This is the first unrated securitisation operation listed on Borsa Italiana’s ExtraMOT-PRO .......
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Double-B disparity
US CLO lower mezz misses out
Last week saw high levels of activity across the bulk of the US CLO primary and secondary markets. However, new and very recent double-B paper has missed out.
“The majority of the new issue debt stack has been very actively bid, but double-B spreads have not been moving as tighter as expected,” says one trader. “In the secondary, .......
News Analysis 30 September 2020
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Programmatic approach
Chinese ABCP market gaining traction
Four public ABCP programmes have launched in China since the market opened in June. However, there are a number of differences between Chinese ABCP programmes and those in more developed jurisdictions.
“It is a new market, so at the moment both the programme structure and the underlying assets are less diverse in comparison to the more developed markets .......
News 30 September 2020
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Mezz CLO fund closed
Sector developments and company hires
Mezz CLO fund closed
Market Moves 29 September 2020
Pearl Diver Capital has completed the final closing of its eighth closed-end CLO investment fund, PDC Opportunities VIII, at US$400m. Launched with a target raise of US$300m, the fund hit its hard cap, with LPs represented by public pension systems, corporate pension plans, high net-worth family offices and endowments. The fund is designed to invest opportunistically .......
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Latest Magdalena finalised
Santander prices first post-Covid SME SRT
Santander, the EIF and the EIB have completed a €55m and €143m CLN that references a €2.2bn Spanish SME portfolio. Dubbed Magdalena Four, the transaction is Santander’s first post-Covid SME significant risk transfer trade.
The transaction consists of a €1.969bn retained senior tranche, a €55m senior mezzanine tranche (priced at three-month Euribor plus 1.6%), a €143m junior mezzanine tranche (plus 6%) and a €33m retained first loss tranche. .......
News 29 September 2020
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Cashflow concerns
WFH shift highlighted in office, multifamily CMBS
Both the US office and multifamily CMBS sectors will be impacted by the coronavirus-induced working-from-home (WFH) trend. The consequent need for the reconfiguration of physical properties, as well as leases, is highlighted by Fitch in a new report.
Many workers will continue to choose to WFH, due to concerns about mass transit during the commute to work and .......
News 28 September 2020
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Risk transfer round up - 28 September
CRT sector developments and deal news
BNP Paribas is rumoured to be readying a full-stack consumer significant risk transfer trade for 2H20.The transaction would be the lender’s first post-Covid full stack SRT following the finalisation of E-CARAT 11 in February (see SCI’s capital relief trades database).
....... News 28 September 2020
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SCI Start the Week - 28 September
A review of securitisation activity over the past seven days
SCI Risk Transfer & Synthetics Virtual Seminar
News 28 September 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 .......
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European evolution
European CLO market changing post-Covid
European CLO structures are evolving post-crisis, including the introduction of static deals only previously seen in the US. Such innovation combined with relative value opportunities could spur further market growth.
Dasha Sobornova, partner at Mayer Brown, says: “When the market opened up there were features that were quite different to what we were used to seeing in CLO .......
News Analysis 28 September 2020
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Under pressure
CRE uncertainty persists
Commercial real estate companies backed by exposure to retail face difficult months ahead, following renewed downward pressure on rental income and non-prime property values amid the prolonged economic fallout of the Covid-19 crisis. Indeed, as the uncertainty over the sector continues, one question is what sort of approach investors should follow in their attempts to gauge the outlook for .......
News Analysis 28 September 2020
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Calabrian calibration
FHFA silent on the implication of the director's comments about GSE CRT last week
The Federal Housing Finance Authority (FHFA) has been unable provide more details about what director Mark Calabria’s meant at last week’s Congressional hearings when he apppeared to envisage a reduced place for CRT deals offered by the GSEs in the future.
Calabria was speaking before the House Financial Services Committee at a hearing entitled “Prioritizing Fannie’s and Freddie’s Capital over America’s Homeowners .......
News Analysis 25 September 2020
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Tight pricing
BNP Paribas completes SRT
BNP Paribas has finalised a €324m funded financial guarantee and is scheduled to complete a €100m insurance policy before the end of 3Q20. Dubbed Resonance Five, the tranches reference a static €8bn global corporate portfolio that consists of both drawn and undrawn commitments. The transaction is so far the most tightly priced corporate capital relief trade of the year.
The .......
News 25 September 2020
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Revolver exposures on offer
Sector developments and company hires
Revolver exposures on offer
Goldman Sachs is in the market with a balance sheet synthetic securitisation referencing a portfolio of predominantly investment-grade senior unsecured revolving loan facilities. Dubbed Goldman Sachs Bank USA credit-linked notes due 2025, the transaction comprises two classes of S&P-rated CLNs for a total of US$184.8m.The transaction documentation links the ability of Goldman Sachs to .......
Market Moves 25 September 2020
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Risk transfer round-up - 25 September
CRT sector developments and deal news
Goldman Sachs is rumoured to be prepping two US corporate significant risk transfer deals for 4Q20 and the lender is believed to have closed another corporate deal in 3Q20. The trades would be the bank’s first SRTs (see SCI’s capital relief trades database).
....... News 25 September 2020
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Syon safe
Fitch affirms ratings for Lloyds SRTs
Fitch has removed the Syon Securities 2019 and 2020 transactions from rating watch negative (RWN), after having placed them there in April following the coronavirus outbreak. The class C and D notes of Syon 2019 and class C notes of Syon 2020 were placed on RWN due to an expectation of weakening asset performance.
Syon Securities 2019 and .......
News 25 September 2020
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JP Morgan at CRT again
The US bank is reportedly readying a corporate/SME loan deal
JP Morgan Chase is preparing a capital relief trade (CRT) referencing corporate and SME loans, say well-placed market sources.
It is getting ready to place the trade among a “small club” of investors before the end of financial year, add the sources.
JP Morgan has been unavailable for comment.
The deal represents a broadening of asset classes referenced by risk transfer deals .......
News 24 September 2020
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Spread compression
European securitisation market update
European auto and consumer ABS have seen a strong reception this week, despite renewed virus-related concerns. The first German auto ABS since May printed at tight levels, for example, while a rare UK consumer ABS from Premium Credit has entered the pipeline.
One trader notes: “Over the last session, we had seen a slight pause in the market .......
News 23 September 2020
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Private credit fund formed
Sector developments and company hires
Private credit fund formed
FrontWell Capital Partners has launched with committed seed capital of more than US$350m from a group of international investors. Headquartered in Toronto, the firm aims to provide transitionary senior debt financing - including asset-based and cashflow loans - to middle-market companies in the US and Canada.FrontWell is led by founder and ceo Patrick Dalton, who previously .......
Market Moves 23 September 2020