Complete news archive
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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
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Doubling up
Record year anticipated for the EIF
The bulk of European SME capital relief trades in 1H20 were public, with the EIF a particularly active participant, given its mandate to support the sector. Indeed, it is shaping up to be a record year for the organisation in terms of synthetic securitisation, with easily double the volumes than issued under normal circumstances.
“Part of the EIF’s .......
News Analysis 22 September 2020
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Into the light?
European CLOs continue to improve
The European CLO market is seeking to build on its relatively stable foundations of recent months as prices move ever-tighter. Notwithstanding the broader ramifications of a continuing global pandemic, the sector looks set to be leaving the darkest days of March and April behind.
Last Friday saw the tightest post-Covid print yet in the European CLO primary market, .......
News 21 September 2020
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SCI Start the Week - 21 September
A review of securitisation activity over the past seven days
REMINDER: SCI CRT Awards
News 21 September 2020
The submissions period for the 2020 SCI CRT Awards is now open. The qualifying period for the awards is the 12 months to 30 September 2020.
Pitches and/or any queries should be emailed to [email protected] by 9 October. Click here for information on categories and the submissions process.
Final selections will be made by the SCI .......
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Moody's move mezz positive
Sector developments and company hires
Moody’s move mezz positive
Moody's has issued a request for comment on proposed changes to its methodology for rating CLOs that adjust its analytical treatment of corporate obligors with a negative outlook or whose ratings are on review for upgrade or downgrade. If the proposal is adopted, Moody’s expects an overall positive impact of a one-notch upgrade that will affect .......
Market Moves 21 September 2020
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Forbearance crossroads
Mortgages in forbearance well off the peaks but uncertainty beckons
The number of US home loans in forbearance plans declined for the fourth week in succession and is now more than 22% lower than the peak seen in late May, according to data released by Black Knight today (18 September).
As of September 15, 3.7m loans, representing $7.81bn in unpaid principal, are in Covid 19 forbearances plans compared to 4.7m by May .......
News 18 September 2020
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Tech crazy
Securitizations of tech assets finding favour in Covid world
Securitizations of technology assets are proving popular with US investors in the Covid marketplace, according to a new Moody’s report based on interviews with “dozens” of structured finance issuers, arrangers and investors around the world.
In particular, securitizations of data centres, both as a constituent asset of CMBS transactions and corporate ABS deals, have caught the eye of buyers, say .......
News Analysis 18 September 2020
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Restructuring inked
Attica Bank restructures NPL ABS
Attica Bank has restructured a Greek NPL securitisation that was executed over three years ago and dubbed Artemis (SCI 7 July 2017). Due to the evolution of the underlying portfolio, the noteholders opted for a restructuring in order to ensure consistency of cash flows.
According to the new terms, the transaction now comprises a €487m class A1 tranche, a €62m class .......
News 18 September 2020
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Risk transfer round up-17 September
CRT sector developments and deal news
BNP Paribas is believed to have priced a corporate capital relief trade from the Resonance programme this week. The transaction would be the fifth from the programme (see SCI’s capital relief trades database).
....... News 17 September 2020
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Pagaya on hiring spree
Sector developments and company hires
Pagaya brings in new blood
Pagaya, the data-driven asset manager, has made five key hires across all areas of its business. It has hired Jeff Andrews and Paul Limanni as, respectively, head of originations and head of structured products. Andrews joins from LendingClub where he was vp of strategic partnerships, and Limanni joins from Shelter Growth Capital Partners. Limanni will oversee all .......
Market Moves 17 September 2020
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Auto SRT priced
Santander unveils its first post-Covid Spanish auto SRT
Santander this week priced a full stack auto significant risk transfer trade (SRT) referencing a static €520m portfolio of Spanish auto loans, constituting the bank’s first post-Covid lockdown Spanish auto SRT.
Dubbed Santander Consumer Spain 2020-1, marketing for the deal began in last month (SCI 28 August).
Class A pays three-month Euribor plus 39bp, class B pays three-month Euribor plus 95bp, class .......
News 16 September 2020
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Aussie opportunities
Increasing issuance in Australian primary market
The recent announcement that the Royal Bank of Australia’s (RBA) Term Funding Facility (TFF) will be increased and extended into 2021 suggests that while ongoing issuance from the non-bank sector is expected, it is highly unlikely that significant levels of ADI issuance will be seen while lenders have access to the TFF, say well-placed market participants.
“Over the last month, the primary .......
News 15 September 2020
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Regulatory divergence
Brexit complicates ESMA RTS compliance
The controversy surrounding the application of the EU’s regulatory technical standards (RTS) to securitisation disclosure requirements persists, while the UK’s imminent departure from EU regulations and consequent potential divergence from the bloc’s rules further complicates the situation.
The RTS was published in the official journal of the EU earlier this month and will enter into force on 23 September 2020.
A series of .......
News 14 September 2020
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LLPA exceptions
Record origination in Q2 as rates scrape the lows
The controversial adverse market fee announced by the GSEs in August initiated an immediate 12.5bp increase in 30-year mortgage rates and a drop in rate-lock activity, according to Black Knight, the mortgage data and research firm.
“When the 50bp fee was made public, 30-year rates increased by an eighth of a point, and rate lock activity pulled back by 20%. The fee .......
News Analysis 11 September 2020
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SYME securitisation underway
Sector developments and company hires
SYME securitisation underway
Market Moves 11 September 2020
Supply@ME Capital (SYME) reports that it has received offers, subject to contract, from a number of large, global institutional investors for a securitisation note issuance via StormHarbour, in order to monetise more than €300m of inventory (SCI 24 April). The company says it is currently analysing whether to syndicate this first securitisation issuance or work on .......
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Missing piece
Lack of equity investors holding back CLO growth
The CLO primary market is fully back to post-summer business with three new deals pricing yesterday, 10 September and a bulging pipeline either side of the Atlantic. However, the lack of equity investors is holding the sector back from greater long-term growth.
The deals that priced yesterday brought this holiday-shortened week’s total to five already and continued the .......
News Analysis 11 September 2020
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Volksbank debuts
Delayed Italian SRT inked
Volksbank has completed a financial guarantee with the EIF and the EIB that references a static €700m Italian SME portfolio of roughly 3600 borrowers. The transaction is the Italian bank’s first significant risk transfer transaction.
Martin Schweitzer, cfo and deputy ceo at Banca Popolare dell’Alto Adige, notes: “It’s an important transaction for us in several respects, not least because of .......
News 11 September 2020
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APAC SRTs eyed
Balance sheet optimisation in focus
Asia Pacific banks are eyeing synthetic securitisations to optimise their balance sheets and as Basel 4 is incorporated into local laws. However, portfolios tend to be structured as blind pools, which could potentially limit future investor interest.
APAC SRTs are not a new phenomenon, as the activity of Standard Chartered and Credit Suisse demonstrates. Credit Suisse, for instance, closed three APAC .......
News Analysis 11 September 2020
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Auto opportunities
Euro residual values holding up
The European second-hand car market has been relatively strong since lockdown ended, supporting auto ABS residual values, according to panellists at S&P’s recent European Structured Finance Virtual Conference. Mezzanine tranches in consumer and auto paper were highlighted as areas of opportunity.
Vittoria Ferraris, senior director and sector lead automotive EMEA at S&P, noted that auto ABS residual values .......
News 11 September 2020
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Pent-up demand
European RMBS market update
The European securitisation market reopened post-summer with a blow-out print for ARA Venn’s latest STS Dutch prime RMBS, the €300m Cartesian 5. The books for the class A notes were 5.5x covered, with orders reaching €1.5bn, indicating pent-up demand for paper.
“I was quite surprised by the level of demand,” says one ABS trader. “The main driver is .......
News 10 September 2020
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Multi-level Libor exposure eyed
Sector developments and company hires
Multi-level Libor exposure eyed
Market Moves 9 September 2020
Japanese securitisations with exposure to Libor on multiple levels will face the highest risks in the transition away from the benchmark rate when it is phased out at end-2021, Moody's notes. Around 20% of Japanese structured finance transactions the agency rates have Libor exposure and, in some cases, there is Libor exposure through notes, as well .......