Complete news archive
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Basel 3 implementation deferred
Sector developments and company hires
APAC fund launch
Market Moves 30 March 2020
Pierfront Capital Fund Management has been awarded its capital market services license for fund management by the Monetary Authority of Singapore. It has also announced the first close of the Keppel-Pierfront Private Credit Fund, which aims to provide debt solutions to corporates or projects predominantly in the real asset sectors of the Asia-Pacific region. Sponsored by Pierfront .......
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Capacity constraints
Covid-19 not yet posing solvency issues
Government and central bank actions have kept both the financial system and the real economy afloat in the short-term, amid the coronavirus disruption. The severity of this crisis for company and household finances will depend on the length of the current outbreak and political will, however.
According to Rabobank credit analysts: “Covid-19 is now an imminent issue for .......
News Analysis 30 March 2020
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Systemic risk?
Servicing capacity concerns for non-bank lenders
Fitch has revised its US RMBS servicer ratings outlooks to negative, due to evolving economic stresses and operating conditions caused by the coronavirus pandemic. Concern around servicing capacity in the US is rising as non-bank mortgage lenders come under increasing pressure, given their limited funding profiles.
“The fallout from the pandemic is likely to elevate loan delinquencies, increase .......
News Analysis 30 March 2020
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SCI Start the Week - 30 March
A review of securitisation activity over the past seven days
Transaction of the week
News 30 March 2020
Northern Arc Capital and fintech platform CredAble have closed a trade finance securitisation backed by invoice receivables. The transaction is the first rated and listed invoice receivables-backed ABS from India.
Kshama Fernandes, md and ceo of Northern Arc Capital, says: "Banks and non-banking financial companies (NBFCs) have traditionally been present in this space and have been discounting these .......
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Testing times
MPL platforms addressing coronavirus impact
As an expansion-era product, marketplace lending securitisation is expected to be tested for the first time by the Covid-19 fallout. Joseph Cioffi, partner and chair of the insolvency, creditors’ rights and financial products practice group at Davis & Gilbert and author of Credit Chronometer, tells SCI how platforms are preparing for a potential recession.
Q: Why and how .......
Talking Point 27 March 2020
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Euro CLO coronavirus exposure mitigated
Sector developments and company hires
Euro CLO coronavirus exposure mitigated
A portion (15%) of European CLO collateral is derived from the industries most vulnerable to the coronavirus pandemic, according to Moody’s. However, the agency says that the relatively few near-term maturities of affected issuers will help mitigate the negative impact.The European CLOs that Moody’s rates have a median exposure of 14.7% to the sectors most .......
Market Moves 27 March 2020
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PPIP call
CRT and non-agency MBS still in need of purchasing power
Non-agency MBS and CRT deals in particular are still in need of government support, according to securitised product research analysts at JPMorgan. They suggest it could come in the form of a Public Private Investment Programme (PPIP) similar to that introduced in 2009 to support MBS through combining Treasury and private capital to buy legacy assets.
“While the .......
News 27 March 2020
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Liquidity risk
Pandemic pressure on NPL performance
Economic disruption caused by Covid-19 is expected to negatively impact the timing and amount of collections for non-performing loan securitisations from the euro-area periphery. NPL transactions are exposed not only to direct economic shocks, but also to the shutdown of non-essential activities, particularly the legal and real estate industries.
Scope Ratings reports that the progress of NPL work-out strategies in .......
News 27 March 2020
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UK WBS hit expected
Sector developments and company hires
APAC
Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and derivatives research team, based in Melbourne, Australia. Clark was previously senior portfolio manager in QIC’s global multi-asset team and has also worked at Suncorp Investment Management. He has experience in ILS manager and investment research.North Dock debuts
Market Moves 26 March 2020
Barclays Private Bank has closed North Dock No. .......
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Forced selling
REITs struggling to meet margin calls
US MBS rallied yesterday (25 March) in the wake of the announcement that Congress has agreed the terms of a US$2trn stimulus package. However, they remain well down on the week, say dealers.
“The Fed announcement has firmed things up. It has stabilised the market but not taken away all the spread widening,” says one. But the market .......
News Analysis 26 March 2020
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Cloudy outlook
RMBS perseveres amid market volatility
LendInvest last week closed Mortimer BTL 2020-1, a £285m UK buy-to-let RMBS, in the face of unprecedented levels of volatility in credit markets. Virus-related uncertainties are not the only concern for UK RMBS this year, however.
The triple-A rated senior tranche of Mortimer BTL 2020-1 priced at Sonia plus 1.07%, 23bp tighter than LendInvest’s previous deal, Mortimer BTL .......
News Analysis 26 March 2020
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Closing the gap
Audentia Global investor relations head Sophia Vanco and chi...
Q: How and when did Audentia Global become involved in the capital relief trades market?
The Structured Credit Interview 26 March 2020
NM: Audentia was founded 2.5 years ago by its co-chief investment officers Fasil Nasim and Chris Newman, who had previously worked together in commodity finance at BNP Paribas, in response to the global trade finance market’s US$1.5trn funding gap (as per Asian Development Bank figures). Their .......
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Call for TALF expansion
Sector developments and company hires
BlackRock hired
Market Moves 25 March 2020
The New York Fed has retained BlackRock Financial Markets Advisory as a third-party vendor to operationalise its purchases of agency CMBS and transact with primary dealers on behalf of the SOMA. BlackRock was selected on a short-term basis to serve as an investment manager after considering its expertise in trading and analysing agency CMBS in the secondary market, .......
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Research head named
Sector developments and company hires
North America
Market Moves 24 March 2020
David Walker has joined CIFC as head of research, responsible for leading the firm’s US credit research platform and overseeing its team of 20 research analysts. Based in New York, he reports to CIFC ceo and cio Steve Vaccaro. With over 30 years of experience in debt and equity research in North America and Europe, Walker previously served .......
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TALF response mixed
Fed facility could be found wanting
The US Fed’s introduction of the new iteration of the Term Asset-Backed Securities Loan Facility, or TALF 2.0 (SCI 23 March), was one of the measures that contributed to some steadying of broader markets yesterday. However, the facility could meet with a mixed response from securitisation market participants and there are already calls for it to be expanded.
News Analysis 24 March 2020
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SASB stress
RWN action reflects hotel pressure
Fitch has placed 81 classes from 15 US single-borrower hotel CMBS on negative watch, reflecting the significant economic impact to the sector from the coronavirus pandemic. The magnitude of defaults among CMBS loans secured by hotels will nonetheless depend on the length of time that travel is disrupted and social distancing measures remain in place, as well as borrower .......
News Analysis 24 March 2020
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Fed revives the TALF programme
Sector developments and company hires
Return of the TALF
Market Moves 23 March 2020
The US Fed announced a slew of new measures to support the credit markets this morning, including the revival of the Term Asset-Backed Securities Loan Facility (TALF), first seen in the wake of the global financial crisis. Under the TALF, the New York Fed will commit to lend to an SPV on a recourse basis and .......
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CRT deals disclosed
Intesa publishes capital management strategy
Intesa Sanpaolo has released details of its capital management strategy, following the release of its 2019 annual report on Friday (20 March). The lender has revealed the details of four capital relief trades that were completed last year.
Intesa Sanpaolo’s 2018-2021 business plan includes initiatives for credit portfolio management that fall within the remit of the active credit portfolio steering .......
News 23 March 2020
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SCI Start the Week - 23 March
A review of securitisation activity over the past seven days
SCI NPL Securitisation Awards 2020 - new deadline
News 23 March 2020
SCI NPL Securitisation Awards 2020 - new deadline As a result of COVID-19, the SCI NPL Securitisation seminar has unfortunately had to be postponed until 1 July, along with the NPL Securitisation Awards ceremony. Award nominations remain open and a have a revised deadline of 24 April. Further information and details of how to .......
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Invoice ABS debuts
First trade receivables securitisation for India
Northern Arc Capital and fintech platform CredAble have closed a trade finance securitisation backed by invoice receivables. The transaction is the first rated and listed invoice receivables-backed ABS from India.
Kshama Fernandes, md and ceo of Northern Arc Capital, says: “Banks and non-banking financial companies (NBFCs) have traditionally been present in this space and have been discounting these .......
News 23 March 2020
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NPL supervisory flexibility introduced
Sector developments and company hires
Canadian purchase programme
Market Moves 20 March 2020
The Canadian government has launched a revised Insured Mortgage Purchase Program (IMPP), under which it will purchase up to US$50bn of insured mortgage pools through the Canada Mortgage and Housing Corporation. The move aims to provide stable funding to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses. The first purchase .......