Complete news archive
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SCI Start the Week - 2 March
A review of securitisation activity over the past seven days
New MRT report
SCI has published a new Special Report on the US Mortgage Risk Transfer sector - it can be downloaded for free here.Transaction of the week
News 2 March 2020
BofA was in the market with a Dutch CMBS, dubbed Taurus 2020-1 NL. The €620.6m deal is the first from the programme to be backed solely by Dutch assets.
Rated by .......
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Risk transfer round-up - 28 February
CRT sector developments and deal news
Banca Monte dei Paschi di Siena is rumoured to be readying an SME SRT for next month, with the counterparty allegedly already selected. The transaction would be the bank’s first synthetic securitisation and it was reportedly scheduled initially for 4Q19.
...... News 28 February 2020Premium Content
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Irish recovery?
Domestic, external challenges remain
This year will be key for Ireland in terms of domestic and external challenges. Nevertheless, reperforming RMBS issuance is expected to remain strong.
The recent election in Ireland is one factor influencing the future of the Irish mortgage market, according to Gordon Kerr, head of European structured finance research at DBRS Morningstar. He says: “Political uncertainty remains, even .......
News 28 February 2020
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Diversification offered
European ABS market update
The European ABS pipeline is swelling in the run-up to March. Newly announced deals are providing sought-after diversification, not only in terms of assets but also jurisdictions.
Notably, Domivest is in the market with its second Dutch buy-to-let RMBS. Dubbed Domi 2020-1, the transaction is backed by a provisional €340m pool consisting of 1,288 mainly interest-only mortgage loans .......
Market Reports 28 February 2020
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Brexit question
UK and EU STS regimes could diverge
The end of the Brexit transition period on 31 December 2020 will call into question the STS status of UK securitisations for EU investors and of EU securitisations for UK investors. At the moment, under the forthcoming UK STS regime, EU STS securitisations will benefit from a two-year grandfathering period after Brexit - although no equivalence for UK STS .......
News Analysis 28 February 2020
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MSR subservicing transfer agreed
Sector developments and company hires
EMEA
Michael Fiebig has been appointed coo at responsAbility Investments. Fiebig will be responsible for the firm’s regional offices and central functions, such as legal, finance and business technology. Previously, he was responsible for private equity investments at responsAbility.MSR transfer
Market Moves 27 February 2020
Ocwen Financial Corp is set to transfer the subservicing of agency loans currently subserviced by its subsidiary PHH Mortgage .......
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MRT evolution
US Mortgage Risk Transfer report now available
Pioneered by Fannie Mae and Freddie Mac the US mortgage risk transfer (MRT) market is growing strongly and is now attracting the interest of potential new participants. Both the sell- and buy-side are hoping the sector will evolve to include non-agency issuance and kick-start a US capital relief trades market to rival and eventually even exceed the one seen .......
News 27 February 2020
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Green ILS framework rolled out
Sector developments and company hires
EMEA
Nick Holman has joined Kartesia to lead investments in the UK from the Kartesia Senior Opportunities (KSO) I fund. Holman joins Kartesia from Santander’s structured finance team, where he was a director. He will work alongside Javier Castillo, Charles-Henri Clappier and Thomas Poehler in the KSO senior team.Green ILS framework
Market Moves 26 February 2020
Generali has developed a ‘Green Insurance Linked Securities .......
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Project Cairo prepped
Eurobank applies for HAPS guarantee
Eurobank has applied to the Greek government for a senior tranche guarantee under the Hercules Asset Protection Scheme (HAPS). The guarantee is sized at €1.65bn and concerns two non-performing loan securitisations dubbed Cairo One and Two. Further applications are expected following a series of announcements of pending HAPS NPL ABS deals by Greek systemic banks (SCI 4 February).
News 26 February 2020
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Strong liquidity
European CLO market update
Liquidity continues to be strong in the European primary CLO market, with three deals pricing last week. Notably, the Carlyle Euro 2020-1 deal was upsized to €460m from €409.8m.
"The market has been stronger over the last few weeks. There has been robust demand and managers have been able to get the liabilities away cheaply," confirms one portfolio .......
Market Reports 25 February 2020
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GM withdrawal from Aussie autos 'credit negative'
Sector developments and company hires
CMBS analytics platform
Thetica Systems has launched a web platform for CMBS pricing and analytics tools, which can be used to quickly analyse bid lists, gather market colour and perform deep analysis. Clients control the requirements for access to inputs and calculations.EMEA
Market Moves 25 February 2020
PGGM recently promoted Youssef Sfaif to the position of director, credit and insurance linked investments. The role .......
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UK SRT debuts
Opel prepping full-stack auto ABS
BNP Paribas is marketing Opel’s second full-stack auto ABS from the E-CARAT programme. Dubbed E-CARAT 11, the capital relief trade is the issuer’s first to reference UK auto loans.
Boudewijn Dierick, head of ABS markets at BNP Paribas, notes: “The residual value is the novelty and main challenge here, as different investors take different views on UK RV .......
News 25 February 2020
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Social factors
Positive ESG scores for post-crisis vintages
ESG relevance scores (ESG.RS) are more likely to be negative for seasoned securitisations, according to Fitch. The most recent issuance vintages demonstrate a balance of positive and negative ESG factors.
Weak transaction structures prior to the crisis are identified as a factor contributing to the negative ESG.RS found in those vintages. In addition, Fitch says: “Some governance issues .......
News 24 February 2020
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High-profile bankers exit SRT
Sector developments and company hires
SRT departures
Last week saw a couple of high-profile exits from SRT banking teams in London. Structuring specialist Jeremy Hermant is understood to have left Santander, while md Bob Paterson has reportedly been put at risk of redundancy at Lloyds.Spokespeople at both banks declined to comment, although the latter stated: “Whenever we make role reductions, these changes do require making difficult .......
Market Moves 24 February 2020
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VAT switch
European CLO managers hit with backdated bill
Dutch tax authorities have changed their interpretation of VAT law in connection with CLO management fees, impacting an estimated 30% of European CLO SPVs. Dutch lawyers disagree with the change and are appealing the decision, but it remains unclear how long the appeal process will take and whether CLO managers will have to pay the bill in the meantime.
News 24 February 2020
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Rare CMBS prepped
BofA brings 'one-off' Dutch transaction
BofA is in the market with a Dutch CMBS, dubbed Taurus 2020-1 NL. The €620.6m deal is the first from the programme to be backed solely by Dutch assets.
Rated by KBRA, the transaction comprises €324.7m triple-A rated class A notes, €98.8m double-A minus rated class B notes, €65.9m single-A minus rated class C notes, €65.9m triple-B minus rated class .......
News 24 February 2020
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SCI Start the Week - 24 February
A review of securitisation activity over the past seven days
REMINDER: SCI NPL Securitisation Awards 2020
Nominations are now open for the inaugural SCI NPL Securitisation Awards with a deadline of 20 March.
Further information and details of how to pitch can be found here.Transaction of the week
News 24 February 2020
Samas Asset Management (SAM) has launched its debut fund, a closed-end vehicle dubbed SAMAS FUNDING PACE FUND LLLP Series 2020. The Samas entities .......
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Moving down
Insurers target first-loss CRTs
Insurers are now targeting the first-loss tranches of capital relief trades, having eyed the senior mezzanine tranches of dual-tranche transactions last year (SCI 22 March 2019). The better risk/return profile of first-loss tranches and an adaptation of traditional credit insurance contracts into unconditional guarantee formats are the main factors driving the development.
According to one reinsurer: “We have no .......
News Analysis 21 February 2020
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SRT fund launched
AXA engineers return
AXA Investment Managers has completed its eighth partner capital solutions fund. With the move, the firm is seeking to capitalise on diversification opportunities and volume growth in the risk transfer market.
According to Deborah Shire, global head of structured finance at AXA Investment Managers: "The reg cap market has been transformed into a full-fledged alternative investment opportunity, with .......
News 21 February 2020
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Rarity value
European ABS market update
The European ABS market remains characterised by a lack of free flow. Against this backdrop, the senior notes of the Spanish Gedesco Trade Receivables 2020-1 transaction are attracting investor interest, due to its rarity value.
“It is still very much the same tone. Generally, we are not seeing a huge amount of trading,” one trader notes.
He .......
Market Reports 21 February 2020
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Minority equity interest acquired
Sector developments and company hires
Equity interest acquired
Affiliated Managers Group has acquired a minority equity interest in Comvest Partners. The Comvest management team will be investing 100% of the transaction proceeds directly into future funds to support the firm’s growth initiatives. Following the transaction, the senior partners of Comvest will continue to own a significant majority of the equity of the business.HPI .......
Market Moves 20 February 2020