Complete news archive
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SCI Start the Week - 1 June
A review of securitisation activity over the past seven days
Last week's stories
News 1 June 2020
Accessing guarantees
CBILS securitisation warehouses mulled
Forbearances falter
Forbearance volumes slow, but the next stage is daunting
Galaxy returns
Alpha relaunches NPL ABS
Growth phase
European CLOs seeing increasing attention to ESG criteria
Lift off
Hoist Finance answers SCI's questions
Marketplace merit
Online lending resilient amid impairments
Mobilising MILNs
The MILN market is in deep freeze but thaw might be due
Persistent opportunity
CDIB Capital .......
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Renewables JV inked
Sector developments and company hires
Renewables JV inked
Market Moves 29 May 2020
By way of a joint venture, illimity Bank and VEI Green II have set up a securitisation vehicle for distressed loans with underlying assets that produce electricity from renewable sources. This vehicle will invest up to €100m and operate in both the Italian primary and secondary energy markets. The partnership has commenced activities by carrying out its .......
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Galaxy returns
Alpha relaunches NPL ABS
Alpha Bank is relaunching its project Galaxy non-performing loan ABS following the coronavirus disruption, with the aiming of closing the securitisation in 4Q20. At the same time, the National Bank of Greece has postponed an NPL ABS deal that was initially scheduled for 3Q20.
The Galaxy securitisation was announced last year and references retail secured and wholesale non-performing .......
News 29 May 2020
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Forbearances falter
Forbearance volumes slow, but the next stage is daunting
The rate of increase of US home loans in forbearance plans has slowed significantly lately, according to data compiled by Black Knight, the mortgage technology and data provider, but the overall picture remains sobering.
Only 7,000 new mortgages were added to the overall total of 4.76m homeowners in forbearance plans in the week-ending May 26. This compares to a 325,000 net increase .......
News 29 May 2020
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Accessing guarantees
CBILS securitisation warehouses mulled
Securitisation is gaining traction as a way for a wider investor base to access coronavirus-induced government stimulus packages. The technology could also be leveraged to provide much-needed liquidity to SMEs.
Orrick partner Richard Hanson, for one, is aware of non-bank accredited lenders seeking to warehouse Coronavirus Business Interruption Loan Scheme (CBILS) loans via a private securitisation structure. Under .......
News Analysis 29 May 2020
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Risk transfer round-up - 29 May
CRT sector developments and deal news
ABN AMRO is rumoured to be readying a corporate capital relief trade that is expected to close in 3Q20. The transaction would be the lender’s first post-crisis synthetic securitisation.
....... News 29 May 2020
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Mobilising MILNs
The MILN market is in deep freeze but thaw might be due
The mortgage insurance-linked note (MILN) market has been closed for three months as a result of the Covid 19 dislocation, but well-placed sources say the smoke is clearing and that the market shutdown will not be as protracted as was originally feared.
“Through April, we had no discussions with investors that were at all constructive about new deals. .......
News Analysis 29 May 2020
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No call for OATH 1
Sector developments and company hires
No call for OATH 1
Market Moves 28 May 2020
UK Mortgages and TwentyFour Asset Management have notified Oat Hill No. 1 bondholders that the RMBS will not be redeemed on its first refinancing call date of 27 May (SCI 22 April). TwentyFour says the transaction was not called as, due to the Covid-19 situation, financing markets were only available at relatively expensive levels .......
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Growth phase
European CLOs seeing increasing attention to ESG criteria
The current crisis has initiated further discussion surrounding sustainability. Expectations are that investor demand and policy changes will further integrate ESG considerations into the CLO investment process.
Andrew Lawson, head of capital markets at Permira Debt Managers, says: “Investors continue to pay increasing attention to ESG criteria, particularly following this pandemic. As the investors demand greater focus on ESG principles, .......
News Analysis 28 May 2020
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Pan-European guarantee fund launched
Sector developments and company hires
Pan-European guarantee fund launched
Market Moves 27 May 2020
The EIB board has approved a €25bn Pan-European Guarantee Fund (EGF) - which will be funded by EU member states pro rata to their shareholding in the bank – as part of its overall response to the Covid-19 crisis. By guaranteeing parts of portfolios, operations under the guarantee fund will free up capital for financial intermediaries .......
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Marketplace merit
Online lending resilient amid impairments
The performance of online lending platforms remains resilient, despite coronavirus-related pressures. Indeed, dv01 data suggests that total loan payment impairments are showing signs of slowing down, after peaking earlier this month.
Vadim Verkhoglyad, principal analyst at dv01, says: “It looks like total impairments peaked at last in the immediate term. There was a normal seasonal spike in early .......
News 27 May 2020
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Lift off
Francesco Di Costanzo, head of structured credit at Hoist Finance, answers SCI's questions
Q: How and when did you become involved with securitisation?
A: We are a licensed credit market institution, regulated as a bank, which gives us the advantage of low cost and consistent funding. However, this means, of course, that we are subject to bank capital requirements.
Over the years we have bought unsecured non-performing loan portfolios, to .......
The Structured Credit Interview 27 May 2020
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Persistent opportunity
Tor Trivers, md and head of the structured credit group at CDIB Capital, answers SCI's questions
Q: How and when did CDIB Capital become involved in the structured credit market?
The Structured Credit Interview 27 May 2020
A: CDIB Capital was established in 2006, as the private equity arm of China Development Financial, with the objective of deploying and diversifying the group’s proprietary capital outside of Taiwan. The firm has historically managed outside funds, but no credit-related assets until I joined in February .......
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Limited effect?
Performance trigger suspensions eyed
The Italian government last week passed the Decreto Rilancio, a decree that aims to restart the economy following the country's coronavirus-driven lockdown (SCI 15 May). The decree allows the Ministry of Finance to approve temporary suspensions of performance triggers that allow for the payment of special servicing fees for GACS guaranteed non-performing loan securitisations. If implemented, the change .......
News 22 May 2020
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CLO tender offer launched
Sector developments and company hires
CLO tender offer
Market Moves 22 May 2020
The Black Diamond CLO 2015-1 issuer has launched a tender offer to all noteholders of the €176.3m class A1 and the US$67.2m class A2 notes. The purchase price for any bonds tendered under the offer will equal 98.75% of the principal amount outstanding of each note. The offer expires on 2 June, with settlement due on 9 .......
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Risk transfer round-up - 22 May
CRT sector developments and deal news
Santander is rumoured to be readying its fourth SME significant risk transfer deal from the Magdalena programme for the second half of the year. Magdalena Three was finalised in June last year. The €342m ticket referenced Spanish SME loans (see SCI’s capital relief trades database).
....... News 22 May 2020
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Back on hold
European MM CLOs stymied by pandemic
The long hoped for pick up in European middle market (MM) CLO issuance was expected to arrive in 2020. However, thanks to the Covid-19 crisis, plans have had to be put on hold as middle-market firms focus on survival.
A new report from DBRS Morningstar suggests that the crisis has set back the progress of MM CLOs in .......
News 22 May 2020
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CLO manager performance assessed
Sector developments and company hires
CLO manager performance assessed
JPMorgan has issued its latest CLO manager quarterly reports for both the US and Europe.72% of US CLOs are now failing their S&P triple-C test and 38% are failing their Moody’s Caa1 test, but there are still three managers passing both tests in all of their transactions: Blackrock, DFG/Vibrant, and Silvermine. Meanwhile, JPMorgan CLO .......
Market Moves 21 May 2020
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Moratoria mulled
Payment holidays set to test CRT provisions
Portfolios referencing loans subject to payment holidays may create a new sub-asset class within the capital relief trades market. Nevertheless, it remains to be seen whether provisions in outstanding synthetic securitisations will prevent lenders from being paid due to the implementation of moratoria.
Roberto Savina, head of structured risk solutions at AmTrust International, confirms that he has been .......
News Analysis 21 May 2020
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SRTs eyed
Pension funds target risk transfer
Pension funds are targeting capital relief trade opportunities as the coronavirus crisis renders pricing more attractive and other credit opportunities become scarcer. However, access remains a challenge, with some new pension fund investors using joint ventures with established investors as an alternative way for overcoming entry barriers.
According to IACPM data, pension funds represent 30.6% of the investors in .......
News Analysis 21 May 2020
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TALF subscription date announced
Sector developments and company hires
TALF subscription date announced
Market Moves 20 May 2020
The New York Fed has scheduled the first TALF ABS loan subscription date for 17 June, with the first loan closing date to be 25 June. On fixed days each month, borrowers will be able to request one or more three-year TALF loans. The Fed has published a Master Loan and Security Agreement, which provides further details on the terms .......