Complete news archive

  • Doubling up

    European ABS market update

    A pair of deals in the pipeline have captured the interest of European ABS market participants. Skipton Building Society’s Darrowby No. 5 RMBS marks the lender’s return to the market after four years, while DTGO Corp’s Magenta 2020 transaction is the first CMBS linked to SONIA.

    One portfolio manager points to the maturing of its TFS funding as a potential .......

    Market Reports 13 February 2020

  • CRT upgraded due to 'substantial' increase in CE

    Sector developments and company hires

    Canadian MBS ETF
    BMO Asset Management has launched a new stable of ETFs trading on the TSX, including the first MBS ETF in Canada. Dubbed BMO Canadian MBS Index ETF, the offering aims to provide unique exposure to a segment of the MBS market fully guaranteed by the Canada Mortgage and Housing Corporation (CMHC). The pools each have a term .......

    Market Moves 12 February 2020

  • Equity issue

    Loan repricing expectations weigh heavy on CLOs

    The widely expected wave of loan repricing is weighing heavily on the CLO market. Equity investors and managers alike are having to face up to harder times ahead.

    “Loan repricing matters a lot in equity, but it’s not a huge issue further up the stack,” says Craig Bergstrom, managing partner and cio at Corbin Capital. “It’s potentially negative .......

    News Analysis 11 February 2020

  • CMBS trustee assumption refuted

    Sector developments and company hires

    EMEA
    Michael Newell has joined Cadwalader, Wickersham & Taft as a partner in London. A member of INREV’s Public Affairs Committee, Newell was previously a partner at Norton Rose Fulbright. His focus is the formation of real asset funds, credit funds and hedge funds, as well as technology and emerging market focused private equity funds.

    North America
    KBRA has named .......

    Market Moves 10 February 2020

  • SCI Start the Week - 10 February

    A review of securitisation activity over the past seven days

    SCI NPL Securitisation Awards 2020
    Nominations have now opened for the inaugural SCI NPL Securitisation Awards and have a deadline of 20 March.
    Further information and details of how to pitch can be found here.

    Transaction of the week
    Citi, Deutsche Bank and JPMorgan are prepping a post-crisis 'first of its kind' US CMBS. Dubbed Benchmark 2020-IG1, the US$660m transaction is collateralised .......

    News 10 February 2020

  • Sporadic issuance

    CQS SRT wave unlikely

    BNP Paribas arranged Amalia, Banca Nazionale del Lavoro’s landmark synthetic securitisation of Italian payroll-deductible loans (CQS), in December last year (SCI 24 December 2019). However, significant volumes of CQS SRT issuance remains unlikely, due to expected reductions in CQS risk weights, the niche nature of the loans and the fact that historically most deals are undertaken by small operators .......

    News Analysis 10 February 2020

  • EBA reports pending

    Trapped excess spread requirement could be dropped

    The EBA will finalise its approach to significant risk transfer this year through the publication of the final SRT report and another consultation in the second quarter. The requirement for a trapped excess spread mechanism for synthetic securitisations will most likely be excluded from the final SRT report, although the regulator notes that synthetic excess spread is a form of .......

    News Analysis 7 February 2020

  • Risk transfer round-up - 7 February

    CRT sector developments and deal news

    Bank of Scotland (BOS) is in the market with Syon Securities 2020, its second UK mortgage SRT (SCI 25 July 2019). The £550m reference portfolio comprises prime owner-occupied loans with LTV ratios in excess of 90% but less than or equal to 95%, originated between September and December 2019. The rated CLNs are exposed to the first 15% of ......

    News 7 February 2020

    Premium Content

  • Syon Securities priced

    Bank of Scotland engineers return

    Bank of Scotland has priced a seven-year financial guarantee that references a £550m portfolio of UK owner-occupied residential mortgage loans. Dubbed Syon Securities 2020, the risk transfer transaction is the bank’s second from the programme following the inaugural SRT last year (SCI 25 July 2019).

    Rated by Fitch and KBRA, the transaction consists of £18.75m A-/A rated .......

    News 7 February 2020

  • Tightening trend

    European ABS market update

    Appetite for European ABS paper continues to be strong. The market is currently characterised by a dearth of supply, despite tightening spreads.

    “Spreads are tighter than where they were at the start of the year,” one trader says. “Yet primary and BWIC supply seems to be  slowing down.”

    Only a couple of deals remain in the .......

    Market Reports 7 February 2020

  • GSE Libor transition deadlines released

    Sector developments and company hires

    ECOWAS prepping ABS
    The Commission of the of the Economic Community of West African States (ECOWAS) and the World Bank are developing a securitisation of payments related to the cross-border power trade in West Africa. In order to address the low access of the West African population to electricity, ECOWAS member states are pooling efforts through the development of an .......

    Market Moves 6 February 2020

  • Investment grade debut

    Landmark post-crisis CMBS announced

    Citi, Deutsche Bank and JPMorgan are prepping a post-crisis ‘first of its kind’ US CMBS. Dubbed Benchmark 2020-IG1, the US$660m transaction is collateralised by 13 non-controlling pari passu participations of fixed rate loans, secured by 45 properties. When analysed separately, each participation demonstrates investment grade credit characteristics.

    KBRA notes that all loans will be serviced outside of the .......

    News 5 February 2020

  • Rating agency shuffles senior US staff

    Sector developments and company hires

    EMEA
    Pan-European special situations and credit trading lawyer Justin Conway has joined McCarthy Denning as a partner in its banking and finance department. Conway, a dual-qualified solicitor in both England and Wales and New Zealand, was previously a partner at Jones Day. He has extensive experience in advising clients on all aspects of debt, investment and loan portfolio trading across key .......

    Market Moves 5 February 2020

  • Advisor picked to help end GSE conservatorship

    Sector developments and company hires

    Acquisition
    Link Group has signed an agreement to acquire Pepper European Servicing from Pepper Group for an upfront consideration of €165m. The meeting of AUM thresholds and growth milestones could trigger an additional consideration of €35m. The acquisition will deliver immediate scale for Link Group’s banking and credit management division in existing and new jurisdictions, and does not impact on .......

    Market Moves 4 February 2020

  • HAPS flurry

    Greek NPL ABS pipeline grows

    Piraeus Bank is set to securitise €7bn of non-performing loans in 2020. The lender is the latest to announce its intention to take advantage of Greece’s recently approved Hercules asset protection scheme (HAPS).

    According to Piraeus: “The Hellenic Asset Protection Scheme ‘Hercules’ is a tool that will provide additional support to Greek banks to speed up our de-risking .......

    News 4 February 2020

  • Hong Kong landmark

    First-of-a-kind deal could herald broader securitisation market return

    A landmark ABS deal in Hong Kong is anticipated to be the first of many. At the same time, there is optimism for broader regional growth.

    Ocean Funding 2019-1 closed on 5 December 2019, having issued US$200m of senior secured floating rate notes backed by a portfolio of unsecured HK$ consumer loans originated by Hong Kong-based loan firm .......

    News Analysis 4 February 2020

  • Crestline Denali CLO interests acquired

    Sector developments and company hires

    Additional CLOs for Ares
    An Ares Management Corporation subsidiary is set to acquire a managing interest in a restructured Crestline Denali Capital that will result in the addition of seven CLOs totalling US$2.6bn of assets under management to the Ares portfolio. Crestline Denali will retain its equity interest in its CLOs. Ares believes that the all-cash transaction will strengthen its .......

    Market Moves 3 February 2020

  • SCI Start the Week - 3 February

    A review of securitisation activity over the past seven days

    Transaction of the week
    Goldman Sachs has completed an unusual catastrophe bond that covers the tail risk that State National Insurance Company is exposed to through its insurance agreements with ILS manager Nephila Capital as capacity provider. Principal reduction of the notes under the transaction - dubbed Stratosphere Re Series 2020-1 - can only be triggered after at least two .......

    News 3 February 2020

  • Grasshopper up

    Landmark green SRT finalised

    RBS has completed a landmark capital relief trade referencing a £1.1bn portfolio of UK project finance loans. Dubbed Project Grasshopper, the approximately £78m financial guarantee is the first risk transfer transaction to be backed entirely by green assets and was carried out for both capital relief and credit risk management purposes. Macquarie Infrastructure Debt Investment Solutions, in conjunction with BAE .......

    News Analysis 31 January 2020

  • Covered funds provisions set to be revised

    Sector developments and company hires

    AMR auction debut
    The first-ever CLO applicable margin reset executed online – via KopenTech’s auction platform - saw all five tranches of TCW 2019-1 CLO refinanced successfully. The coupon of the US$240m triple-A rated tranche was reset to 107bp, from a spread of 144bp when the transaction initially closed.

    Receivables ABS prepped
    Gedesco Finance and Toro Finance are in the .......

    Market Moves 31 January 2020

  • Ramping up

    BlueBay bolsters structured credit footprint

    BlueBay Asset Management is ramping up its debut CLO, with launch planned for next quarter. At the same time, portfolio manager Alex Navin is set to relocate to New York to strengthen the firm’s US credit investment team.

    “The move enhances our global coverage and enables us to identify the best relative value opportunities in a broader context,” .......

    News 31 January 2020
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