Complete news archive
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Renewables prioritised
Coventry's PACE, solar efforts gain momentum
Coventry Structured Investments, a Los Angeles-based asset management firm specialising in niche debt and equity solutions, is set to purchase up to US$600m in residential solar loans under a forward-flow agreement with Almika Renewable Finance. The agreement reinforces Coventry’s prioritisation of renewables as key growth areas over the next six to 18 months, including the roll-out of its own .......
News Analysis 20 September 2024
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CLO manager corner: Sculptor Capital Management
Adeel Shafiqullah, head of European CLO management, discusse...
The launch of Sculptor Capital Management’s captive CLO equity platform in April, secured by an anchor commitment from Rithm Capital Corp., is a “strong validation” of the firm's support of Sculptor’s CLO management business as well as the ability to be “opportunistic and nimble” with capital.
Speaking to SCI, Adeel Shafiqullah, head of European CLO management at Sculptor, says: .......
The Structured Credit Interview 19 September 2024
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Breaking regulatory chains
Calls for reform intensify as industry pushes to fuel growth and fund Europe's green transition
The European securitisation market is “far too small and illiquid,” according to a recent report from True Sale International (TSI) and the Association of German Banks (BdB). The scale of the challenges could be having a negative impact on vital innovation across the continent’s economy.
The report, titled ‘A strong, competitive Europe: unlocking the potential of securitisation’, underscores .......
News Analysis 19 September 2024
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In demand
ETF CLO growth gathers pace as firms ramp up offerings
Demand for floating rate assets with robust surplus yield outlook is driving ETF (exchange-traded fund) CLO growth, according to asset manager Janus Henderson, with firms ramping up their offerings.
In July, Janus Henderson B-BBB CLO ETF (JBBB) surpassed $1 billion in AUM (SCI 15 July). This was followed two months later by Palmer Square Capital launching two .......
News Analysis 19 September 2024
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Set for take-off?
Increased volumes, improving fundamentals boost aircraft ABS
A handful of US aircraft ABS worth US$2.87bn have priced so far this month, taking the total number of deals printed this year to eight. With improving fundamentals post-pandemic, the sector stands out when compared to railcar and container ABS.
Indeed, aircraft ABS currently offers the highest yield among the three asset classes, driving analysts’ preference towards this .......
News 19 September 2024
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Latest SRTx fixings released
SRT market sentiment re-adjusts after financial markets experienced significant volatility.
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. If August got off to an rough start (The S&P 500 lost more than 6% in the early days of August, erasing nearly US$3tn in market value), as fears mounted about an economic slowdown in the US, recession concerns dissipated as quickly as they arose. .......
News 18 September 2024
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Records to fall
European and Australian ABS markets approach post-crisis issuance records amidst autumn surge
Primary markets in Europe and Australia are showing significant momentum as we head into autumn. According to research strategists at JPMorgan, YTD issuance totals in both regions are nearing post-crisis records.
Europe’s YTD issuance stands at €71.5bn, with Australia at €32.9bn, just shy of their respective post-crisis records of €76.5bn and €33.
This has led the bank’s .......
News 18 September 2024
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Sub-par
SRT market update
The impact of new entrants – otherwise commonly or derogatorily referred to as tourist investors – is continuing to split opinion in the SRT market, with some saying spreads are becoming unreflective of risk.
In this context, certain market observers and participants believe tightening spreads are simply an evolution of the market. With more investors coming into the market, .......
SRT Market Update 13 September 2024
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Prodigal student standards
Standard and Prodigy announce US$24m student loan partnership
Standard Bank has announced a US$24m funding partnership with Prodigy Finance to support African students intending to pursue postgraduate studies at international universities. The partnership includes US$22m from Standard Bank, with additional first-loss protection provided by Allan and Gill Gray Philanthropies.
Prodigy Finance, which provides flexible loans to international postgraduate students, will use Standard Bank's funding to expand .......
News 13 September 2024
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Silver lining
Optimism around strong growth in RMBS and ABS at S&P conference
Market participants shared widespread optimism at S&P Global Ratings' European Structured Finance conference, buoyed by robust growth and the resilience of the European and UK ABS and MBS markets. Despite global economic challenges, issuance in these markets is experiencing strong momentum, performing even more favourably than 2023.
Panellists and attendees at the event noted that the primary beneficiaries .......
News 13 September 2024
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Engineering efficiency
Structural changes afoot across UK RMBS market
The UK RMBS market continues to evolve as new innovative transaction features emerge with issuers seeking to tackle inefficiencies – an inch at a time. New developments include the use of back-up swap structures to manage counterparty risk, trigger-specific liquidity management mechanisms and the return of pro-rate amortisation – which was last seen pre-GFC.
Fitch Ratings’ latest analysis .......
News Analysis 13 September 2024
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Job swaps weekly: Chatham AM appoints four for new CLO management team
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Chatham Asset Management establishing a CLO management business with four key hires. Elsewhere, Freddie Mac has selected a new ceo, while Arini has named a CLO portfolio manager to replace Evangeline Lim, who is retiring from the industry.
Chatham Asset Management has established a CLO management business - called CTM Asset Management – with .......
Market Moves 13 September 2024
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Regulating mood
Advisory's insights on how to remove SRT regulatory barriers
SCI catches up with Jonas Bäcklund, ceo of Revel Partners, to analyse suggestion on how regulatory tweaks could bolster growth to the European SRT market.
The conversation comes as Mario Draghi, former president of the European Central Bank, emphasised this week the need for a well-functioning securitisation market to address Europe’s investment gaps in infrastructure and sustainable projects. .......
News Analysis 13 September 2024
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Ringing the bell for CLO ETFs
Palmer Square Capital Management launches two CLO credit ETFs
Asset manager Palmer Square Capital has launched two exchange traded funds (ETFs), both of which provide retail investors with access to structured credit markets. Palmer Square Credit Opportunities ETF (PSQO) and Palmer Square CLO Senior Debt ETF (PSQA) began trading today and the firm rang the opening bell at the New York Stock Exchange on Thursday to mark the .......
News 12 September 2024
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Seeds of evolution
illimity's Lionetti answers SCI's questions
Tech-focused Italian banking group illimity recently announced the structuring of two new loan securitisation programmes to support SMEs and agricultural businesses in Italy, following on from the launch of its first securitisation programme last year. Claudia Lewis speaks to Fabiano Lionetti, head of investment banking at the bank, about its partnership with alternative-finance-focused fintech advisor Crescitalia and the evolution of .......
The Structured Credit Interview 12 September 2024
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Strength on several fronts
Ninety One's Barua answers SCI's questions
New issuance CLO volumes are on course to challenge previous full-year records and the market is well-positioned to weather any recessionary fears, according to Rondeep Barua, securitised products analyst at Ninety One. Barua speaks to Camilla Vitanza about the asset class’s prospects and anticipated trends for the rest of the year
Q: How would you summarise 2024 so .......
The Structured Credit Interview 11 September 2024
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Called to the Barr
CRT still makes sense for US banks despite slimmed down B3E
News Analysis 10 September 2024
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Off to a flier
Busy week points to standout September for European and Australian ABS and MBS
As the third quarter of 2024 winds down, September is shaping up to be a standout month for the European and Australian ABS and MBS markets. According to a recent JP Morgan report, the ABS market roared back to life in the first week of the month, following a volatile August marked by recession risks and central bank uncertainty.
News 10 September 2024
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New partnership
Market moves and sector developments
GP stakes firm Armen and Chorus Capital (Chorus) have announced a strategic partnership. As part of the partnership, Armen will acquire a 16% minority equity stake in Chorus Capital. The transaction – which is targeted to close by the end of the month – represents the third investment by Armen GP Stakes Fund I and its first in the .......
Market Moves 10 September 2024
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Secret Revolution
How will the US regional bank market develop?
The US CRT market is slowly absorbing volumes and experiencing increased growth from unexpected players. Regional bank deals may herald how the jurisdiction will develop.
Pinnacle Financial Partners and Valley National Bank entered the market last month with deals referencing mortgage and auto loan assets, respectively (SCI 29 July and 29 July). Both banks have below .......
News Analysis 10 September 2024