Complete news archive
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Canadian restructuring
Alberta energy market stress hits CMBS
Calgary-based real estate investment firm Strategic Group last week submitted an initial application filing under Canada’s Companies’ Creditors Arrangement Act (CCAA), citing 50 named entities and associated commercial properties within its portfolio. Of the affected office properties, five secure loans securitised in four Canadian CMBS within DBRS Morningstar’s rated book.
According to Strategic Group, prolonged stress in the Alberta economy .......
News 20 December 2019
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Nordic SRT inked
Nordea returns with capital relief trade
Nordea has priced a €5.1bn synthetic securitisation of Nordic corporate and SME loans. Dubbed Matador, the funded financial guarantee is the issuer’s first capital relief trade following the bank’s entry into the EU’s banking union in October 2018.
According to Mark Kandborg, head of group treasury and ALM at Nordea: “We priced the transaction and freed up capital at an .......
News 20 December 2019
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SCI's latest podcast is now live!
The editorial team discuss key issues in securitisation today...
In this episode of the SCI podcast, Mark Pelham and Corinne Smith discuss our new research report on standardised banks' capital relief trades and where European securitisation investors are looking to find relative value in the year ahead.
This podcast and previous episodes can be accessed via the SCI site, online here as well as wherever you usually get .......
News 19 December 2019
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NPL boost?
Hoist Finance acquires landmark French portfolio
Hoist Finance has acquired a French non-performing mortgage portfolio with more than 3,500 claims and an outstanding balance of approximately €375m. This is the largest-ever portfolio investment for Hoist Finance into a relatively untapped NPL jurisdiction with positive prospects.
According to Stephan Ohlmeyer, cio at Hoist Finance: “Two years ago, we set up a servicing platform for secured NPLs from .......
News 19 December 2019
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Risk participation programme agreed
Sector developments and company hires
CLO vulnerabilities eyed
Market Moves 19 December 2019
The Financial Stability Board has published a report assessing the financial stability implications of developments in the global leveraged loan and CLO markets. Based on a combination of available data and analyses from FSB members, the report concludes that vulnerabilities in the sector have grown since the financial crisis. Specifically, it notes that: borrower leverage has increased; changes .......
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GSE price-fixing lawsuit settled
Sector developments and company hires
CLO manager transfer
Hunt Investment Management has assigned collateral manager duties for the Hunt CRE 2017-FL1 and Hunt CRE 2018-FL2 CRE CLOs to OREC Investment Management. Moody's has confirmed that the move will not result in any adverse rating action. For more CDO manager transfers, see SCI’s database.Credit opportunity fund
Market Moves 18 December 2019
Arrow Global’s new Arrow Credit Opportunities SCSp fund has raised €628.5m .......
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UK auto SRT finalised
Santander completes retained first-loss deal
Santander has completed a synthetic securitisation of UK auto loans. Dubbed Motor Securities 2018-1, the financial guarantee is the lender’s first UK synthetic securitisation that features a retained first-loss tranche.
According to Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and Investment Banking: “The transaction doesn’t feature any excess spread, so the only .......
News 18 December 2019
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Year-end melee
UMBS pooling proposal under scrutiny
US securitisation market participants are having to address a melee of important issues ahead of year-end. The one that appears to be causing the most ire, however, is the FHFA’s recent request for input (RFI) regarding GSE pooling practices for the formation of TBA-eligible UMBS (SCI 5 November).
“There are many issues that the market is having to deal .......
News 17 December 2019
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NPL ABS pair inked
Guber, UBI Banca hit the market
A pair of Italian non-performing loan securitisations – dubbed Futura 2019 and Iseo SPV – have closed. The former is notable for being only the second Italian NPL ABS to not benefit from a GACS guarantee, following the issuance of Belvedere SPV in December 2018.
Futura 2019 is the first issuance sponsored by Guber Banca and securitises assets with a .......
News 17 December 2019
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Structured credit pro returns to the buy-side
Sector developments and company hires
EMEA
Market Moves 17 December 2019
Kingswood Holdings has appointed Lindsey McMurray and Howard Garland to its board from Pollen Street Capital. The move is as per the terms of the investment completed in September, which saw up to £80m committed by way of an issue of irredeemable convertible preference shares to certain investors and funds managed or advised by Pollen Street. McMurray founded Pollen Street in .......
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Economic efficiency
Standardised bank SRT pros, cons weighed
Various factors should be considered when contemplating whether to execute a significant risk transfer transaction, especially from a standardised bank perspective. The key is to choose the most economically efficient portfolio and the rest is optimisation, according to SCI’s inaugural CRT Research Report.
Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and .......
News Analysis 16 December 2019
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Brand value
WBS issuer differentiation highlighted
In an unsolicited comment, Fitch last week suggested that the overall benefits of US whole business securitisation are often overstated, especially considering the increase in market activity and sectoral breadth seen this year (SCI 9 December). However, with the understanding that not every issuer is created equal, good relative value opportunities can still be found across the sector.
While .......
News Analysis 16 December 2019
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SCI Start the Week - 16 December
A review of securitisation activity over the past seven days
Transaction of the week
News 16 December 2019
The National Bank of Greece has completed its first secured non-performing loan transaction. Dubbed Project Symbol, the €900m portfolio is riding a wave of secured NPL transactions in Greece.
The portfolio references 12,800 borrowers and is backed by a variety of collateral types, including land, industrials, residential and commercial real estate. Bidding as a percentage of the portfolio .......
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Risk transfer round-up - 16 December
CRT sector developments and deal news
Deutsche Bank is rumoured to be readying a capital relief trade from the CRAFT programme. The last CRAFT significant risk transfer deal - a US$382.5m CLN that references corporate loans - was completed in March. It remains the only CRAFT transaction of the year (see SCI’s capital relief trades database).
...... News 16 December 2019Premium Content
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Mixed motivations
THRP sets stage for US bank CRT
A combination of macro and micro factors are understood to have influenced the issuance of JPMorgan’s recent Chase 2019-CL1 synthetic RMBS (SCI 10 October). Notably, the US Treasury’s aim of harmonising regulatory frameworks across the mortgage market – as outlined in its Housing Reform Plan (SCI 6 September) – arguably helped create the right conditions for the bank .......
News 13 December 2019
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Riding the wave
NBG offloads secured NPL exposures
The National Bank of Greece has completed its first secured non-performing loan transaction. Dubbed Project Symbol, the €900m portfolio is riding a wave of secured NPL transactions in Greece.
The portfolio references 12,800 borrowers and is backed by a variety of collateral types, including land, industrials, residential and commercial real estate. Bidding as a percentage of the portfolio totalled 28%. .......
News 13 December 2019
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CET1 ratios eyed
Disposals, securitisations to protect bank capital
European bank CET1 ratios have stabilised over recent years, as Basel 3 capital requirements and other supervisory measures have been fully phased in. However, further RWA inflation could result from the ECB’s TRIM exercise or the Basel 4 output floors.
Banks have adapted to the post-crisis regulatory environment by lowering RWAs and/or by retaining more earnings. Indeed, for over a .......
News Analysis 12 December 2019
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Sticking with the programme
ABSPP hits new high, but total volumes remain low
Latest figures from the ECB show that its ABSPP holdings are at an all-time high. However, the programme remains far from the market moving purchaser it was once expected to be.
Bank of America European structured finance analysts report that ECB net purchases under the ABSPP in October and November were €1.16bn and €1.266bn respectively, representing the highest monthly net .......
News 12 December 2019
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2020 vision
Looking for relative value in European securitisation
Next year seems likely to present structured finance investors with even greater challenges in the search for yield. Nevertheless, relative value is to be found in 2020 for those looking in the right places.
Macro and geopolitical factors should always inform asset allocation strategies. But for 2020, their importance is even greater, according to Rob Ford, partner and portfolio manager .......
News Analysis 11 December 2019
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Ratings volatility?
CLO single-B minus scenarios tested
Single-B minus rated obligors currently constitute a record high of nearly 19% of US broadly-syndicated loan CLO exposure, according to S&P figures. To address concern over the credit stability of these companies and the potential for downgrades to inflate triple-C buckets, the rating agency has published a scenario analysis that explores the possible impact of such ratings volatility on the .......
News 10 December 2019
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Alternative credit platform expands
Sector developments and company hires
CFO appointed
Market Moves 10 December 2019
Annaly Capital Management has appointed Serena Wolfe as cfo and a member of its operating committee. Glenn Votek, the company’s cfo and interim ceo and president (SCI 21 November), has stepped down from his role as cfo. Wolfe most recently served as a partner at Ernst & Young since 2011 and as its Central Region Real Estate Hospitality .......