Complete news archive

  • CRT line-up finalised

    Awards ceremony to round off risk transfer event

    The line-up for SCI’s 5th Annual Capital Relief Trades Seminar on 17 October has been finalised. Hosted by Allen & Overy, the event will take place at One Bishops Square, London and features for the first time an industry awards ceremony. Other highlights include a fireside chat between Clifford Chance’s Jessica Littlewood and the EBA’s Christian Moor, as well .......

    News 11 October 2019

  • Risk transfer round-up - 10 October

    Capital relief trade sector developments and deal news

    RBS is rumoured to be readying a capital relief trade backed by project finance loans. According to SCI data, this would be the issuer’s first project finance risk transfer transaction (see SCI’s capital relief trades database).

    The most active issuer of project finance CRTs has been Santander. SCI data note that five out of the seven such ......

    News 10 October 2019

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  • Co-founder to depart

    Company hires and sector developments

    Co-founder moves on

    BlueMountain’s co-founder and co-president Stephen Siderow is set to leave the firm, but he will continue in his current management role through the end of this year to support an orderly transition. The firm was acquired by Assured Guaranty at the start of the month and is making a number of changes to its platform, .......

    Market Moves 10 October 2019

  • Synthetic RMBS debut

    Non-GSE CRT deal prepped

    JPMorgan Chase Bank (JPMCB) is marketing what is believed to be the first rated synthetic mortgage risk transfer transaction originated by a US bank – Chase Mortgage Reference Notes 2019-CL1. The deal utilises tranched CDS documentation to transfer credit risk to noteholders, with principal payments based on the actual payments received from a reference pool consisting of 979 prime-quality .......

    News 10 October 2019

  • Danish firm's debut CLO prepped

    Inaugural ESG-compliant deal likely to be first of many

    Capital Four is set to price its debut BSL CLO this week, dubbed Capital Four CLO I.  The €359.4m transaction, arranged by Goldman Sachs, is also ESG-compliant and likely to be the first of many for the firm.

    Tim Smith, head of strategic planning at Capital Four, comments that, while this is the firm’s first CLO, its founders began working .......

    News 10 October 2019

  • Performance hurdles

    Loan sell-offs hampering US CLOs

    Increasing numbers of loan sell-offs are hampering performance in US CLOs relative to other US credit markets. The issue is not yet a major one and could still be overcome, but the emerging trend signals the potential for larger problems ahead. 

    “You have a lot more loans trading in the 80 and 90 ranges and that’s causing problems .......

    News Analysis 10 October 2019

  • Credit system "positive" for China SF deals

    Sector developments and company hires

    Credit system a positive for China SF deals

    China’s plan to establish a comprehensive, nationwide credit information system by 2020 is credit positive for the country’s structured finance deals, because this system will reduce the risk of loan defaults and bolster recovery prospects, according to Moody’s. The rating agency says this development will also help break down credit information barriers .......

    Market Moves 9 October 2019

  • Opening up

    Platform hopes to securitise global banks' trade finance assets

    While trade finance assets are of growing interest to investors, due to the attractive risk-return profiles on offer, many non-bank investors are unable to easily access them, especially large institutions like pension funds. A new platform hopes to resolve this issue, however, by processing and securitising the trade finance books of multiple, major banks and so opening up the asset .......

    News Analysis 9 October 2019

  • Bank leaves CDS committee

    Sector developments and company hires

    Bank leaves CDS committee

    Societe Generale has decided to leave the Credit Determinations Committee. The bank is not however scaling back in flow credit trading but, while remaining active in the market and trading CDS, it is opting for a more selective strategy in terms of sector and clients.

    Firm nabs aviation vet

    PwC has appointed .......

    Market Moves 7 October 2019

  • SCI Start the Week – 7 October

    A review of securitisation activity over the past seven days

    Transaction of the week
    RMF is marketing its first private RMBS backed by jumbo proprietary reverse mortgages loans and, according to KBRA, the first RMBS backed by newly-originated reverse mortgages since the financial crisis. Dubbed RMF Proprietary Issuance Trust 2019-1, the US$256.667m transaction is backed by 385 reverse mortgage loans.
    The assets are composed of recently originated, with WALA of five months, reverse mortgages .......

    News 7 October 2019

  • Rating challenges

    Limited appetite for rated senior mezz

    Issuers have typically refrained from seeking ratings on the senior mezzanine tranches of dual-tranche capital relief trades, due to stricter eligibility criteria, cost considerations and the fact that most SRT investors don’t need ratings. Nevertheless, rating senior mezzanine tranches is one way of attracting new investors to the sector (SCI 26 January 2018), thereby helping to expand the .......

    News Analysis 7 October 2019

  • Risk transfer round-up - 4 October

    Capital relief trade sector developments and deal news

    HSBC is rumoured to be readying a corporate capital relief trade for 4Q19. According to SCI data, the lender’s last risk transfer transaction was completed in December 2015 and was dubbed Metrix Portfolio Distribution (see SCI’s capital relief trades database).

    ......

    News 4 October 2019

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  • Spanish SRT finalised

    Santander completes full-stack auto ABS

    Santander has priced a €555.5m true sale significant risk transfer transaction dubbed Santander Consumer Spain Auto 2019-1. The full-stack deal has been driven by new regulatory guidelines on excess spread and adds to this year’s healthy flow of full-stack SRT issuance (SCI passim).

    The transaction consists of €440m class A notes (which priced at 45bp), €57.7m class B notes (85bp), .......

    News 4 October 2019

  • Reverse mortgage RMBS prepped

    First post-crisis deal backed by newly-originated reverse mortgage loans markets

    RMF is marketing its first private RMBS backed by jumbo proprietary reverse mortgages loans and, according to KBRA, the first RMBS backed by newly-originated reverse mortgages since the financial crisis. Dubbed RMF Proprietary Issuance Trust 2019-1, the US$256.667m transaction is backed by 385 reverse mortgage loans.

    The assets are composed of recently originated, with WALA of five months, reverse mortgages that .......

    News 4 October 2019

  • ILS acquisition announced

    Company hires and sector developments

    Acquisition announced

    Artex Risk Solutions has announced that it has reached agreement to acquire Horseshoe Insurance Services Holdings., significantly strengthening its ILS operations. The transaction is subject to regulatory approval and expected to complete before the end of the year. On completion, Horseshoe will become the global brand of ILS services for Artex, which will operate as one .......

    Market Moves 3 October 2019

  • Index ingenuity

    Credit derivatives strategy finds value in capital constraints

    With doveish central bank policy in the US and Europe having a tightening effect on yields across a range of asset classes, investors are increasingly seeing the appeal of alternative investment strategies. This is especially true of strategies utilising credit derivatives, which are also being deployed in novel ways that take advantage of regulatory capital constraints experienced by banks.

    News Analysis 3 October 2019

  • Nascent stages

    CRT mezz investor base needs time to develop

    The pace of growth of the risk transfer market is likely to be tied to the development of the synthetic mezzanine risk market, which is currently at a nascent stage (SCI 9 August). Traditional capital relief trade investors have limited appetite for mezz, as absolute returns are low, even though the risk/reward proposition is compelling.

    “There is .......

    News 3 October 2019

  • Problem solving

    Credit derivative hedges mooted in a deteriorating environment

    The end of the credit cycle and fears over global geopolitical and natural events are driving European portfolio managers to look for ways to protect themselves against the expected downturn. Credit derivatives provide a variety of potential solutions.

    “Without doubt the slowdown is coming and fixed income managers need to deal with that,” says Juan Valencia, credit strategist .......

    News Analysis 3 October 2019

  • Issuance wave

    Opel and Sabadell settle first full-stack SRTs

    Opel and Sabadell have settled their first full-stack significant risk transfer transactions. The true sale deals are the latest in a slew of such issuance, following the introduction of the STS framework this year (SCI 27 September).

    The €900m Opel deal, dubbed E-CARAT 10, is backed by German auto loans. According to Boudewijn Dierick, head of ABS .......

    News Analysis 2 October 2019

  • Autumn sales

    Italian NPL, UTP disposals continue apace

    Illimity Bank and a Cerberus Capital Management affiliate have acquired a second unlikely-to-pay loan portfolio from Banca Monte Paschi di Siena (MPS), following a previous MPS transaction with Cerberus (SCI 2 August). Separately, UniCredit has disclosed a pair of non-performing loan transactions.

    In the latest MPS transaction, the Cerberus affiliate provided the equity tranche, while illimity provided .......

    News 2 October 2019

  • CLO firm co-founder to retire

    Sector developments and company hires

    30-year CIRT debuts

    Fannie Mae has completed its sixth Credit Insurance Risk Transfer transaction of 2019: CIRT 2019-3 covers US$14.8bn in unpaid principal balance of 21- to 30-year original term fixed-rate loans. The deal marks the first time a 30-year bulk CIRT transaction was structured with an extended policy term of 12.5 years and a 40bp retention layer, .......

    Market Moves 2 October 2019
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