Complete news archive

  • Back to work

    UK deal flow restarts ahead of expected busy months ahead

    Oak No. 3 has become the first ‘post-summer’ UK ABS/MBS deal to price. It is expected to be the first of many in a hectic UK primary market into year-end.

    The £343.5m STS-compliant senior notes of Aldermore Bank’s third prime RMBS printed at SONIA plus 80bp today. The tranche came in at the lower end of initial price .......

    News Analysis 29 August 2019

  • Multifamily delinquencies ticking up

    Growing student housing vacancies major factor

    Delinquencies among multifamily loans in CMBS have recently increased and are expected to grow further. A Morningstar report adds that the increase to 0.40%, from a post-crisis low of 0.30% in June last year, is likely to continue, tempered by a lack of affordable options.

    Furthermore, Morningstar suggests that multifamily demand is slowing, with a major reason being .......

    News 29 August 2019

  • Risk transfer round-up - 28 August

    CRT sector developments and deal news

    Credit Suisse has called two transactions from its Magnolia Finance V programme. The transactions were issued in 2013 and 2014 and both risk transfer trades referenced US and Swiss corporate loans. The exercise of the calls concerned the underlying US loans.

    One transaction, dubbed Magnolia Finance V series 2013-1, was an eight-year US$75m CLN that printed in .......

    News 28 August 2019

  • Ceo replaced

    Sector developments and company hires

    New ceo appointed

    Oaktree Specialty Lending has announced that ceo and cio Edgar Lee has resigned from the company for personal reasons, effective 30 September 2019. He is to be replaced by Armen Panossian who will take over both roles. Panossian is currently md and head of Oaktree’s Performing Credit organisation and has spent 12 years at the .......

    Market Moves 27 August 2019

  • Euro CLOs strong

    Market maintaining positive path

    The European CLO market has had a strong 2019 so far. That strength looks set to continue in the months ahead.

    Figures from JPMorgan CLO research published last Friday note that in Europe, the primary market is up 5% from last year’s record post-crisis year. Indeed, 60 Euro CLOs have priced totalling €24.2bn – comprising €19.7bn across 47 .......

    News 27 August 2019

  • Broker charged over mispricing

    Sector developments and company hires

    Broker charged over mispricing

    The US SEC has charged New York-based broker-dealer AOC Securities and its former ceo Ronaldo Gonzalez with failing to supervise AOC broker Frank Dinucci, who provided inflated price quotes to Premium Point Investments (PPI). The orders find that PPI traders dictated to Dinucci the prices at which he should value certain MBS in PPI .......

    Market Moves 23 August 2019

  • Debut consumer securitisation prepped

    Australian non-bank markets inaugural ABS

    Wingate Consumer Finance is marketing an inaugural term securitisation of personal loans extended to borrowers in Australia. Dubbed NOW Trust 2019-1, the A$200m transaction is backed entirely by receivables originated by Wingate Consumer Finance, an established non-bank lender in the Australian personal loan market.

    Moody’s has provisionally rated the transaction as Aaa on the A$143m class A notes, .......

    News 23 August 2019

  • Counterintuitive results

    EBA consultation incentivises unfunded SRT format

    The EBA’s consultation on the determination of the weighted average maturity of a securitisation tranche (SCI 2 August) is seen as a positive step for synthetic securitisations, since it takes into account the conditional payments of the underlying assets. However, by not recognising the effect of prepayments and pool amortisations, the proposal creates counterintuitive results that incentivise banks .......

    News Analysis 23 August 2019

  • Warehouse line closed

    Company hires and sector developments

    CRE appointments

    Arbor Realty Trust has appointed Danny van der Reis as evp, structured asset management, reporting to Arbor president and ceo Ivan Kaufman. In this newly developed role, van der Reis will be responsible for managing the structured asset management department and loan restructurings for all of Arbor's balance sheet loans, as well as strategically developing and expanding the .......

    Market Moves 22 August 2019

  • Private market thriving

    Specialty finance firms find multiple benefits in private deals

    Private securitisations are thriving, particularly among specialty finance companies, as a flexible and economic funding option. Equally, many insurers are turning to the private market to securitise equity release mortgages, finding it the most cost-effective way to free up capital.

    According to Anton Krawchenko, associate partner, capital and debt advisory at EY, says private securitisations largely come in two forms .......

    News Analysis 22 August 2019

  • Deleveraging boost

    Monte dei Paschi completes NPL disposals

    Banca Monte dei Paschi di Siena has sold a further four non-performing loan portfolios for approximately €340m (SCI 14 August). The transactions add to the recently finalised deals with Illimity Bank and Cerberus Capital Management, bringing the bank’s total sold NPL exposures since end-July to almost €1.5bn.

    The latest deals involve the sale of €137m secured and .......

    News 21 August 2019

  • Volcker rule amended

    Company hires and sector developments

    Aviation firm appoints treasurer

    Wings Capital Partners has hired Jakob Gallagher as vp, treasurer and capital markets. Prior to joining Wings, Gallagher served as vp on the MUFG aviation team who covered originations for the Americas. Prior to joining MUFG, he worked at Aircastle where he focused on capital markets and joint ventures. Jakob raised secured and unsecured .......

    Market Moves 21 August 2019

  • Red ahead

    Non-resident Aussie RMBS hits the market

    Columbus Capital is prepping a rare Australian RMBS backed by fully amortising (accounting for 86.1% of the pool) and interest-only converting to amortising investment loans to non-Australian residents. Dubbed Vermilion Trust No. 1 Bond Series 2019-1, the A$250m transaction is consequently not only exposed to macroeconomic events that affect Australia, but also to events that affect the borrowers' countries .......

    News 20 August 2019

  • CLO ESG impact assessed

    Sector developments and company hires

    ESG impact assessed

    The credit impact of environmental, social and governance (ESG) investment criteria on CLOs rated by Moody’s remains neutral, the agency says in a report. The firm adds that while restricting the pool of CLO eligible collateral has the potential to be credit negative, CLOs limited exposure to the industries subject to ESG restrictions largely mitigates .......

    Market Moves 19 August 2019

  • SCI Start the Week - 19 August

    A review of securitisation activity over the past seven days

    Transaction of the week
    CFO backed by PE portfolio (SCI 13 August)
    Nassau Alternative Investments is marketing a collateralised fund obligation (CFO) comprising private equity (PE) fund commitments acquired by Nassau Life Insurance Company (NNY). The, largely static, transaction is dubbed Nassau 2019 CFO, and is backed by interests in a diversified pool totalling around US$375.7m in NAV of funded .......

    News 19 August 2019

  • Whole biz downgrade announced

    Company developments and company hires

    Acquisitions

    Crescent Capital BDC is set to acquire Alcentra Capital Corp, a middle-market BDC. The transaction is the result of Alcentra Capital’s previously announced review of strategic alternatives led by an independent director committee. Under the terms of the transaction, in exchange for approximately 12.9 million shares of Alcentra Capital common stock, Alcentra Capital’s stockholders will receive approximately .......

    Market Moves 16 August 2019

  • Pricing tension

    Houlihan Lokey model leveraged in shipping deal

    Nord LB completed a landmark €2.6bn shipping non-performing loan deal with Cerberus in April that utilised Houlihan Lokey’s proprietary pricing model. The model aids pricing tension and helps keep traditional distressed investors disciplined.     

    According to Zam Khan, md at Houlihan Lokey: “We included lower cost of capital end-investors - such as sovereign wealth funds - from the .......

    News 16 August 2019

  • Consent challenges

    Transactions losing value without Libor fallback language

    Investors are working with an asset registry and communication platform to obtain noteholder consent in order to insert Libor fallback language in certain securitisations, ahead of the 2021 deadline. This is driven by concerns that transactions without fallback language are losing value compared to newer deals with the necessary language to transition to a new reference rate.

    DealVector has been .......

    News 16 August 2019

  • Brexit impact gauged

    UK ABS expected to withstand no-deal

    A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS transactions. However, Brexit raises challenges by splitting UK and EU regulation.  

    One risk to ABS investors from a no-deal Brexit is the potential for a recession or a sharp downturn in the UK economy, and whether this would be severe enough to prevent a meaningful .......

    News Analysis 16 August 2019

  • Higher yields?

    Bluestone debuts UK RMBS

    Bluestone Mortgages is in the market with its first UK RMBS. Dubbed Genesis Mortgage Funding 2019-1, the transaction is backed by a £198.05m portfolio of owner-occupied (comprising 80.8% of the pool) and buy-to-let loans secured by first-ranking mortgages in the higher-yielding market segment.

    DBRS notes that in comparison to other specialist lenders, Bluestone’s portfolio and origination are geared .......

    News 16 August 2019

  • Risk transfer round-up - 16 August

    CRT sector developments and deal news

    UBI Banca is rumoured to be prepping an SME and corporate SRT for 3Q19. The alleged transaction is riding a wave of Italian SRT issuance that includes a number of standardised banks.

    Banca Popolare di Bari completed the first SRTs between a standardised bank and a private investor last month (SCI 2 August). Banca Popolare dell'Alto Adige .......

    News 16 August 2019
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