Complete news archive

  • Keeping it private

    Public European middle market CLOs are struggling, but private deals are booming

    The success of middle market CLOs in the US and the ever-present search for yield has led to much talk about the European market following suit. However, the European middle market is much smaller than its US counterpart and has different hurdles to overcome. Consequently, public deals such as Alhambra SME Funding 2018-1 (SCI 18 December 2018) have .......

    News Analysis 6 August 2019

  • SCI Start the Week - 5 August

    A review of securitisation activity over the past seven days

    Market commentary
    Portuguese RMBS outperformed other securitisation asset classes last week, boosted by the surprise call of the Lusitano Mortgages No. 2 transaction (SCI 22 July). The sector is expected to continue to perform strongly at tight levels.  

    "Lusitano 2 wasn't expected to be redeemed, but it was and it had an impact on other Lusi deals. Previously, there was .......

    News 5 August 2019

  • CLO head hired

    Sector developments and company hires

    BUMF 6 injunctions granted

    Final injunctions have been granted against Greencoat Investments (GIL) (including against its directors, which include Clifden IOM No.1, Rizwan Hussain, Rajnish Kalia and Alfred Oyekoya), Greencoat Holdings (GHL), Portfolio Logistics (PLL), Patrick Anthony FitzSimons, Maria Stoica and Oyekoya in connection with Business Mortgage Finance 6 (SCI 17 July). A court order has also .......

    Market Moves 2 August 2019

  • Performance model revealed

    Innovative approach highlights smaller manager outperformance

    Smaller, less well-known CLO managers often outperform their larger competitors, a new analytical model has revealed. The innovative approach utilises a mutual-fund-like analysis and the S&P LSTA index to assess manager performance and potentially bring greater clarity to performance trends.

    Traditionally, assessing CLO manager performance has involved using certain metrics to look at the underlying pool of loans in a .......

    News Analysis 2 August 2019

  • Dual-tranche deal finalised

    Standard Chartered targets wide distribution

    Standard Chartered has completed a dual-tranche capital relief trade that references an undisclosed US$2bn portfolio of corporate loans from the UK, Dubai, India and Africa. Dubbed Gongga CLO, the transaction is the bank’s second application of the dual-tranche technique (SCI 14 November 2018) and it is set to continue utilising a wide distribution strategy.   

    The transaction is split .......

    News 2 August 2019

  • Landmark SRTs inked

    BP Bari completes capital relief trades

    Banca Popolare di Bari has completed two capital relief trades that reference respectively a €1.1bn Italian SME portfolio and a €1.8bn Italian residential mortgage portfolio. This is the first time that transactions have been carried out between an Italian standardised bank and a private investor.

    The risk transfer trades were arranged by Banca IMI and they are funded .......

    News 2 August 2019

  • Crunching the numbers

    'Anomalous' acquisition of mortgages 'made economic sense'

    Arbuthnot Banking Group recently acquired two mortgage portfolios from the Raphael Mortgages and Magellan Funding 2 RMBS transactions, totalling approximately £266m. As well as being one of the first such transactions for the bank, the acquisition is also unusual in that such portfolios are typically snapped up by private equity firms and hedge funds, with challenger banks like Arbuthnot .......

    News 1 August 2019

  • COSME tapped

    SME risk-sharing agreement signed

    Italian national promotional bank Cassa Depositi e Prestiti (CDP) has tapped the EU's COSME loan guarantee facility that is managed by the EIF and backed by the European Fund for Strategic Investments, which provides first-loss guarantees. The agreement is expected to provide €3.75bn in counter-guarantees for Italy’s Guarantee Fund for SMEs, thereby facilitating up to €5.8bn of loans to .......

    News 1 August 2019

  • NPL SRT inked

    Hoist Finance tackles backstop regulation

    Hoist Finance has sold a €225m portfolio of Italian unsecured non-performing loans via an unrated securitisation to a fund managed by CarVal Investors. The significant risk transfer transaction is mainly carried out for capital relief purposes and will be followed by future NPL ABS deals.

    The SPV will fund 95% of the net purchase price of the receivables .......

    News Analysis 1 August 2019

  • Under pressure?

    UK non-prime RMBS could be tested in the autumn

    Attention in the UK RMBS market is turning to what might happen in September as the summer lull begins in earnest, with the new issue pipeline empty and only patchy secondary trading. In particular, focus is on non-prime sectors and the pressures they may come under.

    The last few days of July saw some secondary activity both on .......

    News 1 August 2019

  • Affordable loan credit insurance risk transfer closed

    Sector developments and company hires

    Affordable CIRT closed

    Fannie Mae has executed a new credit insurance risk transfer (CIRT) transaction that, for the first time, covers a pool of primarily single-family affordable loans. These covered loans are delivered to Fannie Mae with a short-term lender repurchase obligation, provided primarily by state housing finance agencies, which serves as the initial loan credit enhancement. Dubbed CIRT LR .......

    Market Moves 31 July 2019

  • Portuguese boost

    RMBS tightens on call optionality

    Portuguese RMBS outperformed other securitisation asset classes last week, boosted by the surprise call of the Lusitano Mortgages No. 2 transaction (SCI 22 July). The sector is expected to continue to perform strongly at tight levels.  

    JPMorgan international securitisation analysts note that Portuguese RMBS was the clear outperformer last week, with ECB-eligible senior notes tightening by .......

    News 31 July 2019

  • QM revisited

    Private mortgage market to fill the void?

    The CFPB’s ANPR in relation to the GSEs’ temporary qualified mortgage provision (SCI 29 July) anticipates that the FHA and the private mortgage market may fill the void once the classification expires. However, it remains unclear whether the private mortgage market will step up in this way.   

    The aim of the ANPR is to help move .......

    News Analysis 31 July 2019

  • New podcast now live

    The operational steps to setting up a CRT and more...

    In this week's podcast, the team discuss the operational steps taken when putting together a capital relief trade, as well as some of the concerns surrounding disclosure requirements in securitisation and capital relief trades. It then rounds off with an insight into the recent securitisation from impact investor, ResponsAbility, which helps fund small businesses in emerging markets, throughout the globe.

    News 31 July 2019

  • Turning point

    Catastrophe bonds could see a redirection of spreads

    The past two years of record-breaking reinsurance losses, along with technically-driven spread widening, have hampered the catastrophe bond market. Now, as this year’s hurricane season plays out, the market stands at what could be a turning point.

    2017 was the most expensive year ever for the reinsurance industry, thanks to major losses from Mexican earthquakes, Hurricanes Harvey, Irma .......

    News Analysis 31 July 2019

  • Winding up order issued for Clifden

    Company hires and sector developments

    Clifden wind up

    A winding-up order has been issued by the High Court of Justice of the Isle of Man, Chancery Division in respect of Clifden IOM No.1 and PricewaterhouseCoopers has been appointed official receiver of the firm. The move follows a Part 8 claim issued by Clifden, naming RMAC No. 1 series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 .......

    Market Moves 29 July 2019

  • Closer look

    US CRE CLOs are booming, but caution is advised

    A landmark US CRE CLO is currently marketing and grabbing investors’ attention. Away from the deal, some aspects of the sector’s rapid growth are ripe for greater scrutiny.

    STWD 2019-FL1 is being brought by Wells Fargo, BAML and Citi and is targeting pricing before month-end. If it goes through as hoped, at US$1.1bn it will be the largest ever CRE .......

    News Analysis 29 July 2019

  • SCI Start the Week - 29 July

    A review of securitisation activity over the past seven days

    Transaction of the week
    Unusual securitisation backed by music rights collateral (SCI 23 July)

    SESAC, a music rights firm acquired by Blackstone in 2017, is marketing an inaugural whole-business securitisation. Dubbed SESAC Finance 2019-1, the US$560m transaction is structured by Guggenheim and secured by music affiliate agreements, license agreements and software and intellectual property of the SESAC Group.

    The transaction .......

    News 29 July 2019

  • BMO SRT launched

    BMO expands mid-market exposure

    Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian senior secured and unsecured corporate loans. Dubbed Manitoulin USD Algonquin 2019-1, the transaction differs from previous Manitoulin deals due to the additional numbers of mid-sized corporate borrowers in the portfolio.   

    The risk transfer trade features a replenishment period and complies with risk retention rules. .......

    News 26 July 2019

  • Mortgage firm completes residuals sale

    Company hires and sector developments

    Residual sale

    Charter Mortgages is set to sell its residual economic interest in the Precise Mortgage Funding 2019-1B RMBS to JPMorgan - which managed the sale process and purchased the RC2 certificates for onward sale - for a cash consideration of £6.2m. The transaction is expected to complete on 31July and will generate a pre-tax gain of £28.8m and a .......

    Market Moves 26 July 2019

  • Unique approach

    Underwriting flex space in CMBS examined

    Coworking company exposures in US CMBS are expected to increase as the buildings they occupy are refinanced and the popularity of flexible work arrangements continues to rise. However, underwriting properties with significant exposure to such tenants requires a unique approach.

    WeWork is the largest coworking space provider in the US, with 493 locations across 96 cities, according to .......

    News Analysis 26 July 2019
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