Complete news archive
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Risk transfer round-up - 31 October
CRT sector developments and deal news
Santander is rumoured to be readying two synthetic securitisations of consumer loans. The issuer has been active in the asset class this year, having closed thus far one synthetic US auto loan ABS in June and two true sale auto SRTs in October (see SCI’s capital relief trades database).
...... News 31 October 2019Premium Content
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SCI Capital Relief Trades Awards 2019
Investor of the Year: European Investment Fund
The European Investment Fund (EIF) provides an unparalleled level of support to the capital relief trades market in Europe, bringing numerous synthetic securitisations across the line. The EIF is not only a key driver of innovation, participating in numerous benchmark transactions across jurisdiction and asset class, but it has also helped open up the risk transfer market to a broader .......
News 31 October 2019
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Niche programme
Unusual UK BTL RMBS marketing
Goldman Sachs is in the market with an unusual UK buy-to-let RMBS secured by properties owned primarily by residents of the Republic of Ireland. The mortgages backing the £111.82m Banna RMBS transaction were originated by KBC Bank Ireland and its IIB Finance and Premier Homeloans subsidiaries between 1991 and 2009.
The loans were originated under a niche programme .......
News 31 October 2019
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Untapped potential?
New style reinsurance vehicles yet to take off
Almost a year since launch risk-remote reinsurance capacity vehicle Vermeer Re is yet to have any direct imitators. However, other similar structures across a wide variety of insurance risks could potentially still follow suit.
Vermeer was created by Renaissance Re and sole investor PGGM (SCI 19 December) to provide up to US$1bn of US property catastrophe capacity. .......
News 31 October 2019
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Anti-NSDA provisions welcomed
Sector developments and company hires
Anti-NSDA provisions welcomed
Market Moves 30 October 2019
The inclusion of anti-net short debt activism (NSDA) provisions in offering documentation has become more common in recent months, with Sirius Computer Solutions, Nexstar Broadcasting and Allied Universal Holdco deals incorporating such language. The purpose is to prevent net-short participants - whose interests are not aligned with those of other investors - from using their debtholder rights .......
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SCI Capital Relief Trades Awards 2019
Innovation of the Year: FCT Jupiter 2019
Societe Generale’s US$3.4bn FCT Jupiter 2019 transaction has won SCI’s Innovation of the Year Award for introducing a number of ground-breaking structural innovations in connection with the redeployment of released RWA. The deal not only frees up a dedicated capital envelope, whereby capital can be reallocated in favour of positive impact finance assets, but also debuts a pricing reduction feature .......
News 30 October 2019
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Abacus case settled
Sector developments and company hires
Abacus case settled
Market Moves 29 October 2019
Judge Jennifer Frisch of the Minnesota District Court has terminated the Abacus 2006-10 case (SCI 2 August), after the parties filed a stipulated proposed order resolving Astra Asset Management’s claim against Goldman Sachs. Astra had alleged an EOD and asked the trustee to employ a trust instruction proceeding to confirm Goldman’s violations and to solicit a .......
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SCI Capital Relief Trades Awards 2019
Impact Deal of the Year: Room2Run
As the first-ever synthetic impact securitisation with a multilateral development bank (MDB), Room2Run helped to free up vital capital for the African Development Bank (AfDB) to fund infrastructure projects across multiple African countries. As well as setting the benchmark for how risk transfer technology can be deployed innovatively and to positive effect, the transaction overcame a number of structural and .......
News 29 October 2019
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SCI Capital Relief Trades Awards 2019
Transaction of the Year: Syon Securities 2019
Lloyds Banking Group’s synthetic UK RMBS Syon Securities 2019 was motivated by prudent risk management as part of the bank’s broader plan to support the UK economy, rather than potential regulatory capital benefits. However, Syon’s innovative use of a capital relief structure to achieve those risk transfer aims, combined with the deal’s scalability for the issuer and repeatability for .......
News 28 October 2019
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SCI Start the Week - 28 October
A review of securitisation activity over the past seven days
Transaction of the week
News 28 October 2019
Fannie Mae has priced its first credit risk transfer transaction referencing a pool of multifamily loans. Dubbed Multifamily Connecticut Avenue Securities (MCAS) Series 2019-01, the landmark US$472.7m securitisation complements the GSE's Delegated Underwriting and Servicing (DUS) and Multifamily Credit Insurance Risk Transfer (MCIRT) programmes.
The reference pool for MCAS 2019-01 consists of approximately 340 multifamily mortgage loans .......
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Overcoming stigma
Opportunities eyed in land banking
One sector that continues to be underserved by financial institutions post-crisis is land banking. As such, it offers opportunity for investors that can overcome the stigma associated with the space.
“There aren’t many active financing providers in the land banking space,” confirms Craig Bergstrom, cio at Corbin Capital Partners. “Consequently, yields across the sector represent a premium to .......
News 28 October 2019
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CMBS refi inked
Sector developments and company hires
CLO firm names IR head
Pemberton has hired Cary Gibson to the role of director and head of investor relations. Gibson was previously head of business development at Sand Grove Capital Management.
CMBS refi inked
Sabal Capital Partners has closed a US$70m refinancing of 17 low-LTV multifamily assets located in the Bronx borough of New York, 15 of which were originally .......
Market Moves 25 October 2019
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SCI's latest podcast is now live!
The editorial team discuss the hottest topics in securitisation today...
In this month's exciting edition of the SCI podcast, the team talks about standardised banks and the barriers they face when looking to enter the risk transfer market, Santander's latest securitisation of Finnish auto loans, Kimi 8, as well as a company that is looking to help companies in emerging markets tap synthetic securitisation to optimise their balance sheets.
Don't .......
News 25 October 2019
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One-stop shop
New firm offers range of innovative securitised products
Gessler Capital was recently launched with a view to meet increasing demands from issuers that want off-balance sheet securitisation solutions in a more flexible format than traditional methods. As such, the Swiss firm aims to offer a range of tailored products, including CLNs and actively managed certificates, which it also hopes will appeal to investors hungry for high-yielding alternative investments.
Vincent Gessler, .......
News Analysis 25 October 2019
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SCI Capital Relief Trades Awards 2019
Arranger of the Year: Credit Suisse
Credit Suisse is SCI’s Arranger of the Year in recognition of the variety of structures it has placed and the breadth of its investor base. Since September 2018, the bank has arranged five capital relief trades providing protection on approximately €15bn of reference assets with an aggregate tranche size of approximately €850m.
The transactions included both equity and .......
News 25 October 2019
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Multifamily CRT debuts
DUS, MCIRT programmes complemented
Fannie Mae has priced its first credit risk transfer transaction referencing a pool of multifamily loans. Dubbed Multifamily Connecticut Avenue Securities (MCAS) Series 2019-01, the landmark US$472.7m securitisation complements the GSE’s Delegated Underwriting and Servicing (DUS) and Multifamily Credit Insurance Risk Transfer (MCIRT) programmes.
The reference pool for MCAS 2019-01 consists of approximately 340 multifamily mortgage loans with .......
News 25 October 2019
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CRR amendments for NPEs recommended
Sector developments and company hires
CRR amendment opinion published
The EBA has published an opinion on the regulatory treatment of securitisations of non-performing exposures (NPEs), recommending various amendments to the Capital Requirements Regulation (CRR) as well as to the Securitisation Regulation to remove the identified constraints. The opinion is addressed at the European Commission and contributes to the objectives of the Council of the EU’s .......
Market Moves 24 October 2019
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SCI Capital Relief Trades Awards 2019
Issuer of the Year: Santander
Santander was one of the banks that actively participated in efforts to extend the STS designation to synthetic securitisations, which culminated in the EBA consultation paper on STS synthetics that was published in September. However, it is the Spanish lender’s prolific issuance and innovative structural achievements that render it SCI’s Issuer of the Year.
According to Steve Gandy, md and .......
News 24 October 2019
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CRE CRT inked
Innovative financial guarantee debuts
Raiffeisen has completed an approximately €95m unfunded financial guarantee that references a €1.2bn portfolio of Austrian, German, Czech and Slovak commercial real estate loans. Dubbed Roof CRE 2019, the significant risk transfer trade differs from previous Roof transactions, given that it combines assets booked in different units of the bank.
Oliver Fuerst, head of active credit management at .......
News 24 October 2019
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Scalable and repeatable
MSR securitisation on the cards?
A securitisation at some point in the future - and given market conditions conducive to such a securitisation, which do not exist today - is part of BSI Financial Services’ game plan. The firm recently expanded its GSE MSR operations to include purchasing MSRs for newly originated Ginnie Mae-eligible performing loans.
“We have created a scalable and repeatable .......
News 24 October 2019
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GACS structured
Mortgage NPL ABS prepped
UniCredit is in the market with a non-performing loan securitisation that references €6bn - in gross book value terms - of secured and unsecured residential mortgages. Dubbed Prisma SPV, the transaction is an unusual NPL ABS, given the underlying assets and is the first transaction to be completed following the most recent renewal of GACS.
Rated by Moody’s and Scope, .......
News 23 October 2019