Complete news archive
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Greencoat Investments notice received
Sector developments and company hires
BUMF 6 application discontinued
A notice of discontinuance from Greencoat Investments has been received by Business Mortgage Finance 6, purporting to discontinue its application for an administrative order with respect to the issuer, which had been listed to be heard before a High Court Judge at the beginning of July (SCI 16 April). This hearing has now .......
Market Moves 5 July 2019
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Odds "stacked against borrowers" in CMBS
SCI reviews Ann Hambly's CMBS 911 – Are you ready for the crash?
In CMBS 911: Are you ready for the crash?, author and ceo of 1st Service Solutions Ann Hambly, emphasises that when a CMBS loan becomes distressed, it is an emergency situation for a borrower from which they’re unlikely to come out unscathed. This is because, without the right knowledge and expertise, the odds are stacked against them in a distressed CMBS, .......
News Analysis 5 July 2019
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Auto SRT completed
Innovative direct CLN structure debuts
Santander has completed its first synthetic significant risk transfer transaction that references a portfolio of US auto loans (SCI 2 July). Dubbed Santander Synthetic Prime Auto Issuance 2019-A, the US$1.38bn transaction features a novel CLN structure, whereby notes are issued directly by Santander rather than through an SPV.
Steve Gandy, md and structurer at Santander, notes: “We completed two .......
News Analysis 5 July 2019
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EBRD appoints Greece, Cyprus lead
Company hires and sector developments
EBRD hires NPL vet
The EBRD has appointed Andreea Moraru to lead its operations in Greece and Cyprus from November, following the retirement of the current holder of the role, Sabina Dziurman. Based in Athens, Moraru will continue the EBRD’s efforts to support the private sector in the two countries, improve competitiveness and strengthen the regional integration of the local .......
Market Moves 4 July 2019
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Buy-side buy-in
End-user use of complex credit on the increase
The continuing need to search for yield is causing the buy-side to look beyond traditional credit. New and old funds alike are looking for opportunities in the derivatives space.
“The majority of our buy-side clients trade diversified credit and are always looking for opportunities across the asset class,” says Rohan Douglas, ceo at Quantifi. “What we’re seeing lately .......
News Analysis 4 July 2019
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Helping hand
Refugee risk-sharing facility inked
Dutch development bank FMO has signed a pilot bilateral risk-sharing facility under its NASIRA programme, which guarantees portfolios of loans to vulnerable, underserved entrepreneurs in sub-Saharan Africa and countries neighbouring Europe. The agreement is with Jordanian microfinance institution (MFI) Tamweelcom and will support access to finance for Syrian refugee entrepreneurs.
Jordanian banks have historically refrained from providing financing to Syrians .......
News Analysis 4 July 2019
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Increasing capacity
Bridging the CRT gap for insurers
Greater involvement from insurers in capital relief trades should improve any capacity constraints the market faces. However, while banks are seeking alternative pockets of demand in which to place their risk and insurers are seeking to diversify and achieve scale, their approaches to any transaction will be different and that difference needs to be managed.
At present, capacity .......
News Analysis 3 July 2019
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Pre-summer rush
European ABS market update
Activity levels are currently high across the European ABS/MBS and CLO markets and that looks set to continue.
“It’s very busy in both primary and secondary,” confirms one trader. “It feels like the usual rush before the summer holidays, but we’re also feeling the effects of pent-up issuance from the quiet first quarter. We’re seeing lots of new .......
Market Reports 3 July 2019
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Rarely-seen synthetic securitisation revealed
Transaction references unusual pool of US auto loans
Santander has issued a rare synthetic securitisation referencing a collateral pool of US prime auto loans. Dubbed Santander Synthetic Prime Auto Issuance 2019-A, the deal comprises credit-linked notes (CLNs) referencing the performance of a static US$1.381bn portfolio of 59,771 auto loans made to high-quality borrowers across the US, for the purchase of new and used vehicles.
DBRS and Scope .......
News 2 July 2019
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CLO firm boosts research team
Company hires and sector developments
CEDE made public
AIR Worldwide has published its Catastrophe Exposure Data Exchange (CEDE) database schema publicly. The aim is to facilitate accurate and transparent data exchange throughout the insurance value chain more efficiently, and to encourage additional analytics on a greater number of exposures. In addition, AIR is actively supporting the ModEx Open Exposure Data Format (OED) by freely providing .......
Market Moves 2 July 2019
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Latest podcast now live!
Mascots, Japanese CLO investors and STS struggles
In this month's edition of the SCI podcast, the editorial team get stuck into some interesting topics affecting the securitisation market today. First, our editor, Corinne Smith discusses some recent structural innovations in US CLOs, including MASCOTs - or modifiable and splitable/combinable tranches - and the benefits these offer investors.
Next up, Stelios Papadopoulos, senior reporter, looks at some of the .......
News 1 July 2019
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SCI Start the Week - 1 July
A review of securitisation activity over the past seven days
Transaction of the week
Blackstone is marketing an inaugural US$264.5m forward-mortgage RMBS featuring unique collateral characteristics pertaining to underwriting and property concentration. Dubbed FWD 2019-INV1, the transaction is backed by 1,724 first-lien, fixed-rate investment-purpose mortgages, originated mostly by Finance of America (SCI 26 June).The collateral comprises residential mortgage loans secured by non-owner-occupied properties, with 58.7% of the mortgages backed .......
News 1 July 2019
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Wholesale switch
Creval eyes NPL reduction strategy
Credito Valtellinese (Creval) has announced a five-year business plan that aims to reduce its non-performing loan and sovereign exposures and improve profitability via cost-cutting. The successful execution of the plan would make the bank more attractive for a possible merger in the future, in line with supervisory calls for reductions in NPL exposures as well as consolidation, in order to .......
News 28 June 2019
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ReoCo impact assessed
Company hires and sector developments
CMIP acquisition
Investcorp Credit Management US has entered into a definitive interest purchase agreement to acquire a majority ownership interest in CM Investment Partners (CMIP), the investment adviser to CM Finance, through its purchase of the respective equity positions held by certain funds managed by Cyrus Capital Partners and Stifel Venture Corp, and newly issued interests in CMIP. .......
Market Moves 28 June 2019
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Increasing diversity
Competition, TFS exit driving UK RMBS volume
The UK mortgage market is furiously price competitive, with ring-fenced high street banks crowding out challenger banks and non-bank lenders. At the same time, the concurrence of TFS refinancing and call dates of outstanding transactions is increasing the diversity of the UK RMBS sector.
Bank of England’s ring-fencing requirements – in force since January – have resulted in large banks .......
News Analysis 28 June 2019
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Guarantee inked
Banco BPM prints first capital relief trade
The EIF is taking on the risk of Banco BPM’s €55m mezzanine guarantee in connection with the Italian lender’s first capital relief trade, referencing a portfolio of midcap corporate loans. The regulatory capital that will be released is enough to fund €330m of SME lending.
The new loans are intended for SMEs (accounting for up to 30% of the .......
News 28 June 2019
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Commodity opportunities
Bank expands global SCF activities
Crédit Agricole recently made a number of senior hires to its structured commodity finance (SCF) team in London, indicating that the bank is growing its activity in the SCF space. Alongside this, the bank is pushing boundaries in the sector, such as its recent, innovative US$300m medium term loan transaction with Ghana Cocoa Board.
Constantin Koutzaroff, global head of .......
News 28 June 2019
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Compliance challenges
STS requirements raise regulatory liability concerns
The securitisation market now appears to be embracing the new Securitisation Regulation and adapting to the regime, following uncertainty over technical standards in Q1. Nevertheless, market participants are still grappling with practical challenges, whose solution remains elusive.
According to Salim Nathoo, partner at Allen & Overy: “Filling in the CRE and residential templates is hard because it’s not .......
News Analysis 28 June 2019
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GSE reform study released
Sector developments and company hires
Private credit double announced
Solar Capital Partners has hired two senior private credit investment professionals. Eric Herr joins as a partner, to help lead investment origination across the firm's multi-credit strategy platform. Most recently, he served as an md of loan originations at NewStar Financial and previously worked at Churchill Financial, GE Antares and GE Commercial Finance. Eduard .......
Market Moves 27 June 2019
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CMBS auditing upset
Sector developments and company hires
Auditing issue
The JUNO (ECLIPSE 2007-2) CMBS failed to file its financial statements for 2017, together with its annual return by 21 June, as required by the Companies Registration Office (see SCI’s CMBS loan events database). The issuer has a further 28 days to submit its audited financial statements, but its auditors have advised that they cannot .......
Market Moves 26 June 2019
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Forward-mortgage first prepped
Global investor markets 'unique' RMBS
Blackstone is marketing an inaugural, US$264.5m forward-mortgage RMBS featuring unique collateral characteristics pertaining to underwriting and property concentration. Dubbed FWD 2019-INV1, the transaction is backed by 1,724 first-lien, fixed-rate investment-purpose mortgages, originated mostly by Finance of America.
The collateral comprises residential mortgage loans secured by non-owner-occupied properties, with 58.7% of the mortgages backed by single-family residences, 9.2% planned-unit .......
News 26 June 2019