Complete news archive
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Wake-up call?
NCSLT decision spurs documentation improvements
The Third Circuit’s decision last month that the National Collegiate Master Student Loan Trusts (NCSLT) are ‘covered persons’ under the Consumer Financial Protection Act (CFPA) (SCI 22 March) could potentially impact securitised products beyond the student loan ABS sector. The extent of the trusts' liability has not yet been settled, but moves to improve securitisation deal documentation are .......
News 8 April 2024
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SRT Monthly - March 2024
First significant wave of transactions of the year
Issuance overview
SRT Market Update 5 April 2024
During March, the SRT market experienced its first significant wave of transactions of the year (see SCI’s Capital Relief Trades Database). The sector saw longstanding programmes issue - such as CRAFT (Deutsche Bank) and Chakra (Standard Chartered) - as well as seasoned issuers, including Santander (with the Ducati trade) and BNP Paribas, come to the fore .......
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Job swaps weekly: Mount Street hires two amid international expansion
People moves and key promotions in securitisation
This week’s round-up of securitisation job swaps sees Mount Street Group fill two newly created senior roles, as it seeks to strengthen and expand its international offering. Elsewhere, GCM Grosvenor has added a pair of CLO market veterans to its credit team, while Barclays has recruited a global head of securitised products bond trading in a bid to become .......
Market Moves 5 April 2024
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Serious business
ESG's evolving role in structured finance unpacked
ESG is still a top priority within structured finance, despite competing concerns stemming from rising interest rates. Panellists at SCI’s ‘Unpacking ESG’ webinar last week affirmed the enduring importance of sustainability initiatives in the securitisation market to participants, even amid a recent lull in activity. However, while demand for ESG-linked securitisation may stand strong, precisely what ESG means for .......
Talking Point 4 April 2024
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Blue Owl to form insurance solutions unit
Market updates and sector developments
Blue Owl Capital has entered into a definitive purchase agreement to acquire Kuvare Insurance Services (doing business as Kuvare Asset Management) (KAM) for US$750m. Separately, Blue Owl has made a long-term investment in Kuvare, purchasing US$250m of preferred equity. This investment is intended to create alignment between Blue Owl and Kuvare and provides growth capital to Kuvare’s insurance companies, each .......
Market Moves 4 April 2024
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AGL, Barclays ink cooperation agreement
Market updates and sector developments
AGL Credit Management and Barclays have launched a new private credit investment platform called AGL Private Credit (AGL PC). AGL PC combines AGL’s established credit competency with proprietary access to Barclays’ leading leveraged finance and investment banking origination capabilities through an exclusive long-term cooperation agreement.
“Across our client base, there is a strong desire to work with a .......
Market Moves 3 April 2024
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EARN unveils 'strategic transformation'
Market updates and sector developments
The board of trustees of Ellington Residential Mortgage REIT (EARN) has unanimously approved a strategic transformation of its investment strategy to focus on corporate CLOs. The company intends to build upon its current US$44m CLO portfolio, with an emphasis on secondary CLO mezzanine debt and equity tranches.
In connection with its strategic transformation, EARN has decided to revoke .......
Market Moves 2 April 2024
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Directional correlations
SRTx mirroring SRT market developments
SCI launched the SRTx (Significant Risk Transfer Index) 12 months ago with the aim of providing market participants more insight into the arcane world of SRT. The SRTx is a suite of indexes covering the EU and US regions, comprising a spread index that estimates generic new-deal pricing levels based on a ‘benchmark deal’ and a set of market .......
News 2 April 2024
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CMBS slide
Commercial real estate values falling with no bottom in sight
Collapsed commercial real estate values, which will not recover for perhaps half a decade, will drive expected losses in office loans within its rated US CMBS conduit portfolio of 7.7%, according to a new report by Fitch.
This is more than double the expected losses at time of issuance, and also well above the overall average loss of 5.2% for all property .......
News Analysis 29 March 2024
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More of the same, only more so
SRT market update
Deutsche Bank printed its latest Craft synthetic securitization, NatWest is about to print a securitization of capital call facilities while Nordea is believed to be on the brink of closing an SRT in what was another brisk week of business in the European SRT market.
Meanwhile, across the Atlantic, additional details emerged about the US$346m auto CLN from Bayview Opportunity .......
SRT Market Update 29 March 2024
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On the up
Nordic reticence towards SRT "less pressing"
The Nordic and Baltic countries are expected to experience a “not-insignificant” increase in SRT issuance in 2024, with their somewhat self-imposed supervisory reticence towards the instrument taking a back seat amid other market drivers. Indeed, the implied supervisory concerns across the region appear less pressing now, given greater regulatory transparency around synthetic securitisation and the designation of SRTs as .......
News Analysis 28 March 2024
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Hot, hot, hot!
Four takeaways from IMN's SRT Symposium
SCI attended IMN’s SRT Symposium at Clifford Chance last week. Based on our takeaways from the conference, here are the four things every SRT enthusiast needs to know:
- Investor interest
“SRT is seriously hot!” Kaikobad Kakalia, cio of Chorus Capital Management and a speaker on the first panel of the day, told audience members. “Taylor Swift was .......
Talking Point 28 March 2024
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SCI In Conversation Podcast: John Beacham, Toorak Capital Partners
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, SCI US editor Simon Boughey speaks to John Beacham, founder and CEO of Toorak Capital Partners, about residential transition loan (RTL) securitisations. Beacham discusses the significance of being the first firm to close a rated RTL securitisation, which it achieved in February, the prospects for the year ahead, and more.
News Analysis 27 March 2024
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Navigating market volatility
Mike Nowakowski, md and head of structured products at Conni...
Institutional investors navigating market volatility increasingly seek asset classes offering unique yield opportunities and portfolio diversification. One such asset class garnering attention and capital is esoteric ABS.
Esoteric ABS are very similar to traditional auto and credit card ABS, but the collateral may be less familiar. Most esoteric ABS deals can be divided into three large categories based .......
Talking Point 27 March 2024
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SCI Start the Week - 25 March 2024
A review of SCI's latest content
Last week's news and analysis
News 25 March 2024
Job swaps weekly: ARMOUR reveals successors to Gruber
People moves and key promotions in securitisation
Motor finance review sparks RWA optimisation
Close Brothers plans plus updates on Enpal’s warehouse & a Redwood-CPPI JV
NCSLT found to .......
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NCSLT found to be 'covered persons'
Market updates and sector developments
In a case involving the CFPB and the National Collegiate Master Student Loan Trust (NCSLT), the Third Circuit has found that statutory trusts used to handle securitisations are considered ‘covered persons’ for purposes of the Consumer Financial Protection Act (CFPA) and thus are subject to CFPB jurisdiction. According to a recent Cadwalader memo, this effectively means that the trusts would .......
Market Moves 22 March 2024