Complete news archive

  • Nascent stages

    CRT mezz investor base needs time to develop

    The pace of growth of the risk transfer market is likely to be tied to the development of the synthetic mezzanine risk market, which is currently at a nascent stage (SCI 9 August). Traditional capital relief trade investors have limited appetite for mezz, as absolute returns are low, even though the risk/reward proposition is compelling.

    “There is .......

    News 3 October 2019

  • Problem solving

    Credit derivative hedges mooted in a deteriorating environment

    The end of the credit cycle and fears over global geopolitical and natural events are driving European portfolio managers to look for ways to protect themselves against the expected downturn. Credit derivatives provide a variety of potential solutions.

    “Without doubt the slowdown is coming and fixed income managers need to deal with that,” says Juan Valencia, credit strategist .......

    News Analysis 3 October 2019

  • Issuance wave

    Opel and Sabadell settle first full-stack SRTs

    Opel and Sabadell have settled their first full-stack significant risk transfer transactions. The true sale deals are the latest in a slew of such issuance, following the introduction of the STS framework this year (SCI 27 September).

    The €900m Opel deal, dubbed E-CARAT 10, is backed by German auto loans. According to Boudewijn Dierick, head of ABS .......

    News Analysis 2 October 2019

  • Autumn sales

    Italian NPL, UTP disposals continue apace

    Illimity Bank and a Cerberus Capital Management affiliate have acquired a second unlikely-to-pay loan portfolio from Banca Monte Paschi di Siena (MPS), following a previous MPS transaction with Cerberus (SCI 2 August). Separately, UniCredit has disclosed a pair of non-performing loan transactions.

    In the latest MPS transaction, the Cerberus affiliate provided the equity tranche, while illimity provided .......

    News 2 October 2019

  • CLO firm co-founder to retire

    Sector developments and company hires

    30-year CIRT debuts

    Fannie Mae has completed its sixth Credit Insurance Risk Transfer transaction of 2019: CIRT 2019-3 covers US$14.8bn in unpaid principal balance of 21- to 30-year original term fixed-rate loans. The deal marks the first time a 30-year bulk CIRT transaction was structured with an extended policy term of 12.5 years and a 40bp retention layer, .......

    Market Moves 2 October 2019

  • ABS key to energy upgrade initiative?

    Securitisation could solve efficiency projects challenge

    The European Commission reports that 75% of Europe’s building stock is not energy efficient, but sourcing the capital needed for upgrade projects is challenging due to their small size. Pooling and securitising the cash flows generated from these upgrades could be a solution, although several challenges may first need to be resolved, particularly around standardisation, project aggregation and education.

    Caroline Milne, .......

    News Analysis 2 October 2019

  • B-piece service bulks out

    Sector developments and company hires

    B-piece service bulks out

    Greystone, has added Paul Smyth, Cary Williams, and Paul Jankovsky as mds and Robert Farrington as a director to its CMBS platform. Based in Irving, Texas, the team brings to Greystone extensive expertise in CMBS B-Piece acquisitions as well as special servicing. While originating debt for clients across all of Greystone’s lending platforms, Smyth and his team will also pursue B-Piece investment .......

    Market Moves 30 September 2019

  • Development drive

    Canadian private RMBS boost

    Home Trust Company became the fourth issuer to tap the Canadian private RMBS market with its private placement of Classic RMBS Trust Series 2019-1 (SCI 23 September). The firm plans to issue two transactions a year from the programme and, in doing so, help drive the development of the sector.

    “The more paper that’s issued, the more .......

    News 30 September 2019

  • SCI Start the Week - 30 September

    A review of securitisation activity over the past seven days

    Transaction of the week
    FirstKey Mortgage is marketing the first securitisation backed by manufactured homes (MH) since the financial crisis (SCI 16 January), with over half the collateral balance comprising contracts secured from collapsed securitisations issued by GreenPoint Credit Manufactured Housing Contract Trust between 1999 to 2001.

    The $526.21m transaction is dubbed Towd Point Mortgage Trust 2019-MH1 and is collateralised by 25,324 .......

    News 30 September 2019

  • Full-stack SRT boost

    Opel, Sabadell achieve funding and capital relief

    Banco Sabadell and Opel Bank last week priced respectively full stack consumer and auto ABS deals – dubbed Sabadell Consumo 1 and E-CARAT 10 – that achieve both funding and capital relief. The latest deals add to a growing trend of true sale significant risk transfer transactions, following the introduction of the STS framework.

    According to Ruben van .......

    News Analysis 27 September 2019

  • Portfolio-based cover opportunities eyed

    New reinsurance platform to harness synthetic ABS overlap opportunities

    BPL Global is to launch a new reinsurance platform and has hired Gregory King-Underwood as director to spearhead the firm’s growth strategy. This is driven by increased demand for portfolio-based risk weighted asset (RWA) solutions from financial institutions, which the firm hopes can be met by combining reinsurance and synthetic securitisation strategies.

    James Esdaile, md at BPL Global, comments that King-Underwood’s .......

    News Analysis 27 September 2019

  • Polish debut

    STS ABS gains EIB support

    PKO Leasing has closed Polish Lease Prime 1, the largest-ever Polish securitisation. The PLN2.5bn revolving lease ABS is also the first STS-eligible transaction issued on the Polish market and one of the first STS-eligible operations subscribed to by the EIB.

    The cash transaction is backed by a portfolio of fully amortising lease receivables, with no residual value risk, granted mainly .......

    News 26 September 2019

  • Aussie auto ABS debut prepped

    Sector developments and company hires

    Aussie auto debut prepped

    The first public term securitisation backed by collateral originated by Mercedes-Benz Financial Services Australia is marketing. The A$580m transaction is to be issued by Perpetual Corporate Trust as trustee of Silver Arrow Australia 2019-1 and is backed by a pool of commercial and consumer loan contracts backed by new and used motor vehicles, trucks .......

    Market Moves 26 September 2019

  • STS synthetics framework unveiled

    EBA publishes landmark consultation

    The EBA has published its long-awaited discussion paper on its proposals for an STS framework for synthetic securitisation (SCI 20 September). The discussion paper aims to enhance transparency and further standardise risk transfer trades - although, for the moment, STS synthetic securitisations won’t benefit from preferential capital treatment via a reduction in senior tranche risk weights. 

    According .......

    News Analysis 25 September 2019

  • US CLO firm leadership shake-up

    Sector developments and company hires

    CLO firm makes md appointment

    MidOcean Partners has hired Natalya Michaels as md, focusing on marketing, investor relations and business development across both the private equity and credit businesses as MidOcean looks to grow the firm and expand its investor relationships. Michaels joins MidOcean with over two decades of industry experience and, most recently, she was an md at Artisan .......

    Market Moves 25 September 2019

  • Ceo appointed

    Sector developments and company hires

    Ceo appointed

    CAC Specialty has appointed Michael Rice as ceo, bringing more than 25 years of experience in the insurance brokerage industry. Most recently, he served as the founding ceo and executive chairman of JLT Specialty USA. Previously, he spent more than 20 years at Aon, serving in various leadership capacities.

    Morgan refis due

    The August .......

    Market Moves 24 September 2019

  • First post-crisis MH deal prepped

    Transaction largely backed by legacy securitisation loans

    FirstKey Mortgage is marketing the first securitisation backed by manufactured homes (MH) since the financial crisis (SCI 16 January), with over half the collateral balance comprising contracts secured from collapsed securitisations issued by GreenPoint Credit Manufactured Housing Contract Trust between 1999 to 2001. The $526.21m transaction is dubbed Towd Point Mortgage Trust 2019-MH1 and is collateralised by 25,324 first-lien, .......

    News 24 September 2019

  • Master trust margins amended

    Sector developments and company hires

    Holmes Master Trust margins amended

    Moody’s comments that the proposed amendments to the 2017-1 Class A2 and 2018-1 Class A3 notes issued by Holmes Master Trust will not, in and of themselves and at this time, result in a reduction or withdrawal of all the notes ratings currently assigned to Holmes Master Issuer. The proposal is to change .......

    Market Moves 23 September 2019

  • SCI Start the Week - 23 September

    A review of securitisation activity over the past seven days

    Transaction of the week
    Deutsche Bank is marketing a £114m UK CMBS, dubbed Deco 2019-RAM. The transaction mainly comprises a £150m CRE loan backed by Intu Derby, a regional shopping centre in Derby, England, to The Wilmslow, a newly formed joint venture between the Intu Group and Cale Street Investments
    The transaction is provisionally rated by DBRS and S&P as triple-A/triple-A on the .......

    News 23 September 2019

  • Law firm nabs SF vet

    Sector developments and company hires

    Law firm beefs up

    Orrick has hired structured finance lawyer Richard Hanson as a partner based in London. He joins from Ropes & Gray and advises on structured finance, securitisation and derivatives-based financings for funds, asset managers and investment trusts. His experience includes advising on funding structures backed by commercial real estate and other asset classes, including loan-on-loan .......

    Market Moves 20 September 2019

  • Investor reassurance

    Spanish Supreme Court ruling assuages NPL ABS investor concerns

    Spain’s Supreme Court has ruled that Spanish banks are obliged to wait until at least 12 monthly instalments are missed before initiating foreclosure proceedings on consumer mortgage contracts. The ruling should reassure investors in non-performing loan (NPL) securitisations by allowing lenders to foreclose on troubled home loans.

    The guidance concerns procedures which have been lingering after early-termination clauses were declared .......

    News Analysis 20 September 2019
×