Complete news archive

  • 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

  • Legacy SRT call possibility

    Regulatory triggers could lead to SRTs being called next year

    Banks could potentially call legacy capital relief trades (CRTs) next year, as higher senior risk weights for these deals kick, following the end of a one-year grandfathering period. Higher senior risk weights could render the deals less efficient and justify calling and restructuring a transaction, but whether calls are exercised or not will depend on what counts as a .......

    News Analysis 20 September 2019

  • Case for STS synthetics outlined

    Benefits of STS on synthetics clear, but objections could be raised

    The EBA is set to release its discussion paper on the application of the STS label to synthetic securitisation next week, with a view to publishing a proposal by the middle of next year.  While the paper is a “step in the right direction”, the market will not see any synthetic securitisations with the STS label for “quite some .......

    News Analysis 20 September 2019

  • Risk transfer round-up - 20 September

    CRT sector developments and deal news

    Standard Chartered is rumoured to be prepping a corporate capital relief trade for 4Q19. The bank’s last risk transfer trades were completed last summer and referenced corporate loans. The first one was dubbed Chakra 3 and was inked in June, while the second one was called Gongga and was completed in July (see SCI’s capital relief trades database).

    ......

    News 20 September 2019

    Premium Content

  • Credit-granting guidance outlined

    "Bright-line" verification test still absent

    The EBA recently published an answer to a question posed by AFME in relation to Article 9(3) of the Securitisation Regulation, pertaining to credit-granting criteria for exposures in a securitisation. While the answer provides some guidance on how those issuing securitisations may satisfy Article 9(3), it doesn’t provide a clear test for when extensive verification of credit-granting standards will .......

    News 19 September 2019

  • CMBS NOI slowing

    Sector developments and company hires

    Aircraft ratings review

    Moody’s has published a new overview which examines ABS issued in the US since 2013, backed primarily by commercial aircraft and their associated leases. The report details an asset description and its structure as well as asset-related credit risks in securities backed by aircraft and related leases. In addition, Moody’s has issued a Request for .......

    Market Moves 19 September 2019

  • Broader base

    New investors come to STS, but for what reason?

    A growing number of new investors, including bank treasuries, are participating in European STS securitisations, according to panellists at KNect 365’s European Securitisation Regulation seminar today. They added, however, that there is uncertainty about whether this is due to STS or other factors, such as a lack of yield in other asset classes.

    Nicholas Curmi, head of securitisation and .......

    News 18 September 2019

  • Drilling down

    Opportunities on offer in consumer, despite downturn concerns

    Consumer finance in the US is still a relatively untapped asset class among institutional investors, despite the relative value opportunities on offer. This is according to an asset manager in the space that suggests too that negative connotations pertaining to subprime lending are unfair, particularly when investors are largely being compensated for the risks they are taking on.

    Ed Mallon, .......

    News Analysis 17 September 2019

  • UK CMBS prepped

    Retail-backed CMBS markets despite major tenant concerns

    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 £100.8m .......

    News 16 September 2019

  • CLO downgrade announced

    Sector developments and company hires

    CDS hire announced

    Axiom Alternative Investments has appointed Bedis Gharbi as senior portfolio manager, to support the continued development and diversification of its growing London office and fund range. Gharbi brings over 20 years’ experience in the investment management industry, most recently as head of synthetic credit funds at RiverRock European Capital Partners. He will join Axiom’s London .......

    Market Moves 16 September 2019

  • SCI Start the week - 16 September

    A review of securitisation activity over the past seven days

    Transaction of the week

    Alior Leasing has launched a 12 month revolving cash securitisation of auto leasing loans and leases extended to sole traders and SME obligors in Poland. Dubbed AL Poland Securitisation 01, the transaction is the first to receive a public rating by Moody's.

    Moody's has assigned a rating of Baa2 on the PLN359.9m floating rate secured notes, .......

    News 16 September 2019

  • Targeting opportunities

    Servicers continue hunt for Greek NPL ABS

    Hipoges Iberia, the Iberian servicer, is targeting opportunities in the Greek non-performing loan market that include NPL securitisations. Servicers are targeting Greek NPL ABS deals (SCI 31 May) amid actual and pending completions of NPL ABS transactions, as well as the European Commission’s pending approval of a government-backed NPL securitisation programme (SCI 12 October 2018).

    The .......

    News Analysis 13 September 2019

  • ECB stimulus announced

    Sector developments and company hires

    ECB stimulus package outlined

    The ECB has announced that it is cutting the interest rate on the deposit facility will be decreased by 10 basis points to -0.50%. The interest rate on the main refinancing operations and the rate on the marginal lending facility will remain unchanged at their current levels of 0.00% and 0.25% respectively.  Additionally, net purchases will .......

    Market Moves 13 September 2019

  • Competitive boost

    QMP expiration levels playing field

    The US Treasury’s plan to reform the country’s housing system is expected to level the playing field between the GSEs and the private sector (SCI 6 September). However, a reduced GSE footprint will also impact credit risk transfer and multifamily CMBS volumes.  

    Under the reforms, the FHFA is set to examine whether the loans the GSEs .......

    News 13 September 2019

  • Roll play

    Asian CDS index changes could boost market

    Impending changes to Asia’s CDS index are grabbing traders’ attention. Meanwhile, other structured finance derivatives activity in the region is on the up.

    The IHS Markit iTraxx Asia ex-Japan index is due to roll on 20 September and will see significant changes in its composition. “The index has historically been Korean heavy,” explains one trader. “But they’re now .......

    News Analysis 13 September 2019

  • Green ABS recommendations outlined

    Securitisation could be key tool in climate change battle

    Green securitisation can play an important role in helping to close the yearly investment gap of almost €180bn needed to meet EU climate and energy targets by 2030, according to AFME. The industry body, and its members, “strongly support” the growth of a green ABS market but recommends the need for greater clarity around definitions of green securitisation, as well as .......

    News 12 September 2019

  • Risk transfer round-up - 12 September

    CRT sector developments and deal news

    Intesa Sanpaolo is rumoured to be prepping for 4Q19 two capital relief trades that reference respectively corporate and SME loans. The bank printed its last corporate and SME SRTs last year from the GARC programme (see SCI’s capital relief trades database).

    The alleged transactions are riding a wave of Italian SRT issuance this year, fuelled by rising standardised bank ......

    News 12 September 2019

    Premium Content

  • Risk profile

    Basel 4 impact to vary based on business model

    The EBA last month published its advice on the implementation of Basel 4 in the EU, with its impact assessment suggesting that the full implementation of the new framework under conservative assumptions will increase the minimum capital requirement (MRC) by 24.4% on average. Although the resulting capital impact is highly dependent on the strategy of each bank, it is .......

    News Analysis 12 September 2019

  • Polish ABS inked

    Securitisation features auto lease collateral

    Alior Leasing has launched a 12 month revolving cash securitisation of auto leasing loans and leases extended to sole traders and SME obligors in Poland. Dubbed AL Poland Securitisation 01, the transaction is the first to receive a public rating by Moody’s.

    Moody’s has assigned a rating of Baa2 on the PLN359.9m floating rate secured notes, while the .......

    News 11 September 2019

  • CLO firm incorporates ESG approach

    Company hires and sector developments

    Cayman CLO first

    Maples Group has supported the first ever US CLO to issue out of the Cayman Island. The transaction was a US$501m middle market CLO from Natixis, which closed on 13 August 2019.

    ESG implementation

    THL Credit has developed and begun utilising a new investment framework for assessing environmental, social, and governance (ESG) factors .......

    Market Moves 11 September 2019

  • Country md announced

    Company hires and sector developments

    Country md announced

    Jervis Smith has been appointed country md of Vistra Luxembourg, responsible for leading Vistra’s Luxembourg office and growing the business, together with the Vistra office in the Netherlands to maximise joint opportunities between the two offices. Based in Luxembourg, he will report to Vincent Bremmer, regional md, Europe, Vistra. Smith previously spent over 25 years .......

    Market Moves 10 September 2019
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