Complete news archive
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STS 'not enough' for European ABS revival
Securitisation 'needs to be used more' as funding tool
At the start of last year, BNP Paribas Asset Management hired Michel Fryszman as its new head of structured finance to oversee three UCITS funds, each investing in securitisations and loan portfolios. While the funds have a fairly broad remit with regard to asset class, historical performance data is a key metric meaning first-time CLO managers are given a wide berth and .......
News Analysis 3 May 2019
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NPL acquisition completed
Hoist Finance purchases Getback portfolio
Hoist Finance has acquired a PLN400m non-performing loan portfolio from Polish servicer Getback. Over 95% of the assets are non-performing unsecured consumer loans, but a small proportion comprises secured consumer and SME loans. The acquisition concides with a wave of banking sector consolidation that is fuelling a growing supply of unsecured retail NPLs in the jurisdiction.
According .......
News 3 May 2019
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Challenges persist
Structuring issues put shipping SRTs on hold
Capital relief trades referencing shipping loans have long been discussed and planned by a small number of issuers and arrangers. However, low performing portfolios and structural complexities pertaining to mixed portfolios that include shipping loans pose challenges that are constraining volumes.
Nord LB, for one, has allegedly attempted a shipping SRT that was set to close in .......
News Analysis 3 May 2019
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Rating agency appoints new SF head
Company hires and sector developments
Bank bulks up
Macquarie has appointed Carolyn Porretta md, structured finance and real estate, based in London. She was previously head of portfolio services, investment portfolio management at AIG, where she was responsible for managing structured products and CRE debt in EMEA.
RA hires new SF head
Scope Ratings has hired David Bergman as its new .......
Market Moves 3 May 2019
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Servicing consolidation
Subprime auto portfolio transfers gain traction
US subprime auto loan portfolio sales activity is expected to increase as further lenders withdraw from the sector. Indeed, recent high-profile lender defaults underline the importance of having a proactive backup servicer in place.
“There is significant potential for consolidation among subprime auto portfolios, especially those originated by private equity-backed lenders,” confirms Jennifer Thomas, vp, senior consumer ABS .......
News Analysis 3 May 2019
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Line-up finalised
NPL event includes UTP workshop
The line-up for SCI’s 2nd Annual NPL Securitisation Seminar on 13 May has been finalised. Hosted by Orrick at Corso di Porta Romana 61, Milan, the event features a Distressed Technologies workshop highlighting new models of credit management in the unlikely-to-pay (UTP) loan sector.
Another seminar highlight is a panel on NPL investment trends, which focuses on emerging opportunities, .......
News 3 May 2019
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Risk transfer round-up - 3 May
CRT sector developments and deal news
Santander is rumoured to be readying an SME transaction from its Magdalena programme for 2Q19.The transaction would be the issuer’s third-ever Magdalena deal.
The second Magdalena deal, dubbed FT Pymes Magdalena, was completed last August. The €166.3m CLN referenced a €2.5bn Spanish SME portfolio and paid 8.85% (see SCI’s capital relief trades database).
....... News 3 May 2019
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First SOFR-indexed MBS tranche inked
Sector developments and company hires
Claims predictability to improve?
Market Moves 2 May 2019
The Florida legislature last month passed a bill to reform the requirements for the assignment of benefits of claims for residential and commercial property insurance, which could improve the predictability of claims and losses for Florida catastrophe bonds. According to a recent Cadwalader client memo, assignment of benefits in Florida has been a concern for the .......
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Single-source solution
Pat Jackson, ceo and founder of Sabal Capital Partners, answers SCI's questions
Q: How and when did Sabal Capital Partners become involved in the securitisation market?
The Structured Credit Interview 2 May 2019
A: I founded Sabal Capital Partners in February 2009, with the aim of focusing on the aftermath of the financial crisis and buying distressed commercial real estate debt. By 2014, we had purchased US$8.4bn of debt, representing approximately 5,000 loans. In the process, we’d built up a .......
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SFR issuer prepays class F notes
Sector developments and company hires
EMEA
Market Moves 30 April 2019
Alantra has reinforced its portfolio advisory capabilities with the addition of six senior professionals in Lisbon (Ana Almeida, as a director), London (Jim Fadel, md; Robin Michaels, director; and Meena Evans, vp), Madrid (Valerie Castro, director) and Milan (Renato Limuti, md). The firm has also hired former Carnegie md Sebastian Hougaard as an md in the Nordics, establishing its .......
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SCI Start the Week - 29 April
A review of securitisation activity over the past seven days
Deal-related news
- EJF Capital is eyeing opportunities in Europe, as bank consolidation pressures grow and rates continue to rise. However, the firm's plans remain at an early stage, given that European consolidation lags behind that of US banks (SCI 26 April).
- Investors in Ginnie Mae securities backed by HECMs can now take advantage of a new ....... News 29 April 2019
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Opportunities eyed
Trups CDO manager targets Europe
EJF Capital is eyeing opportunities in Europe, as bank consolidation pressures grow and rates continue to rise. However, the firm’s plans remain at an early stage, given that European consolidation lags behind that of US banks.
According to Omer Ijaz, md at EJF Capital: “We have set eyes on Europe, where we are seeing opportunities emerge in light .......
News 26 April 2019
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Risk transfer round-up - 26 April
CRT sector developments and deal news
The second quarter of this year is expected to be more active in terms of capital relief trade issuance, compared to previous years, as banks adapt to ESMA’s securitisation disclosure requirements and many uncompleted deals slated for 4Q18 move to this year. Among these transactions are said to be four SME and two leveraged loan risk transfer trades targeted .......
News 26 April 2019
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Rating agency names managing director
Sector developments and company hires
EMEA
Scope has named Guillaume Jolivet as md. He joins the firm’s management board, alongside Torsten Hinrichs, coo of the Scope Group. With more than 18 years of experience in credit analysis and ratings, Jolivet joined Scope in 2013 and held several senior positions at Moody’s and UBS before that.New York University’s Stern School of Business finance professor .......
Market Moves 25 April 2019
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Landmark involvement
Michael Bennett, head of derivatives and structured finance...
Q: How and when did the World Bank Treasury become involved in the risk transfer market?
The Structured Credit Interview 25 April 2019
A: We became involved in insurance risk transfer in 2007 when we began to intermediate drought and other natural catastrophe swaps for member countries and regional facilities. We extended that work to the capital markets beginning in 2009 with the creation of our MultiCat .......
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Global opportunities
Cerberus completes first dedicated NPL fund
Cerberus has closed a US$5.1bn dedicated non-performing loan fund. Dubbed Global NPL Fund, it targets NPL opportunities across the globe, as concerns regarding the late stages of the credit cycle continue to grow.
According to Massimo Famularo, board member at Frontis NPL: “Cerberus is clearly recognising that the NPL market is a global opportunity, with a convenient risk/reward profile .......
News 25 April 2019
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Non-traditional assets
ABCP boosted by demand, diversification
US ABCP outstanding is expected to grow moderately this year, as prime institutional money-market funds return to the market and new investors enter. At the same time, conduit sponsors are expanding their portfolios with non-traditional assets.
Money-market fund investment in ABCP fell drastically leading up to and following money-market reform in 2016 (SCI 22 August 2016). However, .......
News Analysis 25 April 2019
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Lender charged for overstating returns
Sector developments and company hires
CRT analytics
dv01 has launched a credit risk transfer market surveillance offering, which adds US$1.8trn of Freddie Mac STACR and Fannie Mae CAS securitisations to its loan-level data analytics platform. The service allows investors to analyse historical performance of CRT deals individually or combined, perform whole market analysis and run cashflow scenarios.MPL platform charged
Market Moves 23 April 2019
The US SEC has ordered Prosper Funding .......
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Value investing
Tim Gramatovich, cio of Gateway Credit Partners, answers SCI's questions
Q: How and when did Gateway Credit Partners become involved in the securitisation market?
The Structured Credit Interview 23 April 2019
A: Gateway Credit Partners is the credit platform of B Riley Financial’s investment advisor subsidiary B Riley Capital Management and was established in March (SCI 26 March). Our strategy is to identify and acquire undervalued non-investment grade corporate credit securities and implement our portfolio management .......
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CLO manager denied incentive fee
Sector developments and company hires
Incentive fee ruling
Market Moves 18 April 2019
The High Court in London has ruled that Barings (UK), as collateral manager, was not entitled to an incentive fee at the expense of junior bondholders following the optional redemption of the Duchess VI CLO. Part 8 proceedings were brought by Deutsche Trustee Company, to determine the correct interpretation of the bond documentation in which Barings (UK) .......
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Risk transfer round-up - 18 April
CRT sector developments and deal news
Credit Suisse is believed to be readying a corporate capital relief trade from its Elvetia programme that is expected to close in June. The Swiss lender’s previous Elvetia trade closed in November last year (SCI 30 November 2018).
Another risk transfer transaction that is reportedly in the pipeline for this year is a commercial real estate deal from Raiffeisen. ......
News 18 April 2019Premium Content