Complete news archive
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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
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BMF administration order filed
Sector developments and company hires
BMF 6 tender
Market Moves 16 April 2019
An application for an administration order in respect of Business Mortgage Finance 6 was presented in the London High Court of Justice last week, with a return date of 18 April. The application was presented by Greencoat Investments, which is understood to be in the process of carrying out a tender process for the acquisition of certain .......
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Sonia success
European ABS market update
The first UK STS RMBS – Nationwide’s Silverstone Master Issuer 2019-1 – priced yesterday, with substantial demand seen for both the sterling and US dollar tranches. The transaction is also the debut deal to publicly place a floating coupon referencing Sonia.
Silverstone 2019-1’s US$350m triple-A rated 1.95-year class 1A notes printed at three-month Libor plus 57bp (compared to .......
Market Reports 16 April 2019
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ILS restructuring agreed
Sector developments and company hires
ILS restructuring agreed
Ballantyne Re has entered into a lock-up support agreement with Ambac Assurance UK, Assured Guaranty, approximately 82% by value of the class A noteholders, Security Life of Denver Insurance Company (SLD) and Swiss Re Life and Health America (SRLHA) in connection with a proposed restructuring transaction in respect of its obligations under the ILS notes. .......
Market Moves 15 April 2019
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SCI Start the Week - 15 April
A review of securitisation activity over the past seven days
SCI seminars
- SCI's 2nd Annual NPL Securitisation Seminar will be held on 13 May in Milan. For more information or to register, click here.
- SCI's 1st Annual Middle Market CLO Seminar will be held on 26 June in New York. For more information or to register, click here.
Transaction of the week
News 15 April 2019
DLA Piper bulked .......
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New wave?
Could ESG CLOs be the start of a trend?
Fair Oaks Capital is set to issue a debut European CLO in 2Q19 and, notably, it has been structured according to strict ESG criteria. It follows hot-on-the-heels of similar transactions from Permira Debt Managers last year and it may be the start of things to come in terms of greater adoption of ESG-aligned investment strategies in the US and Europe.
Tyler .......
News Analysis 15 April 2019
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Inaugural non-QM RMBS prepped
Deal marks new phase for global investor
The first seasoned, non-qualified mortgage RMBS issued by a private fund managed by PIMCO is marketing. The US$382.45m transaction, dubbed BRAVO Residential Funding Trust 2019-1, is backed by 1,311 loans originated by Capital One and acquired by a PIMCO-run fund in a bulk sale.
The transaction has been assigned provisional ratings by Fitch of triple-A on the US$343.06m .......
News 12 April 2019
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Bulking up
Securitisation capabilities stretched
DLA Piper bulked up its securitisation capabilities to 20 lawyers for Stack Infrastructure’s inaugural and innovative ABS from February, due to structuring challenges. The potential for rendering the deal risk retention-compliant means that similar deals could be seen in Europe in the future.
Dubbed Stack Infrastructure Issuer series 2019-1, the deal is a securitisation of real estate and .......
News 12 April 2019
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Foreclosure uncertainty
ECJ ruling leaves Spanish NPL investors in the dark
The European Court of Justice’s (ECJ) 26 March judgement on early-termination clauses in Spanish consumer mortgage contracts could result in the use of quicker mortgage foreclosure proceedings in Spanish non-performing loan transactions. The final outcome rests with the Spanish courts, however, prolonging existing uncertainty over the course and length of Spanish foreclosure proceedings.
Antonio Casado, analyst at Scope, .......
News 12 April 2019
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Firm bulks out CRE capability
Sector developments and company hires
Board directors appointed
ISDA has appointed three new board directors and re-elected ten others. The three new directors are, Erik Tim Mueller, ceo, Eurex Clearing, Andrew Ng, group executive, head of treasury and markets, DBS Bank and Shigeru Nonomura, md, co-Head of rates trading, global markets Japan, Nomura Securities.
CMBS head hired
Natixis has recruited Andrew Taylor as md and .......
Market Moves 11 April 2019
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BWIC boom
Quarterly SCI data update
The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q19 saw reduced activity over 4Q18 (SCI 24 January 2019). The notable exception was CLO secondary markets, where BWIC volumes boomed for the second quarter in a row, according to SCI data.
....... News Analysis 11 April 2019
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Real estate relief
NPL provisioning rules published
The European Council of Ministers has adopted new rules for the provisioning of non-performing loans, which stipulate loss coverage for future NPLs with different coverage requirements depending on different NPL classifications. The text is a relief for Italian banks, given the application of the rules to newly created NPLs - both secured and unsecured. Furthermore, an exception to the .......
News Analysis 10 April 2019
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SCI podcast - episode six now live
CLO innovation and UTP securitisations discussed
Episode six of the monthly SCI podcast is now available. In this edition, our editor Corinne discuss some fascinating developments in the CLO sector, including how several structural innovations have begun to emerge and she asks why that has happened. Additionally, our senior reporter, Stelios, looks at difficulties involved in securitising unlikely-to-pay loans and Richard, our deputy editor, takes .......
News 10 April 2019
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European bank in major restructure
Company hires and sector developments
COO hired
Trepp has appointed Luis Amador as coo, reporting to ceo, Annemarie DiCola. Amador was recently md at Moody's Analytics, responsible for structured finance financial engineering, product management, content production, and advisory teams, providing the fixed income marketplace advanced analytics, data, credit models, and portfolio monitoring products while also performing advisory, valuation, and consulting services across sectors.
Energy and .......
Market Moves 9 April 2019
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On the up?
CRE CLO market growth set to continue
After a buoyant CRE CDO market all but vanished following the financial crisis, it has only recently returned in the form of CRE CLOs with issuance growing from almost nothing three years ago, to just under US$14bn last year. While the basic structure of CRE CLOs shares some similarities with the pre-crisis structure, it has some notable differences that should help .......
News Analysis 8 April 2019
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SCI Start the Week - 8 April
A review of securitisation activity over the past seven days
SCI seminars
- SCI's 2nd Annual NPL Securitisation Seminar will be held on 13 May in Milan. For more information or to register, click here.
- SCI's 1st Annual Middle Market CLO Seminar will be held on 26 June in New York. For more information or to register, click here.
Market commentary
News 8 April 2019
European ABS primary issuance is .......
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Independent director hired
Company hires and sector developments
Europe
Prytania Asset Management has appointed Eric Felton as independent director. Most recently, Felton spent 13 years as cfo of GCM Grosvenor and before that, he was an audit partner at Ernst & Young and Arthur Andersen in the financial services sector. Concurrently, Joseph MacHale is retiring from the Prytania board, after 16 years of service since the .......
Market Moves 5 April 2019
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Positive outlook
UTP securitisation prospects improve, despite challenges
Future issuance of unlikely-to-pay (UTP) securitisations depends on the resolution of two challenges - namely, information asymmetry and the lack of hybrid servicing models. However, ABS might prove a better solution for mixed portfolios, given the presence of alternatives for large corporate UTP loans.
According to Scope Ratings’s calculations, Italian banks could dispose of €13bn to €18bn of .......
News Analysis 5 April 2019
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Addressing the arb
CLO structural innovations aim at wider investor base
European CLO issuance totalled approximately €7.73bn in Q1, comprising 16 new issues and two refinancings. March alone saw nine transactions price, which showcased a range of structural innovations designed to address the current challenging arbitrage and appeal to a wider investor base.
“Appealing to a wider investor base is an important consideration for a syndicated deal, rather than one with .......
News Analysis 5 April 2019
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CEO appointed
Company hires and sector developments
CEO appointed
DFG Investment Advisers has hired Oliver Wriedt as ceo. The firm is also unifying its products under one brand, Vibrant. Wriedt will play an instrumental role in growing and further institutionalising DFG’s business, helping to diversify its product offerings and elevate the new Vibrant brand among the investment community. He was most recently co-ceo of CIFC .......
Market Moves 4 April 2019