Complete news archive
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Consent challenges
Transactions losing value without Libor fallback language
Investors are working with an asset registry and communication platform to obtain noteholder consent in order to insert Libor fallback language in certain securitisations, ahead of the 2021 deadline. This is driven by concerns that transactions without fallback language are losing value compared to newer deals with the necessary language to transition to a new reference rate.
DealVector has been .......
News 16 August 2019
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Brexit impact gauged
UK ABS expected to withstand no-deal
A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS transactions. However, Brexit raises challenges by splitting UK and EU regulation.
One risk to ABS investors from a no-deal Brexit is the potential for a recession or a sharp downturn in the UK economy, and whether this would be severe enough to prevent a meaningful .......
News Analysis 16 August 2019
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Higher yields?
Bluestone debuts UK RMBS
Bluestone Mortgages is in the market with its first UK RMBS. Dubbed Genesis Mortgage Funding 2019-1, the transaction is backed by a £198.05m portfolio of owner-occupied (comprising 80.8% of the pool) and buy-to-let loans secured by first-ranking mortgages in the higher-yielding market segment.
DBRS notes that in comparison to other specialist lenders, Bluestone’s portfolio and origination are geared .......
News 16 August 2019
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Risk transfer round-up - 16 August
CRT sector developments and deal news
UBI Banca is rumoured to be prepping an SME and corporate SRT for 3Q19. The alleged transaction is riding a wave of Italian SRT issuance that includes a number of standardised banks.
Banca Popolare di Bari completed the first SRTs between a standardised bank and a private investor last month (SCI 2 August). Banca Popolare dell'Alto Adige .......
News 16 August 2019
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Syncora Guarantee acquired
Sector developments and company hires
Syncora sale
Market Moves 15 August 2019
GoldenTree Asset Management entity Star Insurance Holdings is set to acquire Syncora Holdings’ New York financial guarantee insurance subsidiary Syncora Guarantee (SGI) for US$392.5m in cash, subject to adjustment. The cash purchase price for SGI represents a premium to the closing share price of Syncora’s common stock on 1 March 2019, the trading day prior to the announcement of .......
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NPL disposals inked
Sector developments and company hires
ABSF tender
The Australian Office of Financial Management is inviting tender submissions for the provision of investment management services for the Australian Business Securitisation Fund (ABSF) by 6 September (SCI 24 June). The AOFM is seeking to appoint an investment manager to assist with the evaluation of investment proposals and provide ongoing portfolio management services. The investment .......
Market Moves 14 August 2019
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Balancing act
European CMBS learning from US CRE structures
European CMBS are increasingly likely to continue following patterns set by their US counterparts and the market could even soon see it first CRE CLOs. However, in taking their lead from across the Atlantic, European issuers will need to find the right balance.
A report from Cadwalader, Wickersham & Taft (CWT) explains that while both jurisdictions are seeing .......
News Analysis 14 August 2019
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Insurer markets CFO
Transaction backed by 'highly diverse' PE portfolio
Nassau Alternative Investments is marketing a collateralised fund obligation (CFO) comprising private equity (PE) fund commitments acquired by Nassau Life Insurance Company (NNY). The, largely static, transaction is dubbed Nassau 2019 CFO, and is backed by interests in a diversified pool totalling around US$375.7m in NAV of funded commitments and US$79.3m in unfunded capital commitments.
Fitch comments that .......
News 13 August 2019
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Tweaking tradition
Dutch securitisation evolving across established sectors
The Dutch securitisation market is seeing innovation and growth away from its traditional strong focus on prime RMBS. This trend is evolutionary rather than revolutionary, as participants seek to build on the sector’s well-established foundations.
Some asset classes are simply returning to life, notably CMBS. “CMBS has been picking up since last year and the two big issuers, .......
News Analysis 13 August 2019
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STS mirage
"Still no level playing field" despite regulation
Despite the high bar that issuers must clear to achieve the STS designation on securitisations, the deals continue to have unfair levels of capital treatment compared with other investment products, even backed by the same underlying collateral. A lack of incentive to invest in securitisation - even STS deals – therefore continues to remain, but the task of addressing this .......
News Analysis 12 August 2019
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SCI Start the Week - 12 August
A review of securitisation activity over the past seven days
SCI CRT awards
News 12 August 2019
Don't miss out on your chance to win: the submissions deadline for the inaugural SCI Capital Relief Trades Awards is Friday (16 August). The aim of the awards is to recognise excellence in, and help bring mainstream attention to, the risk transfer industry. The winners will be announced at the SCI Capital Relief Trades Seminar on 17 October. .......
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Venture ABS prepped
Horizon Technology Finance hits the market
Horizon Technology Finance is marketing an ABS backed by secured liens on non-investment grade performing loans made to growth stage companies in the technology, life sciences and healthcare sectors. Venture debt ABS is an emerging asset class, but is expected to remain constrained by the very nature of the market.
The assets in venture debt ABS are distinct .......
News 9 August 2019
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AM acquisition
Sector developments and company hires
Asset management acquisition
Assured Guaranty US Holdings is set to acquire all of the outstanding equity interests in BlueMountain Capital Management and its associated entities for approximately US$160m, subject to certain adjustments, as part of a strategic objective to diversify into fee-based revenue sources. The acquisition is expected to complete in 4Q19, subject to customary closing conditions. As .......
Market Moves 9 August 2019
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Senior mezz eyed
CRT issuers target asset managers
Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief trades, given that the market for the senior mezzanine remains less deep relative to that of the junior mezzanine tranche. Asset managers are drawn to the risk/return profile of the senior mezzanine, although their approach to capital relief trades will likely remain opportunistic going forward. .......
News Analysis 9 August 2019
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Track record
Middle market origination processes scrutinised
A deteriorating credit environment is expected to prove challenging for new US middle market loan platforms, whose fee revenue may not be enough to support them through stressful periods. Against this backdrop, a manager’s track record, alignment of interest and competitive advantages should be among investors’ primary considerations.
David Heilbrunn, senior md and head of product development, capital .......
News Analysis 9 August 2019
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New ventures
Asset manager building out structured credit strategies
BlueBay is expanding its structured finance and CLO investment strategies. As well as aiming to launch a US focused structured credit strategy this year, the firm is looking at the possibility of issuing a debut CLO in 2020.
In line with this expansion, BlueBay hired Sid Chhabra last year as partner and global head of structured credit and CLOs and, more recently, .......
News Analysis 9 August 2019
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Risk transfer round-up - 9 August
CRT sector developments and deal news
BNP Paribas is rumoured to be prepping a corporate capital relief trade for 3Q19. The lender’s last risk transfer transaction closed last month. Dubbed AutoFlorence 1, the true sale deal is its first post-crisis Italian SRT (SCI 22 July).
The BNPP transaction follows rumours of another risk transfer trade from Societe Generale. The bank is believed to .......
News 9 August 2019
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NPL disposals sealed
Two banks offload Italian loan portfolios
Two disposals of Italian non-performing and performing loans (NPLs) originated by Unicredit and ING have been sealed. The first transaction comprises a portfolio of unsecured SME NPLs while the second, from ING, comprises performing and non-performing real estate leasing positions.
ING’s disposal was valued at €1.6bn by gross book value, consists of 4,000 performing and non-performing real estate .......
News 8 August 2019
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Branching out
UK marketplace lender brings US deal
Funding Circle Holdings is in the market with its first ABS collateralised by loans made to SMEs incorporated in the US. Dubbed Small Business Lending Trust 2019-A, the US$198.45m transaction is backed by 1,394 loans originated via the Funding Circle online lending platform, secured by a lien on the assets of each borrower and a personal guarantee.
In .......
News 7 August 2019
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Alt credit co-head hired
Company hires and sector developments
Alt credit co-head nabbed
Ares has hired Joel Holsinger to its credit group as co-head of alternative credit, effective immediately. Holsinger will serve on the Ares management committee and work alongside Keith Ashton as co-head of alternative credit to expand the firm's global coverage of the US$4trn alternative credit sector. Ares' alternative credit strategy pursues asset-focused direct investments primarily in North America and Europe across .......
Market Moves 7 August 2019
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JV agreed
Intesa readies UTP securitisation
Intesa San Paolo has reached an agreement with Prelios that involves the securitisation of a €3bn (GBV) corporate and SME unlikely-to-pay portfolio. The deal follows a similar NPL agreement with Intrum that was finalised last year and is part of a wider joint venture trend (SCI 14 December 2018).
The agreement consists of a 10-year contract for .......
News 7 August 2019