Complete news archive
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Granite refinancing
Sector developments and company hires
Europe
Muzinich & Co has hired Laurence Kubli as structured credit specialist with immediate effect. Based in Zurich, Laurence will focus on creating the firm’s first structured credit strategies in this newly-created role. Laurence joins from GAM Investments, where she was senior pm, structured finance and corporate credit for 11 years. Prior to that, she held various roles at .......
Market Moves 25 March 2019
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SCI Start the Week - 25 March
A review of securitisation activity over the past seven days
NPL seminar
Early-bird registration for SCI's 2nd NPL Securitisation Seminar on 13 May is now open. Hosted by Orrick in Milan, the event will cover the Italian guarantee scheme, regulations, deal performance, servicing strategies, new entrants and investment trends. For more information or to register, click here.Market commentary
News 25 March 2019
The focus in the US CLO secondary market last .......
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Purchase option to be exercised
Sector developments and company hires
EMEA
Market Moves 22 March 2019
Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 May 2019. Tourmente will join the firm as partner and will be part of its executive committee. In this newly created role, he will support the firm’s international development, pursue the diversification of its debt products and contribute to strengthening relationships with its investors. He brings .......
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Goals aligned
Insurers target dual-tranche CRTs
Insurance firms are targeting mezzanine tranches in dual-tranche capital relief trades as banks warm up to unfunded insurance structures, given the lower cost of protection and the relative safety of the mezzanine tranches in these deals (SCI 10 January). Indeed, benchmark unfunded trades have already been completed, raising the prospects of further credit insurance deals going forward.
"The second-loss ......
News Analysis 22 March 2019Premium Content
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GACS successor
New Italian NPL scheme launched
The Italian government has introduced a successor to the GACS scheme. The replacement guarantee features a longer extension period that provides more certainty for banks, raising the prospects for non-performing loan securitisation issuance going forward.
According to Gordon Kerr, head of European structured finance research at DBRS: “GACS had a short extension period to comply with state aid .......
News 22 March 2019
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Control pursued
Indian distressed debt unit established
Deutsche Bank is setting up an asset reconstruction company (ARC) in India to buy and sell restructured non-performing loans. The move follows a trend whereby foreign investors either create or acquire existing ARCs. However, setting up such a unit from scratch is unusual and indicates a need to control the restructuring process once the NPLs have been bought.
News 21 March 2019
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Equity focus
US CLO market update
The US CLO secondary market has seen elevated volumes since the SFIG Vegas conference. This week, the focus is on equity.
“The secondary market is busy,” confirms one trader. “Activity is being driven by macro volatility, with further outflows in loans expected.”
The trader continues: “CLOs tend to lag broader credit markets. In December, the outflow of .......
Market Reports 21 March 2019
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Majority stake acquired
Sector developments and company hires
Balance sheet normalisation
Market Moves 21 March 2019
The US Fed has confirmed it intends to continue to allow its holdings of agency debt and agency MBS to decline, consistent with the aim of holding primarily Treasury securities in the longer run. Beginning in October 2019, principal payments received from agency debt and agency MBS will be reinvested in Treasury securities, subject to a maximum .......
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Storm in a teacup?
ISDA's CDS proposals possibly extreme measure
Recent proposals from ISDA have taken aim at minimising the possibility of manufactured credit events in CDS contracts. While it’s thought the marketplace will adopt the “modest” proposals, some suggest that they are possibly an unnecessary measure given the rarity of cases in which credit events have been manufactured.
Chris Arnold, partner at Mayer Brown, says that the main .......
News Analysis 20 March 2019
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ERM debut
Seniors Money preps its return
The first publicly rated securitisation of Irish and Spanish equity release mortgages (ERMs) has hit the market. The €256.4m SMI Equity Release 2018-1 RMBS is backed by 2,233 loans originated by Seniors Money Ireland and Seniors Money Spain (collectively known as SMI).
The loans are generally seasoned more than 10 years and the properties are predominantly located in ......
News 20 March 2019Premium Content
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Holding tight
Freddie Mac seeks to nurture investor base
Retaining its European investor base, while capturing a broader range of institutional investors, is seen as a key goal for Freddie Mac in 2019 and ahead. Alongside this, the GSE is facing growing concerns from investors surrounding deteriorating factors in US housing market.
Mike Reynolds, vp, credit risk transfer at Freddie Mac, highlights that 2018 was a year of marked .......
News 20 March 2019
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Double Dutch
Office and retail exposure on offer
Goldman Sachs is in the market with a Dutch CMBS secured by 17 predominantly office and retail assets. Dubbed Kanaal CMBS Finance 2019, the €278.35m transaction is backed by two uncrossed limited recourse, first-lien mortgage loans - the €138m Maxima loan and the €140.3m Big Six loan - sponsored by Marathon Asset Management and Castlelake respectively.
The Big .......
News 20 March 2019
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Relative value
JFSA risk retention rules shift focus
The Japanese Financial Services Agency (JFSA) has published its final rules on regulatory capital requirements applicable to Japanese banks and other institutions that invest in securitisation transactions (SCI 16 January). The rules allow certain exemptions from risk retention for open-market CLOs, provided investors demonstrate due diligence for the underlying loan collateral - a positive development for US CLOs, .......
News 20 March 2019
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Rocket fuelled?
Middle market CLOs on upward trajectory
The acquisition of Antares Capital by the Canada Pension Plan Investment Board (CPPIB) in 2015 injected a dose of rocket fuel into the US middle market CLO sector. However, the entrance of Bain Capital and Blackstone’s GSO Capital Partners into the market last year ensured that it remains on an upward trajectory and set the stage for further broadly .......
News Analysis 18 March 2019
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Private credit firm launched
Sector developments and company hires
Firm launch
AGL Credit Management has launched, with Peter Gleysteen serving as ceo and cio, and Thomas Lee serving as non-executive chairman. AGL is a private credit investment firm specialising in innovative actively managed credit solutions based on bank loans and aims to build a leading CLO franchise. The firm’s institutional investment partners include a subsidiary of the .......
Market Moves 18 March 2019
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SCI Start the Week - 18 March
A review of securitisation activity over the past seven days
Market commentary
The news that Volkswagen's VCL 28 auto lease ABS is the first securitisation to be awarded the STS label was well-received last week (SCI 14 March). However, one trader said that while the market has expressed a lot of "noise" about the transaction, one deal since the beginning of the year is "not meaningful."The trader .......
News 18 March 2019
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Latest podcast now available
CRT themes and a Dutch RMBS first discussed
In this month's podcast, we explore some interesting themes within the CRT market: namely, eligibility criteria and replenishment conditions, as well as control rights within transactions. Additionally, we take a closer look at Domivest's debut securitisation of buy-to-let loans - a first for the Dutch market.
Click here to listen to the whole thing on our site. Alternatively, you .......
News 15 March 2019
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GACS alternative?
Investor group completes NPL securitisation
A group of investors led by Värde, Guber and Barclays have acquired an approximately €734m GBV non-performing loan portfolio originated by 22 mutual, rural and cooperative Italian banks. The transaction is unusual for an Italian NPL securitisation, given that it has been achieved through mutualisation, as opposed to relying on a GACS guarantee.
Francesco Guarneri, ceo of Guber, .......
News 15 March 2019
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Unencumbered value
Equity release RMBS on the cards?
The UK mortgage market is changing, with an ageing population driving increased issuance of equity release mortgages (SCI 5 June 2018). Speculation that a post-crisis iteration of equity release securitisations could soon appear in the UK has been fuelled by UKAR’s sale of an equity release portfolio last year.
Equity release mortgages allow borrowers to access the .......
News Analysis 15 March 2019
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Benchmark Sonia deal prepped
Unique UK RMBS transaction adds momentum to IBOR transition
The first third party hedged UK RMBS with Sonia-linked notes has been prepped by Principality Building Society. The £523.08m transaction, dubbed Friary 5, is a static cash securitisation of residential mortgage loans to 4,472 borrowers in the UK.
The transaction is unique in using Sonia as a reference rate for the note coupons, rather than sterling Libor. As a result, on ......
News 15 March 2019Premium Content
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Inaugural online auto ABS prepped
Sector developments and company hires
Online auto ABS debuts
Carvana, an online platform for buying used cars launched in 2012 by DriveTime Automotive Group, is marketing an inaugural securitisation. The US$338m transaction, dubbed Carvana Auto Receivables Trust 2019-1, comprises seven classes of notes provisionally rated by KBRA as triple-A on the class A1 and A2 notes, through to double-B on the class E notes.
According ......
Market Moves 15 March 2019Premium Content