Complete news archive
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A strong start
Day one at SFIG Vegas
Moods appear to be running high at the start of SFIG Vegas 2019. Despite being only a half day, attendance already seems to be strong and the panels have so far been near to full.
A highlight of the afternoon was the the CRE CLO market update, where panellists spoke to a well attended room and generally voiced positive sentiments about .......
News 25 February 2019
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Maintaining flexibility
Fiona Walden, vp, credit and financial lines at RenaissanceRe, answers SCI's questions
Q: How and when did RenaissanceRe became involved in the securitisation market?
The Structured Credit Interview 22 February 2019
A: We were set up 25 years ago as a property catastrophe company. We have a long track record of credit reinsurance for our insurance company clients. More recently, we applied this knowledge and expertise to structured credit transactions - including significant risk transfer transactions - by providing .......
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Restructuring incentive
Greece unveils mortgage NPL boost
The Greek government is working on a plan that aims to meet ECB non-performing loan reduction targets and help improve the attractiveness of non-performing portfolios, in particular, distressed mortgages. The plan includes subsidising monthly payments and protects borrowers from foreclosures under certain conditions, although this could render it antithetical to EU state aid rules.
According to George Kofinakos, md at .......
News Analysis 22 February 2019
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Law firm boosts derivatives capability
Company hires and sector developments
CLO firm promotions
Churchill has announced the promotion of Mat Linett, md, from deputy head of underwriting and portfolio management to head of underwriting and Eric Wieczorek to md, underwriting and portfolio management. Additionally, the firm announced several more promotions across the investment and finance teams, effective 1 March 2019.
Derivatives expansion
Dentons has expanded its derivatives practice with the .......
Market Moves 22 February 2019
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Tough stance
ESMA insists on private securitisation disclosures
On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS) on securitisation disclosures. The initial RTS covers both public and private securitisations and it was rejected by the European Commission, following a market backlash (SCI 5 October 2018).
The amendments take into account the Commission’s criticisms of the original RTS ......
News Analysis 22 February 2019Premium Content
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Surging ahead
CDX grows while TRS is found wanting
CDX indexes have become an integral tool for many credit fund managers in Europe and the US, both for hedging and relative value. Total return swaps (TRS) however, and other more complex credit derivatives, are not favoured as highly due to liquidity and counterparty concerns.
Stephen Thariyan, co-head of developed markets at BlueBay, comments that his firm is a “heavy .......
News Analysis 22 February 2019
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CLO partnership launched
Sector developments and company hires
CDS trends discussed
Mayer Brown has commented on trends in single-name CDS credit event determinations. It notes that the Sears CDS case cited “numerous examples of commercial practice and legislative history in support of the decision [and] raises serious questions as to the degree to which the determination committees (DCs) are (and will in future determinations be) influenced by such .......
Market Moves 21 February 2019
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Stand-out performer
Systematic role for structured credit
Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US structured credit funds tracked by Gapstow Capital Partners, 88% had a positive year, implying that there continues to be a role for structured credit more systematically in diversified credit portfolios.
The Gapstow Credit Index finished 2018 up by 1.5%, with steady .......
News Analysis 21 February 2019
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UK paper on the block
European secondary ABS market update
The European secondary ABS market has rallied since the beginning of the year. However, activity now appears to be on hold until after 28 February, when a large BWIC auction is due at 2pm London time.
“Secondary activity has dampened down in the run-up to the auction,” confirms one trader. “The BWIC has a good chance of ......
Market Reports 21 February 2019Premium Content
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TruPS flurry
CLO activity expected to pick up post-conference
US CLO activity is relatively quiet after a long weekend but is expected to pick up after ABS Vegas. A flurry of TruPS CDO activity is keeping traders engaged.
A trader says the TruPS CDO market is currently "by appointment only" but highlights a portfolio of PRETSL B tranches - totalling US$87m - out for the bid tomorrow (See SCI's BWIC Calendar). Investor appetite .......
News 20 February 2019
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Law firm nabs SF vet
Company hires and sector developments
Europe
Latham & Watkins has recruited Jeremiah Wagner as a partner in its finance department, based in London. Wagner’s practice focuses on advising banks, private equity funds, asset managers, insurance companies and pension funds on a variety of complex structured finance, securitisation and derivatives transactions. He joins the firm from Cadwalader’s London office, where he was a partner.
Market Moves 20 February 2019
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Lacking clarity
Libor transition still fraught with challenges
With only two years to go until Libor is officially phased out in 2021, a number of questions still remain about the ramifications for structured finance transactions. Aside from the lack of concrete replacement, there are also questions about legacy deals, assets and liabilities and swaps complications as well as the possibility for bondholder disputes.
One of the most pressing issues .......
News Analysis 19 February 2019
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CLO firm restructure
Company hires and sector developments
Acis restructuring confirmed
The US bankruptcy court in Dallas has confirmed Acis Capital Management's Chapter 11 restructuring plan, following its conversion from an involuntary bankruptcy case initiated by former head of Highland Capital Management's structured products team and founder/former partner in Acis Joshua Terry (SCI 9 November 2018). Upon emergence from bankruptcy, Acis will be owned and .......
Market Moves 19 February 2019
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AMR auction due
Caution over anchor investors, arrangers remains
The first US CLO applicable margin reset (AMR) auction on the KopenTech platform is likely to occur in February 2020, at the end of the respective deal’s non-call period and two years after the auction service provider’s launch (SCI 30 January). However, while many CLO managers recognise the value of including a low-cost, streamlined refinancing option in their .......
News 19 February 2019
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SCI Start the Week - 18 February
A review of securitisation activity over the past seven days
Market commentary
European ABS traders continued to focus on the secondary market last week, as the market waits for regulatory clarification (SCI 15 February)."In European RMBS, we are focusing mainly on secondary paper," said one trader. "The transactions that appeal at the moment are those with a shorter WAL of one or two years, mainly in senior or mezz."
News 18 February 2019
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Secondary focus
Investors sitting on cash with new European issuance drought
European structured finance traders continue to focus on the secondary market as they wait for regulatory clarification. Nevertheless, there have still been some standout new issues and a European CMBS is rumoured to be in the pipeline.
“In European RMBS we are focussing mainly on secondary paper,” says a trader. “The transactions that appeal at the moment are those with a .......
News 15 February 2019
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Risk transfer round-up - 15 February
CRT sector developments and deal news
The first quarter of this year is expected to see reduced capital relief trade issuance, due to ESMA’s securitisation disclosure requirements, although market sources expect volumes to pick up in Q2. Among the transactions that are believed to be closing next quarter is a US corporate capital relief trade from Mitsubishi. Another deal that is set to close this ......
News 15 February 2019Premium Content
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Oil opportunities
Royalty-backed future flow ABS to develop
Oil and gas companies are expected to tap the securitisation market with a new structure. The first ABS backed by oil and gas royalties could hit the market this year.
The diminished availability of traditional funding sources will lead to increased reliance on securitisations backed by oil and gas royalties to supplement traditional reserve based lending (RBL) facilities. Such securitisations .......
News 15 February 2019
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Italian auto firms fined
Company hires and sector developments
CLO hire
Geoffrey Horton has joined Barclays as vp, CLO and loan strategist in London. He was previously a CLO and commercial ABS research associate at Wells Fargo in the US.
Italian auto firms fined
The Italian Competition and Markets Authority (Autorità Garante delle Concorrenza e del Mercato or the ICA) recently fined nine captive auto finance companies a total .......
Market Moves 15 February 2019
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Test case
Unsecured NPL transaction completed
Bank of Cyprus has signed an agreement for the sale of a retail unsecured non-performing loan portfolio with APS. Dubbed Project Velocity, the transaction is a test case that may further fuel future NPL transactions by the bank.
The contractual balance of the portfolio is €245m, representing the total amount owed by the borrower, including accrued charges. The .......
News 15 February 2019
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Private placement
Unusual tranched securitisation closed
Fintex Capital has completed a structured finance transaction within its UK real estate lending business, Fintex Confluence. The transaction involved the refinancing of a portfolio of property loans - warehoused by Fintex - with senior financing provided by Europa Capital Debt Investment (ECDI) and junior financing by Fintex, with additional monies invested by Europa and Fintex to finance a .......
News 14 February 2019