Complete news archive

  • SCI Start the Week - 7 January

    A review of securitisation activity over the past seven days

    Transaction of the week

    Santander has launched an unusual synthetic securitisation of auto loans, dubbed Santander Consumer Spain Synthetic Auto 2018-1. The transaction comprises a €60.6m twelve-year CLN that references a €1.01bn portfolio of Spanish auto loans paying Euribor plus 8.90%.

    Synthetic securitisations of granular, consumer portfolios are uncommon, as the structures are typically used for concentrated, non-granular portfolios. This .......

    News 7 January 2019

  • Banca Carige placed into temporary administration

    NPL disposals 'could be accelerated'

    Banca Carige has been placed into temporary administration by the European Central Bank (ECB) following the resignation of the majority of Banca Carige’s board members. The decision is unlikely to negatively impact Banca Carige’s non-performing loan (NPL) securitisation programme and could actually expedite its NPL disposal plans.

    The ECB states that, following the board member resignations, it became necessary to .......

    News Analysis 4 January 2019

  • Pair promoted

    Sector developments and company hires

    UK

    TwentyFour Asset Management has appointed two new partners from within its portfolio management team. Felipe Villarroel, a portfolio manager on the multi-sector Bond team, and Douglas Charleston, a portfolio manager for the firm’s asset-backed securities funds, will become partners early in 1Q19. Prior to joining TwentyFour, Charleston was an associate director in asset-backed solutions at Lloyds.

    ......

    Market Moves 4 January 2019

    Premium Content

  • Global finance partner hired

    Sector developments and company hires

    NPL transactions

    IFIS NPL, has purchased an NPL portfolio totalling €1.16bn in gross book value from Monte dei Paschi di Siena. The portfolio acquired includes over 83,000 debtors with 16% comprised of consumer loans. The remaining 84% consists of unsecured small ticket banking NPLs.

    JPMorgan and Mediobanca are co-arrangers on a cash securitisation of Italian NPLs worth approximately €2.541m. Dubbed Belvedere .......

    Market Moves 2 January 2019

  • Landmark consumer SRT launched

    Santander completes synthetic auto loan ABS

    Santander has launched an unusual synthetic securitisation of auto loans, dubbed Santander Consumer Spain Synthetic Auto 2018-1. The transaction comprises a €60.6m twelve-year CLN that references a €1.01bn portfolio of Spanish auto loans paying Euribor plus 8.90%.

    Synthetic securitisations of granular, consumer portfolios are uncommon, as the structures are typically used for concentrated, non-granular portfolios. This is due to ease of .......

    News Analysis 2 January 2019

  • Ex-LSE ceo hired

    Sector developments and company hires

    EMEA
    CQS     has appointed Xavier Rolet, previously ceo of the London Stock Exchange, as ceo. Michael Hintze, CQS' founder, will continue as the firm’s senior investment officer and will become group executive chairman. Rolet will lead the firm's next stage of growth, enabling Hintze to focus on investment management.

    Partners Group has promoted 10 leaders from across the business .......

    Market Moves 24 December 2018

  • SCI Start the Week - 24 December

    A review of securitisation activity over the past seven days

    Market commentary
    European and US ABS markets effectively closed last week, with all but a few transactions in the pipeline postponed until 2019.

    "Some third-tier US CLO managers are still trying to get deals through," said one trader (SCI 19 December). "This has been a tough time to get the best of deals done, so lower-tier managers are struggling."

    However, .......

    News 24 December 2018

  • Synthetic slew

    CRT issuances hit before year-end

    A slew of synthetic securitisations have hit the market before year-end. The risk transfer issuances include a trio of EIF financial guarantees, one of which is supported by blockchain technology, and a pair of Colonnade deals.

    The blockchain transaction – which marks the first time a corporate loan securitisation has been executed via distributed ledger technology in the .......

    News 21 December 2018

  • Inaugural post-crisis CLO prepped

    Sector developments and company hires

    CLO manager comeback

    AIG is marketing its first BSL CLO since the financial crisis, totalling US$503.15m. Dubbed AIG CLO 2018-1, the transaction is provisionally rated by Morningstar as triple-A on the US$296.5m class A notes. It does not have ratings on the rest of the notes.

    Fairhold development

    Fairhold Securitisation Limited has issued a notice that the new respondents, as .......

    Market Moves 21 December 2018

  • Middle march

    Boost for middle market and hybrid CLOs

    The US SEC’s no-action letter in connection with a recent Golub Capital CLO paves the way for middle market CLO managers to comply with risk retention requirements by holding through a BDC (SCI 21 September). The move effectively allows managers to transition loans between their BDCs and a CLO, and has the potential to significantly boost US middle .......

    News Analysis 21 December 2018

  • Disclosure draft not endorsed

    EC refuses to endorse draft technical standards

    The European Commission has stated that it only intends to endorse the draft technical standards on disclosure requirements, under the EU Securitisation Regulation prepared by ESMA, once certain amendments have been made. Market participants have suggested that this was not unexpected and could in fact buy more time for firms to install the necessary systems required to comply with reporting standards, when .......

    News 20 December 2018

  • GSE footprint

    FHFA changes to bring housing market reform?

    President Trump’s nomination of Mark Calabria, currently chief economist for Vice President Mike Pence, to replace Mel Watt as FHFA director when his term ends in January could have a significant impact on the US mortgage market. Although Calabria appears to be a proponent of reducing the GSE footprint and has spoken publicly about the current administration’s commitment to ......

    News Analysis 20 December 2018

  • Consumer SRT completed

    Santander opts for true sale format

    Santander last month priced Kimi 7, a €665.3m true sale significant risk transfer transaction that securitises a portfolio of Finnish auto loans. The deal was executed for both capital relief and liquidity purposes, with the bank selling both the mezzanine and senior tranches.

    Compared to previous Kimi deals, mezzanine investors don’t benefit from any excess spread. According to .......

    News Analysis 19 December 2018

  • Cross-currency basis

    US CLO market update

    All but a few US CLO new issues have been postponed until 2019, although at least one deal is set to price imminently.

    “Some third-tier CLO managers are still trying to get deals through,” says one trader. “This has been a tough time to get the best of deals done, so lower-tier managers are struggling.”

    However, the .......

    Market Reports 19 December 2018

  • Investor indigestion

    US CMBS widening on 2019 anxiety

    A recent CRE CLO transaction brought to the market was sidelined until a later date after spread levels made the offering uneconomical. Widening US CMBS spread levels have exacerbated investor concerns that this trend will extend into 2019.

    “Spreads have moved out across all the different asset categories in the final quarter,” says Rick Jones, finance and real .......

    News 19 December 2018

  • Japanese dependence

    European ABS market update

    European ABS markets have effectively closed for the year. Deals in the pipeline are now expected to price in early 2019.

    Looking ahead to 1Q19, one trader comments: “For UK buy-to-let and non-conforming RMBS, activity will depend 100% on what happens with Brexit. Unless we have more clarity about how Brexit will play out, investors are going to be .......

    Market Reports 19 December 2018

  • ILS ventures launched

    Sector developments and company hires

    ILS

    Rewire Holdings and Vida Capital have announced the formation of Merion Square Capital, a joint venture which combines the two companies. The asset manager has established an open-ended fund structure which will primarily invest in ILS with an emphasis on property and casualty insurance, as well as annuities and mortality-related products. Merion Square will be led and .......

    Market Moves 19 December 2018

  • Programmatic issuance

    UBI Banca completes second CRT

    UBI Banca has completed its second-ever capital relief trade, paving the way for more programmatic issuance in the future. Dubbed UBI RegCap2, the €100m financial guarantee references a €2.2bn portfolio of secured and unsecured Italian SME and corporate loans.

    According to Simone Tufo, head of capital strategy at UBI Banca: “We intend to proceed with more programmatic issuance, .......

    News 19 December 2018

  • New frontiers

    SF group uses innovative methods to provide private debt financing

    REYL Group recently established a new structured finance department as part of the Corporate Advisory and Structuring (CAS) group. It has a heavy focus on private debt - mainly on a secured and securitised basis - to facilitate funding across a range of asset classes and jurisdictions, including initial transactions in commodities and project finance.

    Ante Razmilovic, who joined .......

    Provider Profile 18 December 2018

  • Deal delay?

    European ABS market update

    A trader reports that nothing has been heard of the Alhambra SME Funding 2018-1 deal, which “should have been done and dusted by now” as the only European ABS left in the pipeline. The trader suggests that the transaction may have been postponed until 1Q19, despite it being announced in June (SCI 21 November).

    He says: .......

    Market Reports 18 December 2018

  • Cerberus explores RMBS options

    Sector developments and company hires

    Granite alternatives

    Cerberus European Residential Holdings is exploring strategic alternatives with respect to the mortgage loans held in the Towd Point Mortgage Funding 2016-Granite1 and 2016-Granite2 RMBS, which will become eligible for optional redemption from April and May of 2019 respectively. The firm has engaged Morgan Stanley and Bank of America Merrill Lynch as its financial advisors to .......

    Market Moves 17 December 2018
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