Complete news archive
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NPL transaction markets
Sector developments and company hires in structured finance
NPL deal markets
Banco Santander Totta is in the market with Hefesto STC (Guincho), a €98m securitisation backed by a €481m portfolio, by gross book value (GBV), of Portuguese non-performing residential, commercial and unsecured loans originated by Banco Santander Totta. DBRS and Scope have assigned provisional ratings, respectively, of triple-B (low)/triple-B minus to the €84m class A notes and triple-C/single-B minus to the €14m ......
Market Moves 13 November 2018Premium Content
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Paper prioritised
European RMBS market update
Spreads have widened in the European RMBS sector, with secondary market activity remaining slow amid ever-increasing primary issuance. A BWIC with a concentration in peripheral names - including Spanish auto loan and RMBS bonds – is out for the bid today and predicted to perform poorly in current market conditions.
One trader says that ECB-eligible paper is being .......
Market Reports 13 November 2018
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Home rule
Chicago debuts tax duo
The City of Chicago last month completed two issuances totalling US$1.3bn through a first-of-its-kind securitisation programme named Sales Tax Securitization Corporation. The programme is intended to lower debt service costs without adding to the city’s risk profile.
The two issues comprise Series 2018C – the interest on which is tax-exempt – and 2018D notes, the interest on which ......
News Analysis 13 November 2018Premium Content
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SCI Start the Week - 12 November
A review of securitisation activity over the past seven days
Market commentary
The Dilosk No. 2 Irish legacy RMBS was in focus in the European primary market last week (SCI 6 November).“It has been taking up all of my time because the extension risk is significant,” explained one trader. “The bonds are pricing with a set of discount margins, with the aim of mitigating extension risk.”
Initial price thoughts .......
News 12 November 2018
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Stress test
IFRS 9 impact limited
The EBA’s recent stress tests point to a limited capital impact from the implementation of IFRS 9. The stress test results follow the release of bank quarterly results, which also highlighted a limited impact from the first-time adoption of IFRS 9 (SCI 14 May).
The negative impact of IFRS 9 first implementation on banks’ aggregate CET1 ratio .......
News Analysis 9 November 2018
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Unpredictable factors
Macro and micro challenges highlighted
European market participants are facing three unpredictable factors in 2019, all of which will drive ABS activity and supply in the new year. ECB monetary policy evolution, Brexit execution and securitisation legislation implementation represent challenges from both macro and micro perspectives.
Among these challenges is the Basel 4 output floor. Alexander Batchvarov, md at BofA Merrill Lynch Global .......
News Analysis 9 November 2018
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CLO investor poached
Company hires and sector developments in structured finance
Acquisitions
LibreMax Capital has entered into an agreement to acquire Trimaran Advisors and certain affiliated companies (Trimaran) from KCAP Financial. Following the close of the transaction, Trimaran’s cio and head of its CLO platform, Dominick Mazzitelli, will continue to lead the business, supported by the existing management team. Trimaran currently manages six CLOs with approximately US$3bn AUM and .......
Market Moves 9 November 2018
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Alternative model mooted
SCI's MPL Securitisation Seminar line-up finalised
An alternative marketplace lending model could gain traction, thanks to the OCC fintech charter (SCI 12 September). This development, along with the efforts of Congress to resolve outstanding issues around the Madden doctrine and true lender status, is set to be discussed at SCI’s 4th Annual Marketplace Lending Securitisation Seminar in New York on 14 November.
Other panels .......
News 9 November 2018
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Leveraged loan CRT prepped
Risk transfer sector developments and deal news
Deutsche Bank is believed to be readying a leveraged loan capital relief trade for 4Q18. According to SCI’s capital relief trades database, this would be the German lender’s first leveraged loan transaction.
Deutsche Bank has been one of the most active issuers this year, having issued a corporate deal and an SME deal from the CRAFT and GATE programme ......
News 9 November 2018Premium Content
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Midterm market
US CLO market update
High new issue volumes continue in the US CLO market, with managers paying more to get their deals away before year-end. BWIC activity also remains strong, in line with the market rally due to the US midterm election results.
One trader says there is a divergence between primary and secondary spreads. “BWICs are doing quite well, but new issues .......
Market Reports 8 November 2018
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CRE platform acquired
Sector developments and company hires in structured finance
Acquisitions
AXA Investment Managers has expanded its global debt platform through the acquisition of Quadrant Real Estate Advisors. This includes an acquisition of Quadrant’s investment team and management of US$9.4bn of US commercial real estate loan mandates. As part of the transaction, 24 members of Quadrant, including five of the founding members, will join AXA IM - Real Assets. .......
Market Moves 8 November 2018
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Resolution framework
EBRD expands Greek NPL foothold
The EBRD is boosting its foothold in the Greek non-performing loan market with co-investments in Piraeus Bank and Alpha Bank. The transactions are the first to be carried out under the bank’s NPL resolution framework.
The EBRD’s first transaction under its NPL resolution framework was a €25m co-investment in Alpha Bank. The EBRD invested alongside Waterfall Asset Management .......
News Analysis 8 November 2018
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Mezzanine muddling
European CLO and CMBS markets update
European traders are focusing on secondary US CLO paper today, with 21 lines on BWICs compared with seven out for the bid in the European market (see SCI’s BWIC calendar). European CLO volumes have been low, yet triple-B bonds have performed steadily, contrary to expectations that they would perform badly this week.
“Clients have been quiet. There is no ......
Market Reports 7 November 2018Premium Content
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Broad attention
European RMBS primary market update
A new UK non-conforming RMBS is expected to enter the pipeline within the next two weeks. The originator of the deal is, as yet, unknown.
“The issuer does not want the deal going into December,” says a trader. “Hence, that gives it roughly a two-week window to get it printed.”
Meanwhile, the Dilosk 2 Irish legacy RMBS .......
Market Reports 6 November 2018
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Global head hired
Company hires and sector developments in structured finance
Dechert has hired Cameron Mitcham as a partner in London at the firm’s global finance practice, joining from Allen & Overy. Mitcham will work with the CLO team and securitisation practice, acting for managers, arrangers, originators, investors and other deal parties in CLO transactions.
ING has hired Stefan Rolf as global head of securitisation for wholesale bank lending. Based in .......
Market Moves 6 November 2018
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Housing practice pinched
Company hires and sector developments in structured finance
Fund launch
Trium Capital is partnering with Ellington Global Asset Management to launch the Ellington Trium Alternative Credit UCITS, a long/short credit UCITS fund. The fund is set to be launched 4Q18 and will leverage Ellington’s expertise in RMBS, CMBS, CLOs and corporate credit relative value strategies.
ILS
Nephila Climate has hired Ariane West as director .......
Market Moves 5 November 2018
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Strong technicals
European RMBS and CMBS primary market update
Technicals remain strong in the European CMBS and RMBS primary markets.
The Dilosk No. 2 deal is in focus in the primary RMBS market. Initial price thoughts of 90-95 have been released for the transaction’s senior notes – which are expected to pay a coupon of three-month Euribor plus 75bp – and it is likely to price on Wednesday (7 .......
Market Reports 5 November 2018
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SCI Start the Week - 5 November
A review of securitisation activity over the past seven days
Transaction of the week
Waterfall Asset Management is marketing the first publicly-rated RMBS backed by reverse mortgages since 2007. Dubbed Cascade Funding Mortgage Trust 2018-RM2, the US$571.8m transaction is backed by 915 active, proprietary reverse mortgage loans originated between 2002 and 2008 (SCI 2 November).The underlying loans were originated by eight legacy reverse mortgage lenders and subsequently aggregated by .......
News 5 November 2018
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Reverse mortgage deal prepped
First reverse mortgage RMBS since 2007 markets
Waterfall Asset Management is marketing the first publically-rated RMBS backed by reverse mortgages since 2007. Dubbed CFMT 2018-RM2, the US$571.8m transaction is backed by 915 active, proprietary reverse mortgage loans originated between 2002 and 2008.
The underlying loans were originated by eight legacy reverse mortgage lenders and subsequently aggregated by Cascade and Waterfall controlled entities. This was over .......
News 2 November 2018
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Market moves update
Company hires and sector developments
ACIS resets due
The Chapter 11 trustee has filed a third amended joint plan for Acis Capital Management and a notice confirming a court order that: conditionally approves its disclosure statement; schedules a combined hearing regarding final approval of the disclosure statement and confirmation of the plan; and sets related deadlines. The plan contains an injunction barring Highland Capital Management .......
Market Moves 2 November 2018
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Risk transfer round-up - 2 November
CRT sector developments and deal news
Santander is believed to be readying two consumer capital relief trades and a corporate deal to print this quarter. The Spanish lender has been one of the most active issuers in 4Q18, having issued a commercial real estate deal, a project finance deal and an SME deal (see SCI capital relief trades database).
...... News 2 November 2018Premium Content