Complete news archive
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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
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Market moves update
Company hires and sector developments in structured finance
Acquisitions
Lennar Corporation has agreed to sell its Rialto Investment and Asset Management business to investment funds managed by Stone Point Capital for US$340m. The transaction is scheduled to close on 30 November, subject to consent by the funds managed by Rialto and customary closing conditions. Lennar will retain its Rialto Mortgage Finance business, which it expects to move into .......
Market Moves 31 October 2018
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Market moves update
Sector developments and new hires in structured finance
Acquisitions
Franklin Templeton has acquired Benefit Street Partners, expanding its fixed income capabilities to include an array of alternative credit strategies. The combination of BSP’s experience and capabilities with Franklin Templeton’s global scale and extensive resources in more liquid credit investing is expected to enhance the firm’s origination capabilities and increase its expertise across the leveraged finance market. .......
Market Moves 30 October 2018
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Retail rifts
UK CMBS impact limited despite store closures
Debenhams is the most recent UK retailer to announce a raft of store closures, further signalling the decline of the traditional retail sector in the country, although online retailers continue to perform well. Despite this, there is not likely to be an impact on UK CMBS backed by retail, with most transactions tied to large destination malls that are more immune to .......
News Analysis 30 October 2018
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Health check
Sears bankruptcy exposure gauged
Morningstar Credit Ratings has identified 28 CMBS loans, representing an allocated property balance of US$2.17bn, with exposure to stores that will close as part of Sears Holding Corp’s Chapter 11 bankruptcy filing. Sears’ departure is expected to be more detrimental to malls in secondary or tertiary locations where performance has already deteriorated, as these locations will be less desirable .......
News 30 October 2018
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SCI Start the Week - 29 October
A review of securitisation activity over the past seven days
Market commentary
The US secondary CLO market saw heightened activity last week, with bid-lists circulating containing up to 68 line items (see SCI’s BWIC calendar).“We are seeing a clean-up of triple-A to single-A notes. There is also a large double-B block out today; a mixed bag of names,” says one trader (SCI 26 October).
He continues: “I am .......
News 29 October 2018
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Market moves update
Sector developments and company hires in structured finance
Moody's has downgraded the ratings of 123 tranches, placed on review for upgrade two tranches and affirmed 34 tranches in 84 Italian RMBS auto ABS, consumer loan ABS and consumer CDQ ABS deals . The rating actions were prompted by the rating agency's lowering of Italy's local-currency bond ceiling to Aa3 from Aa2. This which follows the downgrade of the ......
Market Moves 26 October 2018Premium Content
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Mixed paper
US CLO market update
A BWIC of 68 line items is driving US CLO secondary market activity today, amidst a scarcity of primary issuance (see SCI’s BWIC calendar).
“We are seeing a clean-up of triple-A to single-A notes. There is also a large double-B block out today; a mixed bag of names,” says one trader.
He continues: “I am not .......
Market Reports 26 October 2018
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Mixed outlook
Risk transfer diversity set to increase
The outlook for risk transfer issuance volumes is mixed, according to panellists at SCI’s Capital Relief Trades Seminar last week. However, they agreed that the market will continue to increase in diversity, in line with bank origination channels and balance sheet needs.
The traditional Northern European CRT jurisdictions have seen a lot of activity over the last couple .......
Talking Point 26 October 2018
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Heightened holding
European ABS market update
Invesco is preparing a new €410m European CLO deal, along with GSO Capital Partners, which is planning a CLO reset. Elsewhere, Och-Ziff’s latest OZLME deal is reported to be sized at €412m (see SCI’s deal pipeline).
Overall European CLO spreads remain unchanged to slightly wider, as only a handful of bonds are out for the bid today. .......
Market Reports 26 October 2018
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Reset end point?
US CLO market update
With almost 40 bonds out for the bid today, the secondary US CLO market is seeing heightened activity, with a bias towards triple-A paper. The stock market sell-off has not yet translated into wider spreads across the sector.
“There has been a strong bid for interest loans as people have been using them as a hedging tool,” says .......
Market Reports 25 October 2018
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Market moves update
Sector developments and company hires in structured finance
China
Fitch Ratings has launched Fitch Bohua Credit Ratings to serve China's onshore bond market and has appointed Danny Chen as Fitch Bohua's ceo. Initially, the company will cover banks, non-bank financial institutions and insurers, as well as the structured finance sector. Chen was previously ceo of Qingdao Conson Financial Holdings. A team of analysts, business development and support staff .......
Market Moves 25 October 2018
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Eastern incentive
European CLO market update
The European CLO market appears to be softening, following high volumes of equity out for the bid in the US secondary market.
“The theme of the week could be that good CLO managers are faring a lot better than bad managers,” says a trader. “That was not the case six months ago.”
It is also being suggested ......
Market Reports 24 October 2018Premium Content
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Bridge-loan lifeline
Greystone closes CRE CLO milestone
Greystone Bridge Lending Fund last month completed its second CRE CLO (see SCI’s primary issuance database). Dubbed Greystone CRE 2018-HC1, the US$300m transaction is unique in that it is 100% secured by healthcare properties.
“The Greystone CRE CLO is the first-ever CRE CLO to be backed entirely by CRE loans secured by healthcare properties,” says Clifford Chance capital markets partner .......
News Analysis 24 October 2018
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Hitting the mark
Pan-European logistics CMBS prepped
Blackstone is in the market with a €292.79m pan-European CMBS secured by 89 logistics and industrial assets. Dubbed Arrow CMBS 2018, the transaction is the first European post-financial crisis CMBS with a large French asset exposure.
The deal, which is expected to repay on or before 22 November 2023, securitises a 95% interest of a €308.2m senior commercial .......
News 23 October 2018
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CLOs in demand
Quarterly SCI data update
Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in both primary and secondary markets. Meanwhile, a bias towards Northern European jurisdictions is evident in capital relief trade volumes.
.......
News Analysis 23 October 2018
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Credit insurance landmark launched
Transaction continues risk transfer strategy
The African Development Bank (AfDB) and the African Trade Insurance Agency (ATI) have completed a landmark US$500m credit insurance deal, covering approximately 22% of the bank’s US$2.3bn outstanding portfolio of non-sovereign operations in Africa. The deal is intended to protect the bank against non-payment of loans made to around 30 African financial institutions, across all major regions on the continent.
News 23 October 2018
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New ground for CRTs
Capital relief trades report now available
CRTs – in which banks transfer credit risk to non-bank investors – have become better established and more widely used. New issuance jurisdictions and greater variety of reference assets, issuers and investors have brought the market into new territory, but the regulatory environment remains challenging and there are concerns that growth could stall.
SCI has published its latest special report .......
News 23 October 2018
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Market moves update
Company hires and sector developments in structured finance
[b]Acquisition[/b]
[b]Miller[/b] is to acquire the independent London market (re)insurance broker[i], Alston Gayler and Co[/i], currently majority owned by Nelson Holdings Limited. The transaction will bolster Miller’s offering to clients and strengthen its position as a leading London wholesale and specialist broking platform. The transaction is subject to regulatory approval and financial terms were not disclosed.
[b]UK[/b]
Market Moves 23 October 2018
Premium Content
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Market moves update
Company hires and sector developments in structured finance
Accrual clause nixed
The New York State Court of Appeals last week held that contractual attempts to extend the statute of limitations for causes of action involving breaches of contract are unenforceable because they violate New York law and public policy. In the case at issue, the plaintiff (Deutsche Bank National Trust Company) argued that the accrual clause ......
Market Moves 22 October 2018Premium Content
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SCI Start the Week - 22 October
A review of securitisation activity over the past seven days
Market commentary
European primary ABS activity continued to be robust last week. The BPCE Home Loans FCT 2018 print and the announcement of Porsche’s Austrian auto ABS were among the highlights (SCI 18 October).“A variety of asset classes are represented in the primary market at the moment,” said one trader. “Spreads are well supported – we’re seeing good levels .......
News 22 October 2018