Complete news archive

  • Manager differentiation?

    US CLO primary market update

    US CLO spreads are tightening, despite increased supply. Fresh primary market issuance is emerging daily.

    “Even though there is lots of supply, spreads are still tightening - although we are not really sure why. We think they should be widening. There seems to be a good demand for paper,” says one trader.

    The trader reports that participants .......

    Market Reports 11 October 2018

  • Disparity highlighted

    Flood ILS impact gauged

    The damage from Hurricane Florence was estimated by Moody’s to be between US$38bn-US$50bn, with 474,000 mortgaged properties affected. However, the only catastrophe bond that was impacted as the hurricane dissipated was the US$500m FloodSmart Re Series 2018-1, a national flood insurance bond issued in July by FEMA via a Hannover Re facility.

    Morton Lane, president of Lane Financial, .......

    News Analysis 11 October 2018

  • iTraxx 'best imperfect' hedge

    Main, Crossover indices show Euro CLO correlation

    With a number of macroeconomic and political issues leading to volatility across the financial spectrum this year, so CLO investors are thinking more about potential hedging options. In the area of European CLOs, iTraxx Main and Crossover indices have begun to emerge as promising candidates.

    While the indices are not necessarily a perfect hedge for European CLOs, both comprise diverse .......

    News 10 October 2018

  • Casting a wider net

    US CLO managers target European opportunities

    Although considerably smaller than the US, the European CLO market is on course for a post-crisis record year. A wave of US CLO managers, many with money to put to work in the wake of risk retention’s repeal back home, are moving across the Atlantic to take advantage of Europe’s growing opportunities.

    There were 44 European new issues in 2018 .......

    News Analysis 10 October 2018

  • Trading opportunities

    Credit risk transfer continues to evolve

    Freddie Mac’s recent STACR 2018-DNA3 RMBS marked a further evolution of its credit risk transfer programme in terms of structure and leverage. As the sector continues to mature, a number of different trading opportunities are emerging.

    In a first for STACR deals, the DNA3 transaction extended the term from 12.5 years to 30 years, with a 10-year call .......

    News Analysis 9 October 2018

  • Little differentiation

    European and US CLO market update

    Robust demand is being seen in both the European and US CLO markets this week.

    Equity arbitrage is up to 16% in the European CLO market and there is currently a zero percent default rate for some portfolios. “This is an equity investor’s best-case scenario,” says one trader, “short of a crisis situation.”

    Spreads have moved up in Europe because .......

    Market Reports 9 October 2018

  • Primary surge

    European ABS primary market update

    European primary ABS activity is finally picking up. The PBD Germany Auto ABS transaction is expected to price either tomorrow or Wednesday, while the latest RMAC RMBS has grabbed the spotlight.

    “The market is much busier this week than it was last week,” one trader confirms. “The secondary market is still quiet, but primary has picked up a .......

    Market Reports 8 October 2018

  • SCI Start the Week - 8 October

    A review of securitisation activity over the past seven days

    Market commentary
    The European ABS primary market saw a lull in activity last week, which left some traders uncertain as to what the final quarter of the year will bring (SCI 3 October). “I’m seeing a little bit of primary market activity, mostly dealer to dealer or seller to dealer,” said one trader. “It’s pretty quiet; I’m not really sure .......

    News 8 October 2018

  • Market moves - 5 October

    New hires and company developments in the structured finance sector

    Europe

    Apollo Global Management has named Brigitte Posch md, head of emerging markets in London. She was previously global head of emerging markets corporate credit at Barings Asset Management.

    Reed Smith has hired Kevin-Paul Deveau as a partner to its financial industry group in London. Deveau joins from Dechert and will focus on advising lenders, general partners, ......

    Market Moves 5 October 2018

    Premium Content

  • Compliance costs

    Private securitisations caught by disclosure requirements

    ESMA’s regulatory technical standards (RTS) regarding securitisation disclosures (SCI 6 September) are expected to boost compliance costs for private deals, given the tight implementation timeframe of the Securitisation Regulation. Market consensus points to a transition period as one potential fix, but that option is fraught with its own challenges.   

    The RTS notes that all securitisations must .......

    News Analysis 5 October 2018

  • Risk transfer round-up - 5 October

    CRT sector developments and deal news

    BNP Paribas is rumoured to be readying a replacement trade for a risk transfer transaction that it completed in 2016. Dubbed Resonance II, it references a €5bn portfolio of corporate loans (see SCI’s capital relief trades database).

    Dutch pension fund PGGM made a second loss investment in the 2016 deal. The new transaction is expected to close in ......

    News 5 October 2018

    Premium Content

  • Heavy supply?

    European primary ABS market update

    A new RMAC UK non-conforming RMBS has been announced, while the BPCE Home Loans 2018 deal is expected to be sized at almost €1bn. Ford’s latest German Globaldrive auto deal is also attracting some attention in the European primary ABS market.

    “The RMAC 2 deal will set the tone for the European ABS market going forward,” says one .......

    Market Reports 5 October 2018

  • Perfect ingredients

    Liquidity boosts Euro CLO pipeline

    Increased liquidity and strong demand suggest that the European CLO pipeline will continue to be busy for the rest of the year. Nevertheless, changes in the credit cycle and macro backdrop remain keenly observed.

    European CLO market technicals are moving closer towards the US model in terms of providing a greater level of loan market liquidity, according to Sandeep Chana, .......

    News Analysis 5 October 2018

  • Double counting

    US CLO primary market update

    Up to 30 US CLO transactions are being prepped in the primary market this week, with four or five seen in the European market.

    “In the US you might have maybe 15 transactions at a time and a couple in Europe,” says one trader. “Twice that number in both markets at this time of year is going to .......

    Market Reports 4 October 2018

  • Regulatory boost

    Positive prospects for project finance CRTs

    Santander has completed Fitzroy 2018-1 CLO, a financial guarantee and significant risk transfer transaction that references a £1.12bn portfolio of UK project finance loans. Regulatory clarity over acceptable structures could pave the way for further project finance CRT issuance in the future.

    Fitzroy is Santander’s second project finance transaction in two years, following Renew Project Finance CLO 2017-1 .......

    News Analysis 3 October 2018

  • ABS lull

    European ABS primary market update

    The European ABS primary market is seeing a lull in activity, which is leaving some traders uncertain as to what the final quarter of the year will bring.

    “I’m seeing a little bit of primary market activity, mostly dealer to dealer or seller to dealer,” says one trader. “It’s pretty quiet; I’m not really sure why.”

    The .......

    Market Reports 3 October 2018

  • Automated validation

    Mobile app streamlines RMBS underwriting

    Atom Bank is readying its debut UK prime RMBS. Dubbed Elvet Mortgages 2018-1, the £571.58m transaction is believed to be the first to securitise loans originated via a mobile phone app interface.

    Atom Bank developed the app to streamline the underwriting process by automating validation, allowing it to compete against more traditional lenders. “Atom’s app is not used .......

    News 2 October 2018

  • SCI Start the Week - 1 October

    A look at the major activity in structured finance over the past seven days

    Conference
    SCI’s 4th Annual Capital Relief Trades Seminar is taking place on 16 October at One Bishops Square, London. Hosted by Allen & Overy, the event will explore how regulatory change is being reflected in deal structures, as well as examine issuance trends and how the market could expand further in the future. For more information on the seminar, or .......

    News 1 October 2018

  • CDO misconduct alleged

    Goldman Sachs in court over legacy CDO

    Astra Asset Management is suing Goldman Sachs over allegations that the bank engaged in misconduct toward investors, including Astra, regarding the collateral securities that secured the notes issued by Abacus 2006-10, a synthetic CDO. Astra alleges that Goldman made US$70m in gains through breaking the established eligibility criteria on the CDO, as far back as 2006.

    Astra Asset Management .......

    News 28 September 2018

  • Market moves - 28 September

    The latest hires and company developments in the structured finance market

    Canadian pension partnership

    Canada Pension Plan Investment Board (CPPIB) announced today that its wholly-owned subsidiary, CPPIB Credit Investments, is broadening its portfolio through new investments in equity tranches of CLOs alongside experienced CLO asset managers. CPPIB Credit’s initial partnership in CLO equity investing will be with Sound Point Capital Management based in New York. CPPIB Credit will invest US$285mn in a .......

    Market Moves 28 September 2018

  • Funding options

    Charles Street securitisation increased

    Together has increased its Charles Street Conduit Asset Backed Securitisation 1 (CABS) to £1.25bn through refinancing and increasing the size of the facility. The maturity of the facility has also been extended from January 2021 to September 2023.

    The maturity extension is designed to provide substantial depth to the group’s funding profile, increasing the weighted average maturity from 3.3 years .......

    News 28 September 2018
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