Complete news archive
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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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Primary focus
European ABS and RMBS market update
Few BWICs were out for the bid in the European secondary ABS market this week, with light trading activity due to the high volume of selling seen during the summer.
“The Tower Bridge RMBS print moved the market a bit wider, but now spreads are tightening again,” says one trader. “The Tower Bridge senior notes priced at 120bp .......
Market Reports 28 September 2018
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Risk transfer round-up - 28 September
CRT sector developments and deal news
Santander is believed to be the third capital relief trade issuer readying a commercial real estate transaction in 4Q18, along with Lloyds and RBS.
The lender’s last CRE risk transfer deal was issued in December 2017. Dubbed Red 1 Finance CLO 2017-1, the £87.1m financial guarantee referenced a £916.8m UK CRE portfolio.
The transaction printed alongside two other debut ......
News 28 September 2018Premium Content
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Weaker pools penalised
US CLO primary market update
The supply of US CLO deals coming off of 2016-vintage refinancings is expected to keep spreads ranging broadly upwards until year-end.
“However, a return of Japanese investors could cause triple-A spreads to tighten - although if and when this will happen is uncertain,” says one trader. “If spreads tighten materially from here, the arbitrage could be threatened and .......
Market Reports 27 September 2018
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Risk transfer return
Standard Chartered completes trade finance CRT
Standard Chartered has printed its first capital relief trade in three years, dubbed Trade Finance Transaction 2018-1. The bank’s last public trade was a US$135m corporate CLN called Baruntse, which was completed in 2015 (see SCI’s capital relief trades database). It also rolled the Shangren III (Trade Finance) into a new deal in June.
Rated by Moody’s, .......
News 27 September 2018
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UCITS constrained
Regulatory impact on mutual fund demand gauged
The impact of the new EU securitisation regulation on mutual funds domiciled in Europe has sparked concern among some US market participants in recent weeks. An estimated 15% of US ABS issued since the beginning of 2017 is believed to satisfy European risk retention requirements and the inclusion of UCITS funds, in particular, under the legislation could constrain demand .......
News Analysis 27 September 2018
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US CMBS 'not fixed'
Wave of CMBS litigation may arise from systemic sector problems
US CMBS litigation is currently in the spotlight, with one of the largest ever US fraud investigations looking at a potential conspiracy by employees of Morgan Management (SCI 8 June) to fraudulently obtain US$167.5m of loans, some of which back a number of CMBS transactions. Unfortunately, cases such as these may only become more frequent, with a range of .......
News Analysis 26 September 2018
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CRT line-up finalised
SCI seminar to assess regulatory threats and opportunities
The line-up for SCI’s 4th Annual Capital Relief Trades Seminar – taking place on 16 October at One Bishops Square, London – has been finalised. With Basel 4 impacting all approaches to the calculation of risk-weighted assets, credit institutions are being forced to optimise their portfolios once again. A major theme of the event is therefore how market participants .......
News 25 September 2018
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SCI Start the Week - 24 September
A look at the major activity in structured finance over the past seven days
Pipeline
RMBS dominated the newly-announced deals remaining in the pipeline by the end of last week. A handful of CLOs and CMBS, as well as a single ABS also began marketing.The RMBS comprised US$407.99m CIM Trust 2018-INV1, US$513.9m JP Morgan Mortgage Trust 2018-9, A$491.5m Liberty Series 2018-3, US$662.4m Progress Residential 2018-SFR3 and US$851.58m Towd Point Mortgage Trust .......
News 24 September 2018
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Market moves - 21 September
All the latest company developments and new hires in the structured finance sector
Acquisitions
HPS Investment Partners has acquired Tålamod Asset Management. HPS will retain Tålamod's investment team and other employees based in Dallas, while Andersen Fisher, founder and managing member of Tålamod, will join HPS as md. Kyle Mapes and Jay Steen will join HPS as executive directors, after joining Tålamod in 2008. All employees of Tålamod will become HPS employees .......
Market Moves 21 September 2018
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GACS expansion?
UTP extension questioned
The recent extension of the GACS guarantee scheme is expected to further fuel Italian non-performing loan securitisation issuance (SCI 5 September). However, the programme is unlikely to be expanded to cover unlikely-to-pay (UTP) loans, due to political constraints.
Following the European Commission’s approval of the GACS extension, Scope reaffirmed its forecast of a total disposal of Italian .......
News Analysis 21 September 2018
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Inaugural infrastructure CRT launched
Synthetic securitisation marks global first
The African Development Bank (AfDB), alongside Mariner Investment Group, the European Commission, Mizuho and Africa50, has issued a debut US$1bn capital relief trade (CRT) backed by a pan-African portfolio of loans to infrastructure projects and financial institutions. The transaction, dubbed Room2Run, is not just a first for the AfDB, but also marks the first ever transaction of its kind between a multi-lateral .......
News Analysis 20 September 2018
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Widening spreads eyed
US CDO secondary market update
Several ABS CDO bonds are expected to be in high demand today, which have not been prevalent on the secondary market for several months. Trups CDO paper has been more common on BWICs.
“When Trups CDO bonds come around, there is a lot of interest,” says one trader. “But they are not predictable, unfortunately.”
Meanwhile, mezzanine CLO .......
Market Reports 20 September 2018
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Aussie slow-down
Australian RMBS primary market update
Activity in the Australian RMBS primary market is slowing down due to overcrowding. Four Australian lenders are currently in the market with new deals.
Liberty Financial and Pepper Homeloans are prepping non-conforming RMBS, while RedZed Lending Solutions is prepping a mixed prime/non-conforming deal and Credit Union Australia is marketing a prime transaction. “The regular issuers are operating in .......
Market Reports 19 September 2018
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Irish RMBS focus
European ABS market update
A rare Irish non-conforming RMBS has caught the attention of European ABS market participants, following the deal’s roadshow last week.
“The Dublin Bay Securities senior notes are being talked at around 65bp, with the deal expected to price soon,” says a trader. “In comparison, proper prime senior RMBS paper would typically price at around 12bp or 13bp.”
Market Reports 18 September 2018
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Revised NPL templates published
Insolvency data rendered more dynamic
The EBA last week published a revised version of its standardised non-performing loan data templates - first published in December (SCI 15 December 2017) - that aim to facilitate NPL sale transactions across the EU. The crux of the changes is a more dynamic and granular recording of insolvency proceedings in an attempt to capture their complex and .......
News Analysis 17 September 2018
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SCI Start the week - 17 September
A look at the major activity in structured finance over the past seven days
Pipeline
ABS is still dominating the pipeline, with several deals coming from the auto space.
These include: US$534.032m ARI Fleet Lease Trust 2018-B, US$1.362bn GM Financial Automobile Leasing 2018-3, US$327.87m Navistar Financial Dealer Note Master Owner Trust II 2018-1, US$407.83m Prestige Auto Receivables Trust 2018-1
In non-auto ABS there are also a number of transactions waiting to price: US$809.93m CNH .......
News 17 September 2018
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Preference for yield
Conference delays new issues
The US ABS secondary market is seeing a big demand for higher-yielding sectors like renewables, even if it means giving up liquidity, according to market sources.
According to one trader, firms are also holding off from bringing new issues because of ABS East, resulting in a market slow down until the conference.
The source adds however that many deals are .......
Market Reports 14 September 2018
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Market moves - 14 September
New hires and company developments in the structured finance sector
CDS ETF Launched
Tabula has launched a European CDS ETF which offers passive exposure to European credit through an index tracking the corporate CDS market.
CMBS downgrade review
Moody’s has placed on review for downgrade all the notes in the UK CMBS Housing Association notes issued by Finance for Residential Social Housing (FRESH), affecting approximately £932m .......
Market Moves 14 September 2018
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Euro ABS activity surges
Investors finding value across asset classes
The ABS secondary market has been very BWIC driven with large volumes coming through. A Greek RMBS is also attracting attention amid a greater focus on European ABS.
A trader comments on ABS activity in Europe: “The most interesting thing I’ve been seeing is the large Grifonas RMBS. The senior, now sized at around €345m, has been on BWICs for two .......
Market Reports 14 September 2018
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Risk transfer round-up - 14 September
CRT sector developments and deals news
Santander is rumoured to be readying a corporate CRT for 4Q18. The Spanish bank’s last corporate deal, dubbed Grafton CLO 2016, was inked in December 2016.
The CLN was priced at 10.2% and referenced a £1.25bn portfolio of primarily UK corporate loans (see SCI’s capital relief trades database).
...... News 14 September 2018Premium Content