Complete news archive

  • 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 2018

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  • US CLO reissue caution advised

    US CLO arrangers are being cautious in terms of how they bring and announce actions in the next two months.

    “Investors know there’s lots of deals getting done in September and October, so there are a lot which are not being announced or are being done in secret,” says a trader.

    Many deals made in the last week are being .......

    Market Reports 13 September 2018

  • US CLO secondary spikes

    The US CLO market is seeing a big spike in secondary market activity this week ahead of ABS East and expected reset activity.

    “There’s over US$500m on BWICs today”, says a trader, “which is the busiest day in several months. I would guess it’s because of the ABS east conference on the following Monday…people are trying to get stuff done before .......

    Market Reports 12 September 2018

  • Madden resolution urged

    US marketplace lending firms should be freed from restraints around “true lender” status that have arisen due to regulatory developments, such as the Madden vs Midland case. This is according to a recent US Treasury report, which also suggests improvements to servicing standards and borrower communication in the federal student loan sector.

    The US Treasury highlights the growing role of .......

    News Analysis 12 September 2018

  • Brexit uncertainty highlighted

    CRTs unaffected although contract continuity concerns underscored

    Brexit has so far had a neutral impact on capital relief trades (CRTs) in terms of structuring and issuance. However, uncertainty remains over how EU law and the CRR will be incorporated into UK law, which is an important issue pertaining to the continuity of CRT contracts.

    Steve Gandy, md and structurer at Santander Corporate and Investment Banking, comments: "So far .......

    News Analysis 12 September 2018

  • Short duration in demand

    Spreads diverge between long and short CLO paper

    The volume of US paper in the secondary CLO market is down in the first week of September, with spreads diverging between long and short paper.

    “At this stage,” says a trader, “it’s hard to find short paper as people don’t want to sell it because it’s very competitive to buy. For the longer paper spreads are widening .......

    Market Reports 11 September 2018

  • Euro RMBS picks up

    Markets moving again after summer lull

    In the first week of September the market seems to be coming back to life after the lull of August and July. According to one trader, two primary deals in particular are catching the attention of the market at the moment in the form of the latest £528m Tower Bridge Funding 3 transaction and the €526.89m Dutch Property Finance .......

    Market Reports 10 September 2018

  • SCI Start the week - 10 September

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

    Pipeline

    A fairly even split of auto and non-auto ABS in the pipeline this week: 

    Auto ABS:  US$256.2m American Credit Acceptance Receivables Trust 2018-3, CNY4.5bn Bavarian Sky China 2018-1 Trust, US$1bn Drive Auto Receivables Trust 2018-4, Silver Arrow UK 2018-1, US$801m World Omni Automobile Lease Securitization Trust 2018-B

    Non-auto ABS: Alhambra SME Funding 2018-1, US$881.52m CAL Funding III series 2018-2, .......

    News 10 September 2018

  • Market moves - 7 September

    New hires and company developments in the structured finance industry

    CRT expert wanted

    Banca IMI is hiring a senior risk transfer solutions structure for its Milan office. The bank wants a candidate with experience in capital markets and investment banking with a top tier Italian or European investment bank, consultancy firm, rating agency, fund or asset manager and ideally with experience of origination activities and analysis experience of tier one .......

    Market Moves 7 September 2018

  • Risk transfer round-up - 7 September

    CRT sector developments and deal news

    Caixabank is rumoured to be prepping an SME significant risk transfer transaction for 4Q18. This would follow a bilateral SME trade that the issuer is believed to have completed in July.

    The Spanish bank’s last confirmed transaction was Gaudi Synthetic 2015-1. The deal - inked in February 2016 - was a €121.5m CLN referencing a €2bn Spanish SME ......

    News 7 September 2018

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  • Chain reaction

    ABS issuers exploring distributed ledger technology

    Numerous ABS issuers are exploring how to leverage blockchain technology to execute traditional securitisation structures. Indeed, its adoption could yield immediate benefits for esoteric and new asset classes, which have an illiquidity premium associated with them.

    For traditional assets that are not natively digital, distributed ledger (i.e. blockchain) technology can enable a digital representation – or ‘token’ – .......

    News Analysis 7 September 2018

  • Increased obligations weighed

    ESMA outlines expanded reporting requirements

    ESMA last month published final draft technical standards on the new reporting requirements to be implemented under the Securitisation Regulation (SCI 24 August). The standards - released ahead of the 1 January deadline - are set to usher in new levels of due diligence required on the part of the seller, meaning investors will expect more information to .......

    News Analysis 6 September 2018

  • ILS acquisition prepped

    Deal will make Markel largest sector fund manager

    Markel Corporation is set to acquire Nephila Holdings in a transaction that will establish Markel as the largest manager of funds in the ILS sector. Following the acquisition, the combined AUM between Nephila and Markel will stand at approximately US$19bn, representing 20% of the ILS market.

    The two firms entered into a definitive agreement for Markel to acquire all of .......

    News 6 September 2018

  • Finding the efficient frontier

    Dominik Hagedorn, co-founder at Tangency Capital, answers SCI's questions

    Q: How and when did Tangency Capital become involved in the ILS market?
    A: Tangency Capital was launched in the autumn of 2017 by Michael Jedraszak, Kai Morgenstern and me, with the aim of offering institutional investors access to natural catastrophe risk akin to how reinsurers access the market and beyond what traditional ILS funds offer. Following an initial set-up .......

    The Structured Credit Interview 6 September 2018

  • GACS extended

    European Commission approves guarantee extension

    The European Commission has approved a second extension of the GACS guarantee scheme for the senior tranches of Italian non-performing loan securitisations. The guarantee is issued at a market price to comply with EU state aid rules, although the European Commission will continue to review the scheme’s compatibility with market conditions. Consequently, further extensions of the scheme remain the .......

    News Analysis 5 September 2018

  • SME SRT completed

    Intesa taps Italian government guarantee fund

    Intesa Sanpaolo has completed a guarantee agreement with Fondo Centrale di Garanzia, the Italian government guarantee fund, to spur economic growth via lending to Italian SMEs. This is the fund’s first synthetic securitisation that includes mid-cap firms (with up to 499 employees), which were previously excluded from its portfolio policies.

    Under the agreement, Intesa Sanpaolo will ramp up .......

    News 3 September 2018

  • Chinese online ABS develops

    Regulation, data inconsistencies hamper industry

    Fitch recently rated its first ever ABS backed by Chinese online consumer loans, in the form of the CNY1bn JD ABN 2018-1 transaction. While a positive signal for the sector, it still faces a number of hurdles, such as a lack of credit history data across the Chinese population and an inconsistent regulatory framework.

    While the term marketplace lending .......

    News Analysis 3 September 2018

  • SCI Start the Week - 3 September

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

    Pipeline
    A small handful of deals remained in the pipeline ahead of the Labor Day holiday in the US. RMBS accounted for the majority of newly-announced securitisations last week.

    The RMBS currently in the pipeline are €526.89m Dutch Property Finance 2018-1, US$476.06m Flagstar Mortgage Trust 2018-5 and €1.08bn Storm 2018-II. The other newly-announced deal last week was CNY3.92bn VINZ 2018-3, .......

    News 3 September 2018

  • Market moves - 31 August

    The latest hires and company developments in the structured finance market

    Acquisition

    Moody’s Corp is set to acquire all outstanding shares of Reis in an all-cash transaction valued at approximately US$278m. By combining Reis’s extensive data with Moody’s Analytics’ specialised capabilities, the firm aims to enhance analytical practices in the CRE market and contribute to the efficiency and liquidity of capital flows. Under the terms of the merger agreement, .......

    Market Moves 31 August 2018

  • Landmark disposal completed

    Project Helix sets optimistic tone for Cypriot NPLs

    Bank of Cyprus has agreed to sell a landmark €2.7bn (GBV) real estate portfolio to Apollo dubbed Project Helix. The large size of the deal demonstrates the Cypriot market’s ability to attract large private equity funds and is expected to spur further non-performing loan transactions.

    The portfolio will be transferred to a licensed Cypriot Credit Acquiring Company (CyCAC) .......

    News 31 August 2018

  • Risk transfer round-up - 31 August

    CRT sector developments and deal news

    Lloyds is rumoured to be readying another commercial real estate risk transfer trade from its Wetherby programme for 4Q18. This would be the issuer’s second post-crisis synthetic CRE deal, following the issuance of Wetherby Securities 2017 last year.

    Wetherby Securities 2017 was a £47.1m financial guarantee referencing a £672.9m portfolio of UK CRE. It printed alongside two other ......

    News 31 August 2018

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