Complete news archive

  • 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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  • CMBS rating questioned

    RA queries top rating on Elizabeth Finance 2018

    The provisional triple-A rating from DBRS on the senior notes of the £90.707m UK CMBS, Elizabeth Finance 2018, is ‘not supported’ by the transaction. This is according to a recent comment from Fitch which queries the validity of the rating, especially because repayments from refinancing borrowers will be repaid to note classes on a pro-rata basis.

    S&P and DBRS recently .......

    News 24 August 2018

  • Market moves - 24 August

    The week's structured finance hires and company developments, all in one place.

    Consent solicitation

    NN Bank has issued a consent solicitation seeking investor approval for the early redemption of the Hypenn 3 Dutch RMBS, of which the class A1 tranche has already been redeemed. The class A2 tranche has an outstanding balance of €467m and a FORD of 17 June 2020, according to Rabobank credit analysts. Together with Hypenn 3, NN Bank’s Arena 2014-2 .......

    Market Moves 24 August 2018

  • CLO issuer explores new ground

    Blackstone/GSO in middle-market first

    GSO Capital Partners, a Blackstone subsidiary, is marketing its first CLO backed by a portfolio of primarily first lien, senior secured middle-market loans. The US$510.71m transaction, dubbed Diamond CLO 2018-1, will also include some allocation to broadly-syndicated speculative grade senior secured term loans.

    S&P has assigned provisional ratings on the transaction of  triple-A on the US$277.50 class A-1 .......

    News 23 August 2018

  • Disposal partnership inked

    Fintech set to unlock CSEE NPL markets

    Trace Capital Advisors and Debitos have formed a partnership that could prove to be a turning point for non-performing loan deleveraging in Central, Eastern and South Eastern Europe (CSEE). The agreement aims to bring efficient and cost-effective financial technology to NPL disposals across the region. 

    According to Robert Bruckner, director and founding partner at Trace Capital: “We see .......

    News 22 August 2018

  • Firms favour floating rate

    Investors find value in range of SF asset classes

    US investors are seeing relative value in a number of pre- and post-crisis securitised asset classes, including non-agency legacy RMBS, TruPS CDOs and US BSL CLOs. While firms’ allocations to different sectors may vary, the overriding theme is a move away from fixed rate products, with further interest rate rises expected.

    As a result, floating rate products are of growing .......

    News Analysis 22 August 2018

  • Retail opportunity

    Singapore CFO adds to PE fund investment products

    The launch of the US$510m-equivalent Astrea IV collateralised fund obligation in June marked the first time that a securitisation backed by private equity cashflows was made available to retail investors. Indeed, the manager – Azalea Investment Management – was motivated to bring the transaction in part by a desire to contribute to the development of private equity fund investment products .......

    News Analysis 21 August 2018

  • SCI Start the Week - 20 August

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

    Pipeline
    The pipeline was quite sparse by the end of last week. A handful of ABS were still marketing, as well as a CLO and a CMBS.

    The newly announced ABS were: US$251.67m CCG Receivables Trust 2018-2, US$2.25bn Honda Auto Receivables 2018-3 Owner Trust, US$500.5m Prosper Marketplace Lending Issuance Trust 2018-2, NZ$150m Q Card Trust 2018-1 and CNY8.01bn Silver Arrow .......

    News 20 August 2018

  • Market moves - 17 August

    Company developments and new hires in the structured finance sector

    Acquisitions

    Vistra has completed the acquisition of the corporate services business of Deutsche Bank’s global transaction banking division. The corporate services business will now be rebranded under the Vistra umbrella. The acquisition broadens the company’s presence in seven of the existing locations across Europe, the Cayman Islands and Mauritius, providing further scale and expertise in these jurisdictions and involves management .......

    Market Moves 17 August 2018

  • Moral hazard addressed

    EIF completes SRT with BP Bari

    The EIF has completed a guarantee agreement with Banca Popolare di Bari under the SME Initiative for Italy. The transaction consists of a number of structural features designed to reduce moral hazard.

    According to Sebastian Dietzsch, associate director at Scope: “The loss claims under the guarantee are based on an expected loss calculation, which minimises cashflows between BP .......

    News 17 August 2018

  • Risk transfer round-up - 17 August

    CRT sector developments and deal news

    UBI Banca is believed to be marketing its second-ever capital relief trade. The Italian bank’s inaugural risk transfer transaction, dubbed UBI 2017 RegCap1 and inked last year, was a €100m deal referencing a €1.9bn Italian corporate portfolio (see SCI’s capital relief trades database).

    ......

    News 17 August 2018

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  • SMEs supported

    Supranationals driving new credit ecosystem

    A new ecosystem is gaining traction in the securitisation market, with supranational institutions stimulating organic origination by non-bank lenders. By facilitating the flow of credit and acting as a bridge to the capital markets, the prevalence of their activity – especially in the SME sector – is creating a new sub-category of transactions.

    Supranational institutions are a key .......

    News Analysis 16 August 2018

  • Integrated fund structure developed

    Innovative, single structure could benefit ILS investors

    A new fund structure has been devised, which combines the fund and insurance elements of ILS structuring and investment. Dubbed the “fund of one”, it aims to simplify the ILS investment process by aggregating the disparate jurisdictional and regulatory requirements that currently hamper the ILS sector.

    Mark Helyar, of counsel at Bedell Cristin, says the structure has been developed due .......

    News Analysis 15 August 2018

  • SCI Start the Week - 13 August

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

    Pipeline
    The pipeline remained subdued last week, albeit a good mix of asset classes were represented. ABS accounted for the majority of newly-announced deals, with a handful of RMBS, CMBS and CLOs also marketing.

    Newly-announced auto ABS comprised US$398.3m Credit Acceptance Auto Loan Trust 2018-3, US$301m Flagship Credit Auto Trust 2018-3, CNY1.94bn Generation 2018-1, US$978m Santander Drive Auto Receivables Trust .......

    News 13 August 2018

  • Market moves - 10 August

    Company developments and new hires in the structured finance sector

    CDOs transferred
    Dock Street Capital Management     has replaced Deerfield Capital Management as collateral manager of the Knollwood CDO and Mid Ocean CBO 2001-1 transactions. Moody’s has confirmed that the move will not impact its ratings on any of the notes issued by the issuers. For more CDO manager transfers, see SCI’s database.

    Effective 2 August, Highland Capital Management .......

    News 10 August 2018

  • CEE foothold extended

    AnaCap acquires its first Slovenian NPL pool

    AnaCap has acquired a corporate debt portfolio of performing and non-performing first-lien loans from Nova KBM, Slovenia’s second-largest bank. The acquisition was made via its AnaCap Credit Opportunities III fund, which targets performing, semi-performing or non-performing credit assets across Europe.

    This is the firm’s first Slovenian acquisition and further extends its foothold in the CEE region. Private equity .......

    News 10 August 2018

  • Risk transfer round-up - 10 August

    CRT sector developments and deal news

    Banco Comercial Portugues is believed to be prepping a significant risk transfer deal for 4Q18. According to SCI’s capital relief trades database, the Portuguese lender’s last deals were Caravela SME No. 4 and Caravela SME No. 3 in May 2014 and June 2013 respectively.

    Barclays is also rumoured to be working on another Colonnade deal for 4Q18, referencing UK ......

    News 10 August 2018

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  • Second Magdalena deal priced

    Santander SME portfolio attracts further investor interest

    Santander has completed its second FT Pymes Magdalena risk transfer transaction. The €166.3m CLN references a €2.5bn Spanish SME portfolio and pays three-month Euribor plus 8.85%.

    The portfolio comprises a diversified and granular portfolio of Spanish SMEs -including self-employed borrowers - a market where Santander holds a dominant position. Protection has been bought on 95% of the reference portfolio.

    The .......

    News 8 August 2018

  • Retention questioned

    Call for NPL regulatory differentiation

    Questions are emerging over the relevance of risk retention in the context of European non-performing loan securitisations. Given its utility in transferring risk on capital-intensive portfolios, securitisation could play a greater role in resolving Europe’s troubled loan burden if there was regulatory differentiation for such assets.

    Vertical risk retention may make sense in terms of originating banks being .......

    News Analysis 7 August 2018

  • Project Glas completed

    PTSB disposal raises prospects for private dwelling house transactions

    Permanent TSB has completed the sale of Project Glas - a €2.1bn (GBV) portfolio of Irish buy-to-let properties and private dwelling houses (PDHs) - to Lone Star subsidiary Start Mortgages. The transaction is seen as a test case for further Irish non-performing loan disposals, due to its size and its inclusion of PDHs (SCI 16 February). Investors have .......

    News 7 August 2018

  • CRT resilience highlighted

    Investors undeterred by turn in credit cycle

    Widening credit spreads and an expected turn in the credit cycle have not induced significant changes in the structuring of capital relief trades, thanks to the positive performance of the asset class. Indeed, investors continue to allocate more capital to the sector.  

    “QE ends soon and tightening will start next year. However, Euribor is quite low. It will take a .......

    News Analysis 6 August 2018
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