Complete news archive

  • Fastnet refi completed

    Permanent TSB has completed a €1.44bn RMBS, dubbed Fastnet Securities 14. The collateral previously formed part of the Fastnet Securities 3 portfolio, the notes of which have been called.

    The collateral was obtained by removing non-performing loans and loans in arrears from the Fastnet 3 pool and dividing the remaining portfolio into two. The first half of the remaining portfolio .......

    News 25 June 2018

  • PRA's tough stance continues

    Banks have been reviewing the PRA’s significant risk transfer (SRT) consultation, which proposes a full capital charge for excess spread in SRT securitisations and is expected to reduce the capital relief that can be achieved by UK issuers. The paper also introduces uncertainty over the hierarchy of approaches and is another indication that, going forward, the UK regulator’s stance .......

    News Analysis 22 June 2018

  • Mortgage SRT booster voted down

    MEP Caroline Nagtegaal’s amendment 596 to Article 234 of the CRR was rejected by the European Parliament in a vote this week, in order to prevent the establishment of an unwanted precedent. The amendment had been expected to boost significant risk transfer (SRT) transactions of mortgages (SCI 20 April).

    According to Article 234 of the CRR, loan-level insurance protection .......

    News Analysis 22 June 2018

  • Risk transfer round-up - 22 June

    Intesa Sanpaolo is rumoured to be prepping a capital relief trade referencing corporate assets, with the transaction currently believed to be in the portfolio selection process. The Italian lender is a frequent issuer of synthetic SME securitisations, but it has been less active in the corporate space (see SCI’s capital relief trades database).

    ......

    News 22 June 2018

    Premium Content

  • Market moves - 22 June

    Europe

    Axa Investment Managers has hired Hans Stoter to global head of fixed income and interim head of multi asset client solutions. He was previously cio at NN Investment Partners.

    DBRS has hired Edward Dittmer to its CMBS team as svp and will be based in New York. He was previously svp in the CMBS team at Morningstar.

    BlueBay has .......

    Market Moves 22 June 2018

  • Questions remain over insurer participation

    The European Commission recently published the Delegated Act on Solvency 2, which improves the capital treatment for certain ABS exposures, as of 1 January 2019. However, market participants suggest that STS securitisations deserve fairer capital treatment and, as a result, insurance firms remain unlikely to return to the securitisation market in great number.

    Rabobank credit analysts take a bullish approach .......

    News Analysis 21 June 2018

  • PE players driving growth

    Australian ABS and RMBS issuance saw record volumes of over A$8bn and A$37bn respectively in 2017, according to SCI data. The rise of fintech platforms, non-bank financial institutions and private equity-backed lenders in the country - combined with the global hunt for yield - is set to support continued growth of its securitisation market.

    Private equity involvement in the .......

    Talking Point 19 June 2018

  • Capital computation

    The complexity involved in executing capital relief trades is driving increased focus on the operational requirements necessary for efficient cost of capital computation. Indeed, implementing a joined-up approach across the front, middle and back offices can benefit an issuer’s bottom line – not only in terms of RWA savings, but also in other areas of their business.

    “A great deal .......

    News Analysis 18 June 2018

  • SCI Start the Week - 18 June

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

    Pipeline
    A mixed bag of securitisations remained in the pipeline at the end of last week. ABS once again accounted for the majority of deals, but a number of CMBS and RMBS were also marketing.

    The newly announced auto ABS comprised: US$1.11bn Ally Auto Receivables Trust 2018-3, US$399.32m California Republic Auto Receivables Trust 2018-1, Ford Auto Securitization Trust 2018-B, US$1.24bn .......

    News 18 June 2018

  • IFRS 9 benefit welcomed

    The first-time adoption of IFRS 9 has had a muted impact on bank capital ratios and this has been reflected in existing capital relief trades through P&L gains (SCI 14 May). Indeed, the benefit can be acquired whether the first-loss tranche is sold or retained.

    According to a structurer at a large European bank: “The silver lining in SRT deals .......

    News Analysis 15 June 2018

  • Risk transfer round-up - 15 June

    Deutsche Bank is expected to execute two capital relief trades this month. One is a corporate deal from its CRAFT programme and the other is an SME deal from its GATE programme. The bank is also believed to be prepping a trade finance transaction from its TRAFIN programme for either end-3Q18 or 4Q18.  

    .......

    News 15 June 2018

  • CRI explained

    Stephen Taylor, head of structured and capital solutions EME...

    Q: What is credit risk insurance?
    A: Credit risk insurance (CRI) is used to transfer credit risk to insurers. One of the benefits of using CRI in securitisation structures is that this credit enhances the asset pool (subject to the legal/accounting treatment) and can make the portfolio more attractive to lenders.

    Q: How does CRI help optimise a credit portfolio?
    A: Our .......

    Talking Point 15 June 2018

  • Market moves - 15 June

    CLO name change

    The name of Babson Euro CLO 2014-1 has been changed to Barings Euro CLO 2014-1. The move is effective from 13 June.

    Europe

    MDB Group (MeDirect) has recruited Michael Curtis as cio, responsible for core credit activities and spearheading the bank’s diversification into new product areas. Based in London, he reports to ceo Mark Watson. Curtis was .......

    Market Moves 15 June 2018

  • Innovative RMBS prepped

    Mars Capital is in the market with a non-standard multi-lender £271.055m UK RMBS, dubbed Trinidad Mortgage Securities 2018-1. The transaction is backed by three individual portfolios of new and legacy first- and second-ranking mortgages, secured by residential or part-commercial properties in England and Wales.

    DBRS and S&P have assigned provisional ratings to the transaction of AAA/AAA on the class A .......

    News 13 June 2018

  • Creval completes second NPL deal

    Credito Valtellinese (Creval) has completed a €586.35m non-performing loan securitisation with a gross book value equal to €1.67bn, as at the 31 December 2017 cut-off date. The senior notes of the deal – dubbed Aragorn NPL 2018 – are expected to benefit from the GACS guarantee.

    Rated by DBRS and Scope, the transaction comprises a €509.52m BBB (low)/BBB- senior tranche .......

    News 13 June 2018

  • Bankruptcy law brings transparency

    India’s landmark Insolvency and Bankruptcy Code (IBC) has inflicted heavy losses on the nation’s banks this year. The law has nevertheless provided more transparency in the market and has reduced non-performing loan recovery periods.

    Cumulative losses for state banks were large enough to wipe out almost all of the government's capital injections of US$13bn, while weak performance is likely to .......

    News 11 June 2018

  • SCI Start the Week - 11 June

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

    Pipeline
    Non-auto related ABS deals have dominated the pipeline recently. Indeed, transactions representing a broad mix of asset types and jurisdictions were announced last week.

    The non-auto deals remaining in the pipeline by the end of the week were: US$130.14m Accelerated Assets 2018-1, US$100m AM Capital Funding Series 2018-1, US$294.4m CLUB 2018-P1, US$169.8m College Ave Student Loans 2018-A, US$991.78m DEFT .......

    News 11 June 2018

  • Market moves - 8 June

    Acquisition

    Angel Oak Commercial Lending (AOCL) has acquired a controlling interest in Cherrywood Mortgage – a national, small-balance commercial mortgage lender based in Los Angeles, California. Cherrywood will serve as the wholesale small-balance commercial lending arm of (AOCL) and is led by ceo Bill Komperda and president Ed Resendez.

    Cat bond first

    SCOR has sponsored a new cat bond, dubbed Atlas .......

    Market Moves 8 June 2018

  • UTP loans raise AI prospects

    Resolving unlikely to pay (UTP) loans is becoming more important for Italian banks, but the challenges involved can be particularly complex. As a result, special servicers are looking to create proprietary servicing platforms that utilise machine learning and artificial intelligence.

    Servicers have collected extensive information on borrower performance and credit data which they are using to an increasing degree to .......

    News 7 June 2018

  • Start-up launches to solve structured product problems

    Banks remain too big to fail and there is still opacity surrounding securitisation and structured products. This is the view of banking and derivatives veterans Philippe Naegeli and Patrick Loepfe, who have launched a new platform - dubbed GenTwo - aimed at addressing these challenges.

    Loepfe, founder and chairman at GenTwo, was previously chief risk officer at DIVAS Asset Management .......

    Provider Profile 7 June 2018

  • Deal 'will happen' despite political risk

    Banco BPM has announced the transferral of a €5.1bn gross nominal value (GNV) portfolio of NPLs to the Red Sea SPV, as part of Project Exodus (SCI June 1). The Italian bank aims to sell the junior and mezzanine notes, although political uncertainty may lead to higher premiums, putting a strain on the transaction.

    Banco BPM will apply for the .......

    News Analysis 6 June 2018
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