Complete news archive

  • 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

  • Older borrowers shaping UK mortgage market

    A shift is underway in the UK mortgage market regarding borrowers entering retirement, with a relaxation on retirement interest-only (RIO) mortgages and changes to maximum borrower ages at loan maturity. Furthermore, volumes of equity release-style lifetime mortgages tailored towards older borrowers are growing.

    S&P comments that a combination of increased life expectancy and the increasing age for first property purchases .......

    News 5 June 2018

  • Chinese issuance growing strongly

    Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. Overseas ABS market participants point to the need to develop the investor base and deepen market expertise, but are also showing increased willingness to dip their own toes in the water.

    The Chinese securitisation market is now the second-largest in terms of issuance, hitting CNY1.495trn in .......

    News Analysis 4 June 2018

  • SCI Start the Week - 4 June

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

    Pipeline
    ABS and RMBS made up the majority of the transactions remaining in the pipeline at the end of last week. A trio of CMBS were also marketing.

    The auto ABS in the pipeline comprise: US$900m BMW Floorplan Master Owner Trust Series 2018-1, US$486.02m DT Auto Owner Trust 2018-2, US$707.86m Hyundai Auto Lease Securitization Trust 2018-B, CNY9.35bn Rongteng 2018-2 and .......

    News 4 June 2018

  • Consultant activity surveyed

    Investment consultants for long-term investors such as pension funds haven’t been as active in capital relief trades as other investors, typically hedge funds - although this is expected to change, as corporate defaults pick up over the next two to three years (SCI 25 April). The trades are attractive to consultants’ clients, as they provide exposure to higher quality corporate .......

    News Analysis 1 June 2018

  • Euro mortgage market heating up

    A thriving European mortgage market is attracting foreign investors seeking to capitalise on the low-risk returns on offer, particularly in the UK and the Netherlands. New firms such as Fortrum (SCI 18 May) are being established, offering innovative products and services to help smooth the path for those venturing into the European structured finance sector.

    Simon Collingridge, co-founder of Fortrum, .......

    Provider Profile 1 June 2018

  • Market moves - 1 June

    BTL RMBS planned
    UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool of approximately £350m buy-to-let non-member mortgages originated by The Coventry Building Society Group through its Godiva brand. The portfolio comprises 2,077 recently-originated loans with an average balance of approximately £169,000 and an average LTV of 60.8%. The loans have approximately five years until the current fixed rate .......

    Market Moves 1 June 2018

  • RRBs on the rise?

    Signs of an uptick in the US rate reduction bond (RRB) market are emerging, albeit the sector remains a relatively small segment of the securitisation landscape. More states are putting frameworks in place to enable them to issue RRBs and there are indications of innovative transactions on the horizon.

    Deborah Newman, director at S&P, says that while the RRB market .......

    News Analysis 30 May 2018

  • GACS issuance surge expected

    Investor appetite for GACS non-performing loan securitisations will be tested this year, as a strong pipeline of deals come to market before the government guarantee expires in September. Should the guarantee fail to be extended, more outright sales of NPLs are expected rather than securitisations.

    “Only three GACS NPL securitisations where completed before the first GACS law decree expired in .......

    News Analysis 29 May 2018

  • Managers set out stalls post-repeal

    Of open-market CLO managers that have issued a risk retention-compliant CLO, 61% are seeking to sell some or all of the risk retention interest, according to a recent survey from Maples and Calder. Indeed, a number of risk retention pieces have been put up for sale on the secondary market in recent weeks, following the official repeal of the ruling .......

    News 29 May 2018

  • NPL financing hurdle highlighted

    Financing non-performing loan resolutions remains the missing piece in efforts to tackle Europe’s troubled asset burden. While securitisation can help close the NPL bid/ask gap and broaden the investor base, the technology typically isn’t appropriate for volatile or deeply impaired assets.

    There is currently no preferred transfer model for NPLs, nor discussion around different NPL asset classes at .......

    News Analysis 25 May 2018

  • Risk transfer round-up - 25 May

    Standard Chartered is expected to roll over two existing trade finance capital relief trades in 2H18. In particular, Shangren 3 and Sealane 3 will be rolled over into two new deals: Shangren 4 and Sealane 4. Shangren 3 – in which Dutch pension fund PGGM was the investor - is a bilateral deal, while Sealane 3 is a syndicated one.

    News 25 May 2018

  • Landmark NPL securitisation closed

    Banca Monte dei Paschi di Siena’s landmark non-performing loan securitisation, Siena NPL 2018, features several structural innovations that are expected to be replicated in future NPL securitisations. The €4.33bn transaction securitises exposures equivalent to a gross book value of around €24.07bn (SCI 11 May).

    One structural innovation is that the transaction provides for a real estate operating company (ReoCo) to .......

    News Analysis 25 May 2018

  • Market moves - 25 May

    Analytics acquisition

    IHS Markit has signed a definitive agreement to acquire Ipreo for US$1.855bn from private equity funds managed by Blackstone and the Goldman Sachs merchant banking division. The acquisition is expected to close in 2H18, subject to customary closing conditions and regulatory approvals. Following a detailed review of its financial services businesses, the firm has also initiated a process .......

    Market Moves 25 May 2018

  • RMBS to follow Irish mortgage sale

    Barclays plans to securitise a €5bn legacy portfolio of Irish residential mortgages recently acquired from Lloyds. The deal follows hot-on-the-heels of the Durham RMBS transactions (SCI 11 May 2018), which priced last week.

    Cecile Hillary, head of asset finance solutions at Barclays, comments that the bank worked with M&G Prudential on the transaction, along with another firm. The portfolio comprises .......

    News Analysis 24 May 2018

  • Risk-based pricing after IFRS 9

    Raymond Zhu, senior manager, and Jan-Hinnerk Fahrenkamp, dir...

    When IFRS 9 came into force in January 2018, many in the credit risk world thought the hard part was over. After all, conventional wisdom suggested the new standard would cause a one-off shift in expected loss provisioning and life would return to normal.

    However, as firms are now rapidly gaining experience with the first generation of models, .......

    Talking Point 24 May 2018

  • TRS see sustained uptick

    IHS Markit iBoxx TRS trading volumes have risen sharply in recent years by around US$10bn and activity shows no sign of slowing down (see below chart, which represents the growth of standardised iBoxx TRS volumes). Factors driving this trend include increased hedging activity across the credit spectrum, as well as a broadening investor base harnessing the benefits of the product.

    News Analysis 23 May 2018

  • Sterling CLO boosts Euro diversity

    The announcement of a rare sterling-denominated deal has further boosted the growth and diversity of the European CLO market. PGIM Fixed Income’s latest transaction - Dryden 63 GBP CLO 2018 – is the first sterling CLO since 2013 and could pave the way for further such issuance in the coming months.

    NatWest Markets is sole arranger on Dryden 63, which .......

    News 22 May 2018

  • Synthetic access welcomed

    The launch of the CRTx credit risk transfer index (SCI 11 May) has been welcomed by RMBS traders for the ability to put trades on in size and hedge credit events in the underlying. However, its introduction is also expected to precipitate new levels of price volatility in the sector and drive spreads wider.

    “A credit risk transfer .......

    News Analysis 21 May 2018

  • SCI Start the Week - 21 May

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

    Pipeline
    The transactions remaining in the pipeline by the end of last week were spread fairly evenly across ABS, CMBS and RMBS. A whole business securitisation was also marketing.

    The newly-announced ABS comprised US$500m Ally Master Owner Trust Series 2018-2, US$221.94m Avant Loans Funding Trust 2018-A, US$2.25bn Honda Auto Receivables 2018-2 and US$676.29m MMAF Equipment Finance Series 2018-A. The .......

    News 21 May 2018
×