Complete news archive

  • Increase in liquidity 'hard to measure'

    Liquidity in structured products is difficult to quantify, and perhaps even to define. Whichever way it is measured, traders agree that it has increased and predict that over the course of 2018 spreads are going to continue their long tightening trend.

    Liquidity is commonly identified by the presence of associated phenomena. Two-way markets made by dealers are considered to be .......

    News Analysis 22 March 2018

  • Finnish CMBS debuts RFN feature

    Finnish real estate firm Sponda – which was acquired by Blackstone in June 2017 – is in the market with an innovative CMBS. The €540.87m securitisation includes a new structural feature in the form of reserve fund notes (RFNs), which finance the note share portion of the liquidity reserve.

    The transaction securitises a single €590.9m loan jointly advanced .......

    News 22 March 2018

  • Marketplace lending now 'mainstream'

    The US consumer economy’s long recovery has now become well established and access to credit has developed markedly over the last few years. Marketplace lending ABS has become similarly well established in this environment and is set to continue its development, although there are fears that the market is now teetering towards a bubble.

    A senior executive at .......

    News Analysis 22 March 2018

  • Stress scenarios disclosed

    The Bank of England has announced that the 2018 stress test scenario for the major UK banks will be the same as that used in 2017, rendering it more severe than the global financial crisis. The scenario will assess the impact of IFRS 9 on the stress test results, but the central bank confirms that although capital ratios are .......

    News 19 March 2018

  • Greek lease ABS prepped

    Hertz franchisee Autohellas is in the market with AutoWheel Securitisation, an ABS backed by operational auto leases extended to Greek corporates and SMEs. The €101.5m transaction is the first non-bank leasing securitisation to be executed in Greece.

    AutoWheel Securitisation is a cash securitisation with an 18-month revolving period, backed by auto leases and future sales proceeds from the .......

    News 19 March 2018

  • SCI Start the Week - 19 March

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

    Pipeline

    There was a somewhat more measured pace of pipeline additions last week. The final count consisted of eight ABS, a CLO, two CMBS and three RMBS.

    The ABS were: US$753.59m Daimler Trucks Retail Trust 2018-1; US$200m GMF Floorplan Owner Revolving Trust Series 2018-1; US$578.1m GMF Floorplan Owner Revolving Trust Series 2018-2; RMB4bn Huitong 2018-1 Retail .......

    News 19 March 2018

  • Market moves - 16 March

    EMEA

    Citigroup has appointed Laura Coady to the newly created position of head of EMEA, structured finance syndicate desk and she will continue to report locally to EMEA co-heads of global structured finance and securitisation Peter Keller and Bob Liao, and report globally to Vikram Prasad, global head of credit syndicate desk, taking responsibility for distributing all products from the .......

    Market Moves 16 March 2018

  • Doubling-up on due diligence?

    Securitisation investors believe that their own due diligence procedures will still be required on deals carrying the STS label, for fear they may lose the designation. Nevertheless, the STS framework is expected to lead to better quality ABS product, with reliance on the label increasing over time.

    Henry Cooke, executive director at Gryphon Capital, commented at a recent PCS seminar .......

    News Analysis 16 March 2018

  • Issuers urge goodwill on STS

    European securitisation issuers are modelling new transactions and updating legacy deals, across a range of asset classes, to be STS compliant. However, there is agreement that an overly punitive regulatory environment could harm the chances of the framework’s success, with some issuers backing the implementation of a transition period.

    Steve Gandy, md at Santander Global Corporate Banking, commented at a .......

    News Analysis 15 March 2018

  • Split-mortgage RMBS eyed

    Securitisations of split mortgages could emerge in Ireland, according to DBRS, given improving fundamentals and the clear servicing regime for non-performing and re-performing loan portfolios in the country. However, the unusual features associated with such assets may prove challenging.

    Split-mortgage restructuring is one method of resolving mortgage arrears provided for under the Irish Mortgage Arrears Resolution Process (MARP) .......

    News 14 March 2018

  • Mortgage ILS prepped

    Essent Guaranty is marketing a mortgage insurance securitisation, only the second such transaction to be publicly rated since Arch Capital Group debuted the structure (SCI 14 November 2017). The US$360.75m transaction, entitled Radnor Re 2018-1, references a pool of mortgage insurance policies linked to 175,653 residential mortgage loans.

    Morningstar has assigned preliminary ratings of triple-B to the US$161.277 .......

    News 12 March 2018

  • Servicing liquidity risk highlighted

    The spring 2018 edition of the Brookings Papers on Economic Activity includes a report exploring how the funding and operational structure of the non-bank mortgage sector remains a significant channel for systemic liquidity risk in US capital markets. Entitled ‘Liquidity crisis in the mortgage market’, the paper suggests that the typical non-bank has few resources with which to weather .......

    News 12 March 2018

  • SCI Start the Week - 12 March

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

    Upcoming event

    SCI Risk Transfer & Synthetics Seminar – Tomorrow (13 March), New York

    SCI’s Synthetic Securitisation Seminar provides an in-depth exploration of how synthetic securitisation is being utilised to transfer risk, achieve capital relief and create bespoke investment opportunities in the post-financial crisis environment. Panels cover capital relief trade structuring and regulatory considerations, issuance trends, index tranches and .......

    News 12 March 2018

  • Market moves - 9 March

    North America
    Anthony Orso has joined NKF Capital Markets as president of capital markets strategies. Orso will support the integration of Berkeley Point Capital with ARA, two companies recently acquired by NKF Capital Markets, an affiliate of the Newmark Group. He will work closely with Jeff Day, ceo of Berkeley Point Capital and Blake Okland, vice chairman and head of US multifamily. .......

    Market Moves 9 March 2018

  • Cyber tops ILS agenda

    The insurance sector continues to push the boundaries of innovation, with new product offerings in terror and nuclear risk already structured and a cyber risk ILW said to be in the pipeline. There are also hopes that cyber and terror ILS products may lead to repeat issues and so buck the trend for one-offs in the sector.

    Thomas .......

    News Analysis 9 March 2018

  • CRE CRTs pick up

    Synthetic securitisations referencing commercial real estate are attracting more investor interest, following the issuance of three transactions at the end of last year (see SCI’s capital relief trades database). Representing the first post-crisis synthetic CRE deals, issuance is being driven by high risk weights for specialised lending and investor step-in rights.

    The three CRE capital relief trades .......

    News Analysis 9 March 2018

  • Efficiency drive

    Credit Suisse is pioneering the re-tranching of capital relief trades, following the implementation of the new securitisation framework in Switzerland (SCI 9 February). However, more widespread re-tranching activity is expected to emerge over the next 24 months, as issuers seek to retain the efficiency of their transactions.

    The new securitisation framework became effective in Switzerland on 1 January .......

    News Analysis 9 March 2018

  • Predicted Euro CMBS pickup awaited

    There has been plenty of speculation that European CRE is in the late-cycle stage, and retail exposure has also prompted concerns. With last month's ECB announcement that CMBS is no longer repo eligible, a weak reception for the latest deal, and the increasing use of untranched bonds, the market's future is uncertain.

    The success of Taurus 2017-2 UK at the .......

    News Analysis 8 March 2018

  • Basel 4 impact 'manageable'

    The new Basel 4 capital framework (SCI 14 December 2017) is expected to increase Dutch bank RWAs by approximately 25%, on a pro forma basis, equivalent to around 300bp of CET1. However, the impact is expected to be manageable, considering strong capitalisation and profitability levels, as well as the long implementation timeframe.

    Higher capital requirements will be driven .......

    News 7 March 2018

  • Innovative RMBS pair prepped

    Two innovative US RMBS transactions are marketing from both sides of the agency/non-agency divide. AIG has brought its debut self-sponsored deal to the market, while Fannie Mae is preparing a US$1.007bn CAS transaction, with notable departures from previous offerings.

    AIG's US$446.17m non-agency RMBS, dubbed Pearl Street Mortgage Company (PSMC) 2018-1 Trust, is backed by 726 prime fixed-rate mortgages, acquired by AIG .......

    News 7 March 2018

  • Risk-sharing on the agenda

    Panellists participating in SCI’s Risk Transfer & Synthetics Seminar are primed to discuss everything from traditional capital relief trades through to GSE credit risk transfer and bespoke investments at the event next week. Indeed, the theme of risk-sharing is expected to be explored in some depth across a number of panels.

    “Structural issues are key to determining the .......

    News 7 March 2018
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