Complete news archive

  • 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

  • Euro CLO manager behaviour 'deserves scrutiny'

    A recent issuer consent payment provides another example of European CLO manager behaviour increasingly favouring equity to the detriment of noteholders. As risk retention dominates thoughts on both sides of the Atlantic, recent actions in the European market, where underwriting standards are loosening, point to a weakening alignment of manager and investor interests.

    "CLOs are increasingly being structured for the .......

    News Analysis 7 March 2018

  • ESG embraced in 2.0 CLO

    Permira Debt Managers last week priced Providus CLO I, representing its first CLO 2.0 deal and the beginning of a new CLO management platform. The €362.5m transaction is also one of the first European CLOs to adhere to ESG eligibility criteria, including restrictions on the nature of industries in which the fund will invest and a commitment to assess .......

    News 6 March 2018

  • Diesel ban 'bad news' for auto ABS

    Germany’s Federal Administrative Court has ruled that cities in Germany can impose restrictions on diesel vehicles. The ruling has the potential to lead to diesel car bans throughout the country, with a potential impact on German auto ABS transactions.

    The court ruling follows previous regional administrative court rulings in Dusseldorf and Stuttgart banning diesel cars from the cities. .......

    News 5 March 2018

  • SCI Start the Week - 5 March

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

    Upcoming event
    SCI Risk Transfer & Synthetics Seminar - 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 mortgage credit .......

    News 5 March 2018

  • Landmark sukuk could be first of many

    The inaugural UK sharia-compliant RMBS recently closed, marking the start of a new asset class in the jurisdiction. Al Rayan Bank's £250m Tolkien Funding Sukuk No.1 (SCI 29 January) signals a high point for the growth and acceptance of Islamic finance in the UK and could be the first of many such securitisations, across a range of assets.

    Moody's .......

    News Analysis 2 March 2018

  • Market moves - 2 March

    North America

    Cowen and Company has named Philip Cushman as head of global institutional sales which includes managing both the institutional equity and credit sales teams and Burton Welly has been named head of special situations and distressed credit trading, Cowen and Company, increasing his responsibilities to include all distressed credit trading initiatives. Prior to joining Cowen, Cushman served as md and .......

    Market Moves 2 March 2018

  • Synthetic exposure expanded

    Bank of Ireland has released its Pillar Three report, which indicates an expansion of its synthetic securitisation exposure. It also provides insight into the lender's counterparty exposures.
    According to the report, the total outstanding amount of synthetic securitisation exposure originated by the Bank of Ireland group increased by nearly a third in 2017 to €4.3bn. This comprises the bulk of .......

    News 2 March 2018

  • Bank acquisition trend continues

    HSH Nordbank has been sold for €1bn to JC Flowers and Cerberus. The agreement is accompanied by a sale of predominantly shipping non-performing loans to an acquisition vehicle of Cerberus and JC Flowers, as well as minority owners GoldenTree Asset Management and Centaurus Capital. The sale reflects an investment trend, whereby private equity investors acquire distressed financial institutions rather NPL .......

    News Analysis 1 March 2018

  • US CLOs steady

    The US CLO secondary market appears to be holding steady as participants consider their next move.

    "Superficially it looks like the long-standing pattern in the market will hold, but it feels to me like changes are afoot following the return from Vegas," says one trader. "There's no obvious single driver and I'm not sure there's even a consensus in the .......

    SCIWire 1 March 2018

  • Euro secondary slows

    January's optimism has faded throughout February as activity across the European securitisation secondary market has slowed.

    "There's not a great deal going on with a combination of factors such as a busy primary, holidays, Vegas and some bad weather keeping things pretty quiet," says one trader. "However, we have seen a couple of bid lists recently, which appear to have .......

    SCIWire 1 March 2018

  • PACE underwriting boosted

    Consumer protection legislation passed in California last October will collectively strengthen PACE underwriting practices, according to Morningstar Credit Ratings. The agency views most of the requirements as credit positive for future securitised residential PACE assessments and suggests that programme administrators may adopt the new measures on a nationwide basis.

    California Governor Jerry Brown signed into law both Assembly Bill 1284 .......

    News 28 February 2018

  • Stop advance application diverging

    The incorporation of 'stop-advance' provisions in US RMBS 2.0 deals appears to be becoming more prevalent. However, sponsors are implementing this mechanism in different ways, as they seek to mitigate losses and advance timeline ambiguity while maintaining liquidity for high investment grade securities.

    Stop-advance mechanisms do not allow servicers to advance interest on delinquent loans after a predetermined time, typically .......

    News 28 February 2018

  • LCR amendments could be STS 'game-changer'

    The European Commission's recent draft regulation on the LCR does not ensure STS securitisations are eligible as level 2A assets. Along with other factors, this could result in securitisation remaining a less attractive option compared to other financial instruments.

    Ian Bell, director of the PCS, commented on the draft regulation as part of the consultation. He suggests that "leaving this .......

    News 28 February 2018

  • NPL platform incentives weighed

    As part of efforts to facilitate a non-performing loan secondary market, the European Commission is considering a private sector-led platform to handle data warehousing and potentially trade execution. Such an initiative could eliminate information asymmetry and lower barriers to entry, but its success hinges on incentivising both buyers and sellers to use it.

    The major driver behind the proposed NPL .......

    News Analysis 26 February 2018

  • SCI Start the Week - 26 February

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

    Upcoming event
    SCI Risk Transfer & Synthetics Seminar - 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 mortgage credit risk .......

    News 26 February 2018

  • Market moves - 23 February

    North America

    David Sykes has rejoined Chapman and Cutler as a partner, expanding the firm's San Francisco office and asset securitisation department. Prior to rejoining, he was most recently at Renew Financial where he served as general counsel.

    Onex has appointed Tate Abols to its investor relations and fund development team as md. Abols was most recently a principal on .......

    Market Moves 23 February 2018

  • Indian investment boost expected

    India's latest guidelines aimed at speeding up non-performing loan resolution is likely to increase banks' credit costs and undermine earnings in the near term. The new regime, however, is also expected to boost NPL investment in the country.

    "The new regime forces speedier resolution and provides certainty of timelines for large account resolution. I would expect a deepening of credit .......

    News Analysis 23 February 2018

  • Risk transfer round-up - 23 February

    Deutsche Bank is said to be marketing another capital relief trade, dubbed CRAFT 2018-1. This follows last month's CRAFT risk transfer transactions - a bilateral deal and a syndicated one (SCI 5 January).

    Standard Chartered is also believed to be marketing another transaction. Additionally, sources point to one or two CRE and infrastructure transactions that closed last year, .......

    News 22 February 2018

  • Synthetics spur CDS expansion

    An evolving synthetic securitisation landscape is fuelling the expansion of the CDS market and CDS-linked products. However, the regulatory hurdle of the fundamental review of the trading book (FRTB) looms on the horizon.

    Dmitry Pugachevsky, director of research at Quantifi, comments that the financial crisis negatively impacted the image of synthetic and CDS-backed products. Now that the dust has settled, .......

    News Analysis 21 February 2018

  • Busy start for UK RMBS

    UK RMBS has come flying out of the blocks in 2018, with the end of the Term Funding Scheme (TFS) and Funding for Lending Scheme (FLS) only partly explaining the new-found enthusiasm for issuance. Recent JPMorgan figures put UK RMBS issuance at over £3bn for 2018 already, with US dollar tranches and Islamic finance techniques both seen, and even the possibility .......

    News Analysis 21 February 2018
×