Complete news archive

  • 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

  • SCI Start the Week - 19 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 .......

    News 19 February 2018

  • Market moves - 16 February

    EMEA

    Fulcrum Asset Management has recruited Mark Horne as a director within the newly created Fulcrum Alternative Strategies team, reporting to partner Matthew Roberts. Horne previously worked as an independent asset management consultant in London and Paris. Prior to that, he was a senior credit manager researcher at Willis Towers Watson and was director of client services at Natixis Global .......

    Market Moves 16 February 2018

  • Longer WAL RMBS preplaced

    Obvion has preplaced a static RMBS that does not feature a time call option. Dubbed FORDless Storm 2018, the €1.41bn securitisation is backed by mortgages on residential properties located in the Netherlands extended to 6,863 prime borrowers.

    The transaction is similar to other funding deals from the Storm programme, but has no step-up language and the underlying pool is not .......

    News 16 February 2018

  • IFRS 9 credit event pay-out challenged

    Synthetic securitisations are unlikely to trigger CDS credit events following an increase in IFRS 9 provisions, given that such events are expected to be traditionally defined. Capital relief trade issuers therefore do not expect much disruption from IFRS 9 transactions, other than the added benefit of mitigating the accounting standard's provisioning impact.

    "The transition from stage one to stage two .......

    News Analysis 16 February 2018

  • 'Test case' mortgage deal disclosed

    Permanent TSB unveiled this week its Project Glas portfolio of distressed mortgages, as the Irish lender seeks to offload approximately €4bn of non-performing loans. The portfolio is understood to comprise a mix of buy-to-let and home loan assets and is being seen as a test case for further Irish NPL issuance.

    "This is the first jumbo mortgage NPL deal in .......

    News Analysis 16 February 2018

  • 'Academic' SBBS to 'lack demand'

    A European Systemic Risk Board task force has published a paper arguing that European safe bonds, SBBS (SCI 7 July 2017), are a plausible concept under "certain conditions". The programme has its critics, however, who suggest that the bonds may be plausible from an academic perspective but lack any demonstration of how they may work in practice.

    The ESRB .......

    News Analysis 16 February 2018

  • French ABS to benefit from new regime

    The creation of a new SPV regime in France (SCI 11 October 2017) will boost the country's ABS sector by simplifying the existing investment framework and streamlining the origination of loans and structuring of transactions. It is also hoped that the new vehicle will enable France to compete with other jurisdictions in attracting foreign capital for a range of .......

    News Analysis 14 February 2018

  • Call for consolidation

    Bank of Italy governor Ignazio Visco has called for Italian bank consolidation in order to tackle subdued profitability owing to, among other factors, higher provisions associated with non-performing loan disposals. Consolidation could improve the already buoyant issuance of NPL transactions.

    The central bank governor states that although profitability over the coming years should be sustained by a reduction in loan .......

    News 12 February 2018

  • CRE CLOs quick off the line

    Two more firms have launched inaugural CRE CLOs, with a US$480.4m transaction from Argentic Silverpeak and a US$510.2m transaction from Bridge Investment Group. The transactions are further examples of a surge in CRE CLO issuance since the start of 2018, indicating a trend of investment firms favouring the CLO structure over traditional CMBS, particularly due to the flexibility the structure .......

    News 12 February 2018

  • Risk retention relief for CLOs

    The US Court of Appeals for the DC Circuit last week reversed a lower court decision and ruled in favour of the LSTA in its lawsuit against the SEC and the US Fed, concluding that open-market CLO managers are not subject to risk retention rules. The outcome is expected to benefit smaller CLO managers, as well as boost the supply .......

    News Analysis 12 February 2018

  • SCI Start the Week - 12 February

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

    Pipeline
    It was yet another busy week of pipeline additions. There were nine ABS, 11 CLOs, three CMBS and five RMBS.

    The ABS were: US$550.94m ARI Fleet Lease Trust 2018-A; US$500m Credit Acceptance Auto Loan Trust 2018-1; €738.8m Driver Fourteen; €1.5bn FADE Series 32; US$1.25bn GM Financial Automobile Leasing Trust 2018-1; US$507.47m Navient Private Education Refi Loan Trust 2018-A; .......

    News 12 February 2018

  • Intesa leads asset management shift

    Intesa Sanpaolo announced this week a four-year plan to halve its non-performing loan exposures by 2021 by boosting fee income and selling its servicing platform. The lender has led the shift in fee-earning businesses among Italian banks, which coincides with low interest rate pressure on interest margins and ECB demands for a reduction in bank NPL volumes (SCI 4 October .......

    News 9 February 2018

  • Market moves - 9 February

    North America

    Greystone has hired Anthony Alicea as head of production of the portfolio lending group. He will report to Mark Jarrell, who leads the group, and he will oversee production for the firm's bridge and mezzanine lending products that complement Greystone's lending products. In his 20-year career, he has led CMBS and securitisation projects for Arthur Andersen's real estate .......

    Market Moves 9 February 2018

  • GNMA aims to stop churn

    In a move which should be a net benefit to RMBS, Ginnie Mae has taken steps to address churning in its RMBS programme, both to keep mortgage rates affordable and to preserve liquidity in the security. To that end it has notified a "small number" of issuers who are outliers among market participants in the Ginnie Mae multi-issuer MBS on .......

    News 9 February 2018

  • Risk transfer round-up - 9 February

    Credit Suisse is rumoured to be re-tranching its existing risk transfer transactions, echoing recent market comments over the prospective use of this innovation in the capital relief trade space (SCI 26 January). The technique involves slicing in two the junior risk, in an attempt to cope with higher capital requirements for the retained tranches.

    Elsewhere, market sources observe that Greek lenders are .......

    News 9 February 2018

  • Navient preps 'debut' refi SLABS

    Navient is tapping the ABS market for the first time after acquiring online lender Earnest. Its latest US$507.47m transaction, dubbed Navient Private Education Refi Loan Trust 2018-A, is backed by fixed-rate refinanced student loans first originated by Earnest and subsequently acquired by Navient to circumvent competition clauses since its split from Sallie Mae last year (SCI 30 October 2017).

    News 8 February 2018

  • Landmark sovereign ILS priced

    The IBRD has printed the largest sovereign risk transfer transaction ever and the second-largest catastrophe bond issuance. The landmark deal provides US$1.36bn in earthquake protection to Mexico, Chile, Colombia and Peru, marking the first time the latter three countries have accessed the capital markets to obtain insurance for natural disasters.

    The issuance consists of five classes of World Bank bonds: .......

    News 8 February 2018

  • Key CMBS pillars hold steady

    New US CMBS transactions are generally seeing signs of improving credit quality. This challenges recent rating agency criticisms that there has been a fall in the quality of the underlying loans.

    Moody's recently stated that there has been an erosion of key pillars of loan structural quality, particularly in single-borrower CMBS deals. Tracy Chen, portfolio manager and head of structured .......

    News Analysis 7 February 2018

  • Gearing up for green

    Two pilots funded by Horizon 2020 - the EU programme for research and innovation - are set to launch next month that should boost the development of green securitisation in Europe. One is a project to develop PACE ABS across the region and the other aims to create a standardised energy efficient mortgage.

    The project to develop PACE securitisations - .......

    News Analysis 6 February 2018

  • Carillion impact gauged

    Capital relief trade issuers and investors have been assessing the effect of Carillion's default on the market, following news of its impact on HSBC's Metrix transaction (SCI 19 January). Market consensus indicates that such a default is an idiosyncratic event.

    "Corporates have had low default rates and the CRT asset class has been very resilient since the crisis. It's a reflection .......

    News Analysis 5 February 2018
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