Complete news archive

  • UK sukuk 'RMBS' first

    Al Rayan Bank is marketing its first £250m sharia-compliant UK securitisation. Dubbed Tolkien Funding Sukuk No.1, the deal is a static securitisation backed by first lien Home Purchase Plans (HPPs) extended to 1,672 customers and secured by residential properties in the UK.

    Moody's and S&P have assigned provisional ratings of Aaa/AAA to the £250m class A note, which represents the only offered tranche, .......

    News 29 January 2018

  • Latin America poised to grow

    The Latin American structured finance market is expected to be boosted by an improving economic environment across the region, with several countries likely to see growth in 2018. Issuance is anticipated to grow in Brazil, Argentina and Mexico across a range of asset classes, although uncertainty surrounds looming elections and a limited derivatives market hampers cross-border capabilities.

    Leandro de Albuquerque, .......

    News Analysis 26 January 2018

  • Slicing the risk

    Capital relief trade issuers and investors are weighing in on the virtues of a structuring technique dubbed 're-tranching'. The innovation involves slicing in two the junior risk, in an attempt to cope with higher capital requirements under the CRR (SCI 23 February 2017).

    "We're actively working with issuers and investors to move this forward," says Kaelyn Abrell, partner and portfolio .......

    News Analysis 26 January 2018

  • Market moves - 26 January

    North America

    Schulte Roth & Zabel has elected Stephen Schauder as a partner in the structured finance and derivatives group, working with co-heads Craig Stein and Boris Ziser. Schauder joined the firm as an associate in 2015 after having previously worked at Stroock & Stroock & Lavan in the structured finance department.

    CIFC has hired Jay Huang as md, senior .......

    Market Moves 26 January 2018

  • CRE CLO market tapped

    Värde Partners is tapping the market with a debut US$368.1m cashflow CRE CLO. The transaction, entitled VMC Finance 2018-FL1, is expected to close on 8 February and comprises 24 first-lien whole loans and pari-passu participations secured by commercial real estate properties spread across 12 US states.

    Moody's and KBRA have assigned ratings of Aaa/AAA to the US$200.6m class A notes .......

    News 25 January 2018

  • Toys R Us impact eyed

    Toys 'R' Us is set to close 182 stores, accounting for seven million square-feet or about a fifth of its US footprint, beginning early next month and running through mid-April. An estimated 51 properties securing 44 loans totalling US$2.03bn across 49 US CMBS have exposure to a location that is slated for closure.

    The closures follow Toys 'R' Us's filing .......

    News 25 January 2018

  • Hovnanian highlights 'need for change'

    A group of funds, led by Solus Alternative Asset Management, is seeking to prevent a deal between GSO Capital Partners and Hovnanian Enterprises which has the potential to fundamentally undermine trust in credit derivatives. A federal court is due to hear arguments today, but regardless of the outcome market participants say change is needed.

    Hovnanian is widely understood to be .......

    News Analysis 25 January 2018

  • Going green

    Current status of green ABS market discussed

    Representatives from Clifford Chance, TMF and Ygrene Energy Fund recently discussed the current status of green ABS during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the established asset classes, those that are developing, and what is next for the sector.

    Q: As the .......

    Talking Point 25 January 2018

  • Debut Canadian utility ABS prepped

    The Canadian province of Ontario has launched the country's first ABS backed by utility cost recovery charges. The transaction, dubbed Fair Hydro Trust, has yet to be valued but comprises three tranches and is designed to finance lower electricity costs for 5.05 million households and businesses throughout the province.

    The Fair Hydro Trust issuer has been established in connection with .......

    News 23 January 2018

  • Landmark financial guarantee completed

    The EIB and Credit Agricole completed an innovative synthetic securitisation in late December. Dubbed VIADUC, the risk transfer transaction combines a guarantee by the EIF - which covers Credit Agricole's large corporate clients - with a commitment by the French lender to provide €830m of subsidised loans to French SMEs and medium-sized companies (see SCI's capital relief trades News Analysis 23 January 2018

  • Programmatic issuance continues

    Intesa Sanpaolo last month returned to the risk transfer market with another GARC transaction. Dubbed GARC-SME 6, the €120m cash collateralised deal references a €2.5bn Italian SME portfolio.

    The Banca IMI-arranged transaction has established Intesa Sanpaolo as a programmatic issuer, being the Italian lender's sixth GARC deal. According to Elisabetta Bernardini, head of credit portfolio management at Intesa Sanpaolo: "With .......

    News Analysis 22 January 2018

  • SCI Start the Week - 22 January

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

    Pipeline
    Last week saw pipeline additions return to favouring ABS. There were seven ABS added, along with three RMBS, four CMBS and three CLOs.

    The ABS were: US$442m AASET 2018-1; US$1.115bn Ally Auto Receivables Trust 2018-1; US$580.78m Exeter Automobile Receivables Trust 2018-1; US$1.09bn Ford Credit Auto Owner Trust 2018-REV1; US$580.8m Navient Student Loan Trust 2018-1; US$170m Sonic Capital Series .......

    News 22 January 2018

  • Non-QM tipped as 'next opportunity'

    Last year marked the beginning of a transition from a post-crisis distressed recovery trade to a more efficient market for the US securitisation sector, underpinned by robust performance and favourable economic conditions. Against this backdrop, mortgage credit and private credit financings are expected to remain a strong source of risk-adjusted returns.

    Greg Parsons, ceo of Semper Capital Management, characterises the .......

    News Analysis 19 January 2018

  • Market moves - 19 January

    Acquisitions
    RenaissanceRe Ventures is set to acquire a minority shareholding in Catalina Holdings (Bermuda), with the aim of helping the business to explore a wider range of transaction structures. The agreement is subject to regulatory approval and is expected to close concurrently with the majority acquisition of Catalina by affiliates of Apollo Global Management. Aditya Dutt, president of Renaissance Underwriting Managers, will .......

    Market Moves 19 January 2018

  • Carillion liquidation met with cautious optimism

    The Irish stock exchange announced this week that a company, believed to be liquidated construction giant Carillion, triggered a credit event for HSBC's US$300m CLN dubbed 'Metrix portfolio distribution'. Despite the event, the market's initial reaction remains cautiously optimistic given the sturdy performance of synthetics over the last four years.

    Metrix was closed at end-2015 (see SCI's capital relief trades .......

    News 19 January 2018

  • AnaCap extends Romanian foothold

    A consortium led by AnaCap, Czech debt recovery firm APS and Deutsche Bank has won the bid for a non-performing loan portfolio put up for sale by Alpha Bank Romania. The €360m corporate transaction coincided with another €50m Romanian retail NPL transaction between Alpha Bank and B2Holding.

    Prior to 2014, banks and financial institutions operating in Romania employed a relatively .......

    News Analysis 18 January 2018

  • CLO collateral defaults eyed

     Defaulted collateral in US 2.0 CLOs rose through December, as increased leveraged loan defaults filtered through from November. While defaults in European 2.0 CLOs have remained steady, CLO managers have notably moved out of previously heavily weighted positions to boost performance.

    Defaults in the S&P LCD/LSTA leveraged loan index last month rose above 2% for the first time since June .......

    News 16 January 2018

  • SCI Start the Week - 15 January

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

    Pipeline
    Last week saw a ramping up of additions to the pipeline, led by ABS and RMBS. There were seven ABS and an ILS added, along with nine RMBS, a CMBS and two CLOs.

    The ABS were: US$1.25bn BMW Vehicle Owner Trust 2018-A; US$1.15bn CarMax Auto Owner Trust 2018-1; CNY4bn Fuyuan 2018-1 Retail Auto Mortgage Loan Securitization Trust; Hertz .......

    News 15 January 2018

  • Scenario analysis

    Elena Rinaldi, portfolio assistant at TwentyFour Asset Manag...

    ABS is an asset class that lends itself well to detailed underwriting, from onsite due diligence through to cashflow and risk modelling. Specifically within the CLO sector, once TwentyFour Asset Management has reviewed the manager and the collateral, we focus on stress testing and sensitivity analysis. The hypothetical question "what if?" plays a fundamental role in assessing the resilience of .......

    Talking Point 12 January 2018

  • Risk transfer round-up - 12 January

    Details have emerged of a Lloyds capital relief trade dubbed Cheltenham Securities 2017. The transaction was executed in late December (see SCI's capital relief trades database). The £40.524m CLN references a £517m portfolio of UK mid-market loans and matures in August 2022.

    During the same period, the EIF guaranteed a €330m portfolio of Austrian and German .......

    News 12 January 2018

  • Market moves - 12 January

    Acquisition

    Acrisure is set to acquire 100% of Beach & Associates equity from the firm's existing shareholders, which include Aquiline Capital Partners and Beach management. Under new ownership, Beach will retain its name and continue to operate as an independent advisory and transactional broking business within Acrisure. The existing Beach management team will remain following the transaction and have elected to become .......

    Market Moves 12 January 2018
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