Complete news archive

  • 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

  • Euro 2.0 CLO programme debuts

    Natixis has closed its first European managed cashflow CLO 2.0 deal. Dubbed Purple Finance CLO 1, the €308.4m transaction is managed by Natixis Investment Managers affiliate Natixis Asset Management and is backed by primarily senior secured euro-denominated leveraged loans and bonds issued by European borrowers.

    Moody's and S&P have assigned Aaa/AAA ratings to the CLO's €173.70m class A notes (which .......

    News 11 January 2018

  • Barclays adds to US CRT impetus

    Barclays recently completed Colonnade Global 2017-4 Financial Guarantee, a rare US$100m risk transfer transaction referencing a US$1.25bn portfolio of US corporate loans. Adding impetus to a growing American capital relief trades market (SCI 8 January), the jurisdiction of both the deal's counterparty and investor is the US.

    Rated by DBRS, Colonnade Global 2017-4 comprises US$1bn triple-A rated class A notes, .......

    News Analysis 11 January 2018

  • MPS NPL securitisation takes off

    Quaestio, the Italian rescue fund, has closed its investment in the mezzanine tranche of Monte dei Paschi's €25bn non-performing loan securitisation. The transaction is a crucial part of the restructuring plan that was agreed with European authorities last July and a breakthrough that is expected to boost NPL securitisation deal flow (SCI 5 July 2017).

    Quaestio paid €805m in exchange .......

    News 11 January 2018

  • UBI Banca debuts SRT

    UBI Banca has executed its first capital relief trade, dubbed UBI 2017 RegCap 1. The approximately €100m cash collateralised financial guarantee references a €1.9bn corporate portfolio.

    According to Simone Tufo, head of capital management at UBI Banca: "Financial guarantees have been used extensively in the market, so we had plenty of benchmark cases to look at. However, this is only .......

    News 10 January 2018

  • Tracker examination impact assessed

    A review of the mismanagement of Irish mortgage payment calculations is likely to result in substantial compensation payments. Although implications for the RMBS market are expected to be limited, they could include the reduction of outstanding balances from pay-outs and a rise in prepayment rates, as sponsors repurchase loans that are granted rate rectifications.

    The Central Bank of Ireland (CBI) .......

    News 9 January 2018

  • CRE servicing composition tracked

    Dwindling CMBS and CRE CDO issuance posed a significant challenge for commercial mortgage servicers over the past decade. As such, servicers have sought greater exposure to loans from non-CMBS investors - including life insurance companies and the GSEs - to maintain portfolio volumes.

    US CMBS and CRE CDO loans made up 61% of the unpaid principal balance of the portfolios .......

    News 8 January 2018

  • SCI Start the Week - 8 January

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

    Pipeline
    There were a few deals added to the pipeline in the first week of the year. These were four ABS, an RMBS, a CMBS and a CLO.

    US$190m CPS Auto Receivables Trust 2018-A, Driver Japan Seven, E-CARAT 9 and US$1.24bn GM Financial Consumer Automobile Receivables Trust 2018-1 accounted for the ABS. The RMBS was Finsbury Square 2018-1, the .......

    News 8 January 2018

  • CRTs coming to America?

    Capital relief trades (CRTs) have become an established feature of the European securitisation market, with multi-billion euro deals frequently issued to achieve regulatory capital relief (see SCI's capital relief trades database). Although these transactions have not yet been embraced by US banks, that is expected to change.
     
    Rumours of US CRTs in the offing continue to circulate. Sources suggest .......

    News Analysis 8 January 2018

  • Risk transfer round-up - 5 January

    Deutsche Bank is understood to have closed two CRAFT risk transfer transactions, a bilateral deal and a syndicated one. The US$147m bilateral deal - dubbed CRAFT 2017-2A - is said to pay 8.75% and feature a 7.5-year WAL, with an expected maturity of July 2025 (see SCI's capital relief trades database).

    Other recently-closed capital relief trades include a .......

    News 5 January 2018

  • Market moves - 5 January

    Acquisitions/Investments
    SoftBank Group Corp     has acquired Fortress Investment Group for US$3.3bn in cash and now – along with its subsidiaries – owns all outstanding Fortress shares. Fortress shareholders approved the transaction last summer and all necessary regulatory approvals have now also been received. As a result of the acquisition, each outstanding Fortress class A share has been converted into the right to .......

    Market Moves 5 January 2018

  • NPL acquisition target achieved

    Banca IFIS has closed two new Italian NPL transactions totalling around €200m. The latest transactions bring the bank's NPLs under management at end-2017 to over €13bn, while confirming €5bn in total expected NPL acquisitions for 2017.

    Banca IFIS targeted €5bn in NPL acquisitions for the year 2017. This follows the implementation of its 2017-2019 strategic plan - approved in March .......

    News 4 January 2018

  • Santander, Lloyds ride synthetic CMBS wave

    Santander and Lloyds have each put together synthetic securitisations of commercial real estate portfolios. The financial guarantees and significant risk transfer deals are the first in a wave of post-crisis synthetic CMBS issuance.

    The CRE asset class experienced defaults pre-crisis due to cliff effects or abrupt step-ups in refinancing risk that put off investors. However, asset managers are coming in .......

    News Analysis 4 January 2018

  • China aircraft ABS placed publicly

    China Asset Leasing Group Holdings (CALC) has launched China's first ABS denominated and settled in a foreign currency. It is also China's first ABS in aircraft leasing in the public placement market.

    CALC is a full value-chain aircraft solutions provider for global airlines. Its subsidiary, China Asset Leasing Company, has issued the ABS. Huatai Securities (Shanghai) Asset Management is the .......

    News 4 January 2018

  • 'Unique' French windstorm ILS placed

    Willis Towers Watson placed €90m of ILS for Covea Mutual Insurance Group last month in a "unique transaction". The transaction was the first time a European catastrophe bond has supported capacity at the bottom of a traditional reinsurance programme and also the first time a European indemnity-trigger cat bond was placed on an annual aggregate basis, the company says.

    Hexagon .......

    News 3 January 2018

  • Dynamica makes ABS bow

    Dynamica Retail has issued its first salary assignment and payment delegation loans transaction in Italy. The transaction has a subscribed amount of €166.1m and a maximum note amount of €263.5m.

    Dyret SPV is a revolving cash securitisation of consumer loan receivables. Moody's has rated the senior notes A2. That A tranche has been subscribed for €137.2m and has a maximum .......

    News 3 January 2018

  • CSP testing delay 'minor issue'

    Testing of the Common Securitization Platform (CSP) (SCI passim) has carried on into the New Year, slipping past the FHFA's original deadline. This is the second significant delay of the last 12 months, after the announcement in 1Q17 that Release 2 of the CSP was being pushed back to 2Q19 to allow extra time for testing.

    The CSP will allow .......

    News Analysis 2 January 2018

  • Job swaps round-up - 22 December

    CDS options clearing

    LCH's CDSClear has become the first platform to clear credit index options, with post-trade services for both dealer-to-dealer and dealer-to-client flows provided by MarkitSERV. The service is expected to benefit members and clients in a number of ways, including full cross-margining of options with indices and single-name CDS, multilateral netting from facing a single counterparty (LCH) and .......

    Job Swaps 22 December 2017

  • Project finance risk transfer completed

    Santander has completed a synthetic risk transfer securitisation, transferring risk on a €2.3bn portfolio of loans originated in Spain and other EU countries. Scope Ratings has rated the transaction triple-A.

    The synthetic project finance CLO references a portfolio of 241 loans originated by Banco Santander. The deed was executed yesterday, 21 December.

    Scope has rated the €1.514m A tranche at .......

    News 22 December 2017

  • Embracing a tactical approach

    David Moffitt, head of tactical investment opportunities at LibreMax Capital, answers SCI's questions

    Q: How and when did LibreMax Capital become involved in the securitisation market?
    A: LibreMax Capital was established in October 2010 by founding cio Greg Lippmann and founding president Fred Brettschneider, who previously worked at Deutsche Bank and Credit Suisse together. The firm - which focuses exclusively on .......

    The Structured Credit Interview 22 December 2017

  • SRT investor concerns disclosed

    AFME, in association with the International Association of Credit Portfolio Managers (IACPM), has responded to the EBA's significant risk transfer discussion paper. The response reveals investor-related concerns around certain aspects of the paper, most notably on the early termination of credit protection.

    The responses that have been disclosed thus far - especially during the EBA's public hearing last month - .......

    News 21 December 2017
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