Complete news archive

  • 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

  • Sharp rise in Italian NPL ABS expected

    Italy is set to see a jump in GACS-eligible securitisations in 2018, potentially totalling €40bn-€45bn in gross book value of sold non-performing loans, compared with €8bn this year. Scope Ratings suggests that should Banca Monte dei Paschi di Siena NPL ABS not close next year, GACS-eligible securitisations in the jurisdiction should still double 2017's total.

    Scope anticipates that Italy will .......

    News 21 December 2017

  • Landmark shipping SRT completed

    Further details have emerged of Nord LB's landmark shipping significant risk transfer trade (SCI 8 December). Dubbed Northvest 2, the financial guarantee is believed to be the largest post-crisis synthetic securitisation of shipping assets.

    Nord LB's latest transaction references a €10.1bn mixed portfolio of around 4300 high quality loans, including €1bn of shipping loans. Other assets in the portfolio include .......

    News 20 December 2017

  • IFRS 9 volatility persists

    The Bank of England did not disclose any data on the capital impact of IFRS 9, following the recent PRA stress tests, as had initially been expected - although subsequent statements by the central bank signal no overall impact for stress-based capital requirements. However, sources in the capital relief trade market note that the need for managing IFRS 9 volatility .......

    News Analysis 20 December 2017

  • Esoterics shine in 2017

    The US esoteric ABS market has gone from strength to strength in 2017, as investors gained comfort with less vanilla assets in a continued hunt for yield. Whole business and aviation ABS have been notable highlights, with both segments seeing record issuance levels this year.

    Aviation ABS activity has seen steady growth for the last five years. Evan Wallach, president of Global .......

    News Analysis 20 December 2017

  • Broad-based recovery underlined

    The global securitisation markets continued their broad-based recovery in 2017, with total issuance reaching about US$850bn-equivalent through November, an increase of 27% over the approximately US$667bn-equivalent recorded in full-year 2016. Volumes have been supported by economic growth and more market participants embracing securitised products in order to diversify funding sources and add yield.

    The US recorded US$478bn in new issue securitisation volume .......

    News Analysis 20 December 2017

  • PPC benchmark securitisation pending

    Finacity has been awarded the role of securitisation advisor on behalf of Greece's Public Power Corporation (PPC). The move is expected to pave the way for the first Greek securitisation for a corporate entity and establish a benchmark for other non-performing loan transactions.

    A consortium led by Finacity and Qualco has been tasked with enhancing PPC's working capital and managing .......

    News 19 December 2017

  • SCI Start the Week - 18 December

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

    Pipeline
    ABS additions to the pipeline finally dropped off last week, but RMBS, CMBS and CLOs continued to be added. The RMBS were US$165m Ajax Mortgage Loan Trust 2017-B, €900m HT Abanca RMBS II, US$883.8m JPMMT 2017-6 and Liberty Series 2017-4 Trust.

    US$600m Atrium Hotel Portfolio Trust 2017-ATRM, US$1.395bn FREMF 2017-K729, US$560m GSMSC 2017-FARM, US$891m UBS 2017-C7, and US$300m .......

    News 18 December 2017

  • Debut Russian RMBS 'just the start'

    VTB Capital has closed an inaugural RMBS under the Russian government-backed AHML programme, which the bank suggests could be one of many securitisations to come, across a range of asset classes. The RUB48.2bn transaction is a securitisation of the mortgage portfolio of the bank's retail arm, VTB24, is secured by privately-owned apartments and features a single-tranche pass-through structure, offering a fixed annual coupon of .......

    News Analysis 15 December 2017

  • NPL expansion accelerates

    Banca IFIS has closed two disposals totalling €336m of retail and corporate non-performing loans. The transactions coincide with a significant expansion of the bank's NPL division, which is currently shifting its focus to the salary-backed loan market.

    Through 2017 Banca IFIS raised the target for NPL acquisitions to €5bn. This follows the implementation of its 2017-2019 strategic plan - approved .......

    News Analysis 15 December 2017

  • Directive to reform NPL landscape

    The EBA has this week published further draft technical standards and guidelines relating to the updated payment services directive - PSD2 - which comes into effect next month. PSD2 will significantly affect the volume and management of European NPLs.

    The EBA's latest final draft technical standards cover both the future EBA register under PSD2 and central contact points under the .......

    News Analysis 15 December 2017

  • Risk transfer round-up - 15 December

    Barclays has returned to the capital relief trade market with another Colonnade transaction. Colonnade UK 2017-1 financial guarantee references a £2.6bn corporate portfolio. Under the senior guarantee, Barclays will buy protection for both principal and interest, which is a typical feature of Colonnade transactions (SCI 8 September).

    The deal follows rumours of another corporate risk transfer transaction from Italian lender .......

    News 15 December 2017

  • Job swaps round-up - 15 December

    North America

    Angelo, Gordon has promoted Josh Baumgarten and Adam Schwartz to the roles of co-cio, active 1 January, 2018. Baumgarten is currently deputy cio at the firm while Schwartz is currently head of the company's real estate group in the US and Europe. Michael Gordon will continue in his role of ceo and co-cio.

    Lee Shaiman has been hired as .......

    Job Swaps 15 December 2017

  • Debussy trigger breach eyed

    DBRS has downgraded its rating on the Debussy DTC class A notes to double-B (low) from triple-B (low) and placed the deal under review with negative implications. The move reflects the imminent decrease in credit characteristics of the UK CMBS, due to Toys 'R' Us's (TRU) proposed company voluntary arrangement (CVA), which could result in the transaction suffering an ICR .......

    News 14 December 2017

  • Debut SLABS more of a 'distressed bond'

    After a Brexit-related delay, the UK government has closed Income Contingent Student Loans 1 (2002-2006), its debut £3.94bn student loan securitisation (SCI 1 November and 29 March). The transaction has been hailed as a success by ABS analysts, but it may have deterred some traditional ABS investors and has led to suggestions that it's not a recognisable ABS product at .......

    News Analysis 14 December 2017

  • Basel 4 proportionality expected

    The Basel Committee last week finalised the long-awaited Basel 4 reforms (SCI 8 December). The proposals have received an overall positive reception from the market, although much will depend on how the rules are translated into the CRR. Indeed, the prospect of proportionality at the EU level appears to be more promising (SCI 23 October).

    According to last week's agreement, .......

    News Analysis 14 December 2017

  • MPL sector shakes off reputational threats

    With continued growth of the marketplace lending ABS sector and repeat issuance from a range of firms, the market appears to have shaken off its label as an esoteric asset class. At the same time, a potential resolution to the ongoing Madden case suggests that the sector could finally be overcoming its reputational issues.

    Last quarter was strong for the .......

    News Analysis 13 December 2017

  • Riding the refinancing wave

    The US CMBS market appears to have successfully addressed the challenges posed this year by the peak of the refinancing wall and the implementation of risk retention rules. Against this backdrop, single-asset/single-borrower (SASB) transactions posted record issuance volumes, as new investors entered the sector to fund risk retention.

    Low interest rates and a competitive commercial real estate lending environment have .......

    News Analysis 13 December 2017

  • SCI Start the Week - 11 December

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

    Pipeline
    A mixed bag of securitisations remained in the pipeline by the end of last week. ABS and CMBS accounted for the majority of deals, with a handful of CLOs and RMBS also marketing.

    The newly announced ABS transactions comprised: US$572.22m Conn's Receivables Funding Series 2017-B, US$265.8m Consumer Loan Underlying Bond Credit Trust 2017-NP2, US$74m Continental Credit Card ABS .......

    News 11 December 2017

  • Freddie innovation continues

    Freddie Mac continues to expand its credit risk transfer remit, pricing two innovative securitisations last week. The first deal references relief refinance loans, while the second is backed by affordable single-family rental (SFR) properties.

    Dubbed FRESR 2017-SR01, Freddie Mac's inaugural US$161.12m SFR transaction is backed by 59 loans originated primarily by CoreVest American Finance (see SCI's primary issuance database). .......

    News 11 December 2017

  • Risk transfer round-up - 8 December

    Nord LB has this week closed a shipping significant risk transfer transaction dubbed Northvest 2. The €1bn shipping credits form part of a €10.1bn multi-asset portfolio.

    The transaction coincides with the finalisation of the outstanding Basel 3 reforms. The RWA output floor has been agreed at 72.5%, as expected.

    More importantly though, banks will have until 2027 to adhere to .......

    News 8 December 2017
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