Complete news archive

  • 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

  • Job swaps round-up - 8 December

    EMEA

    Clayton Euro Risk has announced that Tony Ward, ceo and president, and Simon Collingridge, client solutions and strategic delivery director, are leaving the company to pursue other business opportunities.

    CMS has hired Neil Hamilton as partner to its capital markets and derivatives team in London. He joins from Jones Day where he was also partner and boosts the team to .......

    Job Swaps 8 December 2017

  • Confidence boost for synthetic NPL deals

    A recent Ashurst survey notes that securitisation may prove to be the most prevalent method of non-performing loan resolution in Greece in the early years of the market, given the established infrastructure for this type of transaction. Indeed, NPL investors rank Greece in their top-two southern European target investment countries for the next 12 months.

    According to the survey results, .......

    News Analysis 8 December 2017

  • New investment era embedded

    It has been a banner year for US CLOs, with new issue volumes already topping US$100bn, plus resets and refinancings accounting for a further US$140bn. Not only have risk retention requirements embedded successfully, despite initial concerns regarding their implementation, they have also created new investment opportunities.

    Neil Weidner, partner at Cadwalader, notes that 2017 marks the first year post-crisis in .......

    News Analysis 8 December 2017

  • MMCF CLO debuts

    TCG BDC, formerly Carlyle GMS Finance, has teamed up with Credit Partners USA, a subsidiary of Canadian pension firm PSP, in a US$400m CLO. MMCF CLO 2017-1 is a static middle-market CLO and the first to be serviced by Middle Market Credit Fund (MMCF).

    Fitch and S&P have assigned ratings of triple-A on the US$231.70m class A1 notes, which have a .......

    News 7 December 2017

  • Record post-crisis CRE CLO prepped

    Blackstone Mortgage Trust (BXMT), a Blackstone-owned REIT, is marketing an inaugural US$1bn CRE CLO. Dubbed BXMT 2017-FL1, the transaction is the largest CRE CLO since the crisis and will initially be backed by 31 equally-sized non-controlling interests that are collateralised by 71 properties.

    Moody's and KBRA have assigned provisional ratings of Aaa/AAA to the US$530m class A notes. Only KBRA .......

    News 6 December 2017

  • Auto ABS spread distortion eyed

    European auto ABS bonds are trading at similar spreads to unsecured corporate debt issued by the same parent company, indicating a distortion of risk in the market. The trend may eventually be broken, however, as the ECB slows its ABS purchasing programme and regulatory changes taking affect next year broaden the European investor base for auto ABS.

    Vaclav Vacikar, ABS .......

    News Analysis 5 December 2017

  • Innovative financial guarantee printed

    Raiffeisen's €1.2bn ROOF Slovakia 2017, which is believed to be the first synthetic securitisation of Slovak assets (SCI 1 December), strengthens the bank's common equity tier 1 ratio (fully loaded) by around 12bp at the group level. The bank plans to be a programmatic issuer of risk transfer trades via its 'ROOF' securitisation platform.

    ROOF Slovakia 2017 represents a financial guarantee .......

    News 5 December 2017

  • SCI Start the Week - 4 December

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

    Pipeline
    The pipeline burst back into life last week as 10 ABS deals were added. There were also three RMBS, six CMBS and two CLOs announced.

    The ABS were: US$200m American Credit Acceptance Receivables Trust 2017-4; US$400m Avis Budget Rental Car Funding Series 2017-2; CNY4bn Bavarian Sky China 2017-3; US$126.32m CarNow Auto Finance Trust 2017-1; US$270m Foundation Finance Trust .......

    News 4 December 2017

  • Job swaps round-up - 1 December

    EMEA

    CBRE has hired Paul Coates as executive director and head of debt and structured finance EMEA. He will report to Richard Dakin, md of CBRE Capital Advisors. Coates was previously md, head of UK real estate finance at RBS.

    North America

    THL Credit co-ceo Christopher Flynn has been named sole ceo of the firm, following the resignation of co-ceo .......

    Job Swaps 1 December 2017

  • Risk transfer round-up - 1 December

    Raiffeisen has completed ROOF Slovakia 2017, a €1.2bn financial guarantee from its Slovak subsidiary Tatra banka, referencing a portfolio of corporate loans and project financings. The transaction is believed to be the first synthetic securitisation of Slovak assets and enabled capital relief to be achieved at RBI Group level, with the P&L of Tatra banka unaffected.

    The SPV is a .......

    News 1 December 2017

  • Repo RMBS changes tack

    LoanDepot is in the market with a US$300m repo RMBS transaction, marking the first issuance under the Station Place programme (SCI 5 February 2016) in which the non-bank lender is acting as repo seller, as well as sponsor and servicer. Dubbed LoanDepot Station Place Agency Securitization Trust 2017-1, the deal comprises a revolving warehouse facility collateralised by newly originated first-lien, .......

    News 30 November 2017

  • Fino phase two initiated

    UniCredit has closed Fino 1 Securitisation, marking the beginning of phase two of Project FINO, its plan to sell down a portion of the retained exposure relating to a €17.7bn portfolio of non-performing loans (SCI passim). The lender can now apply for the Italian GACS guarantee and sell the senior notes to investors, a first for GACS senior notes.

    The .......

    News Analysis 30 November 2017

  • US CLOs rising

    US CLO secondary market volumes and pricing levels are once again rising.

    "Overall November has been an up month for CLOs across the board," says one trader. "Secondary spreads remain firm to slightly tighter despite high BWIC volumes."

    The trader continues: "We've seen less auction activity in triple-As but volumes are strong elsewhere, particularly in mezz. With few broader credit .......

    SCIWire 30 November 2017

  • Euro CLOs soften

    Spreads are softening in the European CLO secondary market as liquidity dissipates ahead of year-end.

    "Secondary liquidity has now gone and we're seeing that in new issue too," says one trader. "The market has got weaker over the month, which is primarily due to seasonal factors combined with a bit of high yield nervousness permeating into the CLO space."

    The .......

    SCIWire 30 November 2017

  • Euro ABS/MBS stable

    The European ABS/MBS secondary market continues to remain stable.

    "It's been a sporadically active month - our total volumes and flows indicate November is the busiest since July," says one trader. "However, market tone is still strong and we're not seeing any areas of weakness."

    As a result, the trader says: "Secondary spreads remain well-supported, so we continue to steadily .......

    SCIWire 30 November 2017

  • BTL RMBS risk profile eyed

    The UK buy-to-let (BTL) market could see a drop in lending volumes and RMBS issuance, following the introduction of new regulations by the PRA. New energy requirements coming into force in April may also strain the sector, although they could lead to the emergence of a green UK RMBS asset class.

    From April 2018, rental properties in England and Wales .......

    News 29 November 2017

  • Fresh blow adds to CMBS retail woes

    The retail sector's well-publicised woes are affecting both primary and secondary CMBS. While the high retail concentration in outstanding US CMBS continues to concern the market, the retreat of lenders from the retail space means that now even healthy malls are struggling to attract financing.

    Large-scale store closures by retailers such as JC Penney, Macy's and Sears have become a .......

    News Analysis 29 November 2017

  • Risk transfer come-back

    Bank of Ireland has returned to the risk transfer market with Mespil Securities 2017-1. The lender's latest capital relief trade will increase its common equity Tier 1 capital ratio by 0.45% and comes a year after it carried out a similar transaction on around €3bn of loans from its business banking and corporate banking divisions in Ireland (see SCI's capital .......

    News 29 November 2017

  • Supply/demand imbalance to support spreads

    JPMorgan's latest international ABS investor survey suggests that the current supply/demand imbalance in European securitisation will persist in 2018. Indeed, sentiment appears somewhat surprisingly bullish, despite the significant spread compression seen throughout 2017 and the investment challenges presented by a combination of stretched valuations and limited scalability.

    The JPMorgan ABS Investor Confidence Index - which attempts to quantify survey participants' .......

    News 29 November 2017

  • Hurdles remain for Chinese ABS

    Chinese securitisation issuance reached RMB808bn in aggregate from 425 transactions last quarter, up from RMB498bn from 318 deals as of 3Q16, according to Fitch. However, while the domestic ABS sector may be growing, the market is unlikely to reach full maturity until it becomes truly cross-border.

    Jeffrey Chen, partner and head of structured finance at Dentons, Hong Kong, says that .......

    News Analysis 28 November 2017
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