Complete news archive

  • ISPV approach published

    The UK PRA has published its final approach and expectations in relation to the authorisation and supervision of insurance SPVs (SCI passim). In light of public consultation, a new safeguard has been introduced that removes the need for multi-arrangement insurance SPVs (MISPVs) to notify supervisors of proposals to assume new risks before they take effect. The authority has also issued .......

    News 2 November 2017

  • Using insurance to lay off risk

    Alan Ball and Fiona Walden, senior underwriters leading the structured risk solutions team at Liberty Specialty Markets, answer SCI's questions

    Q: How did Liberty Specialty Markets become involved in providing capital relief-driven transactions?
    A:     We're one of the leading insurers operating in the London insurance market, providing both specialty insurance and reinsurance. Our structured risk solutions team was set up just .......

    The Structured Credit Interview 2 November 2017

  • Unique SLABS relaunched with revisions

    The first securitisation of income-contingent repayment (ICR) student loans originated by the UK government (SCI 29 March) has been re-jigged after being postponed due to the UK general election in June. Dubbed Income Contingent Student Loans 1 (2002-2006), the £3.94bn ABS is the first of its type globally and has been relaunched with structural changes and revised provisional ratings.

    Rabobank .......

    News 1 November 2017

  • Secured warehouse use broadens

    Be-Spoke Loan Funding (SCI 3 October), a direct lending warehouse facility set up as a cashflow securitisation, exemplifies one of the ways in which secured warehouse financing continues to evolve. While the sector has already demonstrated adaptability, rising interest rates could pose a significant challenge.

    Warehouse funding is mainly used as either an acquisition bridge facility, a private facility for .......

    News Analysis 1 November 2017

  • Protection 'gap' targeted

    Plans to establish Singapore as an Asian insurance-linked securities hub were unveiled today at the Singapore International Reinsurance Conference. Lim Hng Kiang, minister for trade and industry and deputy chairman of the Monetary Authority of Singapore (MAS), outlined a three-pronged strategy aimed at closing what he described as a "protection gap" in the region.

    "As Asia continues to grow in .......

    News 1 November 2017

  • Secured exposures eyed

    The ECB's recent proposal regarding higher non-performing loan provisioning is expected to have a modest impact, in particular for unsecured loans. However, the provisioning backstop for secured exposures poses a challenge.

    According to DBRS, unsecured loans will be dealt a minimal blow by the ECB's proposal, since many jurisdictions already have standards in line with the central bank's approach. The .......

    News Analysis 1 November 2017

  • Online retail drives CRE growth

    Industrial logistics space outperformed office, retail, apartment and light industrial space in terms of supply, demand, occupancy and rent growth in 1H17, notes Morningstar Credit Ratings. Online retailers such as Amazon have been central to the industrial sector emerging as the leader of growth in CRE.

    Amazon's industrial space backs US$2.41bn in CMBS. The company's fulfilment network, comprised of fulfilment .......

    News 31 October 2017

  • US CLO stand-off

    The US CLO secondary market is caught in a supply-demand stand-off.

    "The secondary market has effectively reached stalemate," says one trader. "Levels are such that for many buyers prices are too high, but holders aren't seeing enough value or alternatives to warrant selling, so it has been very quiet over the past few weeks."

    The trader continues: "That said, the .......

    SCIWire 31 October 2017

  • Loss coverage ratios scrutinised

    Loss coverage ratios on a number of World Omni Auto Trust class A ABS bonds should have been adequate before the recent introduction of a cash-trapping mechanism, according to a new Wells Fargo study. However, the analysis suggests that loss coverage ratios on class B bonds have been lagging, particularly for 2016 vintage deals.

    Fitch recently affirmed its ratings on .......

    News 31 October 2017

  • First Aussie personal loan ABS prepped

    The first Australian personal loan ABS is marketing. The A$542.5m Latitude Australia Personal Loans Series 2017-1 transaction (see SCI's deal pipeline) securitises a portfolio of Australian unsecured and partially secured personal loans originated by Latitude Personal Finance.

    Moody's has assigned preliminary ratings of Aaa to the A$331.5m class A notes. It has rated the A$56m class B, A$40m .......

    News 31 October 2017

  • Euro secondary strengthens

    Levels continue to strengthen across the European securitisation secondary market.

    October has been another month of more of the same and November looks unlikely to differ in the short term as technicals still hold sway and volumes remain relatively light. Demand continues to outstrip supply with holders unwilling to release seemingly ever-improving paper and other participants, especially dealers, very keen .......

    SCIWire 31 October 2017

  • Legal issues weigh on Earnest acquisition

    Navient's recent acquisition of Earnest is seen as a bold move, given its ongoing legal challenges (SCI 13 October). While the takeover could lead to a surge in refi student loan ABS from the firm, investors in future transactions may need to consider whether they are buying into additional risks.

    Joe Cioffi, partner at Davis & Gilbert, says: "I think .......

    News Analysis 30 October 2017

  • SCI Start the Week - 30 October

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

    Pipeline

    There were notably fewer pipeline additions last week. The final count consisted of an ABS, five RMBS, four CMBS and a CLO.

    US$340m Tesla 2017-1 was the ABS. The RMBS were: US$170.2m Bayview Opportunity Master Fund IVb Trust 2017-RT6; US$207.2m CoreVest American Finance 2017-1; US$486m Flagstar Mortgage Trust 2017-2; C$520m Fortified Trust Series 2017-1; and US$343.51m MetLife Securitization Trust .......

    News 30 October 2017

  • STS rules welcomed

    The European Parliament last week approved new common rules for securitisation in the EU, while also finalising the simple, transparent and standardised (STS) framework. The long-awaited legislation has been welcomed by the market, although it features numerous legal uncertainties, which are expected to be resolved at the regulatory technical standards level.

    "It's very positive that regulators identify, define and support .......

    News Analysis 30 October 2017

  • Risk transfer round-up - 27 October

    Rabobank has sold a €600m portfolio of 3,600 loans that it originated. The loans all have the benefit of an NHG guarantee, backed by De Stichting Waarborgfonds Eigen Woningen (WEW).

    WEW is a foundation that acts as a home ownership guarantee fund backing the NHG programme. The transaction is Rabobank's first Dutch mortgage portfolio distributed to non-Dutch investors.

    Sources note .......

    News 27 October 2017

  • Jet ABS 'postponed'

    Global Jet Capital's debut securitisation, Business Jet Securities 2017-1, has been postponed, according to a source close to the transaction. This follows a recent comment from Fitch (SCI 11 October) which questioned the integrity of the transaction and the ratings assigned by Kroll Bond Rating Agency (SCI 28 September).

    A source close to the deal has refuted claims that the .......

    News 27 October 2017

  • Greek shipping ABS boosts liquidity

    Alpha Bank has successfully completed a US$250m true sale securitisation via Citi, its second such transaction in three years. The non-recourse four-year term deal diversifies liquidity access for the lender, and is one of the very few shipping securitisations globally.

    Greek banks have encountered challenges in accessing interbank market funding following the Greek crisis of 2010-2015. Through this transaction Alpha .......

    News 27 October 2017

  • Job swaps round-up - 27 October

    Australia

    RMS has hired Pierre Wiart as md to its Sydney office, working on client relationships and market development. He was previously principal at Convergence Partners in Sydney.

    EMEA

    Goldman Sachs has hired Alex Snow as md to its structured finance division. He was also previously md at RBS in structured finance.

    North America

    Axis Capital has hired Brad Livingstone .......

    Job Swaps 27 October 2017

  • Timeshare ABS uncapped

    LV Tower 52 has launched a US$157m timeshare ABS, marking the firm's first transaction that Fitch has not capped at single-A. Elara HGV Timeshare Issuer 2017-A is backed by 5,309 timeshare loans tied to a single resort in Las Vegas.

    Fitch and S&P have rated the US$105.48m class A notes at triple-A, US$31.48m class Bs at single-A and the US$20.03m .......

    News 26 October 2017

  • Fresh yen repack prepped

    Another CLO is being repackaged to issue the senior notes in Japanese yen rather than US dollars. There were three repacks in August arranged by Mitsubishi UFJ Morgan Stanley Securities (SCI 16 August 2017).

    The repackaging effectively converts the repack portion of the Fortress class A notes into Japanese yen-denominated securities from US dollar-denominated securities. The expected closing date is .......

    News 25 October 2017

  • Debut Veros deal markets

    Veros Credit has prepped an inaugural rated US$165.28m subprime auto ABS. The transaction, Veros Auto Receivables Trust 2017-1 (see SCI's deal pipeline), is backed by a pool of 17,328 seasoned subprime auto loan contracts secured mostly by used vehicles.

    Kroll Bond Rating Agency has assigned provisional ratings on the transaction of single-A on the US$128.74m class A notes, .......

    News 24 October 2017
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