Complete news archive

  • 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

  • SCI Start the Week - 27 November

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

    Pipeline
    As might have been expected, there were very few additions to the pipeline last week. In fact, all that remained by the end of the week were two new ABS and two RMBS.

    US$330m Consumer Loan Underlying Bond Credit Trust 2017-P2 and €527m SapphireOne Auto 2017-1 accounted for the ABS. The RMBS were RedZed Trust 2017-2 and €6bn .......

    News 27 November 2017

  • Provisioning differences highlighted

    UniCredit and Intesa Sanpaolo recently revealed differences over the ECB's provisioning guidelines, with the spotlight falling on non-performing loan recovery mechanisms. Speaking at IMN's Investors' Conference On Italian & European NPLs, representatives from the lenders also discussed their NPL strategies going forward.

    Carlo Viola, head of strategies and solutions at Intesa Sanpaolo, observed: "Automatic provisioning has to take into account .......

    Talking Point 27 November 2017

  • Job swaps round-up - 24 November

    EMEA

    Alvin Wong has been hired as director at United Overseas Bank (UOB). Previously he was svp at DBS bank where he was involved in structured finance and securitisation transactions.

    North America

    Ally Financial has hired Josh Wilsusen as md for public policy and government affairs. Wilsusen was previously at Morgan Stanley where he was executive director of government relations and .......

    Job Swaps 24 November 2017

  • Thinking outside the box

    Investor demand is driving an expansion of the US prime RMBS credit box. Following years of issuance focused on what could be termed 'super prime' mortgage securitisations, the market has now moved on to what may instead be classified as 'expanded prime'.

    The US prime RMBS market has been dominated by super prime from the crisis right up to 2016. .......

    News Analysis 24 November 2017

  • Inaugural island auto ABS markets

    My Money Bank (MMB) is marketing an inaugural €527m static cash auto ABS. The transaction, titled SapphireOne Auto 2017-1 (see SCI's deal pipeline), is backed by 39,122 non-delinquent auto loan (64%) and lease (36%) contracts to borrowers in the French overseas territories of La Reunion, Guadeloupe, Martinique and French Guiana.

    The transaction is provisionally rated by Moody's and .......

    News 24 November 2017

  • UK CMBS prices tight

    Taurus 2017-2 UK, a rare single-loan UK CMBS (SCI 17 November), has priced. All offered tranches were well covered and final spread levels were set below initial price talk and at the tighter end of guidance, although concerns have also been raised.

    Initial price talk for the £164.48m senior A tranche, rated triple-A by Fitch and DBRS, was in the .......

    News 24 November 2017

  • AOFM RMBS bids successful

    The Australian Office of Financial Management has completed its latest RMBS auction. The programme was relaunched this month (SCI 8 November), having been put on hold since 2015.

    The AOFM auction received bids of A$62.22m amortised face value of Firstmac 2-2011 A3 and accepted A$62.22m. The range of clean price bids was 100.71 to 100.8 and the lowest accepted clean .......

    News 24 November 2017

  • SRT concerns acknowledged

    Attendees of a public hearing on the EBA's SRT discussion paper have raised concerns in relation to excess spread, time calls and commensurate risk transfer tests (SCI 28 September). The EBA has acknowledged the concerns, but as its consultation is still ongoing it has not provided detailed responses.

    The trapping mechanism is a key requirement for excess spread. The amount .......

    News Analysis 24 November 2017

  • CLO managers 'can benefit' from 2018 volatility

    Increasing corporate sector volatility will test European CLO managers next year, believe structured finance analysts at Bank of America Merrill Lynch. While the recent price volatility in major CLO exposures seen across Europe is set to continue, managers who can rise to the challenge will be able to really set themselves apart.

    European CLOs have been exposed to volatility in .......

    News 23 November 2017

  • Inaugural inventories ABS is sector 'holy grail'

    Trafigura has launched a 'pioneering' debut commodities securitisation marking a milestone for the sector. The US$470m non-recourse funding programme, Trafigura Commodities Funding (TCF), is backed by inventories of crude oil and refined metals and is structured with a senior and junior tranche.

    TCF is a stand-alone vehicle, incorporated in Singapore, and has issued US$470m of senior funding notes, comprising the .......

    News 22 November 2017

  • Mixed portfolio SRT printed

    NatWest has originated a capital relief trade dubbed Nightingale Securities 2017-1. Unusually, the £390.2m CLN references a mixed portfolio of asset classes. It is also the first DBRS-rated synthetic securitisation for the RBS Group.

    The synthetic securitisation, structured in the form of a financial guarantee (SCI 18 April), was priced in the typical 9%-12% range for these trades. It features .......

    News Analysis 21 November 2017

  • NPL secondary 'needs AMC blueprint'

    The European Commission has confirmed progress on NPL secondary markets. It has highlighted the creation of NPL secondary markets through improved data standardisation as well as work towards a blueprint for an asset management company (AMC).

    Speaking at a recent conference on Italian and European NPLs, European Commission financial services and capital markets union director Mario Nava noted that standardisation .......

    News Analysis 21 November 2017

  • African appetite for structured products

    Standard Bank has launched a new US dollar-denominated credit derivatives product, opening up African credit opportunities to global investors hungry for structured products. The programme will issue credit-linked notes (CLNs), providing exposure to otherwise inaccessible African credit and meeting growing African investor demand for portfolio diversification.

    The Luxembourg structured note programme is designed to provide investors with the opportunity to .......

    News Analysis 21 November 2017

  • SCI Start the Week - 20 November

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

    Pipeline
    There were considerably fewer ABS added to the pipeline last week as additions became more evenly distributed. There were six new ABS announced, as well as five RMBS, eight CMBS and seven CLOs.

    The ABS were: CNY3.5bn Driver China Eight; €530m Ginkgo Compartment Sales Finance 2017-1 (re-offer); US$1bn Honda Automobile Receivables 2017-4 Owner Trust; CNY4bn Huitong 2017-1 Retail .......

    News 20 November 2017

  • Job swaps round-up - 17 November

    EMEA

    CSC has hired Jonathan Hanly as md to its Ireland office, Hinnerk Koch as md to its Luxembourg office and Aline Sternberg as head of transaction services in the UK. Hanly has previous executive leadership roles with the Intertrust Group, SFM Europe and RBS. Koch has significant experience in the alternative finance and securitisation markets in Luxembourg, having spent .......

    Job Swaps 17 November 2017

  • Risk transfer round-up - 17 November

    RBS hit the market this week with its first DBRS-rated risk transfer transaction, dubbed Nightingale Securities 2017-1. The £390.2m CLN references a mixture of asset types, with a WAL of 4.5 years and a sequential amortisation structure, as per CRR/SRT rules.

    Meanwhile, Lloyds is rumoured to be marketing two capital relief trades - a mid-cap deal and a large real .......

    News 17 November 2017

  • UK CMBS could signal turning point

    Bank of America Merrill Lynch is marketing a Blackstone-sponsored UK CMBS - the first European conduit CMBS since early last year - signalling a possible turning point for the asset class and a potential surge in issuance. Dubbed Taurus 2017-2, the £347.929m transaction is backed by a single floating-rate loan, which is secured by a portfolio of 127 predominantly logistics .......

    News Analysis 17 November 2017

  • CLO with euro, dollar seniors prices

    Black Diamond Capital Management last week priced a CLO with both euro-denominated and US dollar-denominated notes. The senior notes of Black Diamond 2017-2 have been rated triple-A by S&P.

    The €142m A1 notes and US$55.8m A2 notes priced at plus 0.86% and plus 1.3%. Both classes of notes were rated triple-A by S&P, as were the €30m A3 notes and .......

    News 17 November 2017

  • Call for increased standardisation

    Ahead of the EBA's public hearing tomorrow on its significant risk transfer (SRT) discussion paper (SCI 28 September), SCI undertook a straw poll of industry opinion on the document. The exercise revealed an overall positive response, although some areas for improvement were highlighted, especially regarding transaction standardisation.

    Giuliano Giovannetti, ceo of Arch Mortgage Insurance, says that the EBA's SRT guidelines .......

    Talking Point 16 November 2017
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