Complete news archive

  • Euro middle market CLOs on the cards

    Middle market CLO issuance is expanding in the US and emerging in Europe, with a variety of warehouse financing options for middle market loans and increasing variability. Increased middle market activity appears to be pressuring lenders, investors and arrangers, as demand exceeds available supply.

    Investors in the US have flooded the middle-market loan space with liquidity, according to DBRS, with .......

    News 27 June 2017

  • US ABS accelerates

    Activity in the US ABS secondary market has begun to accelerate this week.

    After several weeks of focus on the primary market attention has returned to secondary this week. Yesterday saw a pick-up in BWIC volume as rotation activity began to take hold and sellers looked to get lists out as early as possible before the de facto long weekend.

    SCIWire 27 June 2017

  • Atlas CLO debuts AMR feature

    Crescent Capital Group last week priced its latest broadly syndicated CLO. The US$413.7m Atlas Senior Secured Loan Fund VIII debuts an applicable margin reset (AMR) feature, which is designed to aid in the execution of CLO refinancings (SCI 5 September 2016).

    The AMR feature is classed as a redemption event under the transaction documents, whereby the notes can be redeemed .......

    News 27 June 2017

  • Euro secondary steps up

    Activity has started to step up across the European securitisation secondary market following an extended series of relatively quiet sessions.

    Flows continue to be thin, though there have be patches of increased activity seen in a variety of sectors since the end of last week and into this. At the same time, rotation activity combined with month- and half-end positioning .......

    SCIWire 27 June 2017

  • Risk-retention vehicle restructurings expected

    Appetite for European CLO risk-retention and warehouse investments is strong. Uncertainty post-Brexit around third-country provisions is proving a threat to the nascent development of CLO risk-retention vehicles, however.

    "Brexit is a live issue because it is occurring at the same time that any number of CLO risk-retention sponsor vehicles (as well as the CLOs they are holding risk-retention investments in) .......

    News Analysis 26 June 2017

  • Veneto liquidation opens NPL ABS opportunities

    Veneto Banca and Banca Popolare di Vicenza will be wound down after the ECB confirmed that they are "failing or likely to fail". The Italian government is set to provide €17bn to cover losses from bad loans while handing the 'good' assets to Intesa Sanpaolo for a symbolic amount. The government's intervention and recent amendments to the Italian securitisation law .......

    News Analysis 26 June 2017

  • Lender targets in-school and refi loans

    College Avenue Student Loans is in the market with its first rated term ABS, dubbed College Ave Student Loans 2017-A. The US$160.89m transaction is backed by a mix of in-school and refinanced student loans originated online through the College Ave platform.

    DBRS and S&P have assigned provisional ratings to the transaction of A/BBB on the US$95.32 class A1 notes, A/BBB .......

    News 26 June 2017

  • SCI Start the Week - 26 June

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

    Pipeline
    A mix of new deals - both in terms of collateral type and jurisdiction - entered the pipeline last week. ABS was the dominant asset class, but RMBS made a good showing too.

    The ABS new entrants comprised: €193m Aqua Finance No. 4, US$253m CAL Funding III Series 2017-1, US$160.9m College Ave Student Loans 2017-A, NZ$140.6m FP Ignition .......

    News 26 June 2017

  • Data drought impedes NPL ABS growth

    Incomplete data and inadequate servicing infrastructure continues to beset the European non-performing loan market. Nevertheless, recent changes to Law 130 in Italy may help to address the growing number of 'unlikely to pay' debtors - a large, but untapped, portion of Italian banks' NPL exposures.

    Reto Bachmann, senior research analyst, global sector lead for real estate, infrastructure and structured finance .......

    News Analysis 23 June 2017

  • IFRS 9 to spur risk transfer trades

    Higher expected provisioning under IFRS 9 is expected to spur a slew of risk transfer issuance before its enactment in January 2018. Indeed, portfolio management will be central to how institutions manage and price the volatility that the new accounting standard will bring.

    "You can imagine a logjam of cases," says Adrian Docherty, head of bank advisory at BNP Paribas. .......

    News Analysis 23 June 2017

  • Job swaps round-up - 23 June

    Auction

    Towd Point Master Funding has won the auction of 1,262 seasoned re-performing and moderately delinquent loans sold by Freddie Mac as part of its second Seasoned Loan Structured Transaction (SCI 19 May). The transaction involves the sale of loans via a competitive bidding process, subject to a securitisation term sheet, with the purchaser then securitising them. The US$291.6m pool .......

    Job Swaps 23 June 2017

  • Risk transfer round-up - 23 June

    Sources refer to heightened activity in the capital relief trades market, with many deals awaiting finalisation by year-end. Jurisdictions that are said to have seen activity include the US and Eastern Europe. In particular, sources point to synthetic SME securitisations from Slovakia and Poland.

    Meanwhile, Italian deals are also expected from UniCredit and Intesa Sanpaolo, as well as Spanish supply .......

    News 23 June 2017

  • UK non-standard RMBS debut prepped

    Optimum Credit is in the market with its first UK non-standard prime RMBS. The transaction is called Castell 2017-1 and is backed by a £242m pool of second lien mortgage loans (see SCI's deal pipeline).

    The class A notes have been rated Aaa by Moody's and triple-A by DBRS. The class Bs have been rated Aa1 and double-A .......

    News 22 June 2017

  • RBI steps up resolution efforts

    The Reserve Bank of India has announced plans to resolve the troubled loans of 12 large borrowers responsible for about 25% of the banking system's non-performing assets under India's Insolvency and Bankruptcy Code (IBC) of 2016. The move is credit positive for Indian banks, since it can help with overall asset quality - albeit large write-downs for state banks are .......

    News 21 June 2017

  • Whole business ABS prepped

    Jimmy John's is in the market with its debut whole business securitisation. The US$850m ABS is backed by royalties from 2,627 Jimmy John's franchises and 63 company-owned restaurants, representing 97.7% and 2.3% of system-wide locations respectively.

    KBRA has assigned provisional ratings of triple-B to all of the notes, which comprise the US$50m class A1s, U$400m A2Is and US$400m A2IIs. An .......

    News 20 June 2017

  • AIG's debut RMBS collateral 'among strongest'

    American International Group (AIG), which has not previously participated in the issuance of RMBS, is in the market with Credit Suisse Mortgage Capital 2017-HL1 Trust (CSMC 2017-HL1), sized at US$512m (see SCI's deal pipeline). The senior notes have been rated triple-A by Fitch and DBRS, with the collateral deemed to be among the strongest since the crisis.

    The .......

    News 20 June 2017

  • Regulatory boost for risk transfer trades

    Balance sheet synthetic securitisation volume is predicted to rise in the coming years, with greater conformity in deal structure and increased variance in reference assets. A more accommodating regulatory environment should help boost the growth and acceptance of the market.

    In terms of the recent finalisation of the STS framework, Robert Bradbury, md, StormHarbour, welcomes the clarification on risk retention. .......

    News Analysis 20 June 2017

  • SCI Start the Week - 19 June

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

    Pipeline
    A rush of ABS deals joined the pipeline last week, picking up from the limited activity of the week before. As well as eight new ABS, a further five CMBS and a CLO were added.

    The ABS were: US$450m Credit Acceptance Auto Loan Trust 2017-2; US$1.38bn Drive Auto Receivables Trust 2017-1; US$750m Enterprise Fleet Financing 2017-2; US$1.3bn Ford .......

    News 19 June 2017

  • Time to taper?

    Participants at IMN's Global ABS conference recently suggested that quantitative easing is likely to ease off in Europe soon, coinciding with a potential tapering of programmes like the Europe-wide ABSPP and TLTRO in the UK. While the view that tapering should begin was widely held, panelists were uncertain about how government support for the securitisation market should - and would .......

    Talking Point 19 June 2017

  • Freddie launches tax-exempt loan series

    Freddie Mac has launched a new series of credit risk transfer securities backed by tax-exempt loans (TELs) made by state or local housing agencies and secured by affordable rental housing. The first issuance has already priced and includes around US$292m in ML certificates backed by TELs on 25 properties.

    The FRETE 2017-ML01 certificates are backed by the TELs. There are .......

    News 16 June 2017

  • Risk transfer round-up - 16 June

    One talking point this week was the EBA's announcement at IMN's Global ABS conference of its intention to publish a paper on risk transfer transactions. "This is a very important step," says one issuer.

    He adds: "Despite a surge in risk transfer issuance, many of our clients still have hesitations over these deals, due to regulatory uncertainty over their defining .......

    News 16 June 2017
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