Complete news archive
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SCI Start the Week - 20 November
A review of SCI's latest content
New SCI video series
In the first instalment of SCI's Basel 4 video series, Alantra md Holger Beyer provides a brief outline of what's new in Basel 4 and SCI's Kenny Wastell asks market participants whether the new regulations will be a game changer for the SRT market.Last week's news and analysis
News 20 November 2023
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Stand by, CRT
CRT boom but adverse regulations loom, say SCI conference speakers
Echoing what is now a familiar refrain, speakers at SCI’s inaugural esoterics conference in New York Last week said that the US CRT market is set to get very big.
“Every bank is now looking at assets that don’t justify a 100% risk weighting,” said one.
The rise of subscription credit facilities means that CRT deals that offer synthetic exposure to this class .......
News 17 November 2023
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Reissue, renew, reprint
Big banks focus on retention in German RMBS
The reissuing, renewing and reprinting of retained structures seems to be the name of the game in German RMBS, as covered bonds remain the preferred secured wholesale funding tool of German banks as TLTROs disappear. However, with higher all-in coupons and widening covered bond spreads, the relative pricing differential is narrowing and the funding diversification argument may become stronger.
News Analysis 17 November 2023
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CAS and out
Fannie Mae prints 8th and final CAS of 2023
Fannie Mae has printed its US$609m CAS 2023-08, the eighth and final CAS offering of 2023.
Morgan Stanley was the lead structuring manager, and joint bookrunner. Wells Fargo is the co-lead and also joint bookrunner.
There are three tranches to the trade. The A-/A- US$278m M1 has been priced at 30-day SOFR plus 150bp, the BBB/BBB+ US$206m M2 at SOFR plus 250bp and .......
Market Moves 17 November 2023
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Manulife acquires CQS
Market updates and sector developments
Manulife Investment Management is to acquire London-based alternative credit manager CQS. The transaction will see CQS’s investment team continue to operate autonomously, though Manulife will take ownership of the firm’s brand and credit platform.
Following completion of the deal, CQS will benefit from exposure to new investors and the scaling of its distribution footprint, according to a statement. .......
Market Moves 17 November 2023
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Job swaps weekly: BNP bulks up in Americas
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees BNP Paribas building out its Americas-focused advisory and solutions teams, with two senior securitisation-focused appointments among a number of hires. Elsewhere, American Century Investments has appointed two industry veterans to its securitised markets team, while Academy Securities has snapped up a senior Citi exec as md and head of RMBS capital .......
Market Moves 17 November 2023
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Risk transfer round-up - 16 November
The week's CRT developments and deal news
Market news
News 16 November 2023
Freddie Mac last week priced the high-LTV STACR 2023-HQA3 deal, its first CRT transaction since the end of June, introducing a new deal structure. The trade included an A1 class structured as a three-year bullet-like bond, which is pro-rata to the senior retained AH class from day one, but receives all AH cashflows at the three-year mark and .......
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Value covered
LibreMax Capital cio Greg Lippmann and ABS head Kevin Tyler...
Q: How has the evolution of the banking system and regulatory environment over time shaped private credit markets?
The Structured Credit Interview 16 November 2023
GL: Before the global financial crisis (GFC), there were certain aggressive financial products which enabled consumers to become overleveraged, as well as light bank capital charges for investment bank holdings of structured products, which ultimately brought Lehman Brothers to default and spurred .......
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Angel Oak ABS-focused ETF reaches US$100m in AuM
Market updates and sector developments
Angel Oak Capital Advisors, based in Atlanta, has announced its Ultra Short Income ETF, chiefly invested in ABS, has grown to over US$100m in assets under management in the year since launch. Most ultra short ETFs with assets of a year or less in duration are invested in commercial paper and Treasury bills, but Angel Oak perceived a gap .......
Market Moves 15 November 2023
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Inflection point?
Dennis Heuer, partner at White & Case, discusses the...
Q: Having historically been secretive and opaque, is the SRT market likely to transition from highly private to increasingly more syndicated deals? Are we witnessing an inflection point?
Talking Point 15 November 2023
A: I wouldn’t describe it as a clear shift but rather something I can foresee happening. Currently the market is divided between small club (often anchored by one lead investor) or bilateral .......
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Global Risk Transfer Report: Chapter three
In the third of six chapters surveying the synthetic securit...
IACPM’s latest risk-sharing survey notes that 2022 highlighted not only a substantial growth in SRT product utilisation by banks, with €200bn in new issuance, but also some structural changes in the risk-sharing activity of banks. Nevertheless, a number of regulatory challenges remain outstanding.
SCI’s Global Risk Transfer Report examines how the risk transfer community is addressing these .......
Talking Point 15 November 2023
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Ares flies high
Top alt credit investor predicts CRT boom
Ares Management, founded in 1997, is a leading investor in alternative credit products. It has US$395bn under management, of which some US$32bn, or a little under 10%, is invested in alternative credit. It recently closed Pathfinder II, one of its alternative credit funds devoted to illiquid instruments, with US$6.6bn in commitments, measurably more than the US$5bn target. It is also almost .......
The Structured Credit Interview 14 November 2023
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Basel 4 series: SRT game changer - video
Market participants share their views on the extent to which...
In the first instalment of SCI's Basel 4 video series, Alantra md Holger Beyer provides a brief outline of what's new in Basel 4 and SCI's Kenny Wastell asks market participants whether the new regulations will be a game changer for the SRT market.
....... News Analysis 14 November 2023
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Waiting game?
Islamic securitisation gaining traction
Saudi Real Estate Refinance Company (SRC) is widely anticipated to become the first to issue a Shari’ah-compliant RMBS transaction in the Kingdom. However, the drivers for a broader lift-off in Islamic limited recourse securitisation are yet to materialise.
The Islamic finance market is not dissimilar to the conventional securitisation market. In the conventional market, consumer retail banks seek .......
News Analysis 13 November 2023
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SCI Start the Week - 13 November
A review of SCI's latest content
Last week's news and analysis
News 13 November 2023
A global market
Man GPM answers SCI's questions
Canadians coming
Scotia back in the CRT market
Esoteric explosion
Data centre securitisation seeing strong fundamentals
Glass half full?
PRA publishes discussion paper on capital requirements for securitisation transactions
Global Risk Transfer Report: Chapter .......
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Job swaps weekly: ESG debt-swap pioneer transitions to UBS
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees a Credit Suisse veteran take on a senior ESG- and structured-credit role at UBS Group following the latter’s acquisition of the former. Elsewhere, Colliers has lured two ex-George Smith Partners (GSP) executives as vice presidents, while a senior Federal Housing Finance Agency (FHFA) exec has joined Guy Carpenter.
Credit Suisse .......
Market Moves 10 November 2023
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Securitisation due in H1 for international student loan provider
Goldman, Deutsche and Värde backed MPOWER's latest debt funding round
MPOWER Financing, a provider of loans for international university students, is due to price its first securitisation in the first half of 2024 after closing its latest debt funding round. The business has raised further commitments from Goldman Sachs, Deutsche Bank and Värde Partners to bring its total deployable capital to more than US$300m.
“There are three forces .......
News Analysis 10 November 2023
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Motor Securities 2023-1 prices
Santander completes UK capital relief trade
Santander has executed Motor Securities 2023-1, a synthetic securitisation of UK auto loans.
Similarly to last year, the transactions consists of two placed tranches; a £26.7m class D tranche (with an expected AAA rating from ARC and KBRA) and a £41.2m unrated class E tranche. The D tranche priced at SONIA plus 400bp, while the E tranche landed at .......
News 9 November 2023
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Glass half full?
PRA publishes discussion paper on capital requirements for securitisation transactions
Following consultations by the PRA and FCA, which set out proposed non-prudential rules for the UK securitisation market as part of the broader post–Brexit regulatory framework, the PRA has recently published a discussion paper on certain securitisation prudential regulation issues, all of which are relevant to, and potentially impactful for, synthetic securitisations.
One of the measures .......
News Analysis 9 November 2023
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Global Risk Transfer Report: Chapter two
In the second of six chapters surveying the synthetic securi...
IACPM’s latest risk-sharing survey notes that 2022 highlighted not only a substantial growth in SRT product utilisation by banks, with €200bn in new issuance, but also some structural changes in the risk-sharing activity of banks. Nevertheless, a number of regulatory challenges remain outstanding.
SCI’s Global Risk Transfer Report examines how the risk transfer community is addressing these .......
Talking Point 8 November 2023
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A global market
Matthew Moniot, co-head of credit risk sharing at Man GPM, answers SCI's questions
Q: Could you tell us about your recent move to Man GPM?
A: We joined Man Group in 2022, from Elanus Capital, the firm I founded back in 2010. By 2020 two things were apparent. Firstly the SRT market had grown significantly and was starting to attract large, institutional managers and secondly, technology, an area of focus at Elanus, would be an .......
The Structured Credit Interview 8 November 2023