Complete news archive
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Job swaps weekly: Linklaters lures four A&O Shearman partners
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Linklaters hiring four partners from A&O Shearman for its New York office. Elsewhere, the Prytania Solutions team has joined Houlihan Lokey’s structured products valuation advisory team as part of the latter’s acquisition of the former, while Danske Bank has snapped up a former senior Nordea executive as investment director.
Linklaters .......
Market Moves 1 November 2024
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Clean and replenish
Optimistic outlook for US CRE market is welcome news for CMBS and CRE CLOs
A rebound in activity in the US CRE market is pointing to brighter times ahead for both CMBS and CRE CLOs. Activity in the CMBS issuance market is a welcome sign after a prolonged down cycle, despite ongoing challenges in office and retail.
“We are seeing a strong turnaround,” states Jodi Schwimmer, partner at Reed Smith. “The market .......
News Analysis 1 November 2024
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Blueprint for sustainable growth
EIF's Jesper Skoglund and Georgi Stoev discuss EIB, EIF, and...
EIB, EIF and BPCE have collaborated on a new €800m financing initiative aimed at driving innovation and sustainability for SMEs. Structured as an ABS transaction, this joint venture is crafted to encourage significant lending to support European SMEs while fostering advancements in the green transition.
With €750m invested by the EIB and €50m by the EIF, the collaboration .......
News Analysis 31 October 2024
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C-PACE 'the winner'
Growing institutional interest, new market frontiers and leg...
With R-PACE uptake cooling across the US, industry leaders hailed C-PACE as “the winner” at Invisso’s ABS East conference in Miami last week. Panellists referenced a surge in deal volume, new market applications and a wave of institutional backing seen throughout 2024.
“We're seeing increased traction in larger C-PACE deals ranging above US$100m, where institutional investors use C-PACE .......
Talking Point 30 October 2024
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SCI CRT Awards: Outstanding Contribution to SRT
Winner: International Association of Credit Portfolio Managers (IACPM)
The IACPM is SCI’s pick for the Outstanding Contribution to SRT award this year, for being uniquely the voice of the SRT industry. Not only does the association espouse a collaborative and consensus-driven approach to advocacy, its initiatives also provide much-needed transparency into what remains an opaque market.
The IACPM was established in 2001 by 11 founding bank .......
News 29 October 2024
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SCI in focus: Hot water
Thames Water, whole business securitisation and the challenge of debt financing
Crisis on the balance sheets of the UK’s largest water utility, Thames Water, is exposing major failures of the political, regulatory and financial systems – not whole business securitisation (WBS).
In late October, a court date was set for 17 December to discuss Thames Water's future. In the meantime, WBS remains centre stage in most conversations linked to .......
News Analysis 29 October 2024
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SCI CRT Awards: Newcomer of the Year
Winner: EMX Partners
(Re)insurer participation in SRT deals has historically been limited to unfunded and non-STS transactions. EMX Partners is SCI’s pick for Newcomer of the Year in this year’s CRT Awards for establishing a platform that combines (re)insurer risk appetite with third-party funding to create rated repacks of SRT notes.
Since its launch in June 2023, EMX closed its debut .......
News 29 October 2024
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Significant piece of regulation
The PRA's latest consultation paper introduces consequential developments for the SRT market
While the Prudential Regulation Authority’s (PRA) latest consultation paper (CP13/24 – Remainder of CRR: Restatement of assimilated law) focuses more broadly on capital requirements, three significant developments for the SRT community have clearly emerged.
The meaningful proposals include a new formula based p factor, (still) no STS for synthetics and a widely softened stance for unfunded SRTs.
News Analysis 29 October 2024
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Yield-seekers' paradise
Esoteric ABS set to shine amid stable rates and digital surge, say Miami speakers
Esoteric ABS issuance has surged to represent nearly a third of the US securitisation market so far this year, reaching US$96bn of cumulative volume. At Invisso’s ABS East conference in Miami last week, panellists forecasted strong growth across niche asset classes through 2025 - with anticipated interest rate stability pushing investors towards the digital infrastructure, whole business securitisation (WBS), .......
Talking Point 28 October 2024
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SCI CRT Awards: Service Provider of the Year
Winner: Credit Benchmark
Adoption of Credit Benchmark as a service provider has steadily grown among the SRT community in the last year, with nearing 40 major SRT participants now utilising Consensus Credit Ratings and Analytics to improve their transactional, decision-support and workflow productivity. The company fills a critical information gap by offering a timely, comprehensive and independent view of credit risk. These .......
News 28 October 2024
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Tried and true
Michelle Manuel and Michael Schewitz, portfolio managers at Investec, answer SCI's questions
Q: What do you look for in a CLO manager?
The Structured Credit Interview 28 October 2024
Michelle Manuel: With a 70% US middle market portfolio, we tend to look for managers who we know have been through a number of credit cycles. When we look at Europe, we choose managers we know or are comfortable with. However, we mainly tend to buy in Europe when the .......
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SCI CRT Awards: North American Law Firm of the Year
Winner: Mayer Brown
That Mayer Brown is the most active firm in the North American CRT market today is no surprise. While the uptick in the volume of CRT transactions in North America may be relatively new, Mayer Brown’s role in this market is historic and longstanding.
“We have been involved in the US CRT market from the earliest synthetic securitisation .......
News 28 October 2024
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SCI CRT Awards: European Law Firm of the Year
Winner: Clifford Chance
In Europe, Clifford Chance continues to act for the originator bank as structuring and drafting counsel on the majority of CRT transactions in the market. It is in this role as structuring and drafting counsel that the firm has set the standard that the rest of the market follows.
As has been the case now for many years, .......
News 25 October 2024
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Job swaps weekly: Kirkland names two new partners
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Kirkland & Ellis hiring two partners for its structured finance and structured private credit practice. Elsewhere, NPL Markets has made two senior appointments to its team, while Piper Sandler has named a new head of structured products trading.
Kirkland & Ellis has hired Jared Axelrod and Suril Patel as partners .......
Market Moves 25 October 2024
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SCI CRT Awards: North American Arranger of the Year
Winner: BMO
As last year’s North American Issuer of the Year, Bank of Montreal (BMO) has set a high bar for itself. Thanks to a series of key issuances across multiple SRT platforms, the bank has continued its impressive run this year. As such, with its dedicated team of risk transfer experts, a mix of asset classes and experience in this .......
News 25 October 2024
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Teutonic tenacity
German consumer ABS sees strong investor demand despite rising challenges
Despite rising interest rates and escalating costs of living across Europe, the consumer ABS market shows little sign of distress. Issuance levels remain robust, with investors continuing to demonstrate confidence in this sector, even as economic conditions tighten. According to Sam Lee, portfolio manager at TwentyFour Asset Management, "there is no sign as yet of any impact on issuance .......
News 24 October 2024
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Optimisation optimism
SRT activity set to soar as banks adjust to Basel 4
Panellists at SCI’s 10th Annual Capital Relief Trades Seminar in London last week widely agreed that banks are set to ramp up their use of SRT transactions to optimise balance sheets and improve capital efficiency ahead of sweeping regulatory changes under Basel 4.
"I expect further growth in SRTs as banks adjust to Basel 4, using these transactions .......
Talking Point 24 October 2024
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SCI CRT Awards: European Arranger of the Year
Winner: UniCredit
UniCredit completed nine SRT transactions during the awards period, across four jurisdictions and five asset classes, referencing underlying portfolios totaling €13bn. For supporting eight clients, five of which were external, the bank is SCI’s pick for European Arranger of the Year.
Between 1 July 2023 and 30 June 2024, UniCredit continued to develop innovative and efficient structures for .......
News 24 October 2024
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SCI CRT Awards: North American Issuer of the Year
Winner: JPMorgan
Project Appia, which JPMorgan closed on the final business day of 2023, represented perhaps the largest and most complex set of SRT transactions the market has yet seen. For its efforts in bringing this landmark deal to the market, JPMorgan is SCI’s North American Issuer of the Year.
The reference pool in Project Appia was huge, perhaps unprecedently .......
News 24 October 2024
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