Complete news archive
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SCI Start the Week - 25 September
A review of SCI's latest content
Last week's news and analysis
News 25 September 2023
ESMA shines light on private securitisations
Update on ESMA’s securitisation overview
Job swaps weekly: CBRE names new debt and structured finance president
People moves and key promotions in securitisation
JPM sounds the klaxon
SRT prices, and .......
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JPM sounds the klaxon
SRT prices, and new mega-deal looms
Not only is JP Morgan said to have recently priced its heralded SRT deal utilizing the new, regulator-friendly SPV structure, a very large trade referencing a pool of multinational corporate loans is reputed to be in the works.
According to sources, the pool for this transaction could be as large as US$20bn, with as much as US$2bn sold into the market. This .......
News 22 September 2023
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ESMA shines light on private securitisations
Market updates and sector developments
ESMA has published an overview of EU securitisation volumes, based on the data it receives under the Securitisation Regulation. The study shows that the size of the European securitisation market has decreased significantly since its peak of €2trn at end-2010. It also highlights that private deals represent 59% of STS securitisation notifications.
As reported to the registered securitisation .......
Market Moves 22 September 2023
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Job swaps weekly: CBRE names new debt and structured finance president
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees CBRE appointing a successor to its outgoing US debt and structured finance president, Rachel Vinson. Elsewhere, the Structured Finance Association has appointed two industry veterans to its policy team, while Aon has recruited senior members in its structured credit solutions and reinsurance solutions teams.
CBRE has promoted James Millon to president .......
Market Moves 22 September 2023
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RFC issued on CMBS methodology
Market updates and sector developments
Scope is calling for comments on a proposal to update its CRE loan and CMBS rating methodology. The proposed changes are expected to affect existing ratings assigned by the agency by up to two notches on the upside and four notches on the downside.
Most notably, the proposal introduces a scoring framework for determining assumptions and the rateability .......
Market Moves 21 September 2023
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Risk transfer round-up - 21 September
The week's CRT developments and deal news
Market news
News 21 September 2023
Approximately US$1.28bn in aggregate original principal amount of notes was validly tendered last week in Freddie Mac’s latest offer to purchase STACR securities. The tender offer comprised 16 class of notes from the 2017-2019 vintages, across the DNA, FTR, HQA and HRP programmes, with noteholder take-up ranging from 4.17% to 100% of the original principal amount. BofA Securities .......
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Rhapsody in retail
CMBS offers liquidity for non-mall retail borrowers
Since the restrictions imposed by the Covid 19 pandemic and probably before, the US commercial real estate (CRE) sector has by and large been in the doldrums. But experienced CRE investors can find value and remain funded by a combination of traditional bank loans and CMBS financing.
Gary Rappaport is nothing if not experienced: he has been a CRE investor in the .......
The Structured Credit Interview 19 September 2023
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Spanish CRT prices
Magdalena 7 prices tighter.
Santander has executed the seventh synthetic securitisation from its Magdalena programme. The trade, which features a €142.5m tranche and a 7.5% thickness (1%-8.5%), priced at three-month Euribor plus 10%.
The transaction references a €1.9bn portfolio of Spanish corporate, SME and self-employed borrower loans originated by Santander. The deal has a WAL of 3.21 years and a final legal maturity of December 2044. There is a .......
News 19 September 2023
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SCI Start the Week - 18 September
A review of SCI's latest content
Last week's news and analysis
News 18 September 2023
BXCI to offer 'one-stop solution'
Updates on Blackstone’s integration, Ginnie’s social bond and YieldStreet’s settlement
Italian SME boost
EIB Group and Deutsche Bank close synthetic securitisation
Job swaps weekly: M&G poaches Pimco's Scott
People moves and key promotions in securitisation
Lift-off
CLO issuance takes .......
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BXCI to offer 'one-stop solution'
Market updates and sector developments
Blackstone has integrated its market-leading corporate credit, asset-based finance and insurance groups into a single new unit, named Blackstone Credit & Insurance (BXCI). Credit and insurance is Blackstone’s fastest-growing segment – more than doubling to US$295bn in assets under management over the last three years.
The new structure is designed to further accelerate growth by creating a more .......
Market Moves 15 September 2023
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NPL proposal questioned
ABS industry baulks at Italian borrower buy-back plan
Italian non-performing loan securitisation cashflows could be delayed until a proposal to allow non-performing borrowers to buy back exposures is passed or rejected. But prime minister Meloni’s government appears on course to water down the controversial measures, with doubts arising as to how many borrowers would take up the option, should it pass.
Proposal AC 843 would allow .......
News Analysis 15 September 2023
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Lift-off
CLO issuance takes flight in active summer
CLO volumes in both the primary and secondary markets have accelerated in the third quarter so far, particularly in the US, after a slow first half of the year. But a sluggish syndicated loan market, dominated by a glut of refinancings and amend and extend deals, mean the flurry of activity could settle somewhat in the months ahead.
News Analysis 15 September 2023
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Italian SME boost
EIB Group and Deutsche Bank close synthetic securitisation.
The EIB Group has closed its first synthetic securitisation referencing a portfolio of consumer auto loans originated by Deutsche Bank Italy. The transaction aims to support the investments of around 650,000 SMEs and mid-caps in Italy, providing them with access to new resources.
The EIF guarantee on the mezzanine tranches covers a reference portfolio of approximately €1.38bn, while a counter-guarantee (back-to-back) from the EIB .......
News 15 September 2023
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Job swaps weekly: M&G poaches Pimco's Scott
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees M&G Investments luring a former Barclays structured finance veteran from Pimco to take on the role of director. Elsewhere, Avenue One has added senior hires to its real estate capital partnerships and alternative capital partnerships teams, while Pinsent Masons has hired a new securitisation partner.
M&G Investments has appointed Pimco .......
Market Moves 15 September 2023
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Opening broadside
House subcommittee slams July 27 capital rules
The July 27 Basel 3 endgame proposals would place the US “ahead in a race to a gold-plated top for global capital requirements and push the US to the bottom for global competitiveness,” said Andy Barr (KY), chairman House Financial Services Subcommittee on Financial Institutions and Monetary Policy, this morning (September 14).
The sub-committee is holding hearings titled “Implementing Basel III: What’s the .......
News 14 September 2023
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RFC issued on CLO good practices
Market updates and sector developments
IOSCO has called for an improvement in practices in the leveraged loan market and is seeking feedback on a number of good practices it is proposing in connection with CLOs. The organisation notes that a “prolonged borrower-friendly environment” has impacted market practices, giving rise to covenant-lite leveraged loans, increased complexity of documentation and the aggressive use of EBITDA adjustments.
Market Moves 14 September 2023
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Risk transfer round-up - 14 September
The week's CRT developments and deal news
Market news
M&G Investments’ latest Insights publication explores why now could be a good moment for patient investors to consider SRT transactions and why this opportunity could be short-lived, given the current economic cycle. The firm notes that in sterling terms, it has recently seen SRT transactions pay out coupons of 10% and higher returns.“With the generally fairly .......
News 14 September 2023
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Optimistic outlook
SRT Market update
While SRT market participants generally describe a sluggish beginning to the month, further details on some of the deals in the pipeline are emerging. Overall, an optimistic outlook for Q4 prevails.
“We really have not seen many deals outside of those referencing corporate and leveraged loan portfolios,” notes one European SRT investor. “Banks appear to be focusing on hedging corporate risk and the .......
News 12 September 2023
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Pressure on UK BTL loans in RMBS portfolios
Market updates and sector developments
The UK buy-to-let mortgage market is likely to see an increase in arrears, a reduction in origination volumes and higher rates of home repossessions in the months ahead. Analysis of RMBS portfolios by DBRS Morningstar highlighted headwinds in the form of tenant affordability, stricter regulations and changes in taxation that are likely to put pressure on BTL landlords.
Market Moves 11 September 2023
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SCI Start the Week - 11 September
A review of SCI's latest content
Free webinar this Wednesday – US esoteric ABS
This Wednesday September 13 at 10:00-10:40 AM EDT/3:00-3:40 PM BST, join us in Exploring the Evolving Landscape of Esoteric ABS with our expert panel Xilun Chen, KBRA; Emile Ernandez, Guggenheim Securities; Stuart M. Litwin, Mayer Brown; and Max Mullen, KKR. Click here to register for free.Last week's news and analysis
News 11 September 2023
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Job swaps weekly: Pretium snaps up Morgan Stanley coo
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Pretium snap up a long-serving Morgan Stanley coo, as it looks to continue its acquisitive growth strategy. Elsewhere, Société Générale CIB has lured a new head of EMEA CLOs from Credit Suisse, while Annaly Capital Management has appointed two industry veterans as independent board members.
Residential real estate and structured .......
Market Moves 8 September 2023