Complete news archive

  • Risk transfer round-up - 3 August

    The week's CRT developments and deal news

    Market news
    Risk Control has received funding from the MDB Challenge Fund for two projects with the objective of helping Multilateral Development Banks (MDBs) build on the recommendations of the G20’s Independent Review of MDB Capital Adequacy Frameworks (CAF). One of the projects will deliver analysis to support MDB risk transfer, creating insights and technical tools for balance sheet optimisation .......

    News 3 August 2023

  • Groundbreaking cannabis CMBS closed

    Market updates and sector developments

    Groundbreaking cannabis CMBS closed
    Pelorus Capital Group has closed PCG 2023-1, the first-ever securitisation backed by cannabis-linked real estate assets. The firm retained a third of the US$70m offering, selling US$45m of bonds, which it says attracted a range of institutional investors and hedge funds that were “drawn to the high yield and growth of the businesses”. The single-tranche CMBS .......

    Market Moves 2 August 2023

  • Triple test

    UK RMBS can withstand stresses 'never seen in history'

    A new TwentyFour Asset Management analysis shows that a benchmark triple-B rated UK RMBS bond with 2.3% of credit enhancement could withstand almost three times the recent Bank of England stress test. Considering a triple-B rated RMBS bond currently yields over 9%, the firm consequently believes that this asset class continues to be one of the most attractive in .......

    News 2 August 2023

  • Rare ILN spotted

    Essent Guaranty has priced the first insurance-linked note (ILN) - a US$253.2m deal dubbed Radnor Re 2023-1 - that the market has seen in almost a year.

    The last deals in the ILN market were a US$201m trade from Arch and a US$238m deal from Essent, both of which were priced in September 2022.

    Radnor Re 2023-1 consists of four tranches, which refer .......

    News 1 August 2023

  • Closing the gap

    SRT 'unlevel playing field' called out

    A reduction of the p-factor is inarguably positive for IRB banks and the significant risk transfer space in general, as these banks account for the bulk of synthetic securitisation issuance volume (SCI 25 July). However, the absence of changes positively affecting banks under the standardised approach points to an unlevel playing field across the market.

    The hurdles .......

    News Analysis 1 August 2023

  • New tricks

    Banks' backing boosts AI utilisation in ABS

    Artificial Intelligence (AI) is increasingly being embraced by banks seeking to improve workflows and support securitisation processes. But other benefits of the technology are also becoming apparent in the current challenging economic environment.

    “We knew mathematically how an AI model could be used, but now we can actually see the benefit of it,” explains Altin Kadareja, co-founder and .......

    News Analysis 31 July 2023

  • SCI In Conversation podcast: Naomi Prasad, Pemberton Capital Advisors

    We discuss the hottest topics in securitisation today...

    In this episode of the SCI In Conversation podcast, Pemberton Capital Advisors director Naomi Prasad discusses whether we should we be talking about “ESG” or “sustainability” in the context of the securitisation market and which ESG strategies are proving effective in the CLO management space. She also outlines how sustainability can be better integrated at both the corporate .......

    News 31 July 2023

  • SCI Start the Week - 31 July

    A review of SCI's latest content

    Last week's news and analysis
    After the gold rush
    Digital revenues resuscitate music royalty ABS
    Get in, Granville
    BNS brings much heralded SRT deal, latest Canadian to set sail
    Job swaps weekly: Angelo Gordon beefs up in structured credit
    People moves and key promotions in securitisation
    News 31 July 2023

  • After the gold rush

    Digital revenues resuscitate music royalty ABS

    With the European summer festival season in full swing and rocket man Elton John announcing his retirement from live music, securitisation is certainly not a word on many music fans’ lips. Yet music royalty ABS is making a comeback, two and a half decades after its rise to fame and subsequent fall.

    KBRA anticipates that music royalty issuance .......

    News Analysis 28 July 2023

  • PRA launches SecReg consultation

    Market updates and sector developments

    The UK PRA has launched a public consultation on proposed changes to the retained EU Securitisation Regulation and the accompanying technical standards on risk retention and disclosure. Rather than a complete overhaul, the authority is seeking to introduce targeted adjustments to the existing EU securitisation framework by 2Q24.

    The key changes include a more principles-based approach to due .......

    Market Moves 28 July 2023

  • Job swaps weekly: Angelo Gordon beefs up in structured credit

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Angelo Gordon poach a new head for its commercial real estate debt division from Tilden Park Capital Management, alongside a raft of senior promotions in its structured credit team. Elsewhere, law firm Blank Rome has launched a new Dallas office with two senior hires from Alston & Bird partners, while ARC Ratings has .......

    Market Moves 28 July 2023

  • Get in, Granville

    BNS brings much heralded SRT deal, latest Canadian to set sail

    Bank of Nova Scotia (BNS) has sold its first SRT trade, a securitization of investment grade loans, in a transaction dubbed Granville USD.

    The trade, which was arranged by BNP Paribas, has been rumoured for several weeks, and is the latest in a series of regulatory capital relief trades by Canadian banks.

    Bank of Montreal has had a presence in this market for .......

    News 28 July 2023

  • Mortgage penalty

    Higher risk weighting for high LTV loans boosts SRT

    As had been strongly rumoured, new capital rules unveiled by the Federal Reserve today (July 27) ascribe heavier risk weightings to higher LTV mortgages.

    Currently first lien mortgages are subject to a 50% risk weighting, but the proposed regulations seek to impose weightings of between 40% and 90% to larger banks. Loans with high LTVs will receive the highest risk weightings.

    The adjustments, .......

    News 28 July 2023

  • Litigation looms

    Investor disputes to rise as CMBS valuations decline

    Plummeting commercial real estate valuations in the US may trigger a rise in litigation as investors battle over control rights in CMBS. However, an additional risk is emerging that contracts may not be interpreted as expected.

    “I see a greater willingness to push back, as there is so much more at stake now,” suggests Davis+Gilbert partner Joseph Cioffi. .......

    News Analysis 27 July 2023

  • Risk transfer round-up - 27 July

    The week's CRT developments and deal news

    Pipeline update
    The capital relief trades market is currently seeing a lull in activity ahead of the traditional fourth-quarter spike in issuance, as banks seek to close transactions before year-end. Indeed, a significant pick-up in CRT trades is anticipated straight out of the blocks in September.

    “We are expecting a lot of significant risk transfer deals to .......

    News 27 July 2023

  • 'Transformational' merger agreed

    Market updates and sector developments

    Rithm Capital is set to acquire Sculptor Capital Management in a transaction valued at approximately US$639m, which includes US$11.15 per Class A share of Sculptor. This transaction will leverage Sculptor’s US$34bn of AUM with Rithm’s US$7bn of permanent equity capital and US$30bn-plus balance sheet to create what the firm describes as a “world-class” asset management business.

    Sculptor’s investment .......

    Market Moves 26 July 2023

  • Less punitive

    Halving of p-factor sparks SRT optimism

    The European Council’s finalisation of the Basel 3 reforms last month has sparked renewed optimism across the European capital relief trades market, with news of an agreement to halve the punitive p-factor (SCI 28 June). The impending need to address the adverse effects of the output floor had been at the core of the regulatory debate for synthetic .......

    News 25 July 2023

  • Legacy issue

    ECJ ruling a boon for Polish CRTs

    The European Court of Justice (ECJ) ruled last month that Polish banks must not charge remuneration from customers when legacy Swiss franc mortgage contracts are annulled (SCI 21 November 2016). As a result, banks could face moderately higher losses from affected portfolios and are likely to speed up their provisioning for such mortgages due to borrower lawsuits. The .......

    News Analysis 25 July 2023

  • SCI Start the Week - 24 July

    A review of SCI's latest content

    Last week's news and analysis
    Capital loss
    Fed's scheduled CET1 increase to shred US bank excess capital
    Consumer goals
    EIF, historic champion of SMEs, embraces consumer ABS
    CMBS opportunities
    Despite sector malaise pockets of gold are to be found
    Wider still and wider
    GSE CRT spreads blow out in 2023
    News 24 July 2023

  • CMBS opportunities

    Despite sector malaise pockets of gold are to be found

    US commercial real estate fundamentals give rise to concern about CMBS returns, but there are areas of the market which are offering opportunities not seen for a decade or more, says Sanmore ceo Boris Sanchez.

    Sanmore is a Houston, Texas-based commercial real estate lender, broker and investor.

    While the CMBS market as a whole has suffered depressed values for the last couple of .......

    News Analysis 21 July 2023

  • Obra adds CLO issuance capabilities

    Market updates and sector developments

    Obra Capital has acquired the assets of asset management and investment research firm KDP and its affiliated companies. The transaction supports Obra’s expansion of its existing liquid markets capabilities in structured credit into the fundamental credit space. By combining KDP’s established research with Obra’s diversified asset management capabilities, the firm expects to augment its product suite to include the .......

    Market Moves 21 July 2023
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