Complete news archive
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Positioned for quality and liquidity
Kate Galustian, lead portfolio manager for BlackRock Senior...
Q: When you announced BlackRock Senior Securitised Fund (SCI 20 November), BlackRock stated that this new vehicle will predominantly invest across continental Europe and the UK. To what extent was that driven by current opportunities specific to that geographic market, and could you provide an outline as to what those are?
The Structured Credit Interview 30 November 2023
A: The fund was designed in collaboration with .......
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Rules of conflict
Final SEC "conflict of interest" ruling offers crumbs of comfort
The SEC’s final “conflict of interest” ruling, designated Rule 192 and released at the beginning of this week (SCI 29 November), waters down some of the most onerous restrictions but still represents a serious imposition for securitized markets participants, say those in the field.
The new rule prohibits so-called “securitization participants” from engaging in “conflicted transactions” during the life of an .......
News 30 November 2023
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SIFMA calls for STC framework
Market updates and sector developments
A new SIFMA blog highlights three actions that will mitigate what the association calls the “perverse incentives” created by the lack of appropriate risk-sensitivity of the SEC-SA framework, under the US Basel 3 Endgame (B3E) proposal. The blog describes the proposal as “the most restrictive approach to set capital requirements for banks’ securitisation exposures in the developed world”.
As .......
Market Moves 29 November 2023
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Basel 4 series: Preparing - video
Market participants share their insights about how to prepare for Basel 4
....... News Analysis 29 November 2023
Global Risk Transfer Report: Chapter five
In the fifth 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 29 November 2023
Treasury overhang
Unprecedented Treasury supply dominates agency MBS story for 2024
The enormous Treasury issuance expected next year forms a long shadow falling over the agency MBS market, say investors.
Estimated 10-year Treasury issuance is now projected to be US$1.34trn in 2024, some US$90bn more than earlier estimates and breaking previous records. Assuming the Federal Reserve extends quantitative tightening, overall 10-year Treasury supply will exceed US$1.5trn.
“The biggest risk to agency MBS is Treasury supply. .......
Talking Point 27 November 2023
SCI Start the Week - 27 November
SCI event tomorrow
Join us for our European CRE Finance Seminar in London tomorrow, 28 NovemberLast week's news and analysis
News 27 November 2023
Basel 4 series: Industry impacts - video
Exploring the effects of Basel 4 on market participants and their clients or members
BlackRock launches Article 8 ABS fund
Updates on .......
Job swaps weekly: EverBank lures Forbright's Walsh
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees EverBank hiring a senior Forbright Bank executive as head of structured real estate finance. Elsewhere, National Australia Bank (NAB) has made two senior promotions within its securitisation teams in Melbourne and New York, while Piraeus Bank has elevated an Athens-based director to the role of senior director, head of securitisations and transaction structuring.
EverBank, .......
Market Moves 24 November 2023
Global Risk Transfer Report: Chapter four
In the fourth 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 22 November 2023
Basel 4 series: Industry impacts - video
Exploring the effects of Basel 4 on market participants and their clients or members
....... News Analysis 22 November 2023
Hotel upgrades
Uplift in fortune seen for lodging CMBS
The lodging sector is one of the few bright spots in the US CMBS landscape. This Premium Content article uncovers the reasons why.
The US lodging sector has enjoyed an uplift in fortunes over the past 18 months, with pent-up demand from holidaymakers driving a post-Covid recovery. Despite a slight uptick in delinquencies in recent months, sector-specific metrics ......
News Analysis 21 November 2023
Gaining traction
The rise of project finance SRT
Synthetic securitisation is expected to play a key role in assisting Europe’s transition towards a more sustainable economy. This Premium Content article explores the significance of project finance SRT transactions within this context.
Given the challenging macroeconomic conditions over the past 12 months and the unprecedented write-down of Credit Suisse’s AT1 bonds, banks are increasingly adopting synthetic ......
News Analysis 21 November 2023Premium Content
Fannie signs off for 2023
Multi-family CAS and last 2023 CIRT for the GSE
Fannie Mae has executed its third multi-family CAS deal and also its ninth and final CIRT trade of the year.
Placed by structuring manager and lead bookrunner Bank of America, the US$595m MCAS 2023-01, consists of 423 multi-family loans with an unpaid principal balance (UPB) of US$24bn.
The US$154.6bn M7 tranche was priced at SOFR plus 400bp and has 3.5% credit support. The .......
Market Moves 20 November 2023
Global goals
Chris Whitcombe, head of European and US ABS at Challenger I...
Q: Challenger IM recently launched its first securitisation-only investment fund – the Challenger IM Global ABS Fund (SCI 1 November). What makes now the right time?
The Structured Credit Interview 20 November 2023
A: At Challenger IM, we manage assets for leading global and Australian institutions. We have been actively investing in ABS since 2005, including the private ABS market for the last decade. So, although .......
BlackRock launches Article 8 ABS fund
Market updates and sector developments
BlackRock has launched the BlackRock Senior Securitised Fund (BSSF), its new flagship securitisation fund, in the existing BlackRock Specialist Strategies Fund range. The firm says that BSSF is designed to meet the strong demand for securitised assets from both institutional and wealth clients seeking to diversify their fixed income exposures. Clients have demonstrated a desire for the diversification benefits, .......
Market Moves 20 November 2023
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
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
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
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
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
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