Complete news archive
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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...
....... News Analysis 14 November 2023
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
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 .......
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
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
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
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
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
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
Canadians coming
Scotia back in the CRT market
Scotia Bank is back in the SRT market, only three months after it sold its inaugural deal in this sector, say well-placed sources.
It is selling a synthetic securitization of a US$4bn pool of loans, some 20%-25% of which are non-investment grade, add sources.
It is selling a first loss position of 0%-7.5% and the price range is between 9.25% and 9.50%, .......
News 8 November 2023
Scope sees ratings drift reverse in Q3
Market updates and sector developments
Ratings drift in structured finance instruments improved in the third quarter of 2023 for the first time in more than a year, Scope Ratings has revealed. The metric measures the ratio between upgrades minus downgrades and the total number of monitored ratings over the past year.
While the agency oversaw just 12% of 294 instruments upgraded against 17% .......
Market Moves 7 November 2023
Esoteric explosion
Data centre securitisation seeing strong fundamentals
Insatiable demand for connectivity is fueling a rise in data centre securitisation issuance. This Premium Content article tracks the market’s development.
Demand for data centres outstrips supply by a hefty margin and, as more and more regions join the established areas of data centre building, the need for financing shows no sign of abating. While some developers seek ......
News Analysis 6 November 2023Premium Content
Bank retreat
Basel endgame to slash bank securitization lending
Next year in the securitization industry will be dominated by the fallout from the Basel III endgame and the consequent inevitable contraction of bank lending, says Jodi Schwimmer, global co-lead of Reed Smith’s Financial Industry Group.
“The reality is that the Basel III endgame will constrain bank lending. There is only so much money that banks can put out. So, who .......
News Analysis 3 November 2023
SRT Market Update
Project finance transactions in focus
SRT market conditions currently remain stable, with banks and investors looking to close trades before the end of the year, notably in the project finance sector. But pricing is poised to rise and spreads to widen heading into 2024.
Corporate and SME transactions typically dominate the lion’s share of SRT issuance, but activity in the project finance and .......
News 3 November 2023