Complete news archive
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Compliance issues
'Compelling case' for reform of Article 5
A new AFME report finds that investors are likely to interpret ambiguous provisions under Article 5 of the Securitisation Regulation in the EU and UK conservatively - and, in doing so, will assume disproportionately high costs to the business. The report identifies key challenges relating to compliance with investor due-diligence requirements and suggests potential strategies to overcome them.
News 14 June 2023
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Preventative intervention
UTP management gaining traction
The Italian non-performing loan ABS market remains subdued, with publicly-placed issuance drying up after the expiration of the GACS scheme in June 2022 and performance so far this year generally below expectations. While securitisation has played a central role in de-risking Italian banks’ exposure to NPLs, they now appear to be refocusing on avoiding the classification of borrowers as .......
News Analysis 14 June 2023
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Rental retreat
Rising BTL remortgaging risks eyed
Challenges lie ahead for the UK’s BTL RMBS market as buy-to-let lending continues to decline and remortgage risks climb. Lower LTVs can be a key mitigating factor, although it is likely that many BTL landlords will opt to exit the market entirely.
BTL lending reached a peak at £37.4bn in 2015, but now only accounts for an average .......
News 13 June 2023
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SCI Start the Week - 12 June
A review of SCI's latest content
Last week's news and analysis
Capital panic
Use of SRT by US banks more pertinent as reg cap rises
CRAFT priced
Deutsche Bank executes new synthetic ABS
Entrepreneurial spirit
Howden CAP answers SCI's questions
Manager tiering
Japanese demand driving dispersion?
Santander selling
Spanish bank in US market with new auto loan CLN – price indications
News 12 June 2023
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Manager tiering
Japanese demand driving dispersion?
The US CLO market continues to be characterised by dispersion (SCI 24 May). In this context, secondary double-B paper appears to be competing well against new issue equity.
“The biggest headwind CLO managers face is dispersion right now, particularly in the triple-As, because that makes up such a large part of the capital stack. We are seeing .......
News 9 June 2023
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Entrepreneurial spirit
Colin Reddy, md, head of financial institutions and advisory at Howden CAP, answers SCI's questions
Q: You joined Howden CAP in April from Mizuho, where you executed a number of strategic capital and balance sheet transactions for the firm’s clients (SCI 12 April). What attracted you to move to the insurance side of the risk transfer market?
The Structured Credit Interview 9 June 2023
A: I began my career in insurance, but I have spent the last 20 years in banking .......
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Strategic partnerships 'positive' for CLO managers
Sector developments and company hires
Strategic partnerships ‘positive’ for CLO managers
Market Moves 8 June 2023
The number of US broadly syndicated loan CLOs for which managers retained their majority equity stake continues to exceed the number of CLOs where equity was sold to third parties, according to data published in Fitch’s latest CLO Asset Manager Handbook. The percentage of US managers that retained a majority in their CLOs’ equity .......
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Capital panic
Use of SRT by US banks more pertinent as reg cap rises
US regulators are poised to increase capital requirements for bigger banks by as much as 20%, which will make the case for an expansion of the SRT market even stronger, say sources.
The recent spate of bank collapses has persuaded regulators that financial institutions must hold more equity capital.
“Instead of doubling down on a complex system of rules for banks that provide .......
News 6 June 2023
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Santander selling
Spanish bank in US market with new auto loan CLN – price indications
Santander Bank NA is currently in the market with its first auto loan CLN of the year, dubbed SBCLN 2023-A. It concluded three such transactions last year, all of which were executed in December.
The trade consists of seven tranches, six of which are unrated and one unrated, according to sources in New York. The overall face value of the trade .......
News 6 June 2023
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Call for 'proper discussion' about risk
Sector developments and company hires
Call for ‘proper discussion' about risk
Securitisation issuance in the EU equaled 0.3% of the bloc’s GDP last year, while UK issuance equaled 0.9% of the country’s GDP, according to AFME data. In contrast, Australian, Chinese and US issuance respectively equaled 2.8%, 1.8% and 1.4% of GDP in 2022.In newly published research, AFME highlights that Europe languishes far behind .......
Market Moves 6 June 2023
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SCI Start the Week - 5 June
A review of SCI's latest content
Last week's news and analysis
Counterparty risk hedged
Further details on JPM CRT revealed
Infrastructure CLO debuts
AIIB anchors emerging market pilot
Latest SRTx fixings released
Improved tone implied in June index values
Perfect storm?
SFR squeeze as costs rise and rents fall
Stage two boost
ECB highlights consumer and CRE risks
News 5 June 2023
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Latest SRTx fixings released
Improved tone implied in June index values
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. The index values imply a generally improved tone across all four sub-indexes since May’s fixings (SCI 3 May).
Indeed, this month’s survey responses suggest that spread estimates have tightened considerably for US large corporate and EU SME SRT transactions - by 48bp (representing .......
News 2 June 2023
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Stonepeak eyes structured solutions
Sector developments and company hires
Stonepeak eyes structured solutions
Market Moves 2 June 2023
Michael Leitner has joined Stonepeak as a senior md. Based in the firm’s New York office, he will help lead the continued buildout of Stonepeak’s credit investing capabilities. The firm believes there is a clear opportunity to leverage its broader platform and institutional knowledge to support the growth of the infrastructure marketplace through investments in credit .......
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