Complete news archive

  • Risk transfer round-up - 21 September

    The week's CRT developments and deal news

    Market news
    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 .......

    News 21 September 2023

  • 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

  • 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

  • SCI Start the Week - 18 September

    A review of SCI's latest content

    Last week's news and analysis
    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 .......

    News 18 September 2023

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • Latest SRTx fixings released

    Index values indicate incremental widening in spreads, while...

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Following three months of improved tone across the sub-indexes, sentiment has become more varied since August’s fixings (SCI 3 August), with incremental widening in spreads and increased negative outlook in the credit risk index.

    This month’s survey responses suggest that spread estimates have .......

    News 7 September 2023

  • BMO back

    Algonquin transaction in the market, to close next month.

    Bank of Montreal is back in the market with a synthetic securitization from its well-established Algonquin platform, say market sources.

    The transaction is expected to close in October and references a pool of loans worth US$2.5bn, though it can be upsized to $5bn, add sources.

    The bank is selling a 0%-6.25% first loss tranche.

    No other details have been forthcoming. The issuer has been .......

    News 7 September 2023

  • Energy performance regulations yet to impact RMBS

    Market updates and sector developments

    Climate transition risks linked to changes in energy-efficiency performance regulations are having a limited impact on the European RMBS market, according to research by S&P Global.  The view is the result of a scenario analysis conducted by S&P of properties in England, Wales, Ireland, France and the Netherlands with energy performance certificate ratings of F and G.

    The agency acknowledges that, should .......

    Market Moves 7 September 2023

  • Tapping the nest egg

    Growth in ERM demand presents securitisation opportunities in Europe

    Europe is experiencing growing demand for equity release mortgages (ERM) as its ageing population looks to release funds for retirement or to pass on to younger generations. This demand has started translating to a handful of securitisation deals in the continent over the past two years, and some market participants expect deal volumes to increase steadily.

    A number .......

    News Analysis 7 September 2023

  • CLO saviour?

    Collateral managers act to save two CLOs in Q2

    In Q2, two of the 85-90 CLOs rated by DBRS saw old, underperforming loans replaced with new money by the collateral managers before the reinvestment period closed, report analysts at the rating agency.

    This was the first time the phenomenon had been spotted in recent times. Both were commercial real estate (CRE) transactions, backed by office space loans, but no other details .......

    News Analysis 6 September 2023
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