Complete news archive

  • 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

  • Job swaps weekly: Oppenheimer's blockbuster appointment

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Oppenheimer & Co appoint a new head for its Latin America investment banking group. Elsewhere, Angel Oak Companies has poached a new chief legal officer from Reverence Capital Partners, while Fitch has a new head of structured finance product strategy in New York. 

    Oppenheimer & Co has stepped up its .......

    Market Moves 21 July 2023

  • Barings and Lakemore partner up

    Market updates and sector developments

    Charlotte-headquartered global asset manager Barings has entered into a partnership with CLO-focused private credit investor Lakemore Partners. Lakemore, which primarily takes super-majority control equity positions in new US CLOs, says the partnership will expand its global reach, deepen its institutional client base and boost its Aquatine CLO equity platform.

    Barings has around US$351bn in assets under management, spanning public equities and fixed .......

    Market Moves 20 July 2023

  • Wider still and wider

    GSE CRT spreads blow out in 2023

    Freddie Mac CRT spreads have mushroomed this year despite the marked diminution of issuance, confirmed the GSE in its quarterly CRT webinar yesterday.

    In some cases, spreads are more than 100% wider than 12 months ago. For example, the STACR 2022 DNA1, priced in January 2022, carried spreads of SOFR plus 100bp, plus 185bp, plus 250bp and plus 710bp for the M1, .......

    News 19 July 2023

  • Consumer goals

    EIF, historic champion of SMEs, embraces consumer ABS

    Three recent transactions by the European Investment Fund (EIF) reveal a subtle but potentially impactful change in approach to the institution’s securitisation investment strategy. The fund is displaying an increasing willingness to invest in consumer ABS transactions, with green transition and gender diversity goals at the top of the agenda.

    In early July, the EIF took a stake .......

    News Analysis 19 July 2023

  • Capital loss

    Fed's scheduled CET1 increase to shred US bank excess capital

    The Federal Reserve’s planned 200bp increase to Common Equity Tier One (CET1) requirements will burn through the US$121bn of excess capital the biggest US banks currently enjoy, suggest analysts.

    As a result, banks are likely to be parsimonious with shareholder dividends in the next couple of years as they attempt to build up capital, the research report adds. Buybacks are also .......

    News Analysis 18 July 2023
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