Complete news archive
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Capital ideas
Taxonomy-aligned RWAs, sustainability-linked pricing touted
SMARTER Finance for Families has submitted a number of policy recommendations to the Climate Bonds Initiative, as part of the organisation’s recent public consultation entitled ‘101 Sustainable Finance Policies for 1.5°C’. The SMARTER recommendations include top-down and bottom-up policy frameworks that harness the securitisation market.
“Engaging the capital markets is crucial in order to achieve net-zero – an .......
News 21 December 2022
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Italian mid-cap deal debuts
Sector developments and company hires
Italian mid-cap deal debuts
Market Moves 21 December 2022
illimity Bank has closed what is believed to be the first securitisation backed by a portfolio of 82 unsecured loans granted to Italian mid-caps and corporates that are predominantly guaranteed by the country’s export credit agency SACE. Dubbed Colt SPV, the €570.11m transaction was originated based on the ‘Liquidity decree’, enacted in June 2020 to help .......
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NPL data templates introduced
Sector developments and company hires
NPL data templates introduced
Market Moves 19 December 2022
The EBA has launched NPL transaction data templates, aimed at introducing information standardisation to increase the efficiency of secondary markets for non-performing loans and to reduce entry barriers for smaller banks and investors. The proposed NPL transaction data templates are built on previous voluntary loan-by-loan templates and consider the experience of market participants from the sell- .......
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SCI Start the Week - 19 December
A review of SCI's latest content
Last week's news and analysis
Battle begins
EU and industry lock horns over p factorCorporate CRT launched
HSBC executes capital relief trade.Landesbank boost
LBBW executes financial guaranteeMind the gap
'Regulatory impediments' stalling ESG securitisationPlay it forward
Evolution of BNPL securitisation eyedRegulatory storm?
CRT market split over new ....... News 19 December 2022
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Transitional disclosure measures urged
Sector developments and company hires
Transitional disclosure measures urged
Market Moves 16 December 2022
In a letter to the EBA, EIOPA and ESMA, the SFA and 12 other trade associations have requested a pragmatic supervisory approach to the disclosure requirements under the EU Securitisation Regulation (SECR) while the regulators review the current requirements. The associations argue that transitional measures are needed following the European Commission’s interpretation in its recently released .......
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Regulatory storm?
CRT market split over new rules
Concern over the future viability of synthetic securitisation is rising, in light of the impending Basel output floor and the EBA’s synthetic excess spread proposals. This Premium Content article investigates whether such regulatory change is likely to be as severe as it seems.
The coming implementation of the Basel output floor and the EBA’s proposal for a ......
News Analysis 15 December 2022Premium Content
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CLN rating pressures eyed
Sector developments and company hires
CLN rating pressures eyed
US midsized banks’ utilisation of CLNs to drive share repurchases or to increase leverage could result in negative rating pressures, Fitch suggests. The rating agency notes that for midsized banks, CLNs may have a material impact on regulatory capital ratios, as the reference pools comprise a larger portion of overall lending than for large banks.Market Moves 14 December 2022
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Play it forward
Evolution of BNPL securitisation eyed
The cost-of-living crisis and growing regulatory scrutiny are set to shape the evolution of the BNPL securitisation sector. This Premium Content article explores what the next 12 months may bring for the asset class.
The cost-of-living crisis may stall the securitisation of buy now, pay later (BNPL) assets before the sector has had chance to take off, ......
News Analysis 14 December 2022Premium Content
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SCI In Conversation podcast: Iain Balkwill, Reed Smith
We discuss the hottest topics in securitisation today...
In the latest episode of the SCI In Conversation podcast, SCI Deputy Editor Angela Sharda chats to Reed Smith partner Iain Balkwill about prospects for a CRE CLO market in Europe. We also discuss a new SCI Premium Content article, which highlights a conceptual clash between the activist US Consumer Financial Protection Bureau and the ‘originalist’ Supreme .......
News 13 December 2022
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'Big Bang 2.0' to repeal Sec Reg
Sector developments and company hires
‘Big Bang 2.0’ to repeal Sec Reg
Market Moves 12 December 2022
The UK government has introduced a Financial Services and Markets (FSM) Bill to Parliament, which will repeal retained EU law (REUL) and replace it with a comprehensive Financial Services and Markets Act (FSMA) model. Commonly known as ‘Big Bang 2.0’, the bill contains detailed proposals – outlined in a draft statutory instrument (SI) .......
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Mind the gap
'Regulatory impediments' stalling ESG securitisation
Securitisable green lending in respect of residential mortgages on energy-efficient properties, loans for green home renovations and electric vehicle financing could exceed €300bn annually by 2030, according to a new AFME analysis. The findings are part of a study that provides a comprehensive overview of the current European regulatory landscape for green securitisation, challenges preventing the instrument from fully .......
News 12 December 2022
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SCI Start the Week - 12 December
A review of SCI's latest content
Last week's news and analysis
Ambitious objective
LEV financing investigation underway
Eco warriors
New emissions standards backed by fines set to affect CMBS
Global Risk Transfer Report: Chapter six
The final chapter of SCI's survey of the synthetic securitisation market
Issuance boost
BMO finalises CRE CRTs
Risk transfer return
Chakra seven ....... News 12 December 2022
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Survey suggests improved sentiment
Sector developments and company hires
Survey suggests improved sentiment
KBRA has published the results of its December survey of European structured finance investors, which was conducted to gauge their views and expectations regarding the market. The report reveals a more positive picture than the rating agency’s previous investor survey from June.“While many challenges remain for the European securitisation sector, sentiment for the market .......
Market Moves 9 December 2022
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Eco warriors
New emissions standards backed by fines set to affect CMBS
Increasingly rigorous emission regulations imposed by municipalities on commercial real estate (CRE) properties throughout the USA will likely lead to cash flow difficulties for CMBS deals, say analysts.
Some 30 cities are bringing in much higher standards for CRE emissions, five of which will impose fines if the standards are not met.
San Francisco’s Environment Code 30, for example, requires all large commercial .......
News Analysis 9 December 2022
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Selective positioning
Loan refi, liquidity needs to provide private credit opportunities
The European CLO market faces a number of challenges next year, including constrained loan supply, potential loan defaults and downgrades, and a squeeze on equity arbitrage. Against this backdrop, loan refinancing and borrower liquidity needs are set to provide opportunities for private credit investors.
European CLO new issue activity is expected to remain robust heading into 1Q23, which will .......
News Analysis 8 December 2022
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UK mortgage refinanceability eyed
Sector developments and company hires
UK mortgage refinanceability eyed
Market Moves 8 December 2022
DBRS Morningstar has analysed the loan-level information of almost 400,000 loans within 36 portfolios of securitised UK mortgages to assess how rising interest rates affects affordability ratios, which borrowers are the most vulnerable and how many mortgages are expected to revise their rates in the short term. The findings suggest that within the owner-occupied segment, about .......