Complete news archive
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Conservative approach
Aeon Investments ceo Oumar Diallo and coo Ben Churchill answer SCI's questions
Q: Aeon recently announced the closing of its first commercial real estate CLO warehouse (SCI 12 October) with Credit Suisse. Could you provide some background to the decision to become a CRE CLO issuer?
OD: We’re active across the real estate spectrum and seek relative value opportunities in the UK and Europe.The European CRE CLO market has .......
The Structured Credit Interview 21 October 2022
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GSE social disclosures readied
Sector developments and company hires
GSE social disclosures readied
Fannie Mae and Freddie Mac are set to begin publishing pool-level Social Index disclosures for their single-family MBS. The move follows the release of Fannie’s proposed methodology for single-family social disclosure that aims to provide investors with insights into socially-oriented lending activities (SCI 18 August).
The attributes are at-issuance measures and will not be updated .......
Market Moves 19 October 2022
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Natural evolution
CLO docs, structures adapting to macroeconomic conditions
Challenging market conditions have dampened European CLO issuance this year, but they have not stalled it completely. Indeed, transaction structures and documentation are expected to continue evolving to meet equity and debt investors' expected returns.
“It has been a good story for CLO 1.0s, which have had less than half a percent of CLO tranches defaulting over the last 20 .......
News Analysis 19 October 2022
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CRE CLOs: time to zig when others zag
When it comes to structured commercial real estate (CRE) credit, the European market is at a pivotal juncture, explains Iain Balkwill, partner at Reed Smith.
Last year proved to be a ground-breaking year for the asset class; we saw a record volume of CMBS issuance and in an industry first, Starz Real Estate brought Europe’s first ever CRE CLO to .......
Talking Point 19 October 2022
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Through a glass darkly
Regulatory transparency would kickstart US CRT, say Miami speakers
Greater “clarity from regulators” is the key catalyst required to increase US bank usage of the CRT market, according to a speaker today at the ABS East conference in Miami.
Currently, there is an “opaque environment” and that is holding up the market, he elaborated. Another panellist admitted that the US market is currently “curiously undersized.”
Although there have been offerings by regional .......
News 19 October 2022
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Aviation ABS industry eyes AerCap suit
Sector developments and company hires
Aviation ABS industry eyes AerCap suit
The outcome of AerCap’s filing with the High Court in London could serve as a blueprint for other aircraft lessors with lease exposure in Russia. KBRA notes that in its discussions with the 14 lessors that act as servicers on the 30 aviation ABS it rates with exposure to Russian carriers, all have indicated .......
Market Moves 17 October 2022
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SCI Start the Week - 17 October
A review of SCI's latest content
Last few days to register!
SCI’s 8th Annual Capital Relief Trades Seminar is taking place this Thursday, 20 October in London. For more information on the event or to register, click here.New free report
News 17 October 2022
SCI has published a Global Risk Transfer Report, which traces the recent regulatory and structural evolution of the capital relief trades market, examines the development of both .......
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Swell spreads
Risk pricing means bonds stay costly for GSEs, say speakers at Miami
The GSEs will be obliged to offer “pricing concessions to increased risk” in 2023, meaning, among other things, that the shift to reinsurance will continue, says a speaker at the ABS East conference in Miami today.
Spreads in STACR and CAS securities have widened sharply this year due to increased supply and worsening macro-economic conditions, which has pushed a larger share of .......
News 17 October 2022
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CRT Seminar line-up finalised
Women in risk sharing breakfast to debut
SCI’s 8th Annual Capital Relief Trades Seminar is taking place in-person on 20 October at the offices of Allen & Overy in London. Chaired by Pemberton Capital Advisors’ Olivier Renault, the event will cover the latest regulatory developments, key trends and emerging opportunities within the significant risk transfer market.
The seminar begins with an overview of CRT .......
News 14 October 2022
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Custom-built capital relief
Customers Bank perhaps side-steps regulators with true sale deal
The unusual regulatory capital relief trade closed by Customers Bank on September 30 is likely to have achieved de-recognition of the assets, meaning that it did not require approval from the New York Federal Reserve Bank, surmise well-placed sources.
Under the terms of the transaction, Pennsylvania-based Customers Bank sold a $500m portfolio of unsecured customer loans to a large asset manager. .......
News 12 October 2022
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UK CRE CLO programme prepped
Sector developments and company hires
Aeon Investments has closed its first commercial real estate CLO warehouse in the UK, backed by three strategic loan agreements totalling £900m, as it continues to grow its private credit business. Loans will be funded through Aeon's balance sheet and a three-year revolving senior warehouse facility provided by Credit Suisse. Aeon expects to issue three CRE CLOs in Europe over .......
Market Moves 12 October 2022
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Stormy weather
Increased default and downgrade risk for CLOs
The US CLO market has thus far sailed through the storms of 2021 and 2022 in eminently seaworthy condition. However, with recession now looming, the sector faces increased downgrade and default risks.
“Loan defaults have started to pick up in the US since August, and six loans totalling US$12bn have defaulted. Meanwhile, loan downgrades have also escalated in some of .......
Talking Point 12 October 2022
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Regional bank CRT pipeline builds
New SCI Global Risk Transfer Report published
A couple more US regional bank capital relief trades are in the pipeline for late 2022 or early 2023, according to SCI’s new Global Risk Transfer Report. In terms of reference pools, a current area of focus is relatively high-quality assets that have a good credit story and are available in some depth.
“I can think of .......
News 12 October 2022
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'Too early to tell' for Sec Reg
Sector developments and company hires
‘Too early to tell’ for Sec Reg
The European Commission has released its report on the functioning of the Securitisation Regulation, as mandated under Article 46 of the Securitisation Regulation. The headline takeaway is that since the regulation only came into force in 2019, the Commission believes it is too early to tell whether the regulation is working and so no meaningful .......
Market Moves 11 October 2022
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Keeping it competitive
Greystone's Jenna Unell, senior md in special servicing, and...
Q: Greystone recently purchased its first primary B-piece in a US$1.09bn conduit CMBS. What makes now the right time to enter this market?
The Structured Credit Interview 11 October 2022
RR: We purchased what was C-III Asset Management at the end of 2019, just before the pandemic, and we are working towards growing that business - which was special servicing. The best way to grow that business .......