Complete news archive
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Bright spots
IRA set to boost solar ABS origination
The US solar ABS market is poised for growth, following the passage of the Inflation Reduction Act (IRA) last month. In particular, the extension and expansion of the investment tax credit (ITC) is set to encourage consumer engagement with solar panels.
“Origination continues to be strong and we will continue to see ABS transactions for the rest of .......
News Analysis 28 September 2022
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Split opinion
Recession considerations discussed
The jury is still out on the likely impact of next year’s forecast recession on the securitisation market. However, panellists at S&P’s European Securitisation Conference earlier this month did concur that the situation is likely to get worse for the sector before it gets better.
While the forecast for the European securitisation market appears somewhat bleak, the majority .......
News Analysis 27 September 2022
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BlackRock preps CLO ETF
Sector developments and company hires
BlackRock preps CLO ETF
In a recent filing with the US SEC, BlackRock has disclosed that it is prepping a CLO ETF, dubbed BlackRock AAA CLO ETF. The fund seeks to provide capital preservation and current income by investing in a portfolio of predominantly US dollar-denominated triple-A rated CLO securities.
Under normal circumstances, BlackRock AAA CLO ETF will invest at least .......
Market Moves 27 September 2022
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Golden Arch
Arch sells second MILN of 2022 at wide prints
Arch has printed Bellemeade Re 2022-02, worth $201m, its second mortgage insurance-linked note (MILN) of the year.
This is only the fourth deal in this sector in 2022 as wider spreads have deterred issuers. Essent priced Radnor 2022-01 earlier this month, but that was the first MILN seen since April.
Bellemeade 2022-01 is noticeably on the small size - indeed it is .......
News 26 September 2022
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'Specialist-squared' solution?
Renewable energy SRT challenges addressed
Banks are expected to substantially grow their lending in the renewable energy sector, driven by ambitious net-zero programmes and government efforts to meet climate targets, heightened further by recent geopolitical tensions. Risk-sharing transactions can play an important role in allowing banks to manage both regulatory capital and risk limit constraints as lending books grow, while retaining the assets on .......
News Analysis 26 September 2022
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Adapting to change
Adam Zausmer, chief credit officer at Ready Capital, answers SCI's questions
Q: Ready Capital and Starz Real Estate recently formed a joint venture to originate around €300m of new commercial real estate loans over the next two years (SCI 21 July). What prompted the move? What is currently exciting to you in European CRE?
The Structured Credit Interview 26 September 2022
A: It was a great opportunity to further expand and diversify Ready Capital’s international lending business. .......
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SCI Start the Week - 26 September
A review of SCI's latest content
Last week's news and analysis
CRT wave continues
Goldman Sachs prices leveraged loan CRT
Investment slowdown
EIF expected to reduce SRT investments this year
Legitimate questions
STS synthetics adoption discussed
Singular CRT
One-off entry into CRT from PacWest
STACR six priced
Sixth low-LTV STACR of 2022 pricedFor all of last week’s stories including ‘Market moves’ and ‘Risk transfer round-up’ click here.
SCI CLO Markets
News 26 September 2022
CLO Markets provides .......
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Early redemption for Spanish synthetic
Sector developments and company hires
Early redemption for Spanish synthetic
Clifford Chance has advised Santander Consumer Finance regarding the early redemption of bonds issued by Santander Consumer Spain Synthetic Auto 2018-1 and the settlement process. This transaction included obtaining consent from various institutional investors and represents the first early redemption of a synthetic securitisation fund in Spain.
The Clifford Chance team was led by global financial markets .......
Market Moves 23 September 2022
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Legitimate questions
STS synthetics adoption discussed
The adoption of STS synthetic securitisation has helped legitimise the capital relief trades market. However, this Premium Content article outlines how the EBA’s most recent consultations could prove challenging.
STS synthetic securitisation issuance has soared since the execution of the first transaction in June 2021, adding momentum to this year’s capital relief trade deal flow, further legitimising ......
News Analysis 22 September 2022Premium Content
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Performance triggers finalised
Sector developments and company hires
Performance triggers finalised
The EBA has published its final draft regulatory technical standards (RTS) specifying the minimum performance-related triggers for STS synthetic securitisations that feature non-sequential amortisation. With the purpose of standardisation, the amended Securitisation Regulation sets out that sequential amortisation shall be applied to all tranches of STS on-balance sheet securitisations.
However, as a derogation, STS on-balance sheet securitisation .......
Market Moves 21 September 2022
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Singular CRT
One-off entry into CRT from PacWest
Pacific Western Bank (PWB), a $41bn Beverly Hills, California-based lender wholly owned by PacWest Bancorp, has become the third US regional bank to venture into the CRT market.
It is reported to be in the market with a four-tranche CLN designated PWB 2021-01, which securitizes residential mortgage assets and is set to close this week.
The forerunners in the US regional bank CRT market .......
News 20 September 2022
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STACR six priced
Sixth low-LTV STACR of 2022 priced
Freddie Mac priced STACR 2002-DNA6, its sixth low LTV STACR of the year, on Friday (September 16) afternoon. The GSE was reported to be in the market last week.
The bookrunners were Bank of America and Morgan Stanley, while the co-managers were Amherst Pierpoint, Cantor, Citigroup and StoneX.
The offering consists of three investment grade tranches - a $388m M1-A priced to .......
News 19 September 2022
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Dignity Finance restructuring mooted
Sector developments and company hires
Dignity Finance restructuring mooted
UK funeral provider Dignity has launched a consent solicitation with noteholders of its whole business securitisation, Dignity Finance, in relation to a deleveraging proposal. Following the award of a temporary covenant waiver by the class A noteholders, the company has continued to work on a long-term solution to improve the group's capital structure.
As part of implementing this .......
Market Moves 16 September 2022
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Branching out
Thomas Majewski, managing partner and founder of Eagle Point...
Q: Eagle Point recently announced its expansion into the ABS, MBS and SRT markets, which will be led by Karan Chabba as head of ABS, MBS, SRT and speciality finance (SCI 19 July). What were the motivations behind branching out into these markets?
The Structured Credit Interview 15 September 2022
A: In terms of relative interest, the order we are looking at these is SRT, ABS .......
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CMBS sickness
Rising rates imperil issuance and refinancing
CMBS issuance is expected to be down for the foreseeable future due to higher rates, wider spreads and difficulties with refinancing, according to a new report from Moody's.
There have been only three multi borrower conduit deals this quarter, with perhaps another one or two expected before the end of 3Q. There were 33 deals in 2021 for a total dollar value .......
News 14 September 2022