Complete news archive
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Better bid
REO online auctions gaining traction
The three most active US CMBS special servicers sold 125 commercial real estate assets via online auctions in 2020 and 2021, with sale proceeds on average achieving 103% of the most recent appraised value and 122% of the minimum reserve price, according to a new Fitch study. The findings show that assets sold in 2021 on average achieved 109% .......
News 12 May 2022
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PIMCO push
Kruzel hire suggests new SRT focus
Mark Kruzel has joined PIMCO as a senior vice president in the new capital markets group (PCM), according to an internal announcement seen by SCI.
He will report to Sean Meeker, who leads the credit effort in PCM. Meeker reports to Rick LeBrun, head of alternatives business management, and Jamie Weinstein, head of portfolio management.
Kruzel’s appointment means there are now three members .......
News 11 May 2022
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'Investor-friendly' features introduced
Sector developments and company hires
Rising interest rates and widening spreads have spurred changes in US non-prime RMBS structures that introduce investor-friendly features for senior noteholders, Fitch reports. The move comes amid growing concern over coupon cap shortfalls and lower availability of excess spread.
As such, many issuers have reduced the aggregate servicing fee to 25bp (which historically has been 50bp), while some have introduced .......
Market Moves 11 May 2022
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Servicer strategies
BNPL affordability dynamic eyed
The rapid growth of the buy now, pay later (BNPL) sector (SCI 25 March), coupled with heightened costs of living, is altering the affordability dynamic within existing RMBS portfolios. Against this backdrop, investors are being encouraged to question servicers about their strategies for BNPL schemes.
“From a securitisation point of view, there aren’t huge issuances at the moment - and .......
News 10 May 2022
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ITRN 'club deal' debuts
Sector developments and company hires
NN Investment Partners (NN IP) has launched the first vintage of a customised solution to invest in trade finance through its Insured Trade Receivables Notes (ITRN) strategy. Structured as a club deal and delivered via a mutual debt vehicle (a fonds commun de titrisation), the offering was specifically designed for a group of high-profile insitutional investors in France, with initial .......
Market Moves 9 May 2022
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SCI Start the Week - 9 May
A review of SCI's latest content
Last week's news and analysis
Consolidation considerations
CLO manager acquisition activity set to continue
More multifamily
Workforce housing in focus amid affordability crisis
New CAS, tighter spreads
Fannie prints fifth CAS of 2022
Warehouse woes?
Turnkey solution offered amid labour shortagesFor all of last week’s stories including ‘Market moves’ and ‘Risk transfer round-up’ click here.
SCI CLO Markets
News 9 May 2022
CLO Markets provides deal-focused information on the global .......
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ICE to acquire Black Knight
Sector developments and company hires
Intercontinental Exchange (ICE) is set to acquire the software, data, and analytics company, Black Knight. Unanimously agreed by the boards of both companies, the definitive agreement to acquire Black Knight would help boost Intercontinental Exchange’s rapidly expanding mortgage technology business. Black Knight is valued by the cash and stock transaction to hold a market value of US$13.1bn, which translates to US$85 per .......
Market Moves 5 May 2022
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Warehouse woes?
Turnkey solution offered amid labour shortages
US mortgage warehouse lenders face an increasing competitive landscape, with labour shortages posing an additional challenge. Against this backdrop, turnkey solutions could help lenders scale their businesses.
“The mortgage warehouse financing competitive landscape is increasing. The workplace environment is also evolving; many employees are looking for remote or hybrid working arrangements. Our clients have noted that it is .......
News 5 May 2022
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More multifamily
Workforce housing in focus amid affordability crisis
Increased focus by Fannie Mae and Freddie Mac on targeted affordable housing appears to be yielding powerful results among both borrowers and lenders. Addressing supply issues requires the development of new properties, as well as renovating the existing stock, however.
A significant issue in the US affordable housing crisis is supply, especially at the lowest income levels. For .......
News Analysis 4 May 2022
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New CAS, tighter spreads
Fannie prints fifth CAS of 2022
Fannie Mae priced CAS 2022-R05, its fifth CAS of the year, this afternoon, the GSE reported.
The $952m four tranche note references a pool of close to 127,000 single family loans with unpaid principal balance of $38.5bn. This is a high LTV deal, with LTVs between 80% and 97%, which were acquired between May 2021 and July 2021.
The $292.9m M-1 was priced .......
News 3 May 2022
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Consolidation considerations
CLO manager acquisition activity set to continue
CLO manager consolidation is expected to continue, following a marked rise in acquisition activity in Q1 this year. However, the trend could be challenging for new entrants going forward and potentially increase exposure to obligor overlap risk.
“I think a lot of it is pent-up demand from the pandemic,” explains Russ Thomas, a director in US structured finance at Fitch. .......
News Analysis 3 May 2022
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UHNW securitisation under scrutiny
Sector developments and company hires
UHNW securitisation under scrutiny
Market Moves 3 May 2022
Pomerantz has filed a class action lawsuit against Credit Suisse Group and certain of its officers in the US District Court for the Eastern District of New York, on behalf of purchasers of Credit Suisse securities between 19 March 2021 and 25 March 2022 inclusive. The case seeks to recover damages caused by the defendants’ alleged violations .......
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CAS continuity
Fifth CAS of 2022 in the market
Fannie Mae is in the market with another CAS REMIC deal, designated CAS 2022-R05, according to reports.
Wells Fargo and Bank of America are the lead managers. Barclays, Citi, Morgan Stanley and StoneX are co-managers.
This is the fifth CAS deal of 2022 - a year in which there is expected to be record-breaking CRT issuance. Fannie and Freddie Mac are expected to .......
News 29 April 2022
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MSCI and MarketAxess collaborate
Sector developments and company hires
MSCI has announced its entry into a strategic collaboration with MarketAxess to establish new portfolio analytics solutions and fixed income indexes. The two firms hope to improve the fixed income investment process, empower investors, and drive innovation through their collaboration by developing portfolio optimisation, trading, and analytics tools. The collaboration will rely on MarketAxess’ fixed income indexes and AI-informed pricing .......
Market Moves 29 April 2022
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A buyer's market
European ABS/MBS market update
Following a flurry of deal announcements (SCI 22 April 2022), the primary European and UK ABS/MBS markets were extensively testing investor demand during the week. With so many deals to absorb, deal performance has been disparate.
In a context of large volumes of paper, UK RMBS transactions were playing a central role with four transactions hitting the market. On .......
News Analysis 29 April 2022