Complete news archive
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New programme
SCI catches up with Mike Strevens, head of structured guaran...
Central to the British Business Bank’s debt financing activities is the ENABLE Guarantee programme, which aims to increase SME lending capacity among specialist UK banks. The guarantee is structured as an unfunded SRT with the most senior part of the SME reference portfolio protected and the first loss/junior portions and a vertical slice of the remaining portfolio retained by the originator. .......
News Analysis 28 August 2024
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Gearing up
SRT Market Update
Heading into the autumn months, the SRT market is gearing up for a bustling end to the year, in spite of the volatility seen earlier this month. While the timelines for a couple of European transactions have been extended, Canadian and US bank activity is picking up pace.
Following a dramatic start to August, with a significant volatility .......
SRT Market Update 23 August 2024
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Diverging markets?
SRT investor-issuer relationships evolving
A common gripe among SRT practitioners is that the flood of new investors to the sector has suppressed spreads. However, some believe it has impacted investor-issuer relationship dynamics too.
According to one market participant, this difference in relationships is particularly pronounced between European deals and the deals which have recently been issued in the US. “While the main .......
News Analysis 23 August 2024
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Job swaps weekly: Texas Capital bags sales and trading MD
People moves and key promotions in securitisation
A quiet week for securitisation job swaps ahead of the UK’s August bank holiday. Nordea Asset Management is expanding its private credit presence in the Nordic region, while Texas Capital has beefed up its securitisation and whole loan capabilities.
Texas Capital Securities has recruited Craig Meltzer as md, sales and trading, based in New York. He focuses on securitisations .......
Market Moves 23 August 2024
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CLO analytics firm eyes private credit
Market updates and sector developments
Siepe has raised US$30m in a Series B funding round led by WestCap, which will drive a multi-product roadmap, including the expansion of the firm’s AI and machine learning capabilities. In conjunction with the new funding, Siepe has appointed Mark Schultis – who joined the firm as an advisor in October 2023 – as president.
The Siepe team .......
Market Moves 22 August 2024
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Shot across the bows
US Senator Jack Reed urges the Fed to place additional guardrails around CRTs
Senator Jack Reed (D-RI) has called on the Federal Reserve to create stricter regulations on credit risk transfer (CRT) transactions. The US senator made the calls in a letter to the Federal Reserve, in a development that comes nine months after he wrote to the regulator warning that the risks of CRT trades “may not be fully understood”.
News Analysis 22 August 2024
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CRE analytics tie-up agreed
Market updates and sector developments
SitusAMC has entered into a strategic partnership with CMBS.com, the owner of Backshop, a commercial real estate loan origination, management and servicing software platform. As part of the partnership, SitusAMC will transition ownership of CLOSER - its CRE origination system – to CMBS.com, provide growth capital and obtain a minority ownership position in CMBS.com. Additionally, SitusAMC will onboard the .......
Market Moves 20 August 2024
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Resilient CLO market in July despite early August volatility
Kartesia sees spreads tightening slightly across capital structure throughout the month
The CLO market demonstrated continued strength in July, with spreads tightening slightly across the capital structure, according to Kartesia, a European specialist provider of capital solutions.
“Euro CLO triple-A spreads closed the month 2.5bps tighter in secondary, and 7bps in primary at DM+97.5/DM+130, respectively,” say head of CLOs Michael Htun and structured credit associate Panagiotis Dounavis in the .......
News 20 August 2024
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Rock-solid July for primary ABS market
Low volatility and strong investor appetite lure new issuers
The primary ABS market remained robust in July despite the typical summer slowdown, with strong issuance and investor demand across various sectors, according to monthly European and UK factsheets monitored by SCI.
Amundi’s portfolio managers observed significant activity in July, particularly among new ABS issuers capitalising on the relatively low market volatility and high investor appetite. “These transactions .......
News 20 August 2024
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CRT Awards shortlist revealed
Gala dinner to close World Risk Sharing Week
SCI has published the shortlist for this year's Capital Relief Trades Awards, which celebrate excellence and innovation across the global credit risk-sharing industry. Award winners will be revealed during a gala black-tie dinner held at the Royal Institute of British Architects HQ on 17 October, marking the tenth anniversary of SCI’s Annual Capital Relief Trades Seminar and representing .......
News 20 August 2024
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A buyer's market
Chorus Capital concludes fundraising
Chorus Capital (Chorus) has successfully concluded fundraising for Chorus Capital Credit Fund V (the fund), its latest dedicated risk-sharing fund.
Through this fundraising, the firm has raised c. US$2.5bn of capital commitments across parallel vehicles, meeting its target size. Comparatively, Chorus had amassed US$1.5bn of capital commitments for its previous fund (Chorus Capital Credit Fund IV) back in .......
News Analysis 19 August 2024
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Mini Morgan
SRT market update
JP Morgan’s latest new mortgage-referencing CRT has a unique structure which has raised some eyebrows.
The bank referred to the transaction as a “deconsolidated portfolio risk transfer” which transfers the mortgages to an off-balance sheet vehicle. The vehicle will in turn enter a credit agreement with a JP Morgan entity to borrow against the value of the retained .......
SRT Market Update 16 August 2024
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Funded access
Rated repacks on the rise
(Re)insurer participation in SRT deals has historically been limited to unfunded and non-STS transactions, but they are increasingly finding innovative ways to participate in funded deals. One such recent innovation is the EMX Partners platform, which combines (re)insurer risk appetite with third-party funding.
Since its launch in June 2023, EMX has effectively closed a debut transaction in Q3 2023 .......
News Analysis 16 August 2024
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Job swaps weekly: New Cayman structured finance chief for Maples
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Maples and Calder naming a new head of its Cayman Islands structured finance practice. Elsewhere, Scotiabank has staffed up for the launch of its new Houston-based mortgage capital markets business, while an ex-Stout md and co-lead of structured credit has taken up a C-suite role at Unifi Asset Management.
Maples .......
Market Moves 16 August 2024
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Italian NPL volumes significantly down
Volumes fall down 20% for Italian NPL collections during the first half of the year
After hitting a three year low in 1Q24 (SCI, 30 May), Italian NPL volumes were down 20% over 1H24 compared to the same periods in 2022 and 2023, according to Scope ratings.
Total collections in 1H24 reached €1,200m from 45 transactions. This is a significant drop in returns YoY, with 1H23 seeing €1,450m from 44 transactions.
News 16 August 2024
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Data centre securitisation: Growing in waves - video
S&P Global Ratings' Jie Liang speaks to SCI about data centre securitisation
Jie Liang, sector lead in S&P Global Ratings’ structured finance esoteric ABS group, speaks to SCI's Simon Boughey about data centre securitisation. Liang discusses the use of proxy data to achieve ratings in the asset class, the extent to which investors are prepared to accept ratings derived from these methodologies, whether there are any signs that the growth data centre .......
News Analysis 14 August 2024
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Latest SRTx fixings released
SRT market sentiment highlights global market volatility.
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. If last month’s data points generally expressed a marginal widening across the indices, this month’s figures show that volatility has returned to the markets. Despite being the peak of the summer holidays, the beginning of the month of August has triggered a surge in volatility .......
News 14 August 2024
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Solera MBO boosts auto finance platform
Market updates and sector developments
Obra Capital has partnered with the Solera Auto Finance (SAF) team in a management buyout from Solera Corp. SAF will be rebranded as Arra Finance and by combining the company’s skills with Obra’s existing structuring and credit expertise, the aim is to jointly work with securitisation market participants and forward flow purchasers to create highly rated assets.
SAF .......
Market Moves 13 August 2024
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The Great White Deep Freeze
SRT market update
After a bumper 2023 for Canadian CRT, issuers seem to be focused on other forms of capital allocation optimisation.
While, last year saw at least four of the big five Canadian banks issuing CRT deals with Canadian assets, issuance this year doesn’t seem quite as considerable.
One source expects CRT issuance to come back with force in .......
SRT Market Update 13 August 2024
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Israel debuts landmark public RMBS deal
Credito's public offering marks new era in Israeli securitisation industry
Israel is on the brink of a major milestone in its financial sector with the launch of its first public RMBS deal. The groundbreaking deal led by the Israeli non-bank lender Credito represents a major step forward for the country’s securitisation market, traditionally dominated by private and bilateral transactions.
The Credito IPOs RMBS deal consists of a mortgage .......
News Analysis 13 August 2024