Complete news archive
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Legacy Libor
Senate passes Libor act, but worries about adequacy of SOFR remain
The US Senate yesterday passed the Adjustable Interest Rate (LIBOR) Act into law, but market sources say the replacement of Libor by SOFR in legacy contracts will precipitate legal action.
Problems are predicted as there is currently a wide and growing disparity between Libor and SOFR settings.
“There’s going to be a lot of law suits. People that were expecting to get a bump .......
News 11 March 2022
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Ratings furore
Industry pushback throws into doubt S&P CMBS ratings action
S&P this week agreed to push back the RFC period for its proposed changes to ratings for securitized securities held by insurers from March 18 to April 29.
This is the second extension to the time allowed for the RFC, which was initially set to end on February 18 when the mooted adjustments were first announced on early December 2021.
In a conference call on .......
News 10 March 2022
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Growing presence
Mia Drennan, president, founder and co-chair of GLAS, answers SCI's questions
Q: What is your strategic vision for GLAS and its continued expansion and growth in the US?
Provider Profile 10 March 2022
A: GLAS was founded in 2011 and we expanded into the US in 2016. Once we secured the necessary regulatory licenses and approvals to operate in the US, we began serving clients on a cross-border basis across the UK, Europe, Australia and the .......
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Carlyle tops rankings on CLO acquisition
Sector developments and company hires
Carlyle is set to acquire from CBAM Partners a portfolio of assets using a combination of US$615m in cash from Carlyle’s balance sheet and approximately 4.2 million newly issued common shares. CBAM’s US$15bn in assets under management - the majority of which are in CLO funds - will be integrated into Carlyle’s global credit platform. The transaction will increase .......
Market Moves 10 March 2022
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Coordinating outfit
ESG advisors gaining traction
ESG advisors are gaining traction in the securitisation market, as sustainability becomes an ever-more import consideration for investors and issuers. This Premium Content article investigates what the role entails.
As sustainability becomes an ever-more important consideration for securitisation investors and issuers, the role of the ESG advisor on transactions is gaining traction. Not only do they assist issuers in ......
News Analysis 10 March 2022Premium Content
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POS ABS prepped
Barclays backstops UK debut
Barclays is in the market with the UK’s first point-of-sale (POS) loan ABS. Dubbed Pavillion Point of Sale 2021-1A, the transaction is backed by a £491.57m revolving pool comprising 894,320 unsecured loans granted to private individuals domiciled in the UK and serviced by Clydesdale Financial Services (CFS).
The seller is Isle of Wight Home Loans, which acquired the .......
News 9 March 2022
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'We all have a part to play'
Celebrating IWD: on attracting more women to leadership positions
Lucy Oddy, securitisation partner at Allen & Overy, is perceived as lucky to work in a team full of female talent. But, in the final article of our series celebrating International Women’s Day, she puts it down to a winning combination of supportive male colleagues and senior female role models.
I was describing my team to a candidate the other .......
Talking Point 9 March 2022
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ESG seminar line-up finalised
Sustainable securitisation on the agenda
SCI’s inaugural ESG Securitisation Seminar is taking place in-person on 16 March at the London offices of Clifford Chance. The event will examine the role that securitisation can play in sustainable finance and the challenges that need to be overcome to achieve its potential.
The seminar begins with an overview of EU regulation and policies focused on ESG .......
News 9 March 2022
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Test case
CDS market ponders Russian sanctions
Western sanctions on Russia are putting the CDS market in relatively uncharted territory given the challenges it potentially raises for the running of auctions. Indeed, the latter hampers liquidity and the settlement of CDS contracts. The situation is further complicated by the Kremlin’s decision to allow repayment of bonds in roubles since this could trigger more cumbersome restructuring events.
According to .......
News Analysis 8 March 2022
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Boosting the bottom line
Celebrating IWD: on the need for equal pay
Firms with diverse leadership are 21% more likely to outperform from a profitability perspective, according to findings in McKinsey & Company’s Diversity Series. In the second article in SCI’s series celebrating International Women’s Day, Stephanie Mah, svp, structured finance research at DBRS Morningstar, argues that pay equity is paramount in retaining female representation in the securitisation industry.
“In diversity there .......
Talking Point 8 March 2022
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Paying it forward
Celebrating IWD: on empowering the next generation of women
Alston & Bird’s structured finance practice is notable in the industry for being led by female partners and for women making up the majority of the overall team. For the third article in our series celebrating International Women’s Day, these leaders sat down with SCI deputy editor Angela Sharda to discuss how recruitment and retention policies, as well as mentoring .......
Talking Point 8 March 2022
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MV Credit plans to open new office
Sector developments and company hires
Natixis Investment Managers affiliate, MV Credit, is set to open a new Paris office under the leadership of Arnaud Heck. The new entity will integrate Ostrum Asset Management’s former private debt team to establish a new team of 16 at MV Credit France. Heck will serve as md and head of MV credit France, and under his leadership the .......
Market Moves 8 March 2022
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'Show, don't just tell...'
Celebrating IWD: on why women need more leadership role models
That diversity increases innovation and competitiveness for business is well-understood, but efforts to embrace it may still only be window-dressing in the case of the securitisation market. In the first article in our series celebrating International Women’s Day, Tamara Box, managing partner EME and head of structured finance at Reed Smith, outlines her views on why women need more role .......
Talking Point 7 March 2022
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SCI Start the Week - 7 March
A review of SCI's latest content
IWD: Breaking the bias in structured finance
News 7 March 2022
International Women’s Day, on 8 March, is an opportunity both to celebrate women across the globe from all walks of life and to strive further for their equality. This year, the IWD campaign is #BreakTheBias and we at SCI have compiled a series of interviews and insights – that will be published today through .......
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Expectation gap
European ABS/MBS market update
Macro volatility continued to push European and UK ABS/MBS spreads wider last week in a quiet secondary market, with activity further hampered by differences in participants’ expectations. Meanwhile, the primary market remains side-lined.
“As the escalation of the crisis in Ukraine fuels further deterioration in the technical backdrop for financial markets, European ABS spreads extended their sell-off in .......
News 7 March 2022
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War time blues
International turmoil adds to CRT distress
If January was bad for the GSE CRT market, February was a lot worse.
To add to the seemingly deep-seated problems of the US economy, a full-blown war between Russia and the Ukraine broke out in the waning days of the month.
The CRTx Aggregate, flagship index of market-leading consultancy and data provider Mark Fontanilla and Co, lost 100bp in the month. This .......
News 4 March 2022
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Capital trouble
The final ECRF rule fails to remove impediments, say market experts
The FHFA’s failure to incorporate more far-reaching changes to the final Enterprise Regulatory Capital Framework (ERCF) rule, published on February 28, has excited considerable disappointment among some in the credit risk transfer market.
While the final rule of the new capital framework, which was initially unveiled in the summer of 2021, is much better than its predecessor, it still contains flaws .......
News Analysis 4 March 2022
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Talking control
CLO control equity examined
CLO equity is back in vogue and is attracting attention for all the right reasons. As this Premium Content article suggests, for suitably prepared investors, taking a majority position can increase the benefits still further.
After years of uninformed press coverage setting up CLO equity as the catalyst for the next financial crisis, the bottom of the stack is ......
News Analysis 4 March 2022Premium Content
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SLC continues expansion
Sector developments and company hires
SLC Management has promoted Bryan Rowe, Daniel Lucey, Jacqueline Gallant and Jeffery Meyer as the firm continues to expand its business and investment capabilities. Effective from 26 March, the four will work as senior mds at the firm. Firstly, Rowe has been promoted to senior md for global portfolio management, having spent more than 15 years at the firm, and .......
Market Moves 3 March 2022
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Transitioning to green
Call for EU GBS to be extended to securitisation
In a new report examining how to foster transparency and credibility across the EU sustainable securitisation market, the EBA suggests that it would be “premature” to establish a dedicated framework for ‘green’ securitisation. Instead, the authority believes that the forthcoming EU Green Bond Standard (GBS) regulation should also apply to securitisation, providing some adjustments are made to the standard.
News Analysis 2 March 2022
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Feedback loop
CRE CLO confluence to continue?
US CRE CLO issuance volumes exceeded conduit CMBS issuance volumes for the first time ever last year. Such record growth, illustrated through 51 deals across 28 issuers - amounting to around US$45bn – underlines a shift in commercial real estate financing towards floating rate loans and transitional properties.
“It has clearly been a record year for the [CRE .......
News Analysis 2 March 2022