Complete news archive
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Dual shocks
Securitisation well positioned to withstand headwinds
The Covid-19 shock has been replaced by two others - war and worse-than-expected inflation (SCI 7 April). However, the securitisation market appears to be well positioned to withstand these headwinds.
“We came into the year coming out of one shock – pandemic - only to be hit by two others: worse-than-expected inflation and now war. Those new shocks are .......
News Analysis 8 April 2022
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Lakemore Partners appoints independent board member
Sector developments and company hires
Lakemore has appointed Howard Tiffen as an independent member on its board of directors. With more than four decades of experience in credit, product, and portfolio management, Tiffen brings extraordinary knowledge in high yield capital markets to the firm. Tiffen has held senior credit management positions at numerous firms, including Continental Bank, Bank of America, and Van Kempen (now Invesco). .......
Market Moves 8 April 2022
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Stag night
US ABS in good place to absorb impact of raging inflation
Even if the US economy were to plummet into stagflation, the ABS market will suffer only minor negative ratings consequences, according to analysis conducted by Fitch.
There would be virtually no effect on ratings in 67 out of the 78 sub-sectors reviewed, it says.
The bulk of ABS deals were well-positioned at the start of this year in terms of the strength of .......
News 7 April 2022
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Going Dutch
Unprecedented RMBS issuance from the Netherlands
A new Dutch prime RMBS issuer has hit the market, following a slow-down in issuance across the segment in recent years (SCI 26 January 2021). The Athora Group is debuting Prinsen Mortgage Finance 1, as the Dutch RMBS market experiences unprecedented levels of activity this week (see SCI’s Euro ABS/MBS Deal Tracker).
The deal’s seller and .......
News 7 April 2022
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Nuveen closes CLO issuance fund
Sector developments and company hires
Nuveen has announced the close of its inaugural CLO equity fund with over US$375m in committed capital. The Nuveen CLO Issuance Fund was supported by global public and private pension plans, family offices, as well as insurance companies, and will provide the opportunity to invest alongside Nuveen’s parent company, TIAA. The firm hopes the fund will offer exposure to the .......
Market Moves 6 April 2022
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Mind the gap
Alternative data, RMBS to help address wealth inequality
Securitisation could prove a useful tool in addressing the growing wealth inequality gap. Indeed, the technology is already channelling capital towards underserved communities, aided by CDFI-backed RMBS and alternative data being used to calculate credit scores.
Elen Callahan, head of research at the Structured Finance Association, believes that the use of alternative data to assess consumer credit scores .......
News Analysis 6 April 2022
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Covid-19: The effects on the securitisation sector
TJ Durkin, head of structured credit at Angelo Gordon explores the immediate and longer-term effects of the pandemic on securitisation markets
Since the Global Financial Crisis (GFC), structured credit markets have often been described as “resilient” given conservative underwriting and collateral fundamentals over that period. Household leverage has considerably declined, and debt-service sits near historic lows – in stark contrast to corporations .......
Talking Point 5 April 2022
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Positive performance
INV RMBS gaining traction
Investment property (INV) loan origination has risen substantially in the US post-pandemic, driving increased issuance of INV-only RMBS. Based on data from its prime jumbo and non-QM benchmarks, dv01 has published an analysis of performance across the sector.
“We’ve been talking about INV deals as if they’re a new concept, but investor loans have been part of the .......
News Analysis 4 April 2022
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WhiteStar acquires Carlson Capital's CLO business
Sector developments and company hires
WhiteStar Asset Management has announced its acquisition of five reinvesting CLOs of more than US$2bn managed by Carlson CLO Advisers. WhiteStar will take on all collateral management duties of the Cathedral Lake branded CLOs, effective from 31 March 2022. WhiteStar and Carlson were represented in the transaction by Milbank and Mayer Brown, respectively. The acquisition follows WhiteStar’s recent expansion, acquiring .......
Market Moves 4 April 2022
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Maturing prospects
Self-storage loans show highest refi rate
The 10-year Treasury rate closed the month at 2.33%, following the rate hike in mid-March. With the US Fed indicating that six more rate hikes are likely this year, KBRA analysed the refinancing prospects of US CMBS conduit loans that mature through 2023 and found that approximately 60% can successfully refinance with a first mortgage without the need for .......
News 4 April 2022
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SCI Start the Week - 4 April
A review of SCI's latest content
Last week's news and analysis
News 4 April 2022
Call option pending?
APAC SRT could be called this year
Cautious optimism
European ABS/MBS market update
Guarantee on tap
WBS liquidity facility replaced
How can I manage a thriving CLO platform?
Dana Carey, cio, MidOcean Credit Partners, explains
Keeping score
ESG CLO challenges highlighted
Positive outlook persists
Recession remains unlikely
Quality control
Call for ESG data improvements
Robotic revolution
QSR innovation continues to bolster .......
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Cautious optimism
European ABS/MBS market update
Following a clear pick-up in activity last week, the European and UK primary ABS/MBS markets have carried over that dynamism into this week. Optimism is, it seems, back on the cards for now.
“Well, I think things are much more positive,” states one European ABS/MBS trader. “We have seen a big turnaround in the market, where a lot .......
News 1 April 2022
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BNP Paribas Asset Management acquires majority stake in Dynamic Credit Group
Sector developments and company hires
BNP Paribas Asset Management has announced the completion of its acquisition of a majority stake in Dutch asset manager, Dynamic Credit Group (DCG). The acquisition marks an important step in BNPP AM’s strategic plan to expand its investment business, and particularly its private debt platform. The firm hopes the integration of DCG into BNPP AM teams will enhance its private .......
Market Moves 1 April 2022
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Robotic revolution
QSR innovation continues to bolster WBS performance
Issuers of quick-service restaurant (QSR) whole business securitisations adopted a number of strategies to survive the Covid-19 pandemic. As trends towards off-premise dining and delivery continue to produce increased revenue, these strategies are expected to continue supporting performance across the segment.
US QSR WBS issuance last year increased by 88% from 2019 and by a total 300% compared .......
News Analysis 1 April 2022
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Keeping score
ESG CLO challenges highlighted
The role that CLOs can play in the sustainability agenda is becoming increasingly difficult to ignore, given the push towards Article 8 transactions under the SFDR (SCI 21 December 2021). Against this backdrop, a recent study undertaken by Scope Ratings analyses underlying borrower scores to highlight the challenges of labelling European CLOs as ESG products.
“The challenge .......
News Analysis 1 April 2022
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First Eagle Investments to acquire Napier Park Global Capital
Sector developments and company hires
First Eagle Investments has announced its agreement to acquire leading alternative credit manager, Napier Park Global. The deal is expected to close within the next few months, and will see Napier Park retain its investment and operating autonomy. At the close of 2021, First Eagle had a reported US$110.5bn in assets under management, with this acquisition set to increase further .......
Market Moves 31 March 2022
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Quality control
Call for ESG data improvements
The lack of clear, unified standards continues to constrain the wider adoption of ESG securitisation in the EU. In order to fulfill investor demand for such product, both the quality and quantity of ESG data needs to improve, according to panelists at SCI’s recent ESG Securitisation Seminar.
Andrew Lennox, portfolio manager at Federated Hermes, pointed out that pricing .......
News Analysis 30 March 2022
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Guarantee on tap
WBS liquidity facility replaced
Assured Guaranty UK (AGUK) has issued a £170m five-year debt service reserve (DSR) guarantee to benefit Yorkshire Water Services, part of the Yorkshire Water group. The guarantee was structured to fit within Yorkshire Water Services’ existing whole business securitisation and comes as banks increasingly retreat from providing securitisation liquidity facilities.
The securitisation requires a debt service facility to .......
News 30 March 2022
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