Complete news archive
-
Electric avenue
Electric cars aren't as green as they seem
“Just because you have an electric car it doesn’t make you green,” says the head of liquid assets investment at a large public sector borrower in North America.
He manages a $45bn portfolio of which is between $5bn-10bn is devoted to AAA-rated structured finance products, and he was talking about the difficulty of scoring these deals according to ESG criteria.
While plain vanilla .......
News Analysis 28 January 2022
-
Trigger concerns
EBA complicates CRT thickness requirements
The EBA’s consultation paper on regulatory technical standards (RTS) regarding the specification of performance-related triggers for STS synthetic securitisations has largely been welcomed by originators (SCI 20 December 2021). However, one backward-looking trigger pertaining to the thickness of the protected tranche has raised eyebrows.
The consultation stipulates backward- and forward-looking performance triggers that switch a synthetic .......
News Analysis 28 January 2022
-
Impact investor acquired
Sector developments and company hires
M&G is set to acquire a majority stake in impact investor responsAbility Investments. Headquartered in Zurich, responsAbility has invested more than US$11bn in private assets across emerging markets since it was founded in 2003 and currently has approximately US$3.7bn of assets under management (as at year-end 2021).
The acquisition is in line with M&G’s strategy to grow its sustainable investment .......
Market Moves 28 January 2022
-
Risk limits
US corporate SRT issuance to remain constrained
Issuance of capital relief trades referencing US corporate loans is likely to remain constrained, even though a small pick-up in volume has occurred since 2020 with transactions issued by JPMorgan, Goldman Sachs and HSBC USA. Such deals are expected to be driven less by capital relief requirements and more by considerations pertaining to limit relief, profitability and balance sheet growth.
News Analysis 28 January 2022
-
Inflection Point?
European ABS/MBS market update
The European ABS/MBS primary market has been hit by macro volatility this week. While the previous week saw healthy investor demand and firm pricing (SCI 21 January), the current tense backdrop of central banks unwinding and major geopolitical tensions, appears to have affected spreads.
“The primary market has generally been very volatile this week,” notes one ABS/MBS .......
News 28 January 2022
-
SME uplift
Further details on Banco BPM SRT revealed
Further details have emerged in connection with Banco BPM’s significant risk transfer trade with the EIB Group (SCI 22 January). The €91m first loss guarantee references a static €1.57bn portfolio of Italian SME loans and will enable Banco BPM to channel €1bn into the Italian economy.
The guarantee supports the working capital requirements and investments of Italian .......
News 28 January 2022
-
Multi-family moves
SitusAMC Insights speaks up on the US multi-family market
Senior director and head of SitusAMC Insights Peter Muoio and svp Jennifer Rasmussen give their views on the multi-family scene and CMBS market heading into 2022
Q. What is the current picture in the multi-family MBS market and how do you expect it to look in 2022?
PM: The apartment market is in good shape fundamentally with strong investor interest. Investors see .......
The Structured Credit Interview 27 January 2022
-
New hires
Sector developments and company hires
Greystone has announced several new senior hires as it continues to grow its CMBS platform. Jared Noordyk and Natalie Grainger will be joining the firm as head of securitisation and cco, respectively, and will report to head of CMBS, Rich Highfield Noordyk will join the firm from SitusAMC, where he served in a senior role for its CRE Advisory group working .......
Market Moves 26 January 2022
-
Remarkable restructuring
Re-tranched NPL ABS set to benefit from GACS
Intesa Sanpaolo last month completed the first restructuring of an Italian non-performing loan securitisation seeking to benefit from the GACS guarantee. Dubbed Penelope SPV, the deal also marks another first for Italian NPL transactions as, at the time of the assignment of ratings, some properties had already been acquired by the associated ReoCo.
“Penelope SPV is unusual because .......
News Analysis 25 January 2022
-
New members
Sector developments and company hires
DBRS Morningstar has appointed two new independent non-executive members to its board of directors – Joseph M. Donovan and Katherine L. Frey. Both industry veterans, Donovan presently serves in similar roles on the board of directors at STORE capital and Trip Rail Holdings. Frey previously held role of md at Moody’s, and before this worked on municipal finance, derivatives and .......
Market Moves 24 January 2022
-
SCI Start the Week - 24 January
A review of SCI's latest content
Last week's news and analysis
News 24 January 2022
Continued commitments
Deerpath Capital Management, answers SCI's questions
CREFC takeaways
Certain types of mall and certain types of hotel excite worry
How will the CLO market fare in 2022?
Vibrant Capital Partners shares how it expects CLOs to perform in 2022
Longer-dated profile
Project finance exposure embraced
Mortgage marvel
Sharp 2021 drop in foreclosure/delinquency
Primary primary
European ABS/MBS market update
Same as .......
-
Mortgage marvel
Sharp 2021 drop in foreclosure/delinquency - serious delinquency still elevated
At the end of 2021, mortgage foreclosures had hit an all-time record low while the delinquency rate was only 0.10% higher than the historic low of 3.28% hit in February 2020 - just before the pandemic hit - according to data released this morning by Black Knight.
This constitutes a dramatic turnaround from the early days of Covid 19. The delinquency rate, .......
News 21 January 2022
-
Primary primary
European ABS/MBS market update
Focus remained on the primary market in European ABS/MBS this week. Another swathe of new issues on offer meant secondary had to again take a back seat.
Five deals priced on the week. All were RMBS and all met with healthy investor demand ensuring support for continued tight levels throughout the stack.
Yesterday saw two deals print – Elstree Funding .......
News 21 January 2022
-
Community-focused RMBS prepped
Sector developments and company hires
Community-focused RMBS prepped
Change Lending is in the market with its inaugural RMBS – the US$297.26m CHNGE Mortgage Trust 2022-1. Change is certified by the US Treasury as a Community Development Financial Institution (CDFI). As such, the firm is required to lend at least 60% of its production to certain target markets, including low-income borrowers or other underserved communities.
The .......
Market Moves 21 January 2022
-
How will the CLO market fare in 2022?
Vibrant Capital Partners shares how it expects CLOs to perform in 2022
Once a niche, widely misunderstood asset class, CLOs have proven resilient across credit cycles, transforming into a core allocation for institutional investors. Today, the global CLO market is over US$1trn in size and includes participation from pension plans, insurance companies, and other mostly institutional investors who have reaped the rewards of CLOs’ solid performance. In sum, the tailwinds are strong, and the .......
Talking Point 21 January 2022
-
STACR prices
Innovative double M-tranche STACR 2022-DNA1 sets coupons
Freddie Mac has priced STACR 2022-DNA1, reported to be in the market last Friday (January 14), and is expected to settle the trade tomorrow (January 21).
The ground-breaking transaction includes two investment grade tranches - the M-1A and M-1B- rather than one investment grade M tranche. This is due to higher attachment and detachment points than the GSE CRT sector has .......
News 20 January 2022
-
Continued commitments
Derek Dubois, md and treasurer at Deerpath Capital Management, answers SCI's questions
Q: How does Deerpath differentiate itself from its competitors in the lower middle market?
The Structured Credit Interview 20 January 2022
A: Deerpath Capital has been around for a number of years. It was founded in 2007 and we’ve always been focused on lower middle market US secured debt as our investment strategy. The lower middle market offers a nice dynamic for investors; it’s a little less .......
-
Junior tranche guaranteed
Sector developments and company hires
Junior tranche guaranteed
The EIB Group and Banco BPM have joined forces to support the working capital requirements and investments of Italian SMEs hit by the Covid economic crisis. In the first operation of this type in Italy, the EIB and the EIF will provide a guarantee of €91m on a junior tranche of a synthetic securitisation that references a portfolio of .......
Market Moves 20 January 2022
-
CREFC takeaways
Certain types of mall and certain types of hotel excite worry
While the overall tone at the CREFC conference last week in Miami was “bullish”, concern remains about pockets of assets within the CMBS space, say attendees.
It is, however, insufficiently specific to say that the retail mall or hotel markets are problem areas. Rather, only certain segments of these broad asset classes face ratings action, they add.
“Retail as an overall asset class .......
News Analysis 19 January 2022
-
SME mission
Alain Godard, EIF chief executive, discusses Europe's post-C...
Q: What are the ways in which the EIF utilises securitisation to further its mission?
A: Central to the EIF’s mandate is, of course, our support to SMEs across Europe. There are naturally many ways or various instruments to achieve that, including securitisation.By facilitating the execution of securitisation transactions, we provide guarantees to banks and financial institutions, allowing .......
The Structured Credit Interview 19 January 2022
-
UniCredit unveils ARTS
Sector developments and company hires
UniCredit, in cooperation with the EIB Group, has finalised a new synthetic securitisation under its Asset Risk Transfer Sharing (ARTS) programme. The transaction references a circa €2bn portfolio of Italian SME and mid-cap loans, with the EIF guaranteeing the mezzanine tranche, which is counter-guaranteed by the EIB. The capital freed up by the operation will be used to deploy €720m .......
Market Moves 18 January 2022