Complete news archive
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Lumpy SOFR
New Libor bill fails to clear up potential Libor versus SOFR mismatch
The signing of the Adjustable Rate Libor Bill (H.R.4616) into law eight days ago introduces important clarity into the Libor transition process, but the structured finance market is very far from out of the woods yet.
The bill creates a safe harbour for contracts lacking a specfied replacement rate for Libor and directs the Federal Reserve, when necessary, to determine a new .......
News 23 March 2022
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Window of opportunity
European ABS/MBS market update
This week is seeing clear evidence of a pickup in activity in the European and UK ABS/MBS primary markets. In what feels like an intermediate period of opportunity for issuers, the announcement of a flurry of transactions should test investor appetite and overall market conditions.
“After a period that saw huge levels of issuance for covered bonds, our .......
News 23 March 2022
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Wrapped ratings upgraded
Sector developments and company hires
Moody's has upgraded the ratings of 148 classes of US structured finance securities wrapped by Assured Guaranty Municipal (AGM), Assured Guaranty (AGC) and their affiliated insurance operating companies, as well as one class of US securities wrapped by AGM. The securities impacted include certain RMBS and ABS notes. The move follows Moody's upgrade of the insurance financial strength (IFS) .......
Market Moves 23 March 2022
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Inequitable frameworks
Data analyses demonstrate punitive ABS treatment
AFME has published two independent data analyses, undertaken by Risk Control, in response to the European Commission’s call for advice regarding bank and insurance prudential capital treatment and the liquidity coverage ratio (LCR). Both reports demonstrate that the current European regulatory framework is disproportionately punitive for securitisation.
One of the Risk Control analyses examines the relative risk of .......
News Analysis 22 March 2022
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STACR three
Freddie Mac completes Q1 CRT borrowing
Freddie Mac issued a US$1.8bn high LTV STACR transaction late on Friday via Bank of America and Nomura.
The bond, designated STACR 2022-HQA1, is the first high LTV deal that Freddie Mac has sold in 2022. It references loans put on in 3Q21 and completes Freddie’s credit risk transfer business for this quarter.
The GSE plans to .......
News 21 March 2022
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Thoughtful approach
Olivier Renault, md, head of risk sharing strategy at Pember...
Q: You joined Pemberton at the beginning of December to establish the firm’s new risk sharing strategy (SCI 1 December 2021). Can you provide some background to this move?
The Structured Credit Interview 21 March 2022
A: The aim of the risk sharing strategy is to leverage Pemberton’s strengths: we have significant origination and credit capabilities, with eight offices across Europe. Although the strategy is global .......
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SCI Start the Week - 21 March
A review of SCI's latest content
Last week's news and analysis
News 21 March 2022
Choice offering
Rob Reynolds, md and head of CLOs at Pemberton Asset Management, talks to SCI
Full stack guarantee launched
Millenium bank executes SRT
Room to run?
MDB CRT challenges persist
Some stabilisation
European ABS/MBS market update
Synthetic RMBS unveiled
Unicredit reveals capital relief trade
What makes an efficient CLO manager?
Phil Raciti, head of performing credit and a portfolio manager at .......
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Risk transfer round up-21 March
CRT sector developments and deal news
Santander is believed to be readying a synthetic securitisation backed by Portuguese corporate loans. The bank’s last such transaction was finalized last year and was called Castelo (SCI 4 August 2021).
....... News 21 March 2022
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Equitable Holdings subsidiary to acquire CarVal Investors
Sector developments and company hires
Equitable Holdings has announced the acquisition of CarVal Investors by its subsidiary, AllianceBernstein. The agreement to acquire the global private alternative investment manager with US$14.3bn in AUM falls in line with Equitable Holdings’ strategy to further its differentiated business model and increase returns. CarVal focuses on opportunistic and distressed credit, as well as renewable energy infrastructure, speciality finance, and transportation .......
Market Moves 18 March 2022
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Barrow Hanley closes inaugural CLO equity fund
Sector developments and company hires
Barrow Hanley Global Investors has closed on its inaugural CLO equity fund – the Barrow Hanley CLO Fund I LP. The fund will be managed by the existing alternative credit team and follows the aims of the firm’s strategic partner, Perpetual Limited, to expand the product offering at Barrow Hanley. Perpetual, alongside employees at Barrow Hanley, have invested 35% of .......
Market Moves 17 March 2022
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Choice offering
Rob Reynolds, md and head of CLOs at Pemberton Asset Managem...
Q: You joined Pemberton earlier this month (SCI 1 March). Can you provide an overview of the firm and the new CLO platform?
The Structured Credit Interview 17 March 2022
A: Pemberton was founded in 2013 by our managing partner Symon Drake-Brockman, who is still leading the business. At the time, the fallout from the financial crisis in 2008 led banks to prioritise investment-grade loans and shrink .......
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Synthetic RMBS unveiled
Unicredit reveals capital relief trade
Details have been revealed of a significant risk transfer transaction that UniCredit and Fidelis finalized in December 2021. The synthetic securitisation is backed by Italian residential mortgages and is the bank’s first SRT to be backed by such exposures and its first with insurers.
The Italian lender structured the transaction under the ARTS (Asset Risk Transfer Sharing) program. The deal references a €600m .......
News 16 March 2022
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IGLOO SME scheme unveiled
Sector developments and company hires
The EIF is supporting the Italian Guaranteed Loan Origination Platform (IGLOO), a new state-backed initiative that aims to provide €170m in opportunities for growth and financing for at least 800 SMEs and mid-caps in Italy. Promoted by Gruppo MutuiOnline and Gruppo NSA, the platform has a particular focus on criteria relating to climate transition and environmental sustainability.
The EIF will participate via .......
Market Moves 15 March 2022
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Room to run?
MDB CRT challenges persist
A number of challenges continue to constrain multilateral development bank capital relief trade issuance. This Premium Content article investigates whether these obstacles can be overcome.
The African Development Bank’s (AfDB) landmark Room2Run (R2R) transaction marked the first capital relief trade issued by a multilateral development bank (MDB) and heightened expectations for a boost in such issuance (SCI 20 ......
News Analysis 15 March 2022Premium Content
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What makes an efficient CLO manager?
Phil Raciti, head of performing credit and a portfolio manager at Bardin Hill, explains the key attributes needed to be successful as a CLO manager
The CLO asset class operates within a sophisticated construct of arbitrage, leverage, and structural protections. Having navigated multiple recessions and the most significant period of issuer downgrade activity on record in 2020, the asset class has .......
Talking Point 14 March 2022
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SCI Start the Week - 14 March
A review of SCI's latest content
ESG event this week
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.
For more information on the event or to register, click here.Last week's news .......
News 14 March 2022
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Some stabilisation
European ABS/MBS market update
The European and UK ABS/MBS markets saw some elements of stabilisation in the last few sessions of last week. Nevertheless, spreads continue to widen in both a very active secondary and a quiet primary space.
The secondary market saw its busiest week of 2022, with over €350m paper on BWIC and dealers reporting healthy bilateral activity as well. As the .......
News 14 March 2022