Complete news archive
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Fannie in the money
Income and net worth climb to new highs
Fannie Mae’s net worth ballooned during 2021 by $22bn to $47.36bn, the GSE reported this week in its annual and Q4 earnings.
Net income increased by almost 100% to $22.18bn from $11.81bn in 2020. Net interest income rose by $4.72bn YoY to $29.59bn, while credit related income moved from an expense of $855m in 2020 to revenue of $5.1bn in 2021.
Fannie made $451bn .......
News 17 February 2022
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Greater progression
Sector developments and company hires
Maples Group has announced the hire of two new structured finance professionals, expanding its offering in its London and Jersey offices. Emma Tighe will join the firm in its London office as vp, having spent more than 14 years working in structured finance and most recently serving as relationship manager on the US Bank CLO team. Tighe has expertise across .......
Market Moves 17 February 2022
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Continued growth
Sector developments and company hires
Briarcliffe has made two more new appointments as it continues the expansion of its private credit business. Kyle Abel joins the firm as new head of GP advisory from First Avenue, where he served as md and US head of project management. Additionally, Robert Molina has been promoted to head of origination, having previously worked as md of GP advisory, .......
Market Moves 16 February 2022
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Comfort break
Motorway service area CMBS yet another blow to WBS
Late last year Goldman Sachs issued Highways 2021, a £262m CMBS backed by a single loan secured by eight UK motorway service area properties. The transaction mirrored Welcome Break’s 1997 £321m bond issue, which represented the UK’s first whole business securitisation. Such a structural shift represents yet another nail in the coffin of the whole business securitisation sector, following a .......
News Analysis 16 February 2022
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Aligning interests
Greek NPL market tipped for further growth
Activity across the Greek non-performing loan market is gathering pace. New players are expected to enter the sector this year, with a further uptake seen under the HAPS programme.
“There will be further uptake of HAPS – it has worked well to allow people to manage the size of investments that [they] made in the NPL space, so .......
News Analysis 16 February 2022
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Social mobility
'Cultural progression' puts social bonds in focus
Securitisations designated as social bonds are gaining traction, with the underlying asset classes expected to broaden. Indeed, at present, it is easier to define lending in a socially responsible way than defining it as ‘green’.
Edward Baker, capital markets director at Prodigy Finance, attests to the reasons this may be. “I think it perhaps chimes with the broader ethical and .......
News Analysis 15 February 2022
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SCI Start the Week - 14 February
A review of SCI's latest content
Last week's news and analysis
News 14 February 2022
CLN uplift
CLN deal volumes grow
Compounded calculations
First RMBS tied to Sonia index issued
Emulating efforts
Capital Four US answers SCI's questions
First loss guarantee tapped
EGF SRTs receive mixed reactions
Increasing allocation
Innovation, transparency attracting institutional investors
Positive change
Investor demand set to broaden CLO ESG screening
Spread surge
GSEs face sharply higher costs for CRT as spreads widen
Super-size STACR
Biggest .......
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Spread surge
GSEs face sharply higher costs for CRT as spreads widen
The last couple of weeks have seen significant spread widening in the GSE CRT market, making the mechanism less friendly to the balance sheets of Freddie Mac and Fannie Mae.
This week, Freddie Mac priced its second DNA STACR of the year at levels considerably wider than STACR 2022-DNA1 priced on January 20.
The most recent M-1A tranche came in at .......
News Analysis 11 February 2022
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HKMC inks infrastructure MoUs
Sector developments and company hires
HKMC inks infrastructure MoUs
Market Moves 11 February 2022
The Hong Kong Mortgage Corporation (HKMC) has signed a memorandum of understanding on an infrastructure loans framework with 14 partner banks. The MoUs set out the principal terms for potential infrastructure loan cooperation between the HKMC and the partner banks on both primary participation and secondary sale bases, including the loan selection criteria, mode of participation .......
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Increasing allocation
Innovation, transparency attracting institutional investors
The majority of institutional investors polled in a recent Aeon Investments survey have increased their allocation to structured credit investments across different asset classes over the past 18 months. When asked why there is growing interest in structured credit investment vehicles, the top three reasons were given as greater innovation in the sector, an improving regulatory environment and greater .......
News Analysis 11 February 2022
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Positive change
Investor demand set to broaden CLO ESG screening
CLO ESG screening has to date largely been conducted on an exclusion basis. However, a shift towards positive screening is anticipated, as CLO managers work to meet rising investor demand and comply with the Sustainable Finance Disclosure Regulation.
A recent European Leveraged Finance Association (ELFA) ESG investor survey suggests that the switch to a more integration-based positive screening .......
News Analysis 11 February 2022
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Super-size STACR
Biggest ever $1.9bn STACR prices
The largest STACR in the history of the programme, designated STACR 2022-DNA2, has been priced.
Sized at $1.9bn in five tranches, it outweighs any deal since the first STACR printed in the summer of 2013, confirmed the GSE. It will settle on February 11 2022.
Both M1 tranches are in excess of $500m. The $576m M1-A priced at SOFR plus 130bp while the .......
News 9 February 2022
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Compounded calculations
First RMBS tied to Sonia index issued
The first RMBS to use the recently introduced Bank of England Sonia index to calculate the interest paid on sterling floating rate notes closed last month. Nationwide’s Silverstone Master Issuer Series 2022-1 is set to be the first of many securitisations to link to the new index because it simplifies the calculation of compounded Sonia.
“The index method .......
News Analysis 9 February 2022
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Agencies win 'valid-when-made' cases
Sector developments and company hires
Agencies win ‘valid-when-made’ cases
The US OCC and FDIC yesterday received favourable court rulings in cases challenging their ‘valid-when-made’ rules. In each case, the plaintiffs were three states – California, Illinois and New York – challenging the validity of the rulemakings.The states' attorney generals alleged that both federal agencies violated the Administrative Procedure Act. In particular, the plaintiffs .......
Market Moves 9 February 2022
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Tender two
Freddie concludes second STACR tender offer
Freddie Mac concluded its second tender offer of old STACR notes yesterday (February 8) at 5pm EST.
Twelve tranches, all M2s and M3s, from 2015, 2016, 2017 and 2018 had been offered for tender, though the bulk - 10 of the 12 - date from 2016 and 2017.
The most popular tranches for tender were the STACR 2017 DNA M2 and the STACR .......
News 8 February 2022