Complete news archive
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Spanish private debt fund wins EIF backing
Sector developments and company hires
Spanish private debt fund wins EIF backing
Beka Finance has formed a private debt management unit, dubbed Beka Credit, which it hopes will help consolidate the firm’s growth and leadership position in the alternatives market. The unit is already preparing to launch its first private debt fund, with which it expects to raise around €250m.The Luxembourg-based vehicle will .......
Market Moves 17 December 2021
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Offshore appeal
International ratings for CMB credit card ABS
The first Chinese credit card ABS rated by an international agency (S&P) has closed. Zhaoyin Hezhi 2021 Phase I Personal Consumer Loan Asset-backed Securities is backed by a CNY2.97bn pool of credit card receivables originated by China Merchants Bank (CMB), which will also act as servicer on the transaction.
On why CMB sought international ratings, Andrea Lin, lead analyst and .......
News Analysis 17 December 2021
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Auto CRT priced
Santander engineers US return
Santander has completed its synthetic securitisation that references a US$2.17bn portfolio of US auto loans (SCI 9 December). The transaction is the first post-Covid US synthetic auto ABS issued by a European originator and marks Santander’s return to the US market.
Rated by Fitch, the transaction consists of US$1.656bn unrated class A1 notes, US$10m unrated class A2 .......
News 17 December 2021
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Opportunities in interventionism?
New housing bill opens door to Spanish BTL market
Spain’s minority coalition partners recently agreed a draft housing law - the first since the country’s transition to democracy in 1975 - which could redefine the local real estate market. As the cost of housing soars, the leftwing government proposes to protect vulnerable tenants against investment funds and corporate landlord firms. The move could accelerate the emergence of a .......
News Analysis 17 December 2021
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CLO investors thrive in 2021
An extract from SCI's new CLO Markets service
2021 has been a good year for CLO investors, after very mixed results last year when some funds failed to fully recover from the sharp declines recorded in March and April 2020. CLOs are now present in a range of funds – from diversified macro funds to specialised credit funds, in addition to an increasing number of pure CLO funds .......
News Analysis 17 December 2021
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CAS Christmas cracker
Fannie's third CRT since its return makes Q4 top of the pile
Fannie Mae has priced its third and final CAS deal of the year, and as this trade will settle before year-end it makes 4Q 2021 the busiest ever seen in the GSE CRT space, say sources.
The US$909m four-tranche offering, dubbed CAS 2021-R03, references a pool of around 117,000 single family mortgages with an outstanding principal balance of .......
News 16 December 2021
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ESG SRT inked
Standard Chartered completes capital relief trade
Standard Chartered has finalised a US$90m significant risk transfer trade that references a US$1bn portfolio of US and European corporate borrowers. Dubbed Chakra Six, the CLN stands out for its ESG features and was priced in the high single digits, rendering it the most tightly priced SRT so far from the Chakra programme.
The transaction features a sequential amortisation structure .......
News 15 December 2021
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New trends
Italian NPL ABS capture coronavirus exposures
Over the medium term, Italian NPL securitisations will capture loans that have defaulted since the outbreak of the pandemic. They will be different compared to pre-pandemic portfolios featuring loans with low seasoning, at early stages of legal proceedings and with increased concentrations.
According to a new report by Scope Ratings, banks will securitise low-seasoned NPLs, as portfolios will include new .......
News 15 December 2021
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Bank bonanza
Massive potential of US bank CRT market stressed in Miami
If 10% of the $2trn US wholesale commercial loan market were to receive the CRT treatment it would create $25bn of new tranches - only $10bn less than the entire current global CRT market, according to a speaker at the ABS East conference in Miami today.
Moreover, there remains considerable incentive for US banks to take this path: the differential between RWAs .......
News 14 December 2021
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CyCAC securitisation closed
Sector developments and company hires
CyCAC securitisation closed
Oxalis Holdings has completed a securitisation backed by a portfolio of Cypriot non-performing loans (NPLs) and real estate owned (REO) properties (see SCI’s Euro ABS/MBS Deal Tracker). Dubbed Hestia Financing, the €2.2bn transaction implements a two-tier structure for the management of the portfolio.The portfolio has a total adjusted pool value of €2.06bn and was .......
Market Moves 14 December 2021
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UK review released
HMT 'broadly supportive' of securitisation market
The UK government has published its report on the review of the securitisation regulation (SCI 28 June), which outlines specific areas of the regime that HM Treasury may revisit to ensure it “best delivers” for the UK securitisation market. The report appears to be broadly supportive of the industry - although notably isn’t supportive of extending the public .......
News 14 December 2021
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Legal fees
Litigation finance market ripe for securitization wizards
Dislocation and delays of normal procedure during the 21 months of Covid-19 have boosted the litigation finance market and with it the possibility of greater securitization, says Jordan Goldstein, partner at Selendy & Gay in New York
Goldstein was speaking today about new trends in structuring and underwriting at the ABS East conference in Miami.
Lenders in the litigation finance market advance capital .......
News 14 December 2021
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Road rage
Soaring used car prices turbo charge auto ABS but risks loom, say Miami panellists
An unprecedented surge in US used car values has led to a remarkable recovery in the auto ABS market from the pandemic lows, agreed panellists today at the ABS East conference in Miami.
Spreads have narrowed from an average of Libor plus 300bp-350bp at the beginning of Q2 2020 to something in the region of plus 150bp at the end of 2021, .......
News 13 December 2021
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Game-changing potential
In the second in our series of year-end interviews with inve...
Opportunities for investment in CRT trades from US names will increase significantly in 2022, says Terry Lanson, a portfolio manager at Seer Capital.
“We think we’ll see significant volume out of the US and also out of Europe. The programme is growing in adoption globally. It is receiving significant attention from investors and capital allocators like state pension .......
News Analysis 13 December 2021
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NPL prudential framework revised
Sector developments and company hires
NPL prudential framework revised
Market Moves 13 December 2021
The EBA has published its final report on the draft regulatory technical standards (RTS) amending its RTS on credit risk adjustments in the context of the calculation of the risk weight (RW) of defaulted exposures under the standardised approach (SA) of credit risk. The proposed amendments follow up on the European Commissions’ action plan to tackle .......
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SCI Start the Week - 13 December
A review of SCI's latest content
Last week's news and analysis
News 13 December 2021
Covid-19: Lessons for the CMBS market
Allen & Overy explores the pandemic lessons for European CMBS
CRT bonanza
Record 2021 origination and Fannie's return to drive banner 2022 for CRT
Digital ABS debuts
Fully blockchain-based securitisation completed
Exploiting inefficiencies
CIFC answers SCI's questions
Flowers among weeds
CMBS yields value to canny buyers despite distress
Growth constraints
Disconnect between Euro ABS ambitions and .......
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Record breakers
Strong Euro CLO market set to continue
European CLO issuance volume is set to hit a post-financial crisis high of €40bn by year-end, boosted by record reset and refinancing activity. Prospects for the market in 2022 remain positive, reflecting strong leveraged debt issuance expectations, improving CLO arbitrage and a positive macroeconomic outlook.
“It’s been a very busy market – even if there has been a .......
News 10 December 2021
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Year-end?
European ABS/MBS market update
With primary European ABS/MBS market activity fading further away, year-end feels awfully close. As a result, focus is already being directed on the upcoming new year.
“I think it is fair to say that we have hardly looked at any potential trades this week,” says one European ABS/MBS trader. “As is appropriate for this time of year, there .......
News 10 December 2021
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HSBC hits the US trail
HSBC USA markets corporate loan CRT, Santander brings auto loan CLN
HSBC USA is in the CRT market with a new trade backed by large revolving corporate loans originated in North America, say well-placed sources.
The deal, which is expected to close before the end of the year, is self-led.
The reference pool of loans is worth $2.5bn and the new issue size will be $300m, add sources.
Tranche thickness is 0%-12.5% and the trade .......
News 9 December 2021