Complete news archive
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Double first for the EIB
EGF, first loss guarantee debuts
The EIB Group has closed the first synthetic securitisation backed by the European Guarantee Fund (EGF), an instrument set up by the EIB Group together with EU Member States to mitigate the economic consequences of the Covid pandemic (SCI 27 May 2020). The transaction is also the first whereby the EIB Group has invested in the junior tranche .......
News 22 December 2021
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Regulatory redemption?
European CLO sustainability disclosures eyed
ESG investment criteria are rapidly becoming a standard feature across the European CLO market. Enhanced ESG disclosure is anticipated to be the next step in the sector’s evolution, with more information being made available by CLO managers.
“You can see from the stats already: the sheer number of deals that include ESG investment criteria has sharply increased and .......
News Analysis 21 December 2021
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Nephila taps LBR vehicle
Sector developments and company hires
Nephila taps LBR vehicle
Nephila Capital has funded its newly launched Syndicate 2358, which focuses on short- to medium-term insurance business lines, with capital provided through Lloyd’s London Bridge Risk PCC vehicle. The transaction provides reinsurance capital from a diverse group of investors, including four pension funds, to support underwriting beginning with the 2022 Year of Account.Nephila has .......
Market Moves 21 December 2021
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European CLO market weathers reset storm
An extract from SCI's new CLO Markets service
Ninety-nine European CLOs were reset in 2021, many more than what was anticipated at the end of 2020. The total volume, including the full equity tranche, amounts to €42.2bn. New issue volumes, meanwhile, reached €38.6bn, a new post-crisis record.
“2021 was a perfect storm for refinancings. CLOs priced in 2020 at wide spreads and with short non-call periods; many CLOs .......
News 21 December 2021
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Crucial conclusions
EBE highlights importance of securitisation to the real economy
A new joint study by AFME, European DataWarehouse and True Sale International demonstrates that the private cash securitisation market is a crucial element in the funding of the real economy across Europe. Data collated in the report shows that over 80% of private cash securitisations by volume fund sellers in the UK and the EU, and over 70% to .......
News Analysis 21 December 2021
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RFC issued on non-sequential amortisation
Sector developments and company hires
RFC issued on non-sequential amortisation
Market Moves 20 December 2021
The EBA has launched a public consultation on draft regulatory technical standards (RTS) specifying and, where relevant, calibrating the minimum performance-related triggers for STS synthetic securitisations that feature non-sequential amortisation. For the purpose of standardisation, the amended securitisation regulation sets out that sequential amortisation shall be applied to all tranches of STS synthetic securitisations. However, .......
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Greek SRT finalised
Alpha Bank closes capital relief trade
Alpha Bank has completed a €145m synthetic securitisation that references a €1.9bn portfolio of Greek corporate and SME loans. The transaction is the third Greek significant risk transfer trade and the first Greek SRT involving multiple investors.
Indeed, CRC, Anacap and the EBRD all invested in the deal. The EBRD put down €10m of credit protection, but CRC bought the .......
News 20 December 2021
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SCI Start the Week - 20 December
A review of SCI's latest content
Last week's news and analysis
News 19 December 2021
Auto CRT priced
Santander engineers US return
Bank bonanza
Massive potential of US bank CRT market stressed in Miami
CAS Christmas cracker
Fannie's third CRT since its return makes Q4 top of the pile
CLO investors thrive in 2021
An extract from SCI's new CLO Markets service
Corporate SRT launched
Raiffeisen completes capital relief trade
ESG SRT inked
Standard Chartered completes capital .......
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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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