Complete news archive
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Enhanced value
Securent president Justin Vedder and SitusAMC ceo Michael Franco answer SCI's questions
Q: Securent is a newly formed SitusAMC entity that provides comprehensive risk management and insurance programmes for MBS and mortgage stakeholders (SCI 18 November). Tell us about your vision for the company.
Provider Profile 3 December 2021
JV: Securent is designed for mortgage lenders, investors, RMBS issuers, warehouse lenders and other market participants. Securent takes a proactive and preventive approach to managing loan risk and .......
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ESG countdown
ECB climate stress tests pending
The ECB’s pending climate stress tests are expected to offer some answers around the data and modelling challenges pertaining to the analysis of climate risks. Indeed, the stress tests could also prove definitive for ESG significant risk transfer issuance, given the presence of the same data challenges.
The two main challenges pertaining to the analysis of climate risks are data .......
News Analysis 3 December 2021
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Bosphorus CLOs transferred
Sector developments and company hires
Bosphorus CLOs transferred
Cross Ocean Adviser, an affiliate of Cross Ocean Partners Management, has assumed collateral management of the Bosphorus CLO IV, Bosphorus CLO V and Bosphorus CLO VI transactions from Commerzbank. Moody's has confirmed that the move will not impact its current ratings assigned to the affected notes. Under the terms of the associated novation, termination and amendment and .......
Market Moves 2 December 2021
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SRT chronicle: part three
In the final instalment of a three-part series on bank risk...
We have seen in part one of this series how far the SRT sector has developed in the past 10 years from a niche market with 10-12 transactions issued a year to a much larger and more diversified market. Barring a material downturn in the credit cycle, the SRT market should continue to enjoy strong growth in the next .......
Talking Point 2 December 2021
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RFC issued on ABS tax policies
Sector developments and company hires
RFC issued on ABS tax policies
Market Moves 1 December 2021
HMRC is seeking feedback on two draft statutory instruments: the Taxation of Securitisation Companies (Amendment) Regulations 2022 and the Securitisation Companies and Qualifying Transformer Vehicles (Exemption from Stamp Duties) Regulations 2022. The UK government consulted on making changes to clarify or reform certain aspects of the taxation of securitisation companies and the stamp duty .......
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GACS pair print
Mixed NPE pool debuts
A pair of Italian non-performing loan securitisations have closed over the past week that are expected to benefit from the GACS government guarantee (see SCI’s Euro ABS/MBS Deal Tracker). UniCredit has completed OLYMPIA SPV, its third GACS ABS and the fourth for the UniCredit Group, under its non-core portfolio disposal programme. Most recently, Iccrea Banca has finalised the .......
News 30 November 2021
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BWIC workgroup formed
Sector developments and company hires
Mortgage Industry Standards Maintenance Organization (MISMO) has formed a BWIC data development workgroup, with the aim of standardising the BWIC format to facilitate accuracy, liquidity and rapid pricing for MBS transactions. The initiative focuses on creating a standard format for MBS sellers to present BWIC data to security dealer desks. The workgroup intends to address the growing number of MBS .......
Market Moves 30 November 2021
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Restructurings eyed
Real estate and hospitality assets targeted
Arrow Global’s new corporate restructuring unit in Portugal is expected to focus on the real estate and hospitality sectors (SCI 25 November). The move comes as moratoria in the country draw to an end amid a scarcity of capital for local corporates.
The new business builds on Arrow Global’s experience and capabilities in Portugal through its Whitestar .......
News Analysis 30 November 2021
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Meeting opportunity
New trading platform to capitalise on multifamily growth
Sabal’s new US CMBS trading business - SCH Trading (SCI 9 November) - aims to capitalise on a shift in the market relative to incumbent market-makers. The move comes amid rising investor appetite for multifamily product and an increased focus by the Biden administration on affordable housing.
“We saw a lot of opportunities around how we could .......
News Analysis 30 November 2021
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SCI Start the Week - 29 November
A review of SCI's latest content
Last week's news and analysis
News 29 November 2021
Advanzia advances
German credit card ABS debuts
Partial placement dropped
Montepio opts for full-stack SRT
Robust fundamentals
Positive outlook for GSE CRT market
SCI forum: The benefits of forward flow structures
Our panel of market practitioners respond to readers' questions
Scores on the doors
Significant shift in scorecard augurs increased CAS/STACR
Slowly widening
European ABS/MBS market update
Spitfire launched
Santander completes capital relief .......
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Slowly widening
European ABS/MBS market update
With investors already looking ahead to 2022, the European ABS/MBS primary market is slowly thinning out. However, transactions were still well received this week, though macro concerns have started to make an impact.
“The market has generally been pretty steady,” notes one European ABS/MBS trader. “Naturally it is a little wider at the moment as we are quickly .......
News 26 November 2021
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SCI forum: What are the benefits of forward flow structures for the securitisation market?
Our panel of market practitioners respond to readers' questions
Conor Houlihan, partner at DLA Piper, Ireland
Current dynamics in the banking sector are such that the opportunity for growth in non-bank lending in Europe is significant. In certain segments of the market, fintech lending platforms can be more agile and better-placed to deliver what the market wants.
Platforms with strong origination and underwriting capability can be an attractive partner through .......
Talking Point 26 November 2021
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Partial placement dropped
Montepio opts for full-stack SRT
Montepio Bank has finalised a full-stack significant risk transfer transaction backed by a €378.3m portfolio of Portuguese consumer and auto loans (see SCI’s Euro ABS/MBS Deal Tracker). Dubbed Pelican Finance Two, the deal is the bank’s first SRT sold to private investors. The lender initially considered a partially placed deal but switched to the typical full-stack form, given .......
News 26 November 2021
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Syon upgraded on stable performance
Sector developments and company hires
KBRA has completed a surveillance review of Lloyds’ synthetic RMBS Syon Securities 2020-2. The agency subsequently upgraded the class A and B notes by a notch to single-A minus and double-B plus respectively, in light of the fully ramped-up portfolio’s characteristics and the generally stable collateral performance. Syon 2020-2 is the third SRT transaction issued by Bank of Scotland referencing .......
Market Moves 25 November 2021
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SRT chronicle: part two
In the second of a three-part series on bank risk transfer t...
The SRT market is predominantly European (representing 86% of transactions since 2010), although US banks are accounting for an increasing percentage since 2019 - with JPMorgan now a regular issuer, one transaction by Goldman Sachs in 2020 and a few regional banks entering the market in 2021. Prior to 2019, only Citi and Bank of Montreal were regular issuers in .......
Talking Point 25 November 2021
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Advanzia advances
German credit card ABS debuts
European online lender Advanzia has closed its debut ABS transaction of over €475m in senior funding. The deal also represents the first securitisation backed by a German credit card portfolio.
"Advanzia continues to strengthen its position in the capital markets by demonstrating its ability to issue structured debt securities. This is a significant milestone for the bank, as .......
News 25 November 2021
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Spitfire launched
Santander completes capital relief trade
Santander has finalised a synthetic securitisation of UK auto loans. Dubbed Project Spitfire, the transaction references a £750m portfolio. The deal is the first post-Covid European synthetic auto ABS.
Rated by KBRA and Moody’s, the transaction consists of a £26.5m BBB+/Baa2 rated class C tranche (priced at SONIA plus 300bp) and a £30m unrated class D tranche (SONIA plus 900bp).
News Analysis 24 November 2021
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Scores on the doors
Significant shift in scorecard augurs increased CAS/STACR
The new 2022 GSE scorecard, released at the end of last week, is likely to mean greater issuance in the CRT sector by Fannie Mae and Freddie Mac, say market sources.
“With the 2022 FHFA scorecard focusing the GSEs on ‘promoting sustainable and equitable access to affordable housing’, while operating with a ‘heightened focus on safety and soundness’, including reducing .......
News Analysis 23 November 2021
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Rare RMBS with a twist
Sector developments and company hires
A rarely seen public Swedish RMBS is in the market with an unusual structural twist – Hypoteket Mortgages 3 AB. "Credit enhancement is provided through overcollateralisation and can increase as the transaction captures all excess spread available," explains Rodrigo Conde Puentes, vp senior analyst, structured finance, at Moody’s. "A rare feature in European RMBS, but one we may start to .......
Market Moves 23 November 2021
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Upgrades anticipated after CMBS updates
Sector developments and company hires
Moody’s has updated three commercial real estate sector methodologies, following requests for comments on the proposals in July. The rating agency has placed a number of US CMBS tranches on review for upgrade as a result.
One of the updates is in connection with Moody's methodology for rating US and Canadian conduit/fusion CMBS, which replaces the version from September 2020. .......
Market Moves 22 November 2021