Complete news archive

  • Libor risks

    Securitized products with swaps at most risk when Libor dies

    While the potential damage to US securitized markets inflicted by the abolition of Libor appears less than seemed likely only a few months ago, pockets of concern remain, say credit analysts.

    Deals which include swaps, particularly cross currency swaps, are most vulnerable. Any interest rate swap incorporates a floating rate leg indexed against Libor, while a dollar versus yen cross currency swap, .......

    News Analysis 1 October 2021

  • Dual-currency debut

    Rare European CRE CLO prepped

    Starz Realty Capital has mandated leads for a rare European dual-currency static CRE CLO named Starz Mortgage Securities 2021-1 (see SCI’s Euro ABS/MBS Deal Tracker). The transaction has no reinvestment ability but allows the issuer to modify performing loans, as well as sell credit risk and defaulted assets, and it also features note protection tests.

    The transaction .......

    News 1 October 2021

  • SFA paper supports agency CRT

    Sector developments and company hires

    SFA paper supports agency CRT
    The SFA has published a white paper on the economics of credit risk transfer at Fannie Mae and Freddie Mac. The paper responds to an earlier FHFA report that had questioned the economic benefits of CRT (SCI passim) and illustrates how CRT has been - and can continue to be - an effective credit risk .......

    Market Moves 1 October 2021

  • Lack of clarity

    Positive signs for Indian ABS, but challenges remain

    The Indian ABS market has demonstrated resilience during the Covid-19 pandemic. However, going forward, the lack of a central data depository and secondary market poses challenges to the growth of securitisation in this jurisdiction.

    “The Indian securitisation market has crossed 30 years of existence – since then we have come a long way. The Indian market has grown .......

    News 1 October 2021

  • CLO ETF moves down cap stack

    Sector developments and company hires

    CLO ETF moves down cap stack
    Janus Henderson Group has filed a preliminary registration statement with the US SEC for the Janus Henderson B-BBB CLO ETF (JBBB) for US investors. The exchange-traded fund - which is expected to be the first ETF focused on providing exposure to single-B to triple-B rated CLO tranches - will be managed by portfolio managers .......

    Market Moves 30 September 2021

  • New heights

    European CLO Market remains bullish with a strong pipeline

    European CLO issuance volumes are accelerating to new levels and are already some way past last year’s €22.1bn new issue total. However, the market is showing no signs of slowing down and predictions are for new issuance to hit around €30bn. 

    “2021 has been a very strong year for CLOs both in terms of new issuance and refinancings. .......

    News 30 September 2021

  • CRTs in the air

    Another two warehouse loan banks said circling the market

    Two unnamed US regional banks are currently in the throes of putting together new capital relief trades and issuance is tentatively expected in Q1 or maybe Q2 2022, say well-placed market sources.

    The issuers are looking to securitize warehouse loans, as did debutant Texas Capital Bank (TCBI) in March and then Western Alliance Bancorporation (WAL) at the end of June.

    Both .......

    News 29 September 2021

  • Synthetic Libor settings confirmed

    Sector developments and company hires

    Synthetic Libor settings confirmed
    The UK FCA has confirmed that to avoid disruption to legacy contracts that reference the one-, three- and six-month sterling and Japanese yen Libor settings, it will require ICE Benchmark Administration to publish these settings under a 'synthetic' methodology, based on term risk-free rates, for the duration of 2022. However, these six Libor settings will be .......

    Market Moves 29 September 2021

  • Freddie prints again

    The seventh STACR of 2021 and third HQA prices

    Freddie Mac has priced its latest STACR deal, designated 2021-HQA3 and worth $1.07bn, via Morgan Stanley and Citi. This is its seventh STACR of the year and, is common, will likely be accompanied by an ACIS transaction.

    The trade is the last STACR of Q3, and is the third HQA deal – which signify higher LTVs – of the year.The GSE .......

    News 28 September 2021

  • Mobilising capital

    Call for risk transfer adoption in development finance

    Aid agencies, development finance institutions (DFIs) and multilateral development banks (MDBs) must make development finance work harder to achieve impact, according to a new OECD policy briefing. Entitled ‘Making blended finance work for sustainable development: the role of risk transfer mechanisms’, the report calls for the adoption of portfolio approaches that connect large-scale commercial finance supply with small-scale borrower .......

    News 28 September 2021

  • SCI Start the Week - 27 September

    A review of SCI's latest content

    Last week's news and analysis
    BPCE up
    Debut French green RMBS prepped
    CLOs and beyond
    CBAM Partners answers SCI's questions
    Downward pricing
    Deutsche Bank completes CRT
    Excellent shape
    European ABS/MBS market update
    Fannie is back
    New capital rules bring Fannie Mae in from the cold
    New frontiers?
    Prospects for further NPL ABS guarantee schemes weighed
    Not so new kids
    CLO manager readying for launch
    Replacement issues
    SOFR challenges explored

    For .......

    News 27 September 2021

  • Fraud charges for Honor Finance pair

    Sector developments and company hires

    Fraud charges for Honor Finance pair
    The US SEC has announced fraud charges against James Collins and Robert DiMeo, the former principals of Honor Finance, for misleading investors about the subprime automobile loans that backed its US$100m offering. The SEC's complaint, filed in US District Court for the Northern District of Illinois, alleges that the pair were responsible for false .......

    Market Moves 24 September 2021

  • Call for 'risk-sensitive' prudential approach

    Sector developments and company hires

    Call for ‘risk-sensitive’ prudential approach
    The ECB has published its comments in connection with the European Commission’s targeted consultation on the functioning of the EU securitisation framework. In particular, the ECB says that the experience it has gained - as an investor in the ABS market through its asset purchase programmes, a collateral taker in its credit operations and as .......

    Market Moves 23 September 2021

  • Excellent shape

    European ABS/MBS market update

    September is living up to its reputation as a busy month for the European ABS/MBS primary market. Even though four deals are due to price today and tomorrow and three printed yesterday spreads remain tight and demand is still strong.

    “It’s pleasing to see that the primary ABS market is in excellent shape,” notes one trader. “Although there is an .......

    News 23 September 2021

  • Risk transfer round-up - 23 September

    CRT sector developments and deal news

    News 23 September 2021

  • New frontiers?

    Prospects for further NPL ABS guarantee schemes weighed

    Given the success of both GACS and HAPS in facilitating the development of a market for non-performing loans, and consequently bank deleveraging, could similar government-backed measures emerge in other European jurisdictions? This Premium Content article examines the prospects for the introduction of further national guarantee schemes.

    Italy and Greece appear to have embraced the most efficient model for de-risking ......

    News Analysis 23 September 2021

    Premium Content

  • US CLOs, Trups CDOs under observation

    Sector developments and company hires

    US CLOs, Trups CDOs under observation
    Fitch has placed 102 tranches issued by 43 US CLOs and 13 tranches issued by seven Trups CDOs under criteria observation (UCO), following the publication of its CLO and corporate CDO rating criteria last week (SCI 17 September). The agency intends to resolve the UCO status by applying the updated criteria to each .......

    Market Moves 22 September 2021

  • Not so new kids

    CLO manager readying for launch

    Not yet a year old, Sycamore Tree Capital Partners is aiming high. The firm intends to become a significant player in CLO management, with the belief that the experience and character of its team are more important than its age.

    “Mark Okada, Jack Yang and I launched Sycamore Tree officially in November 2020, as a boutique private and .......

    News Analysis 22 September 2021

  • Pandemic 'feedback loop' highlighted

    Sector developments and company hires

    Pandemic ‘feedback loop’ highlighted
    Secular changes affecting the recovery of in-person office occupancy in New York City is consequential not only for property-level cashflow, but may also have ripple effects on other sectors, Fitch suggests. The city is the largest US office market and the rating agency says it provides a good case study of the potential feedback loop of .......

    Market Moves 21 September 2021

  • Replacement issues

    SOFR challenges explored

    Term SOFR is expected to be the main replacement for US Libor. This premium content article explores the challenges the new benchmark presents to US CLO equity investors.

    The US Federal Reserve’s Alternative Reference Rates Committee (ARRC) has firmly backed Term SOFR to replace Libor (SCI 2 August). The new benchmark provides US CLO equity investors with some challenges ......

    News Analysis 21 September 2021

    Premium Content

  • Fannie is back

    New capital rules bring Fannie Mae in from the cold

    Fannie Mae is back in the market only five days after the Federal Housing Finance Authority (FHFA) released a proposal to significantly alter the capital treatment of CRT debt

    The GSE has announced that it will recommence issuance of CAS bonds next month after an absence of 19 months.

    CAS issuance will be accompanied by credit insurance risk transfer (CIRT) deals and .......

    News 20 September 2021
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