Complete news archive

  • High LTV Italian SRT inked

    Intesa executes capital relief trade

    Intesa Sanpaolo has finalized a significant risk transfer (SRT) transaction from the GARC programme that references a €1.3bn portfolio of high loan-to-value (LTV) residential mortgages.

    The deal is the first high LTV mortgage SRT in the Italian market. The mortgages in the pool have a LTV ratio that is 80% or higher.

    The trade features a €33.3m upper junior tranche (1.5%-4%), a €70.6m .......

    News 3 September 2021

  • Libor worries

    UK RMBS transition to leave ratings unshaken

    The transition from sterling LIBOR to risk-free rates is unlikely to have negative rating consequences for UK RMBS transactions, a Standard & Poor's (S&P) report notes.

    Even though the 31 December phase-out deadline is less than four months away and with mounting general uncertainty around transition plans, S&P estimates that current ratings will prove resilient. 

    Its analysis, centred around transition patterns and amended terms .......

    News 3 September 2021

  • Scope concerns

    SFA underlines concerns in UK government call for regulation opinion

    The SFA has highlighted problems in regulatory jurisdictional scope in its response to Her Majesty’s Treasury’s Call for Evidence on UK securitisation regulations.

    Earlier this year, the UK government had issued a call for evidence in connection with securitisation regulation. Under the terms of the consultation, it is seeking views to ensure that it “best delivers” for the UK’s financial sector and .......

    News 3 September 2021

  • CMBS vigour

    CMBS issuance for rest of 2021 to keep everyone busy

    Issuance in the European CMBS market for the remainder of this year is to exceed 2018 figures  despite the uncertainty emanating from the pandemic, say market experts.

    “Covid-19 has hit the CMBS market very hard. Thanks to the vaccine and re-openings we have seen this market is back on the road to recovery. The CMBS market in terms of assets – we .......

    News 3 September 2021

  • Ready to launch

    Norway readies SRT take off

    The Norwegian banking market is getting ready for a pick-up in significant risk transfer (SRT) issuance next year following the pending incorporation into law of the new Securitisation Regulation, say market experts.

    Nevertheless, the first deals are expected to be relatively simple vanilla structures, given the scepticism of local supervisors.   

    The Norwegian market has been slow to adopt the SRT mechanism for .......

    News Analysis 3 September 2021

  • Low delinquencies - for now

    Delinquencies give few alarms but asset quality slump pending

    While aggregate delinquency data currently looks benign, asset quality is expected to deteriorate as support programmes come to an end.

    Up to date aggregate delinquency data, while masking some divergence, holds no terrors, notes Scope Ratings. The NPL ratio for EU-headquartered banks fell to just 2.5% at the end of 1Q21, according to ECB numbers, while gross euro area NPLs more than .......

    News 2 September 2021

  • Forward strides

    Middle East Islamic finance market looks good into 2022

    The Islamic finance Middle Eastern market has achieved notable progress over the last four or five years and sentiment remains very positive, say analysts.

    "It's been a strong year so far - we have seen five years of growht in the sukuk markets. On the Islamic banking side, growth has continued to surpass conventional banks. We have seen the industry grow significantly, .......

    News Analysis 2 September 2021

  • Risk transfer round up - 31 August

    CRT sector developments and deal news

    Alpha bank confirmed in last week’s 1H21 statements further details of a significant risk transfer trade that the Greek lender intends to execute in 4Q21 (SCI 5 March).

    Dubbed Aurora, the transaction references a €2bn corporate and SME portfolio, and is expected to release €1bn of RWAs. Piraeus Bank opened the Greek SRT market in March (SCI 18 March) and .......

    News 31 August 2021

  • Student housing sponsor accused of 'Ponzi-like' scheme

    Sector developments and company hires

    Student housing sponsor accused of ‘Ponzi-like’ scheme
    The US$36m SkyLoft Austin loan - securitised in the UBSCM 2019-C16 CMBS - is over 30 days delinquent in payment, as of the August 2021 remittance period. The loan is sponsored by Patrick Nelson, who is reportedly being sued by dozens of minority investors involved in the acquisition of the property.

    Nelson .......

    Market Moves 27 August 2021

  • Tight deadline

    PRA NPE ABS consultation to 'provide momentum'

    The UK PRA’s consultation - which ended earlier this month – regarding the implementation of Basel standards in connection with non-performing loan securitisations has been welcomed by the industry. The authority is seeking to introduce a framework for non-performing exposure ABS, following the implementation last year of a revised securitisation capital framework via the CRR and the publication of .......

    News 27 August 2021

  • Angel MBS

    Angel Oak Mortgage completes first sole MBS at new low coupons

    Angel Oak Mortgage REIT, the sister company of Angel Oak Capital, has closed a $316m RMBS offering, designated AOMT 2021-4, which represents the first sole securitization by the firm.

    It placed notes with a face value of $306.4m at a weighted average cost of funding of 1.12%. This represents a sharp narrowing of pricing compared to recent deals, pointed out chief .......

    News 26 August 2021

  • CLO control equity fund closed

    Sector developments and company hires

    CLO control equity fund closed
    Lakemore Partners has successfully closed Aquatine IV at US$400m, due to strong investor demand. Aquatine IV is Lakemore’s fourth CLO fund within the Aquatine platform, which invests in control equity positions in US CLOs. Investors in the fund comprise a diverse group of institutional investors, representing private banks, fund of funds, insurance companies, family offices .......

    Market Moves 26 August 2021

  • Driving decarbonisation

    EUA securitisation platform poised for growth

    Tramontana Asset Management recently breached US$5bn in assets through its innovative carbon ABS platform. The programme is poised for further growth, as the rise in EU Allowance (EUA) prices is increasing the need for carbon credit hedging and financing solutions among corporates.

    Established in 2019, the Tramontana carbon ABS programme securitises EUAs - each EUA representing an entitlement .......

    News 24 August 2021

  • Solar LDA partnership inked

    Sector developments and company hires

    Solar LDA partnership inked
    dv01 has partnered with GoodLeap with the aim of further promoting data transparency and accountability within the solar ABS market. Through this partnership, dv01 will serve as loan data agent (LDA) for Carbon Level Mitigation Trust (CLMTE) pass-through certificates.

    The shelf currently comprises CLMTE 2021-1 and CLMTE 2021-2, with an aggregate notional value of US$53.6m .......

    Market Moves 23 August 2021

  • SCI Start the Week - 23 August

    A review of SCI's latest content

    Last week's news and analysis
    Bullish sentiment
    CLO, loan opportunity set to continue outperforming
    Chowa finalised
    NatWest executes leveraged loan SRT
    Financing boost
    EGF extended to synthetics
    Pretium steps out
    New hires signal new products and added depth to old ones
    Robust recovery
    Bumper "summer" for Aussie securitisation
    The puzzling case of the disappearance of Fannie Mae
    FNMA's absence from CRT investigated
    There's gold in them thar .......

    News 23 August 2021

  • Pretium steps out

    New hires signal new products and added depth to old ones

    The three key hires that specialist mortgage and real estate investment manager Pretium announced earlier this month signal its intention to widen its footprint in the US residential mortgage space by adding depth in existing product ranges but also adding new instruments to the roster.

    Sarah Kong joins the resi credit trading team as head of mortgage whole loan trading from .......

    Provider Profile 20 August 2021

  • APAC ILS issuance on the rise

    Sector developments and company hires

    APAC ILS issuance on the rise
    Continued efforts from Asia Pacific reinsurers to source alternative capital through the ILS market is anticipated, following on the heels of the seven catastrophe bonds that were issued using Singapore-domiciled vehicles through July. Indeed, the first Hong Kong-domiciled catastrophe bond is being prepped.

    The Singapore cat bonds issued in 2021 comprise: Security First .......

    Market Moves 20 August 2021

  • Double bind

    New SRT tests pose complexities

    The European Commission’s new consultation on the Securitisation Regulation (SCI 26 July) for the first time officially offers banks the opportunity to raise questions on the workability of the new significant risk transfer tests included in the EBA’s final report on SRT (SCI 27 November 2020). The tests pose several complexities for banks, due to the design .......

    News Analysis 20 August 2021

  • Robust recovery

    Bumper "summer" for Aussie securitisation

    The Australian securitisation market has experienced a deluge of activity in the last few weeks. With a total of A$8bn placed in July, the sector experienced its busiest month since 2007.

    Australia's effective management of the coronavirus and macro-policy response generally facilitated a robust economic recovery throughout 2020. “The securitisation market has obviously shown a dramatic recovery since .......

    News Analysis 20 August 2021

  • There's gold in them thar malls

    Retail CMBS notes have bucked the recovery, but rewards are there

    The currently much-spurned retail CMBS market contains pockets of great value, according to Karlis Ulmanis, portfolio manager at DuPont Capital.

    In general, CMBS spreads have bounced back to pre-pandemic levels. CMBS based on the hotel sector have made great strides lately, for example. This week Fitch removed 14 single borrower hotel deals from negative ratings watch.

    But CMBS deals exposed to retail .......

    News 19 August 2021

  • Corporate, PF businesses bolstered

    Sector developments and company hires

    Corporate, PF businesses bolstered
    KBRA has enhanced its corporate and project finance businesses by forming new sector teams to focus on the intersection of infrastructure, energy, renewables and middle market lending. The aim of the sector-focused teams is to meet demand for KBRA’s thought leadership across these segments.

    Andrew Giudici, senior md and global head of corporate, project and .......

    Market Moves 18 August 2021
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