Complete news archive
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Holding firm
European ABS/MBS market update
Primary and secondary European ABS/MBS activity is expected to pick up this week after a few slow days. Last week, ABS spreads held firm and were able to maintain a certain pre-summer equilibrium, which could further translate into November.
“We’ve seen strong levels of issuance lately, mainly in the ABS space through auto and leasing deals,” notes one .......
News 3 November 2021
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Dual-currency deal
Pan-European CMBS prepped
Goldman Sachs is in the market with a dual-currency pan-European CMBS. Dubbed Frost CMBS 2021-1, the transaction securitises a £112.35m loan and a €92m loan advanced to Newcold Holdings, a temperature-controlled logistics company based in the Netherlands.
The sterling-denominated loan is secured by a single cold-storage property in Wakefield, Yorkshire. The euro-denominated loan is secured against one cold-storage .......
News 3 November 2021
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Freddie and Fannie prosper
Net income/ revenue increased YoY and innovation unveiled in 3Q results
Freddie Mac announced its 3Q results at the end of last week and, alongside healthy YoY growth in net income, several notable firsts were attained in the three month period.
New income was $2.9bn, an increase of 19% YoY, driven by higher revenues and the release of a credit reserve. Net revenues grew by 4% YoY to $5.2bn, as a result of .......
News 2 November 2021
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Freddie's eight
Two STACRs to go before yearend after eventful Q3
Freddie Mac has priced its eighth CRT trade of the year, designated STACR 2021-DNA6, via joint leads Bank of America and Wells Fargo for a face value of $1.48bn.
This is the borrower’s penultimate DNA STACR transaction of 2021. Another HQA deal, which incorporate mortgages with higher LTVs, is also due to be printed before the end of the year, making 10 .......
News 2 November 2021
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SLM EODs eyed
Sector developments and company hires
Fitch has downgraded from single-B to double-C the outstanding class A4 and B notes of SLM Student Loan Trust 2007-7, 2008-1 and 2008-4, due to the legal final maturity date of the class A4 notes being approximately three months away in January 2022 for SLM 2007-7 and 2008-1 and less than 10 months .......
Market Moves 2 November 2021
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SCI Start the Week - 1 November
A review of SCI's latest content
Last week's news and analysis
News 1 November 2021
Comprehensive metric?
Total alpha touted as CLO performance measure
Covid dip
CRE CLO churn rates drop
Disclosure deluge
Proposed quarterly capital disclosures brings GSEs into line with banks
Future-proofing credit portfolio management
The rising importance of technology in managing credit portfolios
Healthy Hertz
Securitisation key to Hertz's near-fatal collapse and its resurrection
Polish return
Rare lease securitisation completed
Positive prospects?
Legal changes open .......
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Matryoshka doll?
Use of proceeds proving contentious for ESG securitisations
The EU taxonomy regulation and Sustainable Finance Disclosure Regulation (SFDR) are posing challenges for securitisation issuers and investors. For now, use of proceeds remains the most contentious issue.
Announced in late 2019, the European Green Deal reflects the EU’s ambitious bid to lead the world on climate action. The deal’s commitments became legally binding by the entry into .......
News Analysis 1 November 2021
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Positive prospects?
Legal changes open up Turkish NPL opportunities
Recent amendments to Turkish law potentially open doors to international investors seeking opportunities in the Turkish non-performing loan market. However, although activity could pick up in the unsecured space, questions remain about secured and lumpy pools.
Under the legislative changes, asset management companies (AMCs) may establish funds to issue ABS. Indeed, by doing so, AMCs have now been .......
News Analysis 29 October 2021
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Securitisation stamp duty eyed
Sector developments and company hires
Securitisation stamp duty eyed
Market Moves 29 October 2021
The UK government is introducing legislation within Finance Bill 2021-22 that provides a power to make stamp duty and stamp duty reserve tax (SDRT) changes relating to securitisations and ILS by secondary legislation. The power will be a freestanding provision and will allow HM Treasury to make regulations to provide that stamp duty or SDRT is .......
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Risk-sharing remit
CRT definitions discussed
Most practitioners agree that ‘risk-sharing transactions’ is the most appropriate moniker for capital relief trades, but there remains some divergence around the term. This CRT Premium Content article explores what it means for investors and issuers alike.
The term ‘risk-sharing transactions’ is becoming more common and more widely understood to denote capital relief trades, but divergences remain around what ......
News Analysis 29 October 2021Premium Content
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Rocky road ahead
Output floor implementation questioned
The European Commission has approved the long-awaited CRR3 proposal (SCI 28 October). The latest changes to the capital requirements regulation incorporate the final December 2017 Basel 3 rules into EU law. Nevertheless, banks will likely oppose the Commission’s single stack approach to the implementation of the output floor, with the industry already having called for further adjustments to the .......
News Analysis 29 October 2021
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Disclosure deluge
Proposed quarterly capital disclosures brings GSEs into line with banks
The Federal Housing Finance Authority (FHFA) has proposed new more onerous disclosure requirements for the GSEs.
Under the terms of the new rules, Fannie and Freddie would be obliged to disclose details about regulatory capital on a quarterly basis, as well as information concerning corporate governance and risk management.
As the 38-page Enterprises Disclosure proposal released yesterday (28 October) makes clear, these requirements .......
News 28 October 2021
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Healthy Hertz
Securitization key to Hertz's near-fatal collapse and its resurrection
Hertz this week (October 26) announced an order for 100,000 new Tesla electronic cars for its rental fleet less than four months after it emerged from Chapter 11 bankruptcy protection - a purchase which pushed the market valuation of Tesla to over $1trn.
The news is testament to both the rapidity and comprehensiveness of Hertz’s recovery from the dark days of May .......
News Analysis 28 October 2021
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Still strong
European ABS/MBS market update
In a quieter week than of late, two full capital stack deals have been competing for investor attention in the European ABS/MBS primary market. Strong demand for both Pixel 2021 and SC Germany Consumer 2021-1 suggests that the market is still strong.
“I think both deals have been executed very well,” notes one ABS/MBS trader. “For SC Germany Consumer .......
News 28 October 2021
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Polish return
Rare lease securitisation completed
Europejski Fundusz Leasingowy (EFL), owned by Crédit Agricole, has completed a rare Polish true sale securitisation. Dubbed EFL Lease ABS 2021-1, the PLN2.15bn transaction has a three-year revolving period and is backed by a portfolio of leases extended to Polish retailers and SMEs (accounting for 99.5% of the pool) and a small portion to large corporate borrowers (0.5%).
News 28 October 2021
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New banking rules
Sector developments and company hires
The European Commission has adopted new EU banking rules under CRR 3 and CRD 4, with the aim of ensuring that EU banks become more resilient to potential future economic shocks, while contributing to Europe's recovery from the Covid-19 pandemic and the transition to climate neutrality. The Commission notes that while the overall level of capital .......
Market Moves 28 October 2021
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Covid dip
CRE CLO churn rates drop
Churn rates in US managed CRE CLOs continue to decline, according to new research from KBRA assessing collateral turnover in recent vintage transactions. The study analysed all CRE CLO transactions issued between 2017 and 2020, gathering data on US$23.3bn in issuance across a total of 27 transactions. Most of these transactions had reinvestment periods of 24 months (51.4%) or .......
News 28 October 2021
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Risk transfer round-up - 28 October
CRT sector developments and deal news
BCP is believed to be readying a capital relief trade in Poland. The trade would be the second alleged CRT from the jurisdiction, following rumours of a transaction being prepped by mBank (SCI 18 October).
....... News 28 October 2021