Complete news archive
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Positive prospects
Risk sharing remains promising, despite due diligence burden
Risk-sharing deals involving the EIF and private investors are yet to gain ground. This CRT Premium Content article surveys the likelihood of such collaborations going forward.
Significant risk transfer transactions between banks on the one hand and insurers and hedge funds on the other have grown substantially over the last two years in deal count terms. However, risk-sharing deals ......
News Analysis 6 August 2021Premium Content
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Scalabis strikes
Algebra brings Portuguese NPL ABS
Algebra Capital is in the market with an unusual Portuguese non-performing loan ABS. Dubbed Scalabis STC (compartment Panda), the securitisation is backed by a €1.47bn portfolio that was acquired through two investment vehicles – LX Investment Partners II and III – from Banco BPI, Banco Comercial Português, Caixa Geral de Depósitos, Caixa Leasing e Factoring and Novo Banco between .......
News 6 August 2021
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Summer reflections
Euro ABS/MBS new issuance pricing trends
From now on, SCI will publish regular case studies and reports on the European ABS/MBS market in addition to our usual news stories on the sector and the first can be found here for free.
This time, we examine the demand and consequent pricing dynamics seen across European and UK ABS, CMBS and RMBS new issuance in .......
News 6 August 2021
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Record Freddie
Freddie Mac churns out STACR and ACIS at highest yet seen volumes
Freddie Mac today (August 5) announced that its CRT programme, including both STACR and ACIS, achieved record H1 issuance of $9.9bn, protecting $418.9bn of unpaid principal balance of mortgage loans.
This was comprised of $6.4bn of issuance in Q1 - a new quarterly record - and $3.5bn in Q2. There were five STACR deals and seven ACIS transactions in H1. So far .......
News 5 August 2021
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Risk assessment platform bolstered
Sector developments and company hires
Risk assessment platform bolstered
Market Moves 5 August 2021
Moody's is set to acquire climate and natural disaster risk modeling and analytics firm RMS from Daily Mail and General Trust for approximately US$2bn. The acquisition will immediately increase Moody’s insurance data and analytics business to nearly US$500m in revenue and accelerate the development of the company’s global integrated risk capabilities to address the next generation of .......
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Pretium strengthens resi credit capabilities
Sector developments and company hires
Pretium strengthens resi credit capabilities
Market Moves 4 August 2021
Sarah Kong, Andrew Miller and Peter Morreale have joined Pretium as mds, based in New York. Kong will be responsible for mortgage whole loan trading at Pretium and joins from Goldman Sachs, where she spent 15 years in the firm's mortgage business. Miller was previously at Fortress Investment Group and will be responsible for the .......
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Positive results
Stress tests raise SRT prospects
The results of the latest EU bank stress tests demonstrate that European banks are able to withstand severe shocks. Indeed, the tests were the most severe to date and - following the ECB’s lifting of dividend restrictions in late July - banks are now able to boost dividend payments. The latest developments raise the issuance prospects for significant risk .......
News Analysis 4 August 2021
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Issuance boost
STS synthetic securitisations taking off
The pipeline of STS synthetic securitisations continues to grow (SCI 5 March), with at least a dozen such transactions expected to price by year-end. Banks that are new to the significant risk transfer market, as well as regular capital relief trade issuers are readying deals, with Santander believed to be first off the blocks (SCI 4 August).
News 4 August 2021
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SOFR term rates recommended
Sector developments and company hires
SOFR term rates recommended
Market Moves 2 August 2021
The Alternative Reference Rates Committee (ARRC) is now formally recommending CME Group’s forward-looking SOFR term rates, following the completion of a key change in interdealer trading conventions on 26 July under the SOFR First initiative. SOFR term rates marks a major milestone in the transition away from US dollar Libor and the completion of the paced .......
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Robust performance
Freddie Mac K-Series defaults, losses tracked
Freddie Mac K-Series CMBS are exhibiting a cumulative default rate of 0.35%, according to a new KBRA loan default and loss study on the sector. Such robust performance is expected to continue, as the US multifamily sector has benefited from strong investor demand, demographic shifts, household formations and an improving economy.
“We expect this to continue for the .......
News 2 August 2021
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ABS-lite appetite
Insured trade receivables notes in vogue
Meaningful flows into trade finance ABS are emerging from institutional investors. Such demand is, in turn, spurring structural innovation across the sector.
“In the hunt for yield, traditional institutional investors are shopping around for new asset classes with interesting characteristics that tick the right boxes in terms of risk profile. Providing they can get comfortable with the underlying risk, one .......
News Analysis 2 August 2021
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SCI Start the Week - 2 August
A review of SCI's latest content
Last week's news and analysis
News 2 August 2021
Are direct lending strategies fit for purpose?
Contributed thought leadership by Ocorian
Consistent opportunities
European CLOs still offering value
Ginnie in a hurry
Only 10 more days for market input on new capital rules
Growing foothold
CRC expands Latin American presence
Landmark CRT debuts
BMPS inks first stage two SRT
Out of favour?
WBS issuers turning to high yield bonds
Risk on
Lower .......
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Revival of the fittest
Euro CMBS continues to gain traction
European CMBS is experiencing a sturdy revival, despite a wave of downgrades by US rating agencies, participants in a recent Scope Ratings webinar agreed. With 10 public European CMBS issued in 1H21 - amounting to €3bn – and another three announced since then, market appetite for these transactions is growing (SCI 30 June).
With 2021 supply already .......
News Analysis 2 August 2021
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Ginnie in a hurry
Only 10 more days for market input on new capital rules
Ginnie Mae has blindsided the market with its new proposed capital rules for non-bank lenders, which it also appears to want to implement before the end of the year, say sources.
The government agency announced a request for input (RFI)from interested parties by August 9 in a six-page document released on July 7. Not only is this a relatively short period, it .......
News Analysis 30 July 2021
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BTL issuer acquired
Sector developments and company hires
BTL issuer acquired
Starling Bank has acquired specialist buy-to-let mortgage lender Fleet Mortgages in a £50m cash and share deal. To date, Fleet Mortgages has originated £2.3bn of mortgages and experienced zero credit losses. It currently has circa £1.75bn of mortgages under management and has executed nine RMBS.Starling will become the sole funder of future originations, with Fleet .......
Market Moves 29 July 2021
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Out of favour?
WBS issuers turning to high yield bonds
Punch Pubs Group last month refinanced its pub securitisation in the European high yield bond market, becoming the second pubco to do so after Stonegate refinanced its legacy Enterprise and Unique transactions in July 2020. The move underlines a growing trend in Europe to refinance whole business securitisations with high yield bonds.
“We are slowly seeing the death .......
News Analysis 29 July 2021
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Up, up and away
Recovery of GSE CRT/MILN deals from dark days of spring 2020 continues to impress
Although risks to performance remain, the recent impressive performance of GSE CRT and MILN transactions is set to continue, says Yash Shah, DBRS Morningstar vice president.
Shah was speaking yesterday (July 27) on a webinar organised by DBRS Morningstar, in which he was joined by Mark Fontanilla, founder of Mark Fontanilla and Company.
Improvement in collateral, high prepayment speeds and the fact .......
News Analysis 28 July 2021
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Risk on
Lower quality credit outperforms
The first half of 2021 has been universally positive for below-investment grade credit markets and for alternative credit funds. Indeed, stressed and distressed corporate credit generated the highest returns.
“If you fell asleep at the end of 2019 and woke up mid-way through 2021, you would look back and say these performance numbers don’t look too bad. Credit .......
News 28 July 2021