Complete news archive
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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
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Social vision
Edward Baker, capital markets director at Prodigy Finance, e...
Q: Prodigy Finance earlier this month issued a first-of-its-kind ABS backed by international private student loans (SCI 7 July). Tell us more about Prodigy Finance CM2021-1?
A: The US$288m issuance is Prodigy’s inaugural ABS and comes under Prodigy’s new social bond framework, marking a double debut in the fixed income market for the lender.The senior tranche of .......
Provider Profile 28 July 2021
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Consistent opportunities
European CLOs still offering value
Notwithstanding a slight and short-lived wobble last week as a result of macro volatility, the European CLO market has remained the model of consistency over the past few months with technicals dominating fundamentals. That consistency has provided opportunities throughout the capital structure – not least at the top of the stack, with heavy primary volume keeping CLO triple-A spreads .......
News 28 July 2021
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Growing foothold
CRC expands Latin American presence
Christofferson, Robb & Co (CRC) has fully acquired Colombian consumer lender Finsocial. The acquisition will help grow CRC’s foothold in the Latin American consumer market, although the firm will remain opportunistic towards that segment.
CRC has been investing in Latin American consumer finance since 2005, where middle and low-income consumers are underserved by banks. This contrasts with the .......
News 28 July 2021
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Summer hiatus
European ABS/MBS market update
Tight spreads, significant supply and general optimism have epitomised the first half of the year in European ABS/MBS. Now, as the primary market finally comes to a halt for the summer with only one deal widely marketing – Taurus 2021-4 UK, see SCI’s Euro ABS/MBS Deal Tracker for more – the secondary market appears to be entering hiatus .......
News 27 July 2021
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Call for more risk-sensitivity in Sec Reg
Sector developments and company hires
Call for more risk-sensitivity in Sec Reg
Market Moves 26 July 2021
The European Commission has launched a consultation on the Article 46 review of the Securitisation Regulation, seeking stakeholder feedback on a broad range of issues. The questionnaire covers: the effects of the regulation; private securitisations; the need for an equivalence regime in the area of STS securitisations; disclosure of information on environmental performance .......
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Are direct lending strategies fit for purpose?
Contributed thought leadership by Ocorian
Ocorian's Global Head of Capital Markets Alan Booth draws on the firm’s global survey of capital markets decision-makers to shed light on why a staggering 87% of firms surveyed have a direct lending strategy in place. He also explains how these firms can overcome operational challenges by optimising their approach to administration.
Our research found that the majority (57%) of .......
Talking Point 26 July 2021
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SCI Start the Week - 26 July
A review of SCI's latest content
Last week's news and analysis
Angel eyes
News 26 July 2021
Angel Oak Capital Advisors talks value in non-agency MBS
Asset quality boon
EU bank credit conditions normalise
Collateral Chase
JPMC visits CRT space again with trade referencing prime mortgages
Credit engagement
Lockton's engagement with institutions internationally for credit mitigation and country risk protection
Credit events
US moratoria challenges highlighted
Disposals pending
Irish NPL activity set for rebound
Minor deterioration
Spanish payment .......
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Disposals pending
Irish NPL activity set for rebound
The Irish non-performing loan market is set for a rebound in the second half of the year, following a hiatus due to the coronavirus crisis. Indeed, owner-occupied residential mortgages are expected to be a major area of focus for banks as they develop their future strategies against the backdrop of a post-Covid economy.
Ireland has been one of .......
News 23 July 2021
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CRC in French portfolio sale
Sector developments and company hires
CRC in French portfolio sale
French financial guarantee provider Crédit Logement has expanded its non-performing loan servicing capabilities to begin partnering with third parties for the assignment of real estate NPL receivables. The firm’s external servicing business launched with an NPL portfolio sale to Christofferson Robb & Company, with Société Générale acting as adviser.Crédit Logement has more than .......
Market Moves 23 July 2021
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Credit events
US moratoria challenges highlighted
The capital relief trades market has adapted to the existence of payment holidays by either excluding them from portfolios or limiting their presence in them. Nevertheless, payment holidays have raised challenges for US synthetic securitisations - although their removal isn’t expected to have a negative impact on US deals, given that the bulk of take-up rates occurred last year .......
News 23 July 2021
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Pension scheme taps credit managers
Sector developments and company hires
Pension scheme taps credit managers
Market Moves 22 July 2021
Local government pension scheme Brunel Pension Partnership has launched a multi-asset credit fund, to which its clients have committed approximately £2.1bn of funds that will be spread across three separate mandates. The fund is split between three separate sub-funds: 60% is allocated to Neuberger Berman Brunel Multi Asset Credit Fund (an Irish QIAIF), 20% to .......
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Credit engagement
Raj Shourie, from Lockton's political and credit risks divis...
Q: Your role means that you will be responsible for leading the engagement with financial institutions internationally out of London, for both credit mitigation and country risk protection. Tell us more about what that will entail.
Provider Profile 22 July 2021
A: I’ll be responsible for originating business dialogue with banks and funds, targeting new users of credit and political risk insurance and existing users .......
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Collateral Chase
JPMC visits CRT space again with trade referencing prime mortgages
JP Morgan Chase is back in the regulatory capital relief market with a trade referencing 4,862 fixed rate prime mortgages almost a year to the day since its last, and first, similar such deal.
The trade, designated Chase Mortgage Reference Notes 2021-CL1, comprises five tranches which transfer mortgage risk through tranched credit default swaps. The pool of mortgages has a total balance .......
News 21 July 2021
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Asset quality boon
EU bank credit conditions normalise
Credit conditions for European banks are normalising and prospects for the second half of the year look positive. A return to pre-coronavirus crisis operating income with higher loss absorption buffers accumulated during the pandemic should facilitate the management of non-performing loans.
According to Scope Ratings, credit risk has frozen in time, due to the extraordinary support measures available .......
News 21 July 2021
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Angel eyes
Angel Oak Capital Advisors' Sam Dunlap talks value in non-agency MBS
Atlanta-based Angel Oak Capital Advisors’ flagship multi-strategy income fund (ANGLX), this year celebrates its 10-year anniversary. The ANGLX is a dedicated structured credit mutual fund, focussing chiefly on US non-agency residential MBS, and was launched after the Financial Crisis of 2007/2008. In the last decade, ANGLX has achieved average annualised returns of 5.66%, as of 6/30/21, and now has approximately $7bn .......
The Structured Credit Interview 20 July 2021
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Six STACRs - UPDATE
Freddie's sixth STACR of 2021 prints inside previous two
Freddie Mac late yesterday (July 19) priced its sixth STACR deal of the year, designated STACR 2021-DNA5, at levels inside recent DNA and HQA trades.
“Freddie Mac’s single family CRT programme continued to attract strong investor demand, with 66 unique investors participating in the STACR 2021-DNA5 transaction, the most since 2017. The B1 tranche drew 39 investors, the most in programme history. .......
News 20 July 2021
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Jamaica in cat bond first
Sector developments and company hires
Jamaica in cat bond first
Market Moves 20 July 2021
The World Bank/IBRD has priced a catastrophe bond that will provide the government of Jamaica with financial protection of up to US$185m against losses from named storms for three Atlantic tropical cyclone seasons ending in December 2023. The government of Jamaica is the first government in the Caribbean region, and the first of any small island .......