Complete news archive
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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 .......
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Social factors
Tina De Baere, head of ESG and macro strategy at Cairn Capit...
Q: How consistent can ESG issues be? Ultimately, how subjective is ESG and ESG analysis?
A: Yes, this is a question that comes up all the time. ESG topics will always be subjective; it is the nature of the beast in many ways.Given that there are so many values and opinions on those topics, it would be unreasonable .......
Talking Point 20 July 2021
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Euro CLO BWICs down, but staying strong
Sector developments and company hires
Euro CLO BWICs down, but staying strong
European CLO 2.0 BWIC activity contracted sharply in the first half of 2021 versus 1H20. However, secondary liquidity remains more sustained compared to pre-pandemic levels, reflecting the market's maturity and expansion in recent years, according to Bank of America European CLO research analysts.BofA estimates overall BWIC volumes of €5.3bn for 1H21, .......
Market Moves 19 July 2021
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Minor deterioration
Spanish payment holidays buck the trend
The end of payment holidays for Spanish mortgages could lead to a minor deterioration in the collateral performance of Spanish RMBS. However, an impact on credit ratings is not expected.
“The collateral performance has experienced a very minor deterioration and the impact on credit ratings is unlikely. Once payment holidays schemes have ended, no ratings impact should happen .......
News 19 July 2021
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Recovery trade
Pub credit quality to diverge amid changing consumer behaviour
The UK pub sector has been one of the most severely affected areas of hospitality during the last 15 months. However, despite the turmoil during the pandemic, panelists participating in a recent S&P webinar expect a recovery to return to this sector within the next two years.
“It will take even longer to return to 2019 leverage levels .......
News 19 July 2021
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SCI Start the Week - 19 July
A review of SCI's latest content
Last week's news and analysis
News 19 July 2021
Back in vogue?
Reverse equity to test market appetite
Bridging the gap
Sustainable SRTs to spur ESG securitisation growth?
Endless cash
European ABS/MBS market update
Foreclosure fears
CFPB's new rule curtailing foreclosures complicates mortgage market
Lift off
BMO programme details revealed
Loss mitigation mechanics
Euro CLO primary practice around LML documentation discussed
MPL rewards
Generous MPL returns stand out in parsimonious ABS market
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Structured products dealer acquired
Sector developments and company hires
Structured products dealer acquired
Santander Holdings USA is set to acquire independent broker-dealer Amherst Pierpont Securities - through the acquisition of its parent holding company Pierpont Capital Holdings - for a total consideration of approximately US$600m. Well known for its fixed-income and structured product franchise, Amherst Pierpont will become part of the Santander Corporate & Investment Banking global business line.Market Moves 16 July 2021
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Foreclosure fears
CFPB's new rule curtailing foreclosures complicates mortgage market
The final rule on foreclosures introduced this week by the Consumer Financial Protection Burea (CFPB) is unlikely to interrupt MBS issuance in the short term but problems likely lie round the corner, say experts.
At the moment, record refinancing are contributing to healthy MBS issuance but if rates rise - as looks likely - then refinancing will become less popular and the .......
News Analysis 15 July 2021
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New CLO committee to tackle 'greenwashing'
Sector developments and company hires
New CLO committee to tackle ‘greenwashing’
Market Moves 15 July 2021
The European Leveraged Finance Association (ELFA) has created a new committee to establish industry best practice and serve investors in the CLO market. The CLO Investor Committee will provide a forum for members to identify CLO investors’ requirements, facilitate discussion on general market progress and key issues, and contribute to the regulatory dialogue on .......
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Back in vogue?
Reverse equity to test market appetite
Another UK RMBS backed predominantly by legacy Northern Rock assets has hit the market. The Towd Point Mortgage Funding 2021-Hastings 1 transaction marks the first public securitisation of UK equity release mortgages since the financial crisis.
Acquired by Cerberus in 2018, the £215.68m portfolio comprises 86.5% Northern Rock loans and 12.9% Legal & General loans, with the remainder .......
News 15 July 2021
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MPL rewards
Generous MPL returns stand out in parsimonious ABS market
ABS investors in the US searching for value in an environment otherwise starved of this should look at the marketplace loans (MPL) sector, suggest analysts.
One year AAA-rated unsecured consumer MPL ABS currently trade at around 40bp against the EDSF curve while three year A-rated MPLs are about 90bp to swaps.
“Nothing else is close to that. If you’re looking for value, unsecured .......
News Analysis 14 July 2021
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Loss mitigation mechanics
Euro CLO primary practice around LML documentation discussed
SCI publishes regular case studies and reports on the CLO market in addition to our usual news stories on the sector and the latest can be found here.
This time, we examine the uptake of loss mitigation loan language in European deals since the concept emerged a year ago. Read this free report to find out the background, challenges .......
News Analysis 14 July 2021
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ILS efforts beefed up
Sector developments and company hires
ILS efforts beefed up
Market Moves 14 July 2021
AXIS Capital Holdings has appointed Chris Caponigro as global head of AXIS ILS, as its third-party capital unit has been rebranded. Caponigro will oversee the company’s activities related to third-party capital under management, supporting ILS efforts across its reinsurance and insurance segments. He will report to AXIS Re ceo Steve Arora and be based out of .......
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Bridging the gap
Sustainable SRTs to spur ESG securitisation growth?
A steady stream of renewables significant risk transfer deals is expected to come on to the market in the coming months. This CRT Premium Content article investigates whether synthetics can spur growth across the broader ESG securitisation sector.
Synthetic transactions referencing sustainable portfolios are being touted as a straightforward way to overcome the current paucity of suitable ESG assets ......
News Analysis 14 July 2021Premium Content
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Endless cash
European ABS/MBS market update
As the pre-summer flow comes to a close, optimism still prevails across the European ABS/MBS primary market. Despite strong execution from the four widely marketed deals last week and three still in the pipeline (see SCI’s Euro ABS/MBS Deal Tracker for more), further tight pricing levels are expected.
“The ABS-RMBS space has been exceptionally strong during these .......
News 14 July 2021
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Aviation finance practice inaugurated
Sector developments and company hires
Aviation finance practice inaugurated
Global aviation services provider ACC Aviation has added an in-house aviation finance specialist. Viktor Berta joins the group as vp of its newly created aviation finance practice. The appointment broadens the scope of ACC Aviation’s suite of consultancy services, led by Rob Watts, who also takes on an enhanced role as director of aviation services.Market Moves 13 July 2021
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Positive story?
Mortgage performance eyed as support ends
European RMBS performance has remained robust in the face of unprecedented stresses brought about by Covid-19, supported by a number of government schemes. However, questions remain over how the withdrawal of these measures will affect the market.
“The structures have done what they have been designed to do and they have been robust – that is a positive .......
News Analysis 13 July 2021
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Lift off
BMO programme details revealed
Further details have emerged of a synthetic securitisation programme launched by BMO in late December 2020. Dubbed Sauble, the programme will exclusively focus on leveraged loan issuance and is one of only two programmes dedicated to this segment. BMO has already printed two transactions from the Sauble programme - executed in December 2020 and June this year (SCI .......
News 12 July 2021
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SCI Start the Week - 12 July
A review of SCI's latest content
Last week's news and analysis
News 12 July 2021
Forbearances south of 2m
Forbearances below 2m for 1st time in 15 months - big weekly drop
Fourth gear
JP Morgan takes to the road again for fourth auto CLN in 11 months
Going hybrid
New working models 'render offices as a service'
International SLABS debuts
Global legal, regulatory complexity addressed
Issuance boost
BNP Paribas leads the pack
Softly softly
US banks .......
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Forbearances south of 2m
Forbearances below 2m for 1st time in 15 months - big weekly drop
The number of active mortgage forbearance plans in the US dropped by 189,000 in the last week to below two million for the first time since April 2020, mortgage data provider Black Knight reported this morning (July 9).
This represents the highest weekly exit week in over six months.
Forbearances in mortgages held by banks and in private label deals led the way .......
News 9 July 2021