Complete news archive

  • 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

  • Going hybrid

    New working models 'render offices as a service'

    The Covid-19 pandemic has ushered in hybrid working models that are redefining real estate valuations of offices as a service, rather than passive assets. At the same time, a shift in the balance of power from landlords to tenants appears to be underway.

    “The shift appears to be irreversible,” says Euan Gatfield, md of EMEA CMBS at Fitch. .......

    News Analysis 9 July 2021

  • Stable outlook

    NPL ABS potential underlined

    Greece is now leading the way in Europe’s bad loan clean-up, participants in a recent DBRS non-performing loan webinar agreed. The outlook for the European NPL market overall is stable, despite decreased collections and extended timeframes for most securitisations.

    Greece’s leading banks have embraced securitisation as a way to improve asset quality, replicating what Italy has done with .......

    News 9 July 2021

  • EU monetary policy to reflect carbon transition

    Sector developments and company hires

    EU monetary policy to reflect carbon transition
    The ECB has published its new monetary policy strategy, which includes what it describes as “an ambitious climate-related action plan”. The central bank states that climate change has profound implications for price stability through its impact on the structure and cyclical dynamics of the economy and the financial system.

    As such, it .......

    Market Moves 9 July 2021

  • Issuance boost

    BNP Paribas leads the pack

    BNP Paribas has completed a full-stack significant risk transfer transaction backed by French unsecured consumer loans. Dubbed Noria 2021, the securitisation is the first capital relief trade from the programme to be backed by personal, debt consolidation and sales finance loans. The transaction renders the bank the most active SRT originator this year to date.  

    According to .......

    News 9 July 2021

  • Softly softly

    US banks reluctant to swallow issuance costs of corporate CRTs

    The imminent issue of another CRT trade from JP Morgan Chase, its fourth in a year, appears to support the often widely disseminated view that the US market is at lift-off point.

    This view also gained ballast with the inaugural US regional bank deal from Texas Capital Bank in March.

    However, the US CRT sector remains a thing of bits and pieces .......

    News Analysis 8 July 2021

  • Fourth gear

    JP Morgan takes to the road again for fourth auto CLN in 11 months

    JP Morgan Chase is to issue its second auto loan credit linked note (CLN) of the year and its fourth in less than a year as it continues to expand its use of CRT technology.

    The eight-tranche offering, designated Chase Auto Credit Linked Notes Series 2021-2, references 189,931 loans for a notional amount of $4.25bn. This is 28,000 more loans than were .......

    News 8 July 2021

  • Risk transfer round-up - 8 July

    CRT sector developments and deal news

    News 8 July 2021

  • Taper talk

    Fed tapering could lead to 50bp MBS repricing

    If - as many expect - the Federal Reserve commences a taper operation in 2H21 then agency mortgage bonds could reprice wider by 40bp-50bp, suggest MBS analysts.

    The Fannie Mae interpolated five year/10 year curve currently yields around 69bp to Treasuries, but if the Fed does execute a taper then the market could see yields back up to plus 110bp-120bp.

    Mortgage-backed .......

    News 7 July 2021

  • International SLABS debuts

    Global legal, regulatory complexity addressed

    Prodigy Finance is in the market with the first rated securitisation backed by international private student loans. One differentiating factor of the US$303.5m Prodigy Finance CM2021-1 transaction is the originator’s business model, which allows it to lend to borrowers around the world (currently 186 countries and territories).

    Headquartered in London, Prodigy is a student loan lender that began .......

    News 7 July 2021

  • Sustainable finance strategy unveiled

    Sector developments and company hires

    Sustainable finance strategy unveiled
    The European Commission has adopted a number of measures in connection with sustainable finance. First, a new Sustainable Finance Strategy sets out several initiatives to tackle climate change, as well as increase investment in the EU's transition towards a sustainable economy.

    The strategy includes six sets of actions: extend the sustainable finance toolbox to facilitate .......

    Market Moves 7 July 2021

  • NPL facility inked

    Sector developments and company hires

    NPL facility inked
    Together Financial Services has launched a new £96.2m securitisation vehicle called Brooks Asset Backed Securitisation 1 (BABS), which matures in 2026. The facility consists of a varied pool of residential and commercial purpose non-performing loans, previously funded within the senior borrower group. Consistent with its wider securitisation programme, Together will continue to service and manage the loans .......

    Market Moves 6 July 2021

  • SCI Start the Week - 5 July

    A review of SCI's latest content

    Last week's news and analysis
    Advantageous returns
    Australian RMBS market update
    Crazy collateral
    ABS yields sink as collateral surges, driving investors to look elsewhere
    Finish line
    ESMA designates securitisation repositories
    Innovative NPL ABS inked
    CF opts for ReoCo rather than GACS
    Litmus test
    European CMBS momentum set to last
    Pick a card, any card
    Covid credit card usage soared, but ABS issuance is strangled
    Strong technical
    WFH lifestyle .......

    News 5 July 2021

  • Crazy collateral

    ABS yields sink as collateral surges, driving investors to look elsewhere

    The bounce-back from the pandemic has been overwhelmingly positive for collateral in US ABS deals, according to a new report from Moody’s.

    Indeed, such is the strength of the recovery that investors have been forced to look for attractive opportunities outside the usual avenues.

    “We do see across all securitizations, not just consumer ABS, that investors are looking widely to see where there .......

    News Analysis 2 July 2021

  • Advantageous returns

    Australian RMBS market update

    With deals paying juicy yields, investors are turning to the Australian RMBS market for advantageous returns. Meanwhile, Bluestone is testing market appetite for a potential debut prime transaction.

    “A clear trend is yield chasing,” says one trader. “New prime triple-A RMBS bonds currently price at around 60bp, even into the high 50s. Non-conforming and non-resident RMBS paper is .......

    News 2 July 2021

  • Tight summer

    European ABS/MBS market update

    Following a busy quarter that saw every new deal being met with heavy investor demand, there is no sign of the appetite for paper diminishing. Secondary has picked up too over the last week and is showing a similar trend.

    Even with the summer holidays quickly approaching, primary spreads still appear to be tightening, matching levels not seen .......

    News 2 July 2021

  • RMBS issuer sues Hussain

    Sector developments and company hires

    RMBS issuer sues Hussain
    Clavis Securities has begun High Court proceedings against Rizwan Hussain, who issued letters in April - purportedly for and on behalf of the issuer - which described the purported termination of the appointments of HSBC as trustee and Bluestone Mortgages as treasurer and special servicer, in relation to the note programme. The issuer considers the purported .......

    Market Moves 1 July 2021

  • Risk transfer round-up - 1 July

    CRT sector developments and deal news

    News 1 July 2021

  • Pick a card, any card

    Covid credit card usage soared, but ABS issuance is strangled

    US credit card usage increased dramatically due to the pandemic, but, as yet, this is not expected to result in elevated credit card-backed ABS issuance, agree analysts.

    Credit card balances have declined significantly in the last year while the major banks all enjoy richer reserves of capital than has been the case for some time.

    ‘’The big credit card banks simply don’t have .......

    News Analysis 30 June 2021

  • Italian SME ABS first finalised

    Sector developments and company hires

    Italian SME ABS first finalised
    Banca Carige and Banca del Monte di Lucca have completed Lanterna Finance 2021, the first Italian SME ABS backed by loans fully guaranteed by the Italian government. The up to €30,000 unsecured loans have been originated based on the ‘Liquidity decree’, converted into law on 5 June 2020, and are fully guaranteed by the Central .......

    Market Moves 30 June 2021

  • Litmus test

    European CMBS momentum set to last

    Nine European CMBS have been issued so far this year and two are currently marketing, pointing to growing confidence in the sector amid a post-coronavirus recovery. Indeed, current momentum in the market - exemplified by the volume of activity and investor interest in a variety of assets and jurisdictions - appears set to last.

    “2021 was unsurprisingly looking .......

    News Analysis 30 June 2021
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