CLOs

  • Record breakers

    Strong Euro CLO market set to continue

    European CLO issuance volume is set to hit a post-financial crisis high of €40bn by year-end, boosted by record reset and refinancing activity. Prospects for the market in 2022 remain positive, reflecting strong leveraged debt issuance expectations, improving CLO arbitrage and a positive macroeconomic outlook.

    “It’s been a very busy market – even if there has been a .......

    News 10 December 2021

  • Climate risk analytics firms acquired

    Sector developments and company hires

    Climate risk analytics firms acquired
    Intercontinental Exchange has acquired risQ and Level 11 Analytics, which deploy data-driven technologies for managing climate change risk. RisQ and Level 11 Analytics leverage a variety of advanced geospatial mapping systems and provide extensive expertise in analysing and joining vast amounts of disparate public, corporate and third-party data sources.

    This data is integrated and .......

    Market Moves 9 December 2021

  • Starz gazing

    Euro CRE CLOs tipped for take-off

    Starz Realty Capital’s Starz Mortgage Securities 2021-1 transaction was notable for being a first-of-its-kind European dual-currency CRE CLO (SCI 1 October). A handful of further such deals are expected next year, given the need for a funding tool for funds active in the CRE lending space.

    “I expect a handful of transactions next year – at least .......

    News Analysis 9 December 2021

  • Growth constraints

    Disconnect between Euro ABS ambitions and reality?

    European securitisation issuance for the first 11 months of the year stood at a decade high of over €112bn, up by more than 65% compared with the same period in 2020, according to S&P figures. However, despite such record growth, a disconnect appears to remain between the industry’s ambitions and what is being seen on the ground - which .......

    News Analysis 9 December 2021

  • Exploiting inefficiencies

    Jay Huang, md and head of structured credit investments at CIFC, answers SCI's questions

    Q: How has investor perception changed around CLOs, given the resiliency of the asset class in 2021?
    A: Three years ago, when I was visiting investors, I would have to bring up the resiliency of the CLO product. However, I have noticed a trend that when I come into investor meetings now, they are bringing up the resilience of the .......

    The Structured Credit Interview 8 December 2021

  • ESG data coverage scrutinised

    Sector developments and company hires

    The European Leveraged Finance Association (ELFA) has analysed coverage by three ESG data vendors for three debt indices - the CS Western European Leveraged Loan Index, the ICE BofAML Developed Markets High Yield Constrained Index and the BBG Global Aggregate Corporate Index – and found what it describes as “major discrepancies” in data coverage across asset classes. The research shows .......

    Market Moves 7 December 2021

  • Covid-19: Lessons for the CMBS market

    Iona Misheva, partner at Allen & Overy, explores the lessons that the pandemic provided for the European CMBS market

    Issuance has been at consistently high levels this year.  This has shown that the asset class recovered quickly from the temporary forces of the pandemic, which resulted in very few deals coming to market in 2020.  In contrast, 2021 has seen near record levels of .......

    Talking Point 6 December 2021

  • ESG countdown

    ECB climate stress tests pending

    The ECB’s pending climate stress tests are expected to offer some answers around the data and modelling challenges pertaining to the analysis of climate risks. Indeed, the stress tests could also prove definitive for ESG significant risk transfer issuance, given the presence of the same data challenges.

    The two main challenges pertaining to the analysis of climate risks are data .......

    News Analysis 3 December 2021

  • Bosphorus CLOs transferred

    Sector developments and company hires

    Bosphorus CLOs transferred

    Cross Ocean Adviser, an affiliate of Cross Ocean Partners Management, has assumed collateral management of the Bosphorus CLO IV, Bosphorus CLO V and Bosphorus CLO VI transactions from Commerzbank. Moody's has confirmed that the move will not impact its current ratings assigned to the affected notes. Under the terms of the associated novation, termination and amendment and .......

    Market Moves 2 December 2021

  • RFC issued on ABS tax policies

    Sector developments and company hires

    RFC issued on ABS tax policies
    HMRC is seeking feedback on two draft statutory instruments: the Taxation of Securitisation Companies (Amendment) Regulations 2022 and the Securitisation Companies and Qualifying Transformer Vehicles (Exemption from Stamp Duties) Regulations 2022. The UK government consulted on making changes to clarify or reform certain aspects of the taxation of securitisation companies and the stamp duty .......

    Market Moves 1 December 2021

  • BWIC workgroup formed

    Sector developments and company hires

    Mortgage Industry Standards Maintenance Organization (MISMO) has formed a BWIC data development workgroup, with the aim of standardising the BWIC format to facilitate accuracy, liquidity and rapid pricing for MBS transactions. The initiative focuses on creating a standard format for MBS sellers to present BWIC data to security dealer desks. The workgroup intends to address the growing number of MBS .......

    Market Moves 30 November 2021

  • SCI forum: What are the benefits of forward flow structures for the securitisation market?

    Our panel of market practitioners respond to readers' questions

    Conor Houlihan, partner at DLA Piper, Ireland

    Current dynamics in the banking sector are such that the opportunity for growth in non-bank lending in Europe is significant.  In certain segments of the market, fintech lending platforms can be more agile and better-placed to deliver what the market wants. 

    Platforms with strong origination and underwriting capability can be an attractive partner through .......

    Talking Point 26 November 2021

  • Syon upgraded on stable performance

    Sector developments and company hires

    KBRA has completed a surveillance review of Lloyds’ synthetic RMBS Syon Securities 2020-2. The agency subsequently upgraded the class A and B notes by a notch to single-A minus and double-B plus respectively, in light of the fully ramped-up portfolio’s characteristics and the generally stable collateral performance. Syon 2020-2 is the third SRT transaction issued by Bank of Scotland referencing .......

    Market Moves 25 November 2021

  • Upgrades anticipated after CMBS updates

    Sector developments and company hires

    Moody’s has updated three commercial real estate sector methodologies, following requests for comments on the proposals in July. The rating agency has placed a number of US CMBS tranches on review for upgrade as a result.

    One of the updates is in connection with Moody's methodology for rating US and Canadian conduit/fusion CMBS, which replaces the version from September 2020. .......

    Market Moves 22 November 2021

  • US expansion

    John Fraser, the new chairman of Tikehau's global structured...

    Q: Tikehau Capital launched its first US CLO in August. Could you explain the motivations for doing so?
    A: Establishing a presence in the US CLO market is a key part of Tikehau Capital’s growth plans for its credit platform. The firm is already active in Europe with five CLOs outstanding and, with significant plans for future growth, it’s a natural extension .......

    The Structured Credit Interview 22 November 2021

  • GSE scorecard released

    Sector developments and company hires

    GSE scorecard released

    The FHFA has released the 2022 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions (CSS). The purpose of the 2022 Scorecard is to hold the GSEs and CSS accountable for fulfilling their core mission requirements by promoting sustainable and equitable access to affordable housing and operating in a safe and sound manner.

    The 2022 Scorecard focuses .......

    Market Moves 18 November 2021

  • Dutch mortgage alliance expanded

    Sector developments and company hires

    Dutch mortgage alliance expanded
    Achmea Bank is set to acquire a €500m mortgage portfolio from Dutch insurer a.s.r., which will continue to manage the mortgages for Achmea Bank. The two organisations have expressed the intention to conduct additional transactions of €500m in both 2022 and 2023. In addition, Achmea Bank will acquire roughly €190m of newly originated mortgages from a.s.r. .......

    Market Moves 16 November 2021

  • Risk mitigation

    Euro CLO wraps gaining traction

    Assured Guaranty (Europe) SA this week closed a financial guarantee for a further European CLO, following the wraps it recently provided for the North Westerly V CLO and Tymon Park CLO deals (SCI 6 September). Financial guarantees are proving attractive to investors seeking to reduce regulatory capital consumption, both on existing exposures and new investments.

    The latest .......

    News Analysis 12 November 2021

  • Sri Lanka eyes remittance securitisation

    Sector developments and company hires

    Sri Lanka eyes remittance securitisation

    The government of Sri Lanka (GOSL) is requesting competitive proposals from banks and investors for consideration to be appointed as counterparts or arrangers for its proposed securitised financing arrangement (SFA). The arrangement would be backed by foreign currency receipts of the Central Bank of Sri Lanka (CBSL) under the mandatory sale of 10% of workers' .......

    Market Moves 12 November 2021

  • Indian securitisation market presents challenges

    The Indian structured finance market has been around for ove...

    The market revolves around Indian banks' targets for lending to priority sectors. Banks have traditionally been the largest investors in securitised debt, as they need to fulfil the Indian central bank’s requirements to lend a target percentage of their loan books to priority sectors, which are defined by the central bank and include minorities, agriculture, SMEs and export industries. The .......

    Talking Point 11 November 2021

  • First LBR PCC investor signed

    Sector developments and company hires

    First LBR PCC investor signed

    Lloyds has announced that Ontario Teachers’ Pension Plan Board will be the first investor to support underwriting through its multi-insurance SPV, London Bridge Risk (LBR) PCC. LBR was established in January of this year with sponsorship from Lloyds, with ambitions to create a market that invites new forms of capital and allow for easier access .......

    Market Moves 10 November 2021
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