CMBS

  • Adapting to change

    Adam Zausmer, chief credit officer at Ready Capital, answers SCI's questions

    Q: Ready Capital and Starz Real Estate recently formed a joint venture to originate around €300m of new commercial real estate loans over the next two years (SCI 21 July). What prompted the move? What is currently exciting to you in European CRE?
    A: It was a great opportunity to further expand and diversify Ready Capital’s international lending business. .......

    The Structured Credit Interview 26 September 2022

  • Dignity Finance restructuring mooted

    Sector developments and company hires

    Dignity Finance restructuring mooted

    UK funeral provider Dignity has launched a consent solicitation with noteholders of its whole business securitisation, Dignity Finance, in relation to a deleveraging proposal. Following the award of a temporary covenant waiver by the class A noteholders, the company has continued to work on a long-term solution to improve the group's capital structure.

    As part of implementing this .......

    Market Moves 16 September 2022

  • Branching out

    Thomas Majewski, managing partner and founder of Eagle Point...

    Q: Eagle Point recently announced its expansion into the ABS, MBS and SRT markets, which will be led by Karan Chabba as head of ABS, MBS, SRT and speciality finance (SCI 19 July). What were the motivations behind branching out into these markets?
    A: In terms of relative interest, the order we are looking at these is SRT, ABS .......

    The Structured Credit Interview 15 September 2022

  • CMBS sickness

    Rising rates imperil issuance and refinancing

    CMBS issuance is expected to be down for the foreseeable future due to higher rates, wider spreads and difficulties with refinancing, according to a new report from Moody's.

    There have been only three multi borrower conduit deals this quarter, with perhaps another one or two expected before the end of 3Q. There were 33 deals in 2021 for a total dollar value .......

    News 14 September 2022

  • Controversial Revlon decision reversed

    Sector developments and company hires

    Controversial Revlon decision reversed
    The US Circuit Court for the Second Circuit last week reversed the controversial decision by the District Court for the Southern District of New York (SDNY) that permitted lenders to retain the mistaken payment made by Citi as administrative agent for a credit agreement with Revlon (SCI 20 August 2020). The SDNY decision upended decades .......

    Market Moves 14 September 2022

  • SME funding partnership inked

    Sector developments and company hires

    SME funding partnership inked
    SME Capital and JPMorgan have agreed a new funding partnership dedicated to supporting UK SMEs. The collaboration entails JPMorgan extending a significant line of committed capital for SME cashflow lending over the next three years.

    The partnership forms the second phase in the development of SME Capital’s warehousing programme - the first phase being the .......

    Market Moves 2 September 2022

  • Active autumn?

    European ABS/MBS market update

    The European and UK ABS/MBS primary market looks set for an active autumn after a lacklustre August. The visible pipeline is beginning to build and a heavy potential refinancing calendar stretches over the next few months.

    Finnish auto ABS Tommi 3 was announced last week and is slated to price next week. The deal's top two tranches are .......

    News 31 August 2022

  • Not fit for purpose

    EIOPA conclusions 'conceptually flawed'

    Following its consultation paper in response to the European Commission’s call for advice on the review of the securitisation prudential framework under Solvency 2 (SCI 16 June), EIOPA has affirmed that it “considers that the current framework is fit for purpose.” However, this conclusion has failed to convince the securitisation industry of its validity.

    EIOPA’s broad assessment .......

    News Analysis 22 August 2022

  • Unexpected update

    Recognition of EU STS securitisations to be extended

    Securitisation regulation in the UK has received a surprise amendment, following the publication last month of the new Financial Services and Markets Bill. The Bill is set to provide investors in the UK with access to a larger pool of STS securitisations with the introduction of a new STS equivalence regime for non-UK transactions.

    More broadly, the Bill .......

    News Analysis 17 August 2022

  • Symbiotic relationship

    'Recharacterisation' underway for European ABS

    The paucity of European publicly placed securitisations in recent months, against a backdrop of challenging conditions, is seen as a symptom of a market that is overregulated and has too few participants. Against this backdrop, a seemingly symbiotic relationship between the public and private securitisation markets is emerging.

    “The market for publicly issued securitisation bonds is too illiquid .......

    News Analysis 12 August 2022

  • 'Penalising' RBC proposal criticised

    Sector developments and company hires

    ‘Penalising’ RBC proposal criticised
    The LSTA has submitted a comment letter to the NAIC expressing its belief that the NAIC’s risk-based capital (RBC) proposal could penalise insurance company investments in CLOs and consequently impact the CLO and loan markets. The proposal would change the RBC framework such that capital requirements for purchasing all tranches of a CLO match the capital .......

    Market Moves 21 July 2022

  • Looking for labels

    Second-party opinions gaining traction

    A total of 17 securitisations with second-party opinion (SPO) labels have been issued in Europe since 2016. With ESG factors playing an increasingly important role in investment decisions, tiering could emerge between transactions based on whether they have an SPO or not.

    “There appears to be a trend: if you are an arranger or issuer, you check if you can .......

    News 15 July 2022

  • Making hay

    New equilibrium for Australian securitisation market

    In contrast to Europe and the UK, the Australian securitisation market is continuing to see healthy issuance activity, despite the country dealing with the same inflation and rates pressures as the rest of the world. This Premium Content article investigates why it’s always sunny Down Under. 

    After an extraordinarily busy 2021 - with A$48.79bn publicly placed across 64 individual ......

    News Analysis 14 July 2022

    Premium Content

  • Uncertainty prevails

    Macroeconomic backdrop in focus

    Thus far, 2022 has experienced some turbulent and choppy market conditions. Although poor performance has not yet affected the securitisation sector, the consensus – at least, in evidence during AFME and IMN’s Global ABS conference last month – is that uncertainty prevails and investor sentiment is predominantly focused on the macroeconomic backdrop.

    During this period of market dislocation, .......

    Talking Point 12 July 2022

  • Better methods?

    New definitions for green, social securitisations

    ICMA has released new definitions for green and social securitisations, together with additional resources for climate transition finance under its update of the Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines (SBG) and Sustainability-Linked Bond Principles (SLBP). In a Q&A document published in conjunction with the updates, the association further clarifies that synthetic securitisations require additional .......

    News 29 June 2022

  • Suit filed over alleged CMBS fraud

    Sector developments and company hires

    Suit filed over alleged CMBS fraud
    Kasowitz Benson Torres, as counsel to investment vehicles associated with Carl Icahn, has filed a complaint in Nevada state court against Rialto Capital Advisors for breach of contract and fraud. The case is in connection with Rialto’s servicing of a CMBS trust (COMM 2012-CR4) secured by the Prizm Outlets mall in Primm, Nevada, which .......

    Market Moves 27 June 2022

  • EIOPA consults on securitisation review

    Sector developments and company hires

    EIOPA has published a consultation paper in response to the European Commission’s call for advice (CfA) to the joint committee (JC) of the European Supervisory Authorities (ESAs) regarding a review of the securitisation prudential framework (SCI 28 October 2021). Under the CfA, the Commission sought the assistance of the JC to assess the recent performance of the rules on capital .......

    Market Moves 16 June 2022

  • Industry CLO e-trading platform unveiled

    Sector developments and company hires

    Citi and Bank of America, joined by Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, Wells Fargo and Moody’s Analytics, have launched Octaura Holdings. The objective of the company is to create the first open-market electronic trading platform for syndicated loans and CLOs.

    Built in collaboration with software development platform Genesis Global, Octaura aims to provide comprehensive trading solutions with natively .......

    Market Moves 14 June 2022

  • Aon hires new strategic growth leader

    Sector developments and company hires

    Aon has named Joanna Parsons as strategic growth leader of UK capital advisory within the firm’s reinsurance solutions business, reporting to Ben Love, UK strategic growth leader for reinsurance solutions. In her new role, Parsons will help clients to understand the value of different growth, capital and reinsurance strategies, including in the securitisation space. Based in London, Parsons joins Aon from .......

    Market Moves 10 June 2022

  • Doing the right things

    Mark Davies, md, BCMGlobal Mortgage Services, answers SCI's questions

    Q: How and when did BCMGlobal become involved in the securitisation market?
    A: BCMGlobal services £3.2bn of securitised loans, totalling 23,000 borrowers, across circa 25 portfolios and 10 securitisation programmes. We act as a standby servicer for £7.1bn of securitised loans for 17 clients across 47 transactions. Our loan portfolios are domiciled and secured in the UK and Ireland.

    Provider Profile 9 June 2022

  • Open house

    European CRE lending continues to diversify

    A combination of growth in specialist lenders and the tightening of commercial real estate lending standards triggered by the Covid-19 pandemic represents an opportunity for European securitisation investors. In particular, CRE ABS deals offer a significant premium and momentum over more traditional CMBS transactions from well-established sponsors. 

    “Against a backdrop of record CMBS issuance, I feel that a .......

    News Analysis 8 June 2022
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