CMBS
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SFDR to spur Article 8 CLOs
Sector developments and company hires
SFDR to spur Article 8 CLOs
Market Moves 7 September 2021
CLOs may soon be structured as Article 8 funds under the EU Sustainable Finance Disclosure Regulation (SFDR), as part of the rotation of capital towards assets that promote ESG objectives, according to White & Case. The firm notes in a recent client memo that Article 8 funds that invest in CLOs are already emerging and .......
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CMBS vigour
CMBS issuance for rest of 2021 to keep everyone busy
Issuance in the European CMBS market for the remainder of this year is to exceed 2018 figures despite the uncertainty emanating from the pandemic, say market experts.
“Covid-19 has hit the CMBS market very hard. Thanks to the vaccine and re-openings we have seen this market is back on the road to recovery. The CMBS market in terms of assets – we .......
News 3 September 2021
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Forward strides
Middle East Islamic finance market looks good into 2022
The Islamic finance Middle Eastern market has achieved notable progress over the last four or five years and sentiment remains very positive, say analysts.
"It's been a strong year so far - we have seen five years of growht in the sukuk markets. On the Islamic banking side, growth has continued to surpass conventional banks. We have seen the industry grow significantly, .......
News Analysis 2 September 2021
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Student housing sponsor accused of 'Ponzi-like' scheme
Sector developments and company hires
Student housing sponsor accused of ‘Ponzi-like’ scheme
The US$36m SkyLoft Austin loan - securitised in the UBSCM 2019-C16 CMBS - is over 30 days delinquent in payment, as of the August 2021 remittance period. The loan is sponsored by Patrick Nelson, who is reportedly being sued by dozens of minority investors involved in the acquisition of the property.Nelson .......
Market Moves 27 August 2021
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CLO control equity fund closed
Sector developments and company hires
CLO control equity fund closed
Market Moves 26 August 2021
Lakemore Partners has successfully closed Aquatine IV at US$400m, due to strong investor demand. Aquatine IV is Lakemore’s fourth CLO fund within the Aquatine platform, which invests in control equity positions in US CLOs. Investors in the fund comprise a diverse group of institutional investors, representing private banks, fund of funds, insurance companies, family offices .......
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APAC ILS issuance on the rise
Sector developments and company hires
APAC ILS issuance on the rise
Continued efforts from Asia Pacific reinsurers to source alternative capital through the ILS market is anticipated, following on the heels of the seven catastrophe bonds that were issued using Singapore-domiciled vehicles through July. Indeed, the first Hong Kong-domiciled catastrophe bond is being prepped.The Singapore cat bonds issued in 2021 comprise: Security First .......
Market Moves 20 August 2021
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Robust recovery
Bumper "summer" for Aussie securitisation
The Australian securitisation market has experienced a deluge of activity in the last few weeks. With a total of A$8bn placed in July, the sector experienced its busiest month since 2007.
Australia's effective management of the coronavirus and macro-policy response generally facilitated a robust economic recovery throughout 2020. “The securitisation market has obviously shown a dramatic recovery since .......
News Analysis 20 August 2021
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There's gold in them thar malls
Retail CMBS notes have bucked the recovery, but rewards are there
The currently much-spurned retail CMBS market contains pockets of great value, according to Karlis Ulmanis, portfolio manager at DuPont Capital.
In general, CMBS spreads have bounced back to pre-pandemic levels. CMBS based on the hotel sector have made great strides lately, for example. This week Fitch removed 14 single borrower hotel deals from negative ratings watch.
But CMBS deals exposed to retail .......
News 19 August 2021
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Corporate, PF businesses bolstered
Sector developments and company hires
Corporate, PF businesses bolstered
KBRA has enhanced its corporate and project finance businesses by forming new sector teams to focus on the intersection of infrastructure, energy, renewables and middle market lending. The aim of the sector-focused teams is to meet demand for KBRA’s thought leadership across these segments.Andrew Giudici, senior md and global head of corporate, project and .......
Market Moves 18 August 2021
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DSW CMBS exposure gauged
Sector developments and company hires
DSW CMBS exposure gauged
Market Moves 13 August 2021
KBRA Credit Profile (KCP) has published a special report on CMBS exposure to footwear retailer Designer Brands, owner of the Designer Shoe Warehouse (DSW) store chain. The company reported EBITDA of negative US$316m in its fiscal year 2020, as sales plummeted in the wake of the Covid-19 pandemic. The company returned to profitability in 1Q21 after .......
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'Synergistic' CMBS prepped
Hollywood creative campus refinanced
Barclays is in the market with BXHPP 2021-FILM, secured by what is described as a “high barrier-to-entry” real estate portfolio that serves as a hub for the growing digital content industry. The US$1.1bn CMBS securitises a two-year floating-rate loan collateralised by five Class A office buildings (totalling 967,194 square-feet) and three film studio lots (1.26 million square-feet) in Hollywood, .......
News 13 August 2021
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CMBS fillip
Hotel sector leads recovery in US CMBS but retail still depressed
Delinquency rates in US CMBS have fallen appreciably in July, led by a robust performance in the hotel sector, reports Fitch Ratings.
But the retail sector, and particularly regional malls, remains a problem area where delinquency rates and volatility are expected to remain elevated.
The overall CMBS delinquency rate fell 22bp from 3.81% in June to 3.59% in July due to a combination .......
News 11 August 2021
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Pretium strengthens resi credit capabilities
Sector developments and company hires
Pretium strengthens resi credit capabilities
Market Moves 4 August 2021
Sarah Kong, Andrew Miller and Peter Morreale have joined Pretium as mds, based in New York. Kong will be responsible for mortgage whole loan trading at Pretium and joins from Goldman Sachs, where she spent 15 years in the firm's mortgage business. Miller was previously at Fortress Investment Group and will be responsible for the .......
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Robust performance
Freddie Mac K-Series defaults, losses tracked
Freddie Mac K-Series CMBS are exhibiting a cumulative default rate of 0.35%, according to a new KBRA loan default and loss study on the sector. Such robust performance is expected to continue, as the US multifamily sector has benefited from strong investor demand, demographic shifts, household formations and an improving economy.
“We expect this to continue for the .......
News 2 August 2021
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Revival of the fittest
Euro CMBS continues to gain traction
European CMBS is experiencing a sturdy revival, despite a wave of downgrades by US rating agencies, participants in a recent Scope Ratings webinar agreed. With 10 public European CMBS issued in 1H21 - amounting to €3bn – and another three announced since then, market appetite for these transactions is growing (SCI 30 June).
With 2021 supply already .......
News Analysis 2 August 2021
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BTL issuer acquired
Sector developments and company hires
BTL issuer acquired
Starling Bank has acquired specialist buy-to-let mortgage lender Fleet Mortgages in a £50m cash and share deal. To date, Fleet Mortgages has originated £2.3bn of mortgages and experienced zero credit losses. It currently has circa £1.75bn of mortgages under management and has executed nine RMBS.Starling will become the sole funder of future originations, with Fleet .......
Market Moves 29 July 2021
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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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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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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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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 .......