CMBS

  • General QM delay proposed

    Sector developments and company hires

    General QM delay proposed
    The CFPB has released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from 1 July 2021 to 1 October 2022 (SCI 24 February). The CFPB is proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the Covid-19 .......

    Market Moves 4 March 2021

  • Benchmark legislation

    Congress to rescue Libor-based contracts, but questions remain

    Federal Reserve chairman Powell’s endorsement last week of federal legislation to ease the transition to non-dollar Libor benchmarks has been hailed as a positive step for the structured finance industry. Powell was speaking in front of the House of Representatives Financial Services Committee and predicted that there will be a “hard tail” to the exit from Libor, to which .......

    News Analysis 3 March 2021

  • UKAR pair preplaced

    Sector developments and company hires

    UKAR pair preplaced
    Citi has preplaced a pair of UK non-conforming RMBS backed by a portfolio it acquired from UKAR. The transactions – the £2.898bn Jupiter Mortgage No. 1 and the £1.559bn Stratton Mortgage Funding 2021-2 - securitise a pool of first-lien owner-occupied and buy-to-let loans originated by NRAM, GMAC-RFC, Mortgage Express, Kensington, Keystone Property Finance, Bradford & Bingley, Legal .......

    Market Moves 26 February 2021

  • Small balance UK CMBS prepped

    Sector developments and company hires

    Small balance UK CMBS prepped
    Together Commercial Financial Services is marketing an unusual securitisation backed by small balance commercial assets. Dubbed Together Asset Backed Securitisation 2021-CRE1 (TABS 2021-CRE1), the £328.8m transaction is backed by 1,482 loans provided to 1,399 borrowers.

    The average outstanding principal balance per borrower is £235,020 and approximately 41.9% of the underlying properties are either fully .......

    Market Moves 19 February 2021

  • 'Unique' CLN deal readied

    Sector developments and company hires

    ‘Unique’ CLN deal readied
    JPMorgan Chase Bank (JPMCB) is prepping the debut CLN issuance from the JPMorgan Wealth Management Mortgage (JPMWM) platform to transfer credit risk to noteholders through a hypothetical tranched CDS on a reference pool of mortgages. Dubbed JP Morgan Wealth Management Reference Notes Series 2021-CL1, principal payments on the notes are based on the performance of a US$2.36bn .......

    Market Moves 17 February 2021

  • Maritime financing facility agreed

    Sector developments and company hires

    Maritime financing facility agreed
    Maritime and offshore alternative capital provider Fleetscape Capital has entered into an innovative financing structure with Macquarie that provides a more efficient offer to vessel owners seeking higher leverage situations. The structure utilises securitisation principles and enables Fleetscape to provide sale-and-leaseback or unitranche financing on competitive terms. Coupled with Fleetscape’s transaction execution capabilities and streamlined documentation, the .......

    Market Moves 16 February 2021

  • MBIA litigation settled

    Sector developments and company hires

    MBIA litigation settled
    MBIA Insurance Corporation has entered into an agreement to settle the litigation it filed in 2009 against Credit Suisse and certain affiliated entities (SCI passim). The settlement follows a post-trial decision by the Court awarding MBIA Corp approximately US$604m in damages and, pursuant to the settlement, Credit Suisse has paid MBIA Corp US$600m.

    This amount materially .......

    Market Moves 15 February 2021

  • UK industrial CMBS prepped

    Sector developments and company hires

    UK industrial CMBS prepped
    Bank of America is in the market with a £340.1m CMBS sponsored by Blackstone. Dubbed Taurus 2021-1 UK, the transaction is backed by a two-year floating rate loan (with three one-year extension options) secured by the borrower’s interests in 45 industrial assets across the UK totalling 4.1 million square-foot of floor area.

    The largest asset .......

    Market Moves 10 February 2021

  • Special situations strategy launched

    Sector developments and company hires

    Special situations strategy launched
    Bardin Hill Investment Partners has announced the final close of the Bardin Hill Opportunistic Credit Fund and a parallel side-car vehicle, with total commitments of approximately US$600m. The firm’s flagship closed-end strategy received backing from new institutional investors globally, as well as from existing Bardin Hill clients.

    The strategy identifies and executes on stressed, distressed, .......

    Market Moves 9 February 2021

  • Constructive outlook

    Deborah Shire, global head of structured finance at AXA Inve...

    Q: What were the drivers behind restructuring the AXA IM business into two key divisions – the Alts unit and the Core unit?
    A: The business was restructured in March last year (SCI 11 March 2020), with the objective of developing two strategic businesses and boosting the commercial momentum behind them. The aim was to create a dedicated salesforce .......

    The Structured Credit Interview 9 February 2021

  • NPL SRT agreement inked

    Sector developments and company hires

    NPL SRT agreement inked
    Hoist Finance has signed a co-operation agreement with Magnetar Capital that provides for new portfolio investments on a pan-European level and will create a framework for future purchases in the current regulatory environment. The aim is to make securitisation an integral part of a sustainable business model for Hoist and strengthen its purchase capabilities.

    The .......

    Market Moves 8 February 2021

  • Iberian NPL ABS performance eyed

    Sector developments and company hires

    Iberian NPL ABS performance eyed
    The cumulative collection ratio for the DUERO 1 non-performing loan securitisation has consistently breached its trigger level for an interest subordination event – which is set at 90% - since the April 2020 reporting period, according to JPMorgan’s latest Portuguese & Spanish NPL ABS Performance Tracker publication. After dropping to 68.4% in April from 106.1% .......

    Market Moves 5 February 2021

  • UK social bond debuts

    Sector developments and company hires

    UK social bond debuts
    Kensington is prepping its inaugural STS and what is believed to be the UK market’s first ESG RMBS. Dubbed Gemgarto 2021-1, the £472m transaction is labelled as a social bond and is backed by a pool of UK specialist prime, performing, first-ranking owner-occupied mortgages.

    The loans are made to underserved borrowers with complex incomes and .......

    Market Moves 27 January 2021

  • Call for aircraft ABS protections

    Sector developments and company hires

    Call for aircraft ABS protections
    Fitch reports that a material number of aircraft failed to be novated to two aircraft ABS - START III and Lunar 2020-1 – last year, following closing. The failure of aircraft to novate in START III resulted in the asset count falling to just two aircraft from 19 initially, while six of 18 initial aircraft .......

    Market Moves 26 January 2021

  • 'Unique' CMBX reflects Covid trends

    Sector developments and company hires

    ‘Unique’ CMBX reflects Covid trends
    The IHS Markit CMBX.14 index is expected to launch on 25 January, uniquely referencing 25 conduit CMBS issued between September 2019 and December 2020. All five of the 2019 deal constituents are also referenced in CMBX.13, creating collateral overlap between the two series.

    Morgan Stanley CMBS strategists note that on average, CMBX.14's original credit .......

    Market Moves 21 January 2021

  • CMBS sailing

    Stormy waters ahead and astern, but the US CMBS market has avoided the iceberg

    Although performance of the US CMBS sector has been better than would have been predicted at the start of the pandemic lockdown, there are still areas of acute concern, say analysts at Fitch Ratings, speaking to SCI as the CRE Finance Conference begins.

    "We have bonds on negative outlook and have already downgraded a number of classes in deals, especially those below .......

    News 20 January 2021

  • CLO team finds new home

    Sector developments and company hires

    CLO team finds new home
    Fidelity International has established a new private credit capability with experienced hires from AnaCap-owned MeDirect Bank. Concurrently, the firm has been awarded the delegation of management for the €400m Grand Harbour CLO 2019-1 transaction. Fidelity says it will continue to engage with MeDirect to explore further strategic opportunities.

    The private credit team will continue .......

    Market Moves 20 January 2021

  • Euro CLO equity yields dip

    Sector developments and company hires

    Euro CLO equity yields dip
    Annualised equity dividend yields across European CLOs averaged 12.9% in 2020, down from 15.1% in 2019 and below the 15% yearly average for the 2014-2020 2.0 era, according to research from Bank of America. However, the research suggests that in light of the pandemic disruption, the dip was moderate and mainly driven by a drop .......

    Market Moves 18 January 2021

  • Expanding footprint

    Jordan Milman, global head of structured products at Hayfin, answers SCI's questions

    Q: How and when did Hayfin become involved in the structured credit market?
    A: Hayfin launched a structured credit offering in 2012 and since then has invested over €1.7bn through more than 200 transactions, generating gross returns of 11.9% for 2H20.

    In June 2020, I joined the firm - along with John Hanisch - to lead the expansion of .......

    The Structured Credit Interview 15 January 2021

  • illimity inks NPL ABS duo

    Sector developments and company hires

    illimity inks NPL ABS duo
    illimity Bank has finalised two non-performing loan transactions, including the sale to Phinance Partners and SOREC involving a €129m GBV portfolio related to around 4,500 debtors. The portfolio consists of unsecured loans related to granular mainly retail exposures that were acquired by illimity during 2019 as part of an investment transaction in a large portfolio .......

    Market Moves 15 January 2021

  • Lloyd's ILS platform unveiled

    Sector developments and company hires

    Lloyd’s ILS platform unveiled
    Lloyd's has established London Bridge Risk PCC, the first UK ILS structure to be approved by the PRA for use for multiple, market-wide transactions for Lloyd's members. Clifford Chance worked with Lloyd's and the regulators to devise a structure and set of market standard template documentation with flexibility to accommodate a range of individual investment models and .......

    Market Moves 14 January 2021
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