CMBS

  • STS guidelines published

    Sector developments and company hires

    P2P head hired

    Dynamic Credit has hired Giles Andrews as chairman of its supervisory board. The board will have three members and serves to strengthen the corporate governance of Dynamic Credit Group (DCG), which comprises of the asset manager and direct lender Dynamic Credit and the investor servicing platform LoanClear. Andrews is co-founder of Zopa and, in addition to his .......

    Market Moves 13 December 2018

  • Star performer

    CDX beats cash bonds but CMBX leads

    Strong returns in CMBX have made it a ‘standout performer’ in the credit derivatives space this year, although timing is ‘crucial’ against the backdrop of retail volatility. Investors have also found CDX can play a key role in managing risk and generating alpha, while single-name CDS trading may surge in coming months, with further corporate defaults expected.

    Tracy Chen, portfolio .......

    News Analysis 13 December 2018

  • Prepayment offer

    European CMBS market update

    European CMBS BWIC activity has swelled after the Taurus 2018-3 DEU deal priced today. Unusually, noteholders have been offered an early prepayment on 14 December as an incentive to price the transaction before the end of the year.

    The market remains soft as conditions refuse to buck the widening spread trend. Several European dealers have decided to .......

    Market Reports 12 December 2018

  • Global leader appointed

    Sector developments and company hires

    Amended complaint filed

    The state of Colorado has filed a Second Amended Complaint relating to state court actions against Avant and Marlette, alleging that the platforms have violated its Uniform Consumer Credit Code (SCI 12 May 2017). According to a Chapman and Cutler client memo, in addition to making the same claims against the platforms, the state is suing .......

    Market Moves 12 December 2018

  • Libor consultation launched

    Sector developments and company hires

    ILS

    Peak Reinsurance Company has launched Asia’s first sidecar transaction via a new Bermuda-domiciled special purpose insurer, Lion Rock, to provide collateralised retrocession for part of Peak Re’s global property reinsurance risk portfolio. The establishment of this special financial structure, referred to as a “reinsurance sidecar”, allows investors to take on the risk and benefit from specific books .......

    Market Moves 11 December 2018

  • UK CMBS markets

    Transaction marks first for rating agency

    A Brookfield Asset Management entity, BSREP International II (A), is the sponsor of a new £367.5m UK single-asset single-borrower (SASB) CMBS, dubbed Salus (European Loan Conduit No.33). The transaction comprises a first-lien interest-only mortgage loan originated by Morgan Stanley and backed by the landmark City of London property, Citypoint.

    The mortgage loan comprises a senior loan which will be securitised .......

    News 11 December 2018

  • Bid scarcity

    European ABS market update

    A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to widen in the CLO and ABS primary markets.

    “We are running a few private processes, which are keeping us busy, and we will hopefully conclude them over the next couple of days,” says a trader.

    The trader comments that .......

    Market Reports 7 December 2018

  • BTL securitisation planned

    Sector developments and company hires

    Europe

    Accunia has promoted Mads Romild as head of Accunia’s CLO platform. Romild will continue as cio and head all Accunia investment strategies. Andres Garcia Bartolome and Rajiv Thaker are also promoted to senior portfolio managers and will be responsible for the portfolio management of the three existing and all new Accunia CLOs. Romild previously held a position as chief portfolio .......

    Market Moves 6 December 2018

  • Enforcement uncertainty

    Set-back for STS-eligible issuance

    The recent statement issued by the Joint Committee of the ESAs (SCI 4 December) is unlikely to be sufficient to assuage securitisation market concerns on its own. Such regulatory uncertainty is expected to further delay the emergence of STS-eligible securitisations in the pipeline.

    “The statement by the Joint Committee of the ESAs acknowledges the concerns about the .......

    News 5 December 2018

  • Activity upsurge

    European ABS market update

    The European primary and secondary ABS markets are seeing a surge in activity, due to uncertainty over the next quarter.

    “After the high volatility last month, I was expecting a slow-down,” says one trader, surprised by the activity.

    He suggests that market ambiguity around the next quarter is driving it. “The consensus is that things will only get choppy from .......

    Market Reports 4 December 2018

  • BDC merger announced

    Sector developments and company hires

    BDC merger

    Golub Capital BDC (GBDC) has merged with Golub Capital Investment Corporation (GCIC), with GBDC as the surviving company, subject to certain stockholder approvals and customary closing conditions. The combined company will remain externally managed by GC Advisors and all current GBDC officers and directors will remain in their current roles. The transaction is expected to close .......

    Market Moves 4 December 2018

  • Proportional approach

    ESAs tackle delay in transparency requirements

    The joint European Supervisory Authorities (ESAs) - which consist of the EBA, ESMA and the European Insurance and Occupational Pensions Authority - have published a letter reiterating market concerns over ESMA’s disclosure requirements (SCI 5 October) and Article 14 (SCI 9 July) of the CRR. The authorities have also called on EU national regulators to apply a ......

    News 4 December 2018

    Premium Content

  • ESAs suggest 'proportion'

    Sector developments and company hires

    Aussie securitisation fund

    The Australian government has introduced a A$2bn Australian Business Securitisation Fund, which will provide significant additional funding to smaller banks and non-bank lenders to on-lend to small businesses on more competitive terms. The fund will be administered by the Australian Office of Financial Management (AOFM), consistent with its prior involvement in the RMBS market in .......

    Market Moves 3 December 2018

  • Funding boost for online lender

    Sector developments and company hires

    Alesco CDOs transferred

    The collateral management agreements for the Alesco Preferred Funding X to XVII Trups CDOs have been assigned to Hildene Collateral Management Company (HCMC), an affiliate of Hildene Capital Management. Under the terms of the assignments, HCMC agrees to assume all the responsibilities, duties and obligations of the current collateral manager (ATP Management) under the agreements and under .......

    Market Moves 29 November 2018

  • Mezz concessions

    US CMBS market update

    US CMBS new issues appear to be struggling, following market volatility at the beginning of the week.

    One trader says: “It seems like the new issue pipeline is struggling to get off the ground and many dealers are having to give concessions in the mezz area in order to get deals done.”

    Meanwhile, in the secondary market, .......

    Market Reports 28 November 2018

  • Start the week - 26 November

    A review of securitisation activity over the past seven days

    Market commentary

    US CLO equity and double-B bonds were casualties of last week’s drop in the S&P 500 index, with bids softening across the secondary market (SCI 21 November).

    “A handful of CLO equity and double-B bonds were out for the bid and did not trade,” said a trader. “There was some clear hesitation in the market compared with a week ago. .......

    News 26 November 2018

  • UK SLABS slated

    Sector developments and company hires

    EMEA

    Eurocastle Investment has appointed Hammad Khan to its board as a non-executive director, increasing its number of directors to six. Khan is a representative of Eurocastle’s largest shareholder, an affiliate of EJF Capital, where he is a senior md and a senior member of the EJF Investments Manager investment team. He joined EJF in March 2013 and is responsible .......

    Market Moves 23 November 2018

  • Early warning?

    Cov-lite Euro CMBS gaining traction

    The influences of the leveraged loan market and non-traditional CMBS investors, along with the competitive pressure that lenders are under, is spurring the emergence of covenant-light loans in European CMBS. However, given the length of CRE loan terms, it will be another couple of years before the performance of cov-lite CMBS can be assessed versus regular CMBS.

    Cov-lite .......

    News 22 November 2018

  • CRT tranche downgraded

    Sector developments and company hires

    Acquisitions

    Spruce Finance has been acquired by HPS Investment Partners. Spruce will be headquartered in Houston and maintain its executive and M&A offices in San Francisco. Christian Fong has joined the company as president and ceo after holding a position as co-chairman of the board of directors since early 2017. The transaction took place through Spruce Holdings, a .......

    Market Moves 21 November 2018

  • Long goodbye

    First non-Libor linked ABS anticipated

    Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index average (SONIA) in September. The move has sparked predictions that the first securitisations tied to alternative reference rates will emerge next year.

    Libor is set to be phased out from 2021 and it remains unclear what will replace it as a .......

    News Analysis 20 November 2018

  • Credit clutch

    European ABS market update

    The European ABS slow-down continues, with prices drifting wider and subdued credit growth across the board. In particular, an aversion to duration risk has emerged this week.

    “Credit is headed for the worst year since 2008,” one trader explains. “ABS traders are not used to showing negative figures to their clients. People are reassessing the market.”

    In .......

    Market Reports 20 November 2018
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