Capital Relief Trades
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Low supply?
SRT Market Update
Some slight pessimism about SRT deal flow ahead of the summer break is emerging, with one source suggesting that the market is “more silent than expected” at this point in the year.
“It has been a strange six months, where investors have upskilled and come online, but the issuance is yet to increase exponentially. It’s still a good .......
SRT Market Update 14 June 2024
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Credit risk sharing: Raising the bar for ESG requirements - video
PGGM Investments' Alien Pauw speaks to SCI about ESG and investing in credit risk sharing
....... News Analysis 13 June 2024
Ratings rapture
US reg cap deals seek AAAs, but not so European
Recent risk-sharing CLNs from US banks have been structured to receive the highest possible credit ratings, according to a recent report from Fitch, but this remains a feature unique to the US market, say observers.
All the US transactions have .......
News Analysis 12 June 2024
Latest SRTx fixings released
While the broader macro backdrop (notably geopolitics and ce...
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. While last month’s figures highlighted a nuanced shift towards increased risk, the latest data points to an incrementally better market sentiment overall.
SRTx Spread Indexes have tightened across the board, with the US (-14.5%) corporate segment leading the way (-3.9% in Europe). Similarly for .......
News 11 June 2024
CIRT X 4
Market updates and sector developments
Fannie Mae has completed its fourth CIRT deal of 2024, transferring US$284.8m of mortgage risk to 25 insurers and reinsurers.
The loan pool for CIRT 2024-H2 comprises around 34,000 single family mortgages with an unpaid principal balance of approximately US$12.1bn. .......
Market Moves 11 June 2024
Job swaps weekly: Paul Hastings poaches private credit team
People moves and key promotions in securitisation
This week’s round-up of securitisation job swaps sees Paul Hastings poach a team of restructuring, private credit and special situations lawyers from King & Spalding. Elsewhere, Apollo-allied credit solutions provider Cadma Capital Partners continues to beef up its leadership team, while Kirkland & Ellis has lured a structured private credit lawyer to its debt finance group.
Collectively, the .......
Market Moves 7 June 2024
Top of the pops
Private risk sharing volumes hit €1trn
Private risk sharing exceeded €1trn of cumulated volumes across over 500 transactions between 2016 and 2023, according to IACPM’s latest annual synthetic securitisation survey. Last year alone saw around €200bn of new issuance from the 40 banks involved in the survey, with over €600bn of bank loans covered by €55bn of junior tranches.
In the EU, €300bn of .......
News 6 June 2024
ILS opportunity set revealed
Market updates and sector developments
A recent SIGLO Capital Advisors study estimates that the global ILS market is slightly over US$100bn in size and, as such, equates to roughly 20% of overall global risk-bearing reinsurance capital. The private ILS market segment accounts for around 60% of this total, while the public catastrophe bond market segment accounts for the remainder. The top 20 ILS managers were .......
Market Moves 6 June 2024
Five-point plan
EU securitisation reform package mooted
AFME has published a position paper that outlines a five-point plan to revive the securitisation market in the EU. Entitled ‘EU Securitisation back on track’, the paper describes the different ways that securitisation can be used as a tool to support EU growth and strategic objectives, identifies the regulatory hurdles that currently impede its impact and outlines a package .......
News 6 June 2024
Record breakers
B1 tranches hit all-time low new issue print
Record tight new issue spreads were recorded in GSE-issued CRT B1 tranches in May, according to research conducted by Mark Fontanilla & Co, the leading CRT consultancy and data provider.
The B1 tranche of Fannie Mae’s recently priced CAS .......
News 6 June 2024
Job swaps weekly: WTW appoints experienced leader from SMBC
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees WTW appointing a head of alternative credit insurance, financial solutions, from Sumitomo Mitsui Banking Corporation (SMBC). Elsewhere, Gowling WLG has lured a Toronto-based industry veteran as partner to head up its new structured finance and securitisation group, while Barings has hired an md and global head of fund and asset level .......
Market Moves 31 May 2024
Italian NPL volumes hit three-year low
Market updates and sector developments
Italian NPL volumes last quarter hit their lowest point since 2021, according to Scope Ratings. Volumes were down 19% on the 2022-2023 average.
March 2024 was particularly poor, with volumes down 36% compared to March 2023 and 2022 - despite the total number of transactions (44) being higher (2022 and 2023 saw 41 and 43 deals respectively).
Over .......
Market Moves 30 May 2024
Stars aligned
Nordic advisory firm to capitalise on constructive outlook
The new advisory venture of two ex-Nordea SRT experts seeks to capitalise on a growing Nordic market (SCI 17 May). Indeed, the stars seem to be aligned for a second wave of capital-focused transactions in the region as regulatory requirements begin to bite.
Jonas Bäcklund, the ceo of the boutique advisory firm Revel Partners, says: “The bet .......
News Analysis 29 May 2024
GACS 2.0 ABS 'better positioned' than GACS 1.0
Market updates and sector developments
GACS 2.0 NPL securitisations appear to be better positioned than GACS 1.0 securitisations, both from an asset side perspective - in terms of greater accuracy of original business plans, better collateralisation and healthier performance - and from a structural perspective, in terms of higher levels of conversion rates and hedging status. A new Morningstar DBRS commentary suggests that this .......
Market Moves 24 May 2024
New SRT jurisdiction?
Israeli banks await securitisation regime
While securitisation transactions have been historically scarce in Israel, last year (30 July) the department of justice published the draft regulation of securitisation transactions law for public review. The new regulatory framework had been enacted in order to create a comprehensive legal and commercial framework for securitisation transactions in Israel. Prior to this publication, no coherent legislative architecture existed .......
News Analysis 24 May 2024
Job swaps weekly: McCarthy Denning appoints CTLA-focused partner
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees McCarthy Denning hiring a former Greenberg Traurig shareholder as a securitisation-focused partner. Elsewhere, Sumitomo Mitsui Finance and Leasing (SMFL) has promoted a long-standing structured finance and corporate banking executive to head up its New York branch, while Offit Kurman has snapped up a former Greenspoon Marder partner as principal.
Helena Nathanson .......
Market Moves 24 May 2024
Agency angle
SRT ratings on the rise?
Ratings for GSE credit risk transfer transactions are commonplace, given the US agencies’ desire to appeal to a wide range of investors. However, the volume of both public and private ratings for non-agency capital relief trades appears to be on the rise, as the market prepares for Basel 3 Endgame.
Andreas Wilgen, group credit officer for global structured .......
News 23 May 2024