Capital Relief Trades
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EARN unveils 'strategic transformation'
Market updates and sector developments
The board of trustees of Ellington Residential Mortgage REIT (EARN) has unanimously approved a strategic transformation of its investment strategy to focus on corporate CLOs. The company intends to build upon its current US$44m CLO portfolio, with an emphasis on secondary CLO mezzanine debt and equity tranches.
In connection with its strategic transformation, EARN has decided to revoke .......
Market Moves 2 April 2024
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On the up
Nordic reticence towards SRT "less pressing"
The Nordic and Baltic countries are expected to experience a “not-insignificant” increase in SRT issuance in 2024, with their somewhat self-imposed supervisory reticence towards the instrument taking a back seat amid other market drivers. Indeed, the implied supervisory concerns across the region appear less pressing now, given greater regulatory transparency around synthetic securitisation and the designation of SRTs as .......
News Analysis 28 March 2024
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Hot, hot, hot!
Four takeaways from IMN's SRT Symposium
SCI attended IMN’s SRT Symposium at Clifford Chance last week. Based on our takeaways from the conference, here are the four things every SRT enthusiast needs to know:
- Investor interest
“SRT is seriously hot!” Kaikobad Kakalia, cio of Chorus Capital Management and a speaker on the first panel of the day, told audience members. “Taylor Swift was .......
Talking Point 28 March 2024
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NCSLT found to be 'covered persons'
Market updates and sector developments
In a case involving the CFPB and the National Collegiate Master Student Loan Trust (NCSLT), the Third Circuit has found that statutory trusts used to handle securitisations are considered ‘covered persons’ for purposes of the Consumer Financial Protection Act (CFPA) and thus are subject to CFPB jurisdiction. According to a recent Cadwalader memo, this effectively means that the trusts would .......
Market Moves 22 March 2024
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Regional clamour
Fed approves Truist, Huntington in the market as regionals seek SRT balm
News 22 March 2024
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Motor finance review sparks RWA optimisation
Market updates and sector developments
Close Brothers has unveiled plans to strengthen its capital position by optimising RWAs, including by reducing RWA growth by approximately £1bn through a combination of selective loan book growth, partnerships and significant risk transfer of assets related to its Motor Finance business through securitisations. The move comes amid the UK FCA’s review of the motor finance industry (SCI 6 .......
Market Moves 20 March 2024
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Tale of two markets
SRT Market Update
The outlook for the US SRT market currently appears to be mixed, with some banks reportedly waiting for the outcome of November’s presidential election before completing trades. Across the pond, meanwhile, Santander’s Portuguese subsidiary Totta is understood to be prepping a transaction for Q2.
Sources tell SCI that the Totta deal is likely to reference a granular portfolio .......
SRT Market Update 15 March 2024
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Job swaps weekly: Newmark launches Paris office with raft of senior hires
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Newmark Group appointing two commercial real estate veterans from JLL and CBRE to head up its new Paris office. Elsewhere, Obra Capital has hired an entire team from Pangea Mortgage Capital as part of its launch of Obra Real Estate, while Barclays has named a new head of principal funding and .......
Market Moves 15 March 2024
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Constructive engagement
What it takes to close a debut SRT trade
Completing an SRT transaction from a first-time issuer takes time and resources, but investors are incentivised to participate in such trades for the diversification benefits. Nevertheless, first-time issuers should be prepared to work constructively with investors to ensure a smooth execution.
Kaikobad Kakalia, cio at Chorus Capital, says his firm takes into account both the primary objective of .......
News Analysis 13 March 2024
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Relaunched CMU prioritises securitisation
Market updates and sector developments
The ECB Governing Council has agreed a new roadmap for advancing the Capital Markets Union (CMU), with the aim of making full use of Europe’s capital markets to mobilise the private investment necessary to fund the green and digital transitions, and to enhance the EU’s productivity and competitiveness in a shifting geopolitical landscape. The statement places the .......
Market Moves 12 March 2024
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Growth expectations
Alastair Pickett, co-portfolio manager of Chenavari's risk sharing strategy, answers SCI's questions
Q: As the team prepares to launch a new fund around its risk sharing strategy within the next few months, can you give us some background to SRT at Chenavari?
The Structured Credit Interview 12 March 2024
A: Our risk sharing business sits alongside and is complementary to our private credit investment strategy, through which we cover both portfolio acquisitions and warehouse financing extended to our non-bank .......
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Job swaps weekly: Cadwalader appoints former FDIC deputy general counsel as partner
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Cadwalader appoint an industry veteran as a New-York-based partner. Elsewhere, Willkie Farr & Gallagher has snapped up a Katten Muchin Rosenman partner for its energy transactions and structured finance team, while Paul Hastings has lured a McDermott Will & Emery partner to its real estate team.
Cadwalader has recruited former .......
Market Moves 8 March 2024
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SCI In Conversation Podcast: Ruhi Patil, Dentons
We discuss the hottest topics in securitisation today...
In this special International Women's Day episode of the SCI In Conversation podcast, SCI deputy editor Kenny Wastell speaks to Ruhi Patil, a counsel in Dentons' London office, about gender diversity and inclusion in the structured finance industry. Patil discusses her personal experiences of attitudes towards diversity and inclusion; the roles that allies can play in tackling the challenges; .......
News Analysis 8 March 2024
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Develop, advance and retain
IWD 2024: Inclusion in structured finance
Diversity is a cornerstone of the practice of securitisation, but the same cannot be said for the make-up of securitisation practices worldwide. To mark 2024’s International Women’s Day, Claudia Lewis highlights the need to acknowledge the often-overlooked intersectional challenges many women face on top of those of gender.
The theme of this year’s International Women’s Day celebration, ‘Inspiring .......
News Analysis 8 March 2024
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Latest SRTx fixings released
Index values indicate expectations of rising volatility and...
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. There has been some incremental tightening in the spread indexes in the large corporate category compared with February’s fixings (SCI 5 February). Volatility indexes have risen, reflecting more volatile conditions in the broader capital markets.
SRTx Spread Indexes have modestly tightened in the .......
News 6 March 2024