Capital Relief Trades
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Social housing RMBS debuts
Sector developments and company hires
Social housing RMBS debuts
Caisse des Dépôts et Consignations (CDC) has completed a rare securitisation collateralised by social housing loans originated by its savings fund division. Dubbed FCT FE Durable 2023, the €1bn transaction is backed a portfolio of 1,890 performing loans extended to 206 French social and affordable housing providers (SAHPs).The largest, the top five and top .......
Market Moves 17 February 2023
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Regulatory resentment
Delegates at SCI's New York seminar implore transparency
A near-unanimous call for greater clarity from US regulators was made by investors and practitioners at SCI’s annual risk transfer and synthetics seminar last week in New York.
Some delegates went further, with one noting that US regulators have been “much less constructive than the FHFA” to the CRT mechanism and pleading with them to “align with their European counterparts.”
The US bank .......
News 14 February 2023
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Homogeneity RTS released for STS synthetics
Sector developments and company hires
Homogeneity RTS released for STS synthetics
Market Moves 14 February 2023
The EBA has published its final draft regulatory technical standards (RTS) setting out the conditions for the assessment of the homogeneity of underlying exposures in STS on-balance sheet securitisation pools. At the same time, the authority has extended the existing work on the RTS on homogeneity for both ABCP and non-ABCP securitisations to ensure .......
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MK&C acquisition prompts CS carveout
Sector developments and company hires
MK&C acquisition prompts CS carveout
Market Moves 10 February 2023
Credit Suisse has progressed the carveout of CS First Boston as a distinct capital markets and advisory-led business (SCI 28 October 2022) through the acquisition of The Klein Group (MK&C), for a purchase price of US$175m. The seller will receive equity in CS First Boston in the form of a convertible note, while Michael .......
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Hedging alternatives eyed
JPM said to be exploring alternative risk transfer structures
News 9 February 2023
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The affordability conundrum
Impact of alternative credit scores explored
The GSEs are under considerable political pressure to extend credit to the underserved. But what does this mean for CRT investors, issuers and rating agencies? This Premium Content article investigates.
In October of last year, Sandra Thompson, director of the FHFA, unveiled potentially far-reaching policy changes with the aim of making US homes more affordable. All involve ......
News Analysis 1 February 2023Premium Content
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Fee fears
FHFA opens another front in the war on affordability to industry concern
The mortgage and securitization market has reacted with anxiety to the changes to the Loan Level Price Adjustments (LLPAs) announced by the Federal Home Finance Agency (FHFA) at the end of last week.
Essentially, these changes make it less costly for borrowers with lower credit scores to secure a mortgage while and more costly those borrowers with higher credit scores.
Not only, of .......
News Analysis 26 January 2023
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ECON votes on output floor
Sector developments and company hires
ECON votes on output floor
Market Moves 24 January 2023
The European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted to apply the capital requirements output floor at the consolidated EU level under CRR3, in order to engender comparable risk weights and avoid variations in capital levels. Additionally, the Committee has agreed transitional adjustments for low-risk exposures secured by residential mortgages to mitigate .......
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