Capital Relief Trades
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SCI In Conversation podcast is now live!
We discuss the hottest topics in securitisation today...
In this inaugural episode of the SCI In Conversation podcast, Angela Sharda chats to KBRA European research head Gordon Kerr about a European securitisation investor survey the rating agency undertook in June and the implications of the findings today. We also discuss a couple of new SCI Premium Content articles, one of which tracks the evolution of the STS synthetic .......
News 30 September 2022
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New BMO CRT asset
BMO brings capital call facility CRT
Bank of Montreal (BMO) has added capital call facilities to its broad CRT effort in a new deal which closed yesterday (September 29), say sources close to the issue.
The new trade is dubbed Killarney Series 1, and is worth $100m of party-paid floating rate notes, they add.
It is issued through Manitoulin - BMO’s SPV designed for CRT issuance.
The tranche thickness and .......
News 29 September 2022
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Golden Arch
Arch sells second MILN of 2022 at wide prints
Arch has printed Bellemeade Re 2022-02, worth $201m, its second mortgage insurance-linked note (MILN) of the year.
This is only the fourth deal in this sector in 2022 as wider spreads have deterred issuers. Essent priced Radnor 2022-01 earlier this month, but that was the first MILN seen since April.
Bellemeade 2022-01 is noticeably on the small size - indeed it is .......
News 26 September 2022
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'Specialist-squared' solution?
Renewable energy SRT challenges addressed
Banks are expected to substantially grow their lending in the renewable energy sector, driven by ambitious net-zero programmes and government efforts to meet climate targets, heightened further by recent geopolitical tensions. Risk-sharing transactions can play an important role in allowing banks to manage both regulatory capital and risk limit constraints as lending books grow, while retaining the assets on .......
News Analysis 26 September 2022
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Legitimate questions
STS synthetics adoption discussed
The adoption of STS synthetic securitisation has helped legitimise the capital relief trades market. However, this Premium Content article outlines how the EBA’s most recent consultations could prove challenging.
STS synthetic securitisation issuance has soared since the execution of the first transaction in June 2021, adding momentum to this year’s capital relief trade deal flow, further legitimising ......
News Analysis 22 September 2022Premium Content
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Singular CRT
One-off entry into CRT from PacWest
Pacific Western Bank (PWB), a $41bn Beverly Hills, California-based lender wholly owned by PacWest Bancorp, has become the third US regional bank to venture into the CRT market.
It is reported to be in the market with a four-tranche CLN designated PWB 2021-01, which securitizes residential mortgage assets and is set to close this week.
The forerunners in the US regional bank CRT market .......
News 20 September 2022
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STACR six priced
Sixth low-LTV STACR of 2022 priced
Freddie Mac priced STACR 2002-DNA6, its sixth low LTV STACR of the year, on Friday (September 16) afternoon. The GSE was reported to be in the market last week.
The bookrunners were Bank of America and Morgan Stanley, while the co-managers were Amherst Pierpoint, Cantor, Citigroup and StoneX.
The offering consists of three investment grade tranches - a $388m M1-A priced to .......
News 19 September 2022
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Branching out
Thomas Majewski, managing partner and founder of Eagle Point...
Q: Eagle Point recently announced its expansion into the ABS, MBS and SRT markets, which will be led by Karan Chabba as head of ABS, MBS, SRT and speciality finance (SCI 19 July). What were the motivations behind branching out into these markets?
The Structured Credit Interview 15 September 2022
A: In terms of relative interest, the order we are looking at these is SRT, ABS .......
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Risk transfer round up-8 September
CRT sector developments and deal news
Market Moves 8 September 2022
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Reinsurance roll call
Call for new counterparties to avoid CRT overcapacity and widening prices
The reinsurance market has thus far soaked up the CRT extra volume thrust its way this year, but unless new names enter the space both capacity and pricing will be squeezed, suggest sources.
Around 30 reinsurers regularly absorb GSE product through the ACIS and CIRT programmes, but only 15 or so take risk from mortgage insurers (MIs).
“There’s definitely room for growth. There’s .......
News Analysis 6 September 2022
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