Capital Relief Trades

  • Hong Kong ABS recommendations released

    Sector developments and company hires

    Alternative risk transfer
    Arthur J Gallagher has increased its interest in Capsicum Reinsurance Brokers from 33% to 100%. Capsicum Re launched in December 2013 through a strategic partnership with Gallagher. There are no management changes as a result of the deal.

    Gilles Dellaert, former co-president and cio of Global Atlantic, has been appointed global head of Blackstone Insurance Solutions .......

    Market Moves 14 January 2020

  • Landmark CLN finalised

    Santander completes undrawn RCF trade

    Santander has completed a €147m CLN that is backed entirely by undrawn corporate and financial institution revolving credit facilities. Dubbed Vespa 2019-1, the transaction is believed to be the first of its kind in the eurozone capital relief trades market.

    Undrawn corporate facilities are a typical product that banks have to provide to corporate and financial institution clients, despite the .......

    News 10 January 2020

  • Leasing guarantee

    EFL completes capital relief trade

    The EIF and Europejski Fundusz Leasingowy (EFL) have completed a synthetic securitisation of an unusual PLN2.1bn portfolio of Polish leasing assets. The transaction will unlock PLN3.1bn of additional funds for Polish SMEs.

    According to Georgi Stoev, head of Northern Europe & CEE, Securitisation at EIF: “It’s the first leasing company from the Polish market that has completed a synthetic securitisation, so .......

    News 9 January 2020

  • CQS SRT finalised

    Unusual reference pool securitised

    An unusual significant risk transfer transaction referencing a €1.78bn static portfolio of Italian payroll-deductible (CQS) loans has closed. The synthetic securitisation – dubbed Amalia SPV – was originated by BNL Finance, which is among the most experienced CQS loan originators in Italy, with a track record of above-average performance for its loan book.

    CQS loans are collateralised by the obligor’s .......

    News 24 December 2019

  • MNHD plans programmatic issuance

    Sector developments and company hires

    Egyptian securitisation debuts
    Egyptian real estate developer Madinet Nasr Housing and Development (MNHD) has closed its inaugural securitisation, issued by Financial Group for Securitization Company (FGS). The transaction is backed by an EGP370m receivables portfolio originated as part of the company's plan to monetise receivables from delivered units in the Primera, Tag Sultan and Waha projects. The three tranches of the .......

    Market Moves 23 December 2019

  • Nordic SRT inked

    Nordea returns with capital relief trade

    Nordea has priced a €5.1bn synthetic securitisation of Nordic corporate and SME loans. Dubbed Matador, the funded financial guarantee is the issuer’s first capital relief trade following the bank’s entry into the EU’s banking union in October 2018.

    According to Mark Kandborg, head of group treasury and ALM at Nordea: “We priced the transaction and freed up capital at an .......

    News 20 December 2019

  • SCI's latest podcast is now live!

    The editorial team discuss key issues in securitisation today...

    In this episode of the SCI podcast, Mark Pelham and Corinne Smith discuss our new research report on standardised banks' capital relief trades and where European securitisation investors are looking to find relative value in the year ahead.

    This podcast and previous episodes can be accessed via the SCI site, online here as well as wherever you usually get .......

    News 19 December 2019

  • Risk participation programme agreed

    Sector developments and company hires

    CLO vulnerabilities eyed
    The Financial Stability Board has published a report assessing the financial stability implications of developments in the global leveraged loan and CLO markets. Based on a combination of available data and analyses from FSB members, the report concludes that vulnerabilities in the sector have grown since the financial crisis. Specifically, it notes that: borrower leverage has increased; changes .......

    Market Moves 19 December 2019

  • UK auto SRT finalised

    Santander completes retained first-loss deal

    Santander has completed a synthetic securitisation of UK auto loans. Dubbed Motor Securities 2018-1, the financial guarantee is the lender’s first UK synthetic securitisation that features a retained first-loss tranche.

    According to Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and Investment Banking: “The transaction doesn’t feature any excess spread, so the only .......

    News 18 December 2019

  • Economic efficiency

    Standardised bank SRT pros, cons weighed

    Various factors should be considered when contemplating whether to execute a significant risk transfer transaction, especially from a standardised bank perspective. The key is to choose the most economically efficient portfolio and the rest is optimisation, according to SCI’s inaugural CRT Research Report.

    Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and .......

    News Analysis 16 December 2019

  • Risk transfer round-up - 16 December

    CRT sector developments and deal news

    Deutsche Bank is rumoured to be readying a capital relief trade from the CRAFT programme. The last CRAFT significant risk transfer deal - a US$382.5m CLN that references corporate loans - was completed in March. It remains the only CRAFT transaction of the year (see SCI’s capital relief trades database).

    ......

    News 16 December 2019

    Premium Content

  • Mixed motivations

    THRP sets stage for US bank CRT

    A combination of macro and micro factors are understood to have influenced the issuance of JPMorgan’s recent Chase 2019-CL1 synthetic RMBS (SCI 10 October). Notably, the US Treasury’s aim of harmonising regulatory frameworks across the mortgage market – as outlined in its Housing Reform Plan (SCI 6 September) – arguably helped create the right conditions for the bank .......

    News 13 December 2019

  • CET1 ratios eyed

    Disposals, securitisations to protect bank capital

    European bank CET1 ratios have stabilised over recent years, as Basel 3 capital requirements and other supervisory measures have been fully phased in. However, further RWA inflation could result from the ECB’s TRIM exercise or the Basel 4 output floors.

    Banks have adapted to the post-crisis regulatory environment by lowering RWAs and/or by retaining more earnings. Indeed, for over a .......

    News Analysis 12 December 2019

  • Mutual agreement

    BPPB SRT debuts

    Further details have emerged about the EIF and Banca Popolare di Puglia e Basilicata’s (BPPB) €60m financial guarantee under the SME Initiative Italy (SCI 6 December). Referencing a €120m Italian SME portfolio, the transaction is BPPB’s first risk transfer trade and is the first under the SME Initiative Italy to free up mutual guarantees known as confidi.

    “This is .......

    News 9 December 2019

  • Grattan refinanced

    Bank of Ireland completes CRT

    Bank of Ireland has originated a €265m funded and unfunded financial guarantee that references a partially disclosed €2bn Irish and UK corporate portfolio. Dubbed Vale Securities, the transaction is a refinancing of a 2016 capital relief trade called Grattan Securities (see SCI’s capital relief trades database).

    The refinancing follows the exercise of an optional early termination right for Grattan .......

    News 6 December 2019

  • Confidentiality issues persist

    Disclosure questions unresolved for CRT market

    ESMA’s updated questions and answers on the Securitisation Regulation, clarifies different aspects of the European Commission’s draft technical standards on securitisation disclosures (SCI 18 October). However, as with the Commission’s paper, the document doesn’t explain how CRT issuers can comply with the disclosure requirements while preserving client confidentiality.

    David Saunders, structurer at Santander, comments: “The confidentiality issues remain, so .......

    News 2 December 2019

  • Full-stack debut

    BDK completes first auto SRT

    Bank Deutsches Kraftfahrzeuggewerbe (BDK) has debuted its first full-stack capital relief trade. Dubbed Red & Black Auto Germany 6, the €1bn German true sale auto ABS differs from previous transactions from the same programme due to the existence of pro-rata amortisation and the fact that it has been undertaken for both capital relief and funding purposes.

    According to Laurent Mitaty, .......

    News 2 December 2019

  • Spanish SRT inked

    Banco Cetelem completes full-stack auto ABS

    Banco Cetelem has completed the first full-stack Spanish auto significant risk transfer transaction from BNP Paribas’ Autonoria programme. The €1bn Autonoria Spain 2019 true sale ABS differs from previous Autonoria deals in that the class G notes have been assigned a rating.

    The deal is the first capital relief trade from the programme that references Spanish auto loans and it .......

    News 2 December 2019

  • Risk transfer round-up - 28 November

    Risk transfer round-up - 28 November

    HSBC is rumoured to be readying a UK and European corporate loan SRT. This is one of two rumoured corporate SRTs that the bank is believed to be prepping. The second transaction is thought to reference UK corporate loans.

    The deals would follow a four year gap from the issuer’s last transaction, dubbed Metrix Portfolio Distribution (see SCI’s capital relief trades .......

    News 2 December 2019

  • Italian SRT inked

    UBI Banca seals the triple

    UBI Banca has completed its third capital relief trade (CRT) following its inaugural transaction two years ago. Dubbed UBI 2019 RegCap3, this trade differs from the previous two, given the use of pro-rata amortisation and a replenishment period for prepaid loans.

    “We received strong interest from investors thanks to the solid performance of the previous transactions. The new .......

    News 26 November 2019

  • SCI Start the week - 25 November

    A review of securitisation activity over the past seven days

    Transaction of the week

    Hercules tapped

    Alpha Bank is set to securitise a €12bn mixed portfolio of retail secured and unsecured loans, mortgage and wholesale non-performing loans in 1H20. Dubbed Project Galaxy, the transaction protects shareholders from dilution and is one of the first to utilise the Greek government's Hercules asset protection scheme (HAPS) (SCI 11 October).

    Alpha .......

    News 25 November 2019
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