Capital Relief Trades

  • Pension fund increases risk transfer mandate

    The New Mexico Educational Retirement Board has been steadily increasing its foothold in the risk transfer market. Indeed, the pension fund's mandate has broadened since its first investment in the sector back in 2008.

    Under cio Bob Jacksha, the New Mexico Educational Retirement Board has invested US$350m in risk transfer transactions to date. Encouraged by the track record of the .......

    News 21 July 2017

  • Swedish regulations to limit risk transfer

    Finansinspektionen, Sweden's financial supervisory authority, recently released new securitisation guidelines in an attempt to tackle what it sees as flow-back risk, or the possibility of credit risk flowing back onto bank balance sheets. The guidelines are expected to reduce issuance of Swedish capital relief trades.

    Traditionally, Swedish systemic lenders have funded themselves cheaply through covered bonds rather than securitisations. Yet, .......

    News Analysis 20 July 2017

  • Synthetic expected loss approach outlined

    Scope has published research that offers a technical illustration of how the expected loss framework described in its general structured finance rating methodology can be implemented for tranches of simple synthetic securitisations. Further, the report describes how expected loss can be calculated in practical cases.

    Simple synthetic securitisations generally allocate losses from a reference portfolio of assets, for which an .......

    News 18 July 2017

  • Final STS document welcomed

    The European Parliament's economic and monetary affairs committee yesterday approved, as expected, the new STS securitisation framework by a substantial majority. The final document indicates an overall positive impact for the securitisation market, although the lack of a third-party regime and complex grandfathering provisions may constrain issuance in post-Brexit UK and the EU respectively.

    According to the final STS document, .......

    News Analysis 12 July 2017

  • Risk transfer round-up - 7 July

    The second quarter appears to have been a quiet period in the risk transfer market, with only two capital relief trades completed. "Most of the pipeline is scheduled for September or December, with approximately 20 transactions being worked on so far," states one source. "Delays in the CRR regulation mean that many issuers don't feel pressured to bring trades this .......

    News 7 July 2017

  • Risk transfer round-up - 30 June

    The EIF has recently signed guarantees with five banks in Romania under its SME initiative (SCI 12 May). This is happening at a time when the fund's securitisation team is working on new EFSI deals "similar" to the recent deal with BBVA (SCI 12 June). Additionally, the SSA intends to finalise traditional synthetic securitisations in Italy by the end of .......

    News 30 June 2017

  • IFRS 9 to spur risk transfer trades

    Higher expected provisioning under IFRS 9 is expected to spur a slew of risk transfer issuance before its enactment in January 2018. Indeed, portfolio management will be central to how institutions manage and price the volatility that the new accounting standard will bring.

    "You can imagine a logjam of cases," says Adrian Docherty, head of bank advisory at BNP Paribas. .......

    News Analysis 23 June 2017

  • Risk transfer round-up - 23 June

    Sources refer to heightened activity in the capital relief trades market, with many deals awaiting finalisation by year-end. Jurisdictions that are said to have seen activity include the US and Eastern Europe. In particular, sources point to synthetic SME securitisations from Slovakia and Poland.

    Meanwhile, Italian deals are also expected from UniCredit and Intesa Sanpaolo, as well as Spanish supply .......

    News 23 June 2017

  • Regulatory boost for risk transfer trades

    Balance sheet synthetic securitisation volume is predicted to rise in the coming years, with greater conformity in deal structure and increased variance in reference assets. A more accommodating regulatory environment should help boost the growth and acceptance of the market.

    In terms of the recent finalisation of the STS framework, Robert Bradbury, md, StormHarbour, welcomes the clarification on risk retention. .......

    News Analysis 20 June 2017

  • Risk transfer round-up - 16 June

    One talking point this week was the EBA's announcement at IMN's Global ABS conference of its intention to publish a paper on risk transfer transactions. "This is a very important step," says one issuer.

    He adds: "Despite a surge in risk transfer issuance, many of our clients still have hesitations over these deals, due to regulatory uncertainty over their defining .......

    News 16 June 2017

  • STS could take a year, but optimism prevails

    The implementation of the STS securitisation framework is unlikely to be completed within a year, according to panelists at the recent IMN Global ABS conference. However, speakers on a regulatory panel emphasised that while it may take time to finalise the finer details, optimism is strong that the long-awaited clarity on STS could provide a much needed boost to the .......

    News Analysis 16 June 2017

  • Spanish EFSI deal debuts

    The EIF has closed its second European Fund for Strategic Investments (EFSI) deal, providing BBVA with a €143bn mezzanine guarantee facility. The transaction references a €3bn portfolio of Spanish SME loans and is the first Spanish synthetic securitisation under the Investment Plan for Europe.

    The Investment Plan allows the EIB Group to fund investment projects that - due to their .......

    News 12 June 2017

  • STS strikes investor and issuer balance

    Further details have emerged over the STS securitisation agreement that was finalised this week (SCI 31 May). Most notably, the authorisation process for third parties that support verification and compliance with STS requirements strikes a balance between issuer and investor considerations.

    According to a European Parliament press release, there will be a "light" authorisation process for third parties that support .......

    News Analysis 2 June 2017

  • Risk transfer round-up - 2 June

    Dynamic Credit is prepping another Dutch RMBS originated under the ELAN Woninghypotheken brand. Dubbed DCDML 2007-1, it is being arranged by Goldman Sachs and is expected to launch by end-Q3. The full capital stack DCDML 2016-1 was completed last October (see SCI's primary issuance database), achieving balance sheet relief for the lender.

    .......

    News 2 June 2017

  • MARF listing breaks new ground

    The Mercado Alternativo de Renta Fija (MARF) has admitted a new synthetic securitisation dubbed FT PYMES Magdalena, set up by Banco Santander's securitisation management company, Sociedad Gestora Santander de Titulización SGFT. The move sets a precedent in terms of synthetics being publicly listed and is seen as a test case for the 2015 amendments to Spain's securitisation law.

    Following the .......

    News 1 June 2017

  • Job swaps round-up - 19 May

    CDO manager transfers

    Dock Street Capital Management has replaced Vertical Capital as portfolio advisor to Summer Street 2005-HG1 and Vertical CDO 2003-1. Moody's confirms that the move will not impact the ratings on the ABS CDOs.

    EMEA

    BlueMountain Capital Management has named Louisa Church ceo for Europe. She will also continue in her role as head of client advisory - .......

    Job Swaps 19 May 2017

  • Risk transfer round-up - 19 May

    Sources expect three true sale significant risk transfer trades to be issued by Italian banks this year, with NPLs as the underlying asset. Banca Popolare di Bari is rumoured to be one of them.

    "Given that the senior tranche will be retained under GACS, I would expect a substantial portion of the mezzanine and the junior to be sold," says .......

    News 19 May 2017

  • STS discussions stumble on hierarchy

    The Strasbourg Trilogue discussions on simple, transparent and standardised (STS) securitisation have been postponed until 30 May, due to disagreements between the European Parliament on the one hand and the European Commission and Council on the other over the hierarchy of CRR approaches. However, the European Parliament has made important concessions over risk retention, increasing the likelihood of a final .......

    News Analysis 19 May 2017

  • Risk transfer round-up - 12 May

    Risk transfer activity has rebounded this week, with the EIF's landmark Spanish portfolio guarantee. More activity is expected from the fund in the near future (SCI 12 May).

    At the same time, sources talk of more to come in June, along with a capital relief trade in September or October for a Portuguese bank. The issuer is rumoured to be .......

    News 12 May 2017

  • Landmark portfolio guarantee inked

    The EIF has agreed to guarantee 50% of a €5.52bn Spanish SME credit portfolio originated by nine Spanish banking groups. Dubbed the SME Initiative Uncapped Guarantee Instruments (SIUGI) for Spain, the deal is a bespoke EU-sponsored risk transfer transaction (see SCI's capital relief trades database).

    Under the agreement, the EIF enters into bilateral financial guarantees with each of .......

    News Analysis 12 May 2017

  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that the EIF is planning to tap the market again in two months.

    The fund completed its first EFSI risk transfer transaction last month (SCI 26 April), as part of a programme to stimulate SME lending in Europe. Not much is known about the forthcoming transaction, other .......

    News 5 May 2017
×