NPLs
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AMCO deal completed
Sector developments and company hires
AMCO deal completed
Market Moves 26 October 2020
Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as .......
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First EGF guarantee inked
Sector developments and company hires
First EGF guarantee inked
Market Moves 14 October 2020
The EIB has approved €5.1bn of new financing to support investment by companies most impacted by Covid-19, alongside backing clean energy, water, sustainable transport and urban development. This includes up to €2.66bn of support – comprising €1bn of EIB-linked risk-sharing products and €1.66bn EIF guarantee and equity products - backed by the new European Guarantee Fund, .......
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US CLO recovery continues
Sector developments and company hires
US CLO recovery continues
US CLO OC cushions are continuing to recover, according to the latest quarterly US manager report from JPMorgan CLO research.It says: “In the upcoming final quarterly October payment (majority of CLOs), we estimate as much as circa 92% equity will pay a cashflow compared to circa 89% in July and circa 40% during the GFC. .......
Market Moves 9 October 2020
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Litigation finance fund formed
Sector developments and company hires
Litigation finance fund formed
Tetragon and its diversified alternative asset management business TFG Asset Management have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital. The company – which is expected to formally launch on 1 November - is a multi-product global asset management business that will sponsor and manage litigation finance-related investment funds.Baer .......
Market Moves 8 October 2020
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Structured finance solutions
Contributed thought leadership by Ocorian
Sonal Patel, md, head of sales - Americas, Bermuda and Caribbean, and Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlight how structured finance solutions are coming to the fore across securitisation markets
Q: How is the securitisation industry responding to the Covid-19 fallout and .......
Talking Point 7 October 2020
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'Quick fix' draft legislation published
Sector developments and company hires
‘Quick fix’ draft legislation published
The European Parliament has published draft legislative resolutions on amendments to the Securitisation Regulation and CRR in connection with STS synthetics and non-performing exposures.Among the proposals is a tightening of the definition of an NPE securitisation and the introduction of stricter language on risk retention, according to Rabobank credit analysts. The regulatory treatment .......
Market Moves 6 October 2020
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Revolver exposures on offer
Sector developments and company hires
Revolver exposures on offer
Goldman Sachs is in the market with a balance sheet synthetic securitisation referencing a portfolio of predominantly investment-grade senior unsecured revolving loan facilities. Dubbed Goldman Sachs Bank USA credit-linked notes due 2025, the transaction comprises two classes of S&P-rated CLNs for a total of US$184.8m.The transaction documentation links the ability of Goldman Sachs to .......
Market Moves 25 September 2020
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Private credit fund formed
Sector developments and company hires
Private credit fund formed
FrontWell Capital Partners has launched with committed seed capital of more than US$350m from a group of international investors. Headquartered in Toronto, the firm aims to provide transitionary senior debt financing - including asset-based and cashflow loans - to middle-market companies in the US and Canada.FrontWell is led by founder and ceo Patrick Dalton, who previously .......
Market Moves 23 September 2020
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Restructuring inked
Attica Bank restructures NPL ABS
Attica Bank has restructured a Greek NPL securitisation that was executed over three years ago and dubbed Artemis (SCI 7 July 2017). Due to the evolution of the underlying portfolio, the noteholders opted for a restructuring in order to ensure consistency of cash flows.
According to the new terms, the transaction now comprises a €487m class A1 tranche, a €62m class .......
News 18 September 2020
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Liquidity boost
Piraeus taps Intrum
Piraeus Bank and Intrum have signed an agreement under which Intrum will acquire 30% of the junior and mezzanine tranches of a €1.9bn non-performing loan RMBS dubbed Project Phoenix. The novelty of the deal lies in its ability to facilitate auctions via an SPV liquidity reserve.
According to the terms of the transaction, 30% of the junior and .......
News 4 September 2020
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Time lag
Chinese asset quality weakens
Banking system statistics released by the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission (CBIRC) suggest that the asset quality of Chinese banks continued to weaken in 2Q20 in the wake of disruptions caused by the coronavirus pandemic. Nevertheless, the data do not yet reflect the full impact of the fallout.
According to .......
News 28 August 2020
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Impairment posted
Write-down for Arrow, but collections improve
Arrow Global posted a £110.4m loss in 1H20 and a non-cash impairment equal to £133.6m, following a revaluation of its balance sheet after the Coronavirus crisis. However, non-performing loan collections have registered a positive trend since April as courts and real estate markets reopen. Indeed, Arrow is expected to return to profitability in 2H20.
The macroeconomic impact of .......
News 26 August 2020
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LLPA increase 'misguided'
Sector developments and company hires
LLPA increase ‘misguided’
Market Moves 13 August 2020
Fannie Mae and Freddie Mac are increasing the loan-level price adjustment (LLPA) by 50bp as an adverse market delivery charge on effectively all mortgage refinances, except for construction loans, with settlement dates after 1 September. In response to the move, the Mortgage Bankers Association states that the announcement “flies in the face of the Administration's recent executive .......
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Piraeus taps HAPS
Sector developments and company hires
Piraeus taps HAPS
Market Moves 11 August 2020
Piraeus Bank has filed an application for inclusion of its Phoenix non-performing loan securitisation under the Hercules Asset Protection Scheme (HAPS). The total gross book value of the portfolio is €1.9bn, the majority of which relates to mortgage loans, and the application is in connection with a Greek state guarantee on senior notes with a total gross .......
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Problem solving
Paul Wilden, global head of capital markets at Apex Group, answers SCI's questions
Q: How is Apex Group involved in the securitisation market?
A: We provide a combination of SPV administration, trustee and agency services to a broad cross-section of asset classes. Our capital markets business is broadly sector agnostic.Q: What are the firm’s key areas of focus today?
Provider Profile 10 August 2020
A: Given the proliferation of private debt funds, one area where we add .......
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Greek momentum
Alpha applies for HAPS guarantee
Alpha Bank has applied for a guarantee from the Hercules Asset Protection Scheme (HAPS) for two non-performing loan securitisations from its Project Galaxy programme (SCI 29 May). As such, it has become the second Greek bank to utilise the HAPS guarantee as momentum in the Greek NPL ABS market builds.
The Greek lender revealed the project in .......
News 6 August 2020
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NPL trade inked
Bank of Cyprus finalises Helix Two
Bank of Cyprus has sold a €916m - in gross book value terms - non-performing loan portfolio of retail and SME assets to PIMCO. Dubbed Project Helix Two, the pool is smaller than initially expected due to the Coronavirus fallout – although, following the execution of this trade, further NPL transactions by Bank of Cyprus are anticipated.
According .......
News 5 August 2020
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Euro CLO equity edges ahead
Sector developments and company hires
Euro CLO equity edges ahead
Market Moves 3 August 2020
European CLO equity cashflow returns average 9.3% year-to-date and - as all CLOs in reinvestment are currently paying - the full-year 2020 cashflow return is likely to be low-teens, according to a new report from JPMorgan CLO research analysts. As such, European equity pieces have edged ahead of their US counterparts, currently returning 8% year-to-date .......
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The perils of Covid CRE
While CRE market has proved robust so far, help is still needed.
The US commercial real estate market, and by extension the CMBS sector, has performed better recently than was thought likely a few months ago, but this does not mean all is well.
The expiry of enhanced unemployment benefits today (July 31) plus ongoing economic dislocation due to a far from tamed pandemic suggests that things will get worse in the near term.
One .......
News Analysis 31 July 2020
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Recovery vehicle
European securitisation 'fixes' on the cards?
The securitisation-related measures included in the European Commission’s capital markets recovery package have been welcomed for, among other things, removing the uncertainty regarding the EBA’s reluctance to recommend recalibrating the CRR for STS synthetics (SCI 24 July). However, the move could potentially also signal policymakers’ willingness to address the remaining securitisation ‘fixes’ that the industry has been calling .......
News Analysis 31 July 2020
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'Quick fix' for NPE, synthetic securitisation
Sector developments and company hires
‘Quick fix’ for NPE, synthetic securitisation
The European Commission has adopted a capital markets recovery package, as part of its overall coronavirus recovery strategy. The measures aim to make it easier for capital markets to support European businesses to recover from the crisis via targeted changes to capital market rules.Building on recent work by the EBA, the proposals .......
Market Moves 24 July 2020