RMBS

  • Securitisation exempt from private fund rule

    Market updates and sector developments

    The US SEC has determined that securitised assets funds, including CLOs, are exempt from its Private Fund Advisers Rule. The new rules aim to protect private fund investors by increasing transparency, competition and efficiency in the private funds market. To enhance transparency, the rules will require private fund advisers registered with the Commission to provide investors with quarterly statements - .......

    Market Moves 25 August 2023

  • Nomura pays US$35m to settle RMBS fraud case

    Market updates and sector developments

    Nomura Securities International (NSI) has agreed to pay a US$35m penalty to the district of Connecticut and US$800,000 in additional restitution payments over alleged historical fraudulent trading of RMBS. The settlement is part of a non-prosecution agreement between NSI and the US Attorney’s Office for the district.

    The DOJ investigation found that the Japanese investment bank’s US broker-dealer .......

    Market Moves 23 August 2023

  • Janus Henderson rounds out securitisation ETF suite

    Market updates and sector developments

    Janus Henderson is preparing the launch of a new fund that the firm says will complete its suite of securitisation-focused ETFs and enable it to invest in almost all of the US securitised market. The US$253.3bn asset manager filed a preliminary registration statement with SEC for Janus Henderson Securitized Income Exchange Traded Fund on Friday.

    The new ETF’s objective is to “seek .......

    Market Moves 21 August 2023

  • Job swaps weekly: TCW snaps up American Century securitisation head

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees TCW Group appoint a successor to its recently departed global co-head of securitised products. Elsewhere, ARC Ratings has hired a European industry veteran as non-executive director, while Guy Carpenter has appointed a senior marketing and business development executive as md. 

    Los Angeles-headquartered asset manager TCW has appointed American Century Investments’ Peter Van Gelderen as .......

    Market Moves 18 August 2023

  • UBS to pay US$1.4bn over pre-crisis RMBS

    Market updates and sector developments

    UBS has agreed to pay US$1.435bn in penalties to settle a case relating to historical alleged misconduct surrounding the underwriting and issuance of RMBS pre-financial crisis. The US Department of Justice filed a civil action in 2018 alleging that UBS defrauded investors in connection with the sale of 40 transactions between 2006 and 2007 by making “false and misleading statements” about .......

    Market Moves 15 August 2023

  • Fine-tuning UK securitisation

    FCA and PRA take pragmatic approach to post-Brexit regulations

    The FCA’s consultation on UK securitisation regulations suggests there will be some welcome changes to retained regulations ‘onshored’ post-Brexit. But the British government is unlikely to secure the bonfire of regulations it set out to achieve.

    The FCA published its plans last week (SCI 7 August), two weeks after the PRA released its consultation and less than a .......

    News Analysis 15 August 2023

  • Job swaps weekly: New faces for Newmark

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Newmark Group making a number of senior appointments to its debt and structured finance team. Elsewhere, Helaba has hired a former Deutsche Bank md to lead its asset finance team, while CRED iQ has appointed a new head of data and analytics. 

    Commercial real estate manager Newmark has made three senior appointments in its .......

    Market Moves 11 August 2023

  • California judge backs investors in clean-up call dispute

    Market updates and sector developments

    A court has ruled in favour of investors, in a case centred around RMBS trusts held by Deutsche Bank National Trust and a related clean-up call transaction by mortgage servicer PHH Mortgage Corp. The mortgage servicer had previously announced its intention to exercise its clean-up call rights and purchase the trusts’ assets at a contractually defined price. 

    The Superior Court .......

    Market Moves 10 August 2023

  • Innovative financing inked for Deutsche Bahn

    Market updates and sector developments

    The EIB and HypoVereinsbank are providing credit lines totalling up to more than €2bn to Deutsche Bahn for the procurement of 90 new trains for the Munich S-Bahn. Deutsche Bahn will receive financing for the new vehicles from Bayerische Eisenbahngesellschaft (BEG), which plans, finances and controls the regional and S-Bahn traffic in Bavaria on behalf of the Bavarian Ministry .......

    Market Moves 3 August 2023

  • Risk transfer round-up - 3 August

    The week's CRT developments and deal news

    Market news
    Risk Control has received funding from the MDB Challenge Fund for two projects with the objective of helping Multilateral Development Banks (MDBs) build on the recommendations of the G20’s Independent Review of MDB Capital Adequacy Frameworks (CAF). One of the projects will deliver analysis to support MDB risk transfer, creating insights and technical tools for balance sheet optimisation .......

    News 3 August 2023

  • Triple test

    UK RMBS can withstand stresses 'never seen in history'

    A new TwentyFour Asset Management analysis shows that a benchmark triple-B rated UK RMBS bond with 2.3% of credit enhancement could withstand almost three times the recent Bank of England stress test. Considering a triple-B rated RMBS bond currently yields over 9%, the firm consequently believes that this asset class continues to be one of the most attractive in .......

    News 2 August 2023

  • New tricks

    Banks' backing boosts AI utilisation in ABS

    Artificial Intelligence (AI) is increasingly being embraced by banks seeking to improve workflows and support securitisation processes. But other benefits of the technology are also becoming apparent in the current challenging economic environment.

    “We knew mathematically how an AI model could be used, but now we can actually see the benefit of it,” explains Altin Kadareja, co-founder and .......

    News Analysis 31 July 2023

  • PRA launches SecReg consultation

    Market updates and sector developments

    The UK PRA has launched a public consultation on proposed changes to the retained EU Securitisation Regulation and the accompanying technical standards on risk retention and disclosure. Rather than a complete overhaul, the authority is seeking to introduce targeted adjustments to the existing EU securitisation framework by 2Q24.

    The key changes include a more principles-based approach to due .......

    Market Moves 28 July 2023

  • Job swaps weekly: Angelo Gordon beefs up in structured credit

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Angelo Gordon poach a new head for its commercial real estate debt division from Tilden Park Capital Management, alongside a raft of senior promotions in its structured credit team. Elsewhere, law firm Blank Rome has launched a new Dallas office with two senior hires from Alston & Bird partners, while ARC Ratings has .......

    Market Moves 28 July 2023

  • Mortgage penalty

    Higher risk weighting for high LTV loans boosts SRT

    As had been strongly rumoured, new capital rules unveiled by the Federal Reserve today (July 27) ascribe heavier risk weightings to higher LTV mortgages.

    Currently first lien mortgages are subject to a 50% risk weighting, but the proposed regulations seek to impose weightings of between 40% and 90% to larger banks. Loans with high LTVs will receive the highest risk weightings.

    The adjustments, .......

    News 28 July 2023

  • 'Transformational' merger agreed

    Market updates and sector developments

    Rithm Capital is set to acquire Sculptor Capital Management in a transaction valued at approximately US$639m, which includes US$11.15 per Class A share of Sculptor. This transaction will leverage Sculptor’s US$34bn of AUM with Rithm’s US$7bn of permanent equity capital and US$30bn-plus balance sheet to create what the firm describes as a “world-class” asset management business.

    Sculptor’s investment .......

    Market Moves 26 July 2023

  • Less punitive

    Halving of p-factor sparks SRT optimism

    The European Council’s finalisation of the Basel 3 reforms last month has sparked renewed optimism across the European capital relief trades market, with news of an agreement to halve the punitive p-factor (SCI 28 June). The impending need to address the adverse effects of the output floor had been at the core of the regulatory debate for synthetic .......

    News 25 July 2023

  • Legacy issue

    ECJ ruling a boon for Polish CRTs

    The European Court of Justice (ECJ) ruled last month that Polish banks must not charge remuneration from customers when legacy Swiss franc mortgage contracts are annulled (SCI 21 November 2016). As a result, banks could face moderately higher losses from affected portfolios and are likely to speed up their provisioning for such mortgages due to borrower lawsuits. The .......

    News Analysis 25 July 2023

  • Obra adds CLO issuance capabilities

    Market updates and sector developments

    Obra Capital has acquired the assets of asset management and investment research firm KDP and its affiliated companies. The transaction supports Obra’s expansion of its existing liquid markets capabilities in structured credit into the fundamental credit space. By combining KDP’s established research with Obra’s diversified asset management capabilities, the firm expects to augment its product suite to include the .......

    Market Moves 21 July 2023

  • Job swaps weekly: Oppenheimer's blockbuster appointment

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Oppenheimer & Co appoint a new head for its Latin America investment banking group. Elsewhere, Angel Oak Companies has poached a new chief legal officer from Reverence Capital Partners, while Fitch has a new head of structured finance product strategy in New York. 

    Oppenheimer & Co has stepped up its .......

    Market Moves 21 July 2023

  • Consumer goals

    EIF, historic champion of SMEs, embraces consumer ABS

    Three recent transactions by the European Investment Fund (EIF) reveal a subtle but potentially impactful change in approach to the institution’s securitisation investment strategy. The fund is displaying an increasing willingness to invest in consumer ABS transactions, with green transition and gender diversity goals at the top of the agenda.

    In early July, the EIF took a stake .......

    News Analysis 19 July 2023
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