RMBS

  • 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

  • Angelo Gordon REIT moves to poach WMC

    Market updates and sector developments

    Angelo Gordon’s real estate investment trust, AG Mortgage Investment Trust (MITT), has offered to buy Western Asset Mortgage Capital Corporation (WMC) in a deal that would give the business an enterprise value of around US$300m. The proposed transaction comes shortly after WMC, which is managed by Franklin Templeton, announced an agreement to merge with Mavik Capital Management’s Terra Property Trust (TPT).

    MITT .......

    Market Moves 14 July 2023

  • Regulatory push

    Retention RTS, draft SI move forward

    The last week has ushered in a couple of regulatory updates in the European securitisation market. The European Commission adopted the regulatory technical standards (RTS) on risk retention under the EU Securitisation Regulation on 7 July, while the UK Treasury on 11 July published a draft of the statutory instrument (SI) that is set to replace the EU Securitisation .......

    News 13 July 2023

  • SRT boom

    IACPM data shows record year for synthetic securitisations

    The global volume of synthetic securitisation issuance reached its highest ever level in 2022, with both the number of trades and notional pool size far outstripping pre-pandemic levels, according to the latest IACPM survey. The results suggest that 90 significant risk transfer trades were executed last year with an aggregate underlying pool size at inception of €199bn, surpassing previous .......

    News 11 July 2023

  • Embracing 'enablement'

    Begum Gursoy, global technical head, debt capital markets an...

    Q: Sustainalytics supports investors develop and implement responsible investment strategies, including by providing second-party opinions (SPOs) on whether a green, social or sustainability bond framework is aligned to market expectations. Could you outline the steps involved in assigning an SPO to an ESG securitisation?
    A: The overarching function of an SPO provider is to have a holistic view of the .......

    Provider Profile 10 July 2023

  • Generali inks Conning acquisition

    Market updates and sector developments

    Generali Investment Holdings (GIH) is set to acquire Conning and its affiliates, with the aim of enhancing the long-term growth plans of both companies. Conning will continue to execute its growth strategies with support from the company’s current owner, Cathay Life Insurance Co, and Generali.

    Conning and its affiliates will continue to operate independently under their current management .......

    Market Moves 10 July 2023

  • Job swaps weekly: Succession at Oaktree

    People moves and key promotions in securitisation

    This week’s securitisation job swaps have seen Oaktree Capital Management announce the retirement of ceo Jay Wintrob and a succession plan that sees three senior executives stepping onto its executive committee. Elsewhere, Deutsche Bank has appointed a new CLO implementation head, while Moody’s welcomes back a structured finance professional after a two-and-a-half-year stint with BFF Banking. 

    Oaktree ceo Wintrob will retire in .......

    Market Moves 7 July 2023

  • EIB, ICO support Spanish SMEs

    Market updates and sector developments

    The EIB Group and Instituto de Crédito Oficial (ICO) have invested in senior and mezzanine tranches of ABS issued by BBVA to support Spanish SMEs and mid-caps by addressing their working capital and liquidity requirements. Proceeds worth €60m will also be channelled into energy efficiency projects.

    Under the transaction, the EIB makes an investment commitment of €430m, while €30m .......

    Market Moves 5 July 2023

  • Changing agenda

    UK RMBS evolving alongside borrowers' needs

    The return of 100% mortgages and the rise of later-life lenders herald an evolving UK RMBS landscape. This Premium Content article investigates how mortgage borrowers’ changing needs are being addressed.

    The UK RMBS landscape is set to evolve in the coming years as new mortgage products emerge. Indeed, the return of 100% LTV mortgages and the rise ......

    News Analysis 5 July 2023

  • Job swaps weekly: US Modular Capital lures Transwestern veteran

    People moves and key promotions in securitisation

    Job swaps weekly: US Modular Capital lures Transwestern veteran

    This week’s securitisation job swaps have seen an industry veteran leave her role as head of structured finance at Transwestern to take up a new C-suite position at US Modular Capital. Elsewhere, US Bank has named a successor to Stephen Philipson as head of commercial products, while Barclays, Winston & Strawn and .......

    Market Moves 30 June 2023

  • Seventh heaven

    Market updates and sector developments

    Seventh heaven

    Fannie Mae has executed its sixth and seventh reinsurance deals of the year, designated CIRT 2023-6 and CIRT 2023-7, for a total of US$786bn of mortgage risk. Both trades were brokered by Aon, and the risk was shared by 21 insurance and reinsurance companies.

    The two loan pools referenced through this brace of .......

    Market Moves 26 June 2023

  • BNY turns to AccessFintech for digital innovation

    Market updates and sector developments

    BNY turns to AccessFintech for digital innovation

    BNY Mellon has become the first trustee to join the data management platform, AccessFintech, as it continues in its commitments to improving loan data management, operations, and digitisation across the financial universe.

    The collaboration intends to significantly improve BNY Mellon’s loan data management capabilities by addressing historical issues, .......

    Market Moves 22 June 2023

  • UBP launches new fixed income fund

    Sector developments and company hires

    Union Bancaire Privée (UBP), the Geneva-headquartered private bank, has launched a new fixed-income strategy spanning high-yield bonds, subordinated debt and securitised credit. The fund, named UBAM Strategic Income, will seek a double-B rating risk profile and target an average return of 7% per annum across its lifespan.

    UBAM Strategic Income, which will invest in CLOs in addition to .......

    Market Moves 20 June 2023

  • FCA urged to address 'regulatory redundancies'

    Sector developments and company hires

    FCA urged to address ‘regulatory redundancies’
    The Managed Funds Association (MFA) has submitted a letter to the UK FCA, proposing improvements to the country’s regulatory framework for securitisations that would expand capital investment in the UK and optimise risk management on behalf of UK investors. The letter encourages the FCA to “address regulatory redundancies” and enhance compatibility with the rules .......

    Market Moves 15 June 2023

  • Walker steps up to global credit head

    Sector developments and company hires

    Walker steps up to global credit head
    Aon has established a new global credit team structure within its Reinsurance Solutions unit, appointing Ben Walker as head of global credit. The global credit team now combines Reinsurance Solutions’ existing mortgage, trade credit, structured credit and political risk and surety businesses to form one global function.

    The aim is to facilitate .......

    Market Moves 14 June 2023

  • Compliance issues

    'Compelling case' for reform of Article 5

    A new AFME report finds that investors are likely to interpret ambiguous provisions under Article 5 of the Securitisation Regulation in the EU and UK conservatively - and, in doing so, will assume disproportionately high costs to the business. The report identifies key challenges relating to compliance with investor due-diligence requirements and suggests potential strategies to overcome them.

    News 14 June 2023

  • Rental retreat

    Rising BTL remortgaging risks eyed

    Challenges lie ahead for the UK’s BTL RMBS market as buy-to-let lending continues to decline and remortgage risks climb. Lower LTVs can be a key mitigating factor, although it is likely that many BTL landlords will opt to exit the market entirely.

    BTL lending reached a peak at £37.4bn in 2015, but now only accounts for an average .......

    News 13 June 2023

  • Perfect storm?

    SFR squeeze as costs rise and rents fall

    The US single-family rental (SFR) securitisation market is facing the most challenging conditions since the launch of the first transaction in the sector 10 years ago. The space is experiencing a perfect storm of declining rental rates, house price volatility and high inflation.

    “We've been seeing increasing headwinds towards the sector,” says Akshay Maheshwari, a senior director on .......

    News Analysis 31 May 2023

  • Sun King supported via solar ABS

    Sector developments and company hires

    Sun King supported via solar ABS
    British International Investment (BII), the UK’s development finance institution (DFI), and Stanbic Bank Kenya have unveiled commitments to off-grid solar energy company Sun King via a US$130m-equivalent securitisation and a joint US$20m working capital facility. These commitments will enable the purchase of more inventory - such as solar home systems and solar lanterns - and .......

    Market Moves 31 May 2023

  • ESG impact disclosure RTS inked

    Sector developments and company hires

    ESG impact disclosure RTS inked
    The three European Supervisory Authorities (ESAs) have jointly submitted to the European Commission draft RTS on ESG impact disclosures for STS securitisations under the Securitisation Regulation (SECR). The amended SECR introduced new optional disclosure provisions related to the principal adverse impacts (PAIs) on sustainability factors of the assets financed by the underlying exposures for both .......

    Market Moves 26 May 2023

  • Estimating exposures

    Italian real estate climate risks gauged

    Geographic diversification may be the only saving grace for Italian RMBS and CMBS transactions as the physical impacts of climate change infringe on properties across the country. With temperatures set to breach the 1.5 degree limit within the next five years, considering European real estate exposure to flooding and landslide risk is becoming ever more urgent.

    New research .......

    News 23 May 2023
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