RMBS

  • BREP default an 'inflection point'?

    Sector developments and company hires

    BREP default an ‘inflection point’?
    A senior loan EOD has occurred in connection with Finnish single-loan CMBS FROSN-2018, after Blackstone Real Estate Partners failed to repay the loan on 1 March (SCI ABS Markets Daily - 2 March). The episode marks one of the first high-profile securitisation defaults of the current cycle.

    The FROSN-2018 loan had been granted .......

    Market Moves 6 March 2023

  • Supreme Court grants CFPB petition

    Sector developments and company hires

    Supreme Court grants CFPB petition
    The US Supreme Court has granted the CFPB’s Petition for a Writ of Certiorari in the case of ‘CFPB v. Community Financial Services Association of America’ and denied the cross-petition filed by Community Financial Services Association of America (CFSAA). The CFPB’s petition asked the court to overturn the 19 October 2022 ruling by the US .......

    Market Moves 3 March 2023

  • Window of opportunity

    German auto ABS dominates primary issuance

    After the first European ABS deal of the year – Dutch Property Finance 2023-1 - printed on 25 January, a flurry of paper has hit the primary market as issuers sought to capitalise on strong market conditions. Auto ABS has dominated activity, with German lenders leading the way.

    “It’s mainly issuers capitalising on the strong market conditions before .......

    News Analysis 2 March 2023

  • Confidence and convenience

    Brian Bejile, founder and ceo of Octaura Holdings, answers SCI's questions

    Q: After launching the platform last year, Octaura reported the completion of its first fully electronic syndicated loan trade last month (SCI 2 February). What has Octaura been working on since then?
    A: Since we launched last June, we have covered a lot of ground. We have spent a lot of time recruiting and bringing people into the ranks, .......

    Provider Profile 1 March 2023

  • Affordability anxiety

    Non-QM originators augment affordability products, raising loss prediction

    Mortgage originators are increasing production of affordability non-QM loans partly for purely business reasons but also in response to political pressure to extend home ownership, analysts said today (February 27).

    Loss predictions for a range of higher affordability products have also increased, according to a new Fitch Ratings repor . For example, a 40-year fully amortizing fixed rate loan has a 1.84 .......

    News 28 February 2023

  • CS duo snapped up

    Sector developments and company hires

    CS duo snapped up
    Financial services firm Baird has expanded its fixed income offering with the addition of two ex-Credit Suisse professionals focusing on CLOs and securitised products. James Gray and Daniel Bates join the firm’s London office respectively as md, European fixed income sales and director, European fixed income trader.

    Gray was previously executive director, securitised products sales .......

    Market Moves 21 February 2023

  • Social housing RMBS debuts

    Sector developments and company hires

    Social housing RMBS debuts
    Caisse des Dépôts et Consignations (CDC) has completed a rare securitisation collateralised by social housing loans originated by its savings fund division. Dubbed FCT FE Durable 2023, the €1bn transaction is backed a portfolio of 1,890 performing loans extended to 206 French social and affordable housing providers (SAHPs).

    The largest, the top five and top .......

    Market Moves 17 February 2023

  • CLO portfolio management tie-up inked

    Sector developments and company hires

    CLO portfolio management tie-up inked
    S&P has partnered with LevPro to offer enhanced transparency and efficiency for CLO credit portfolio management in the US and Canada. Under the agreement, S&P Global Market Intelligence will combine LevPro’s SaaS-based trade order management systems (OMSs) with existing WSO loan administration capabilities to support customers in the CLO market.

    The LevPro platform provides .......

    Market Moves 16 February 2023

  • Backing blockchain

    Credit risk considered as DeFi eyed to fund real world assets

    Further efforts are underway to demystify the credit risk associated with DeFi securitisations as interest in its capability to finance real world assets (RWAs) grows (SCI 2 February). A new S&P report analysing the key credit and legal risk considerations associated with such transactions marks a further step by the rating agency to better understand the digital space, .......

    News 15 February 2023

  • Homogeneity RTS released for STS synthetics

    Sector developments and company hires

    Homogeneity RTS released for STS synthetics
    The EBA has published its final draft regulatory technical standards (RTS) setting out the conditions for the assessment of the homogeneity of underlying exposures in STS on-balance sheet securitisation pools. At the same time, the authority has extended the existing work on the RTS on homogeneity for both ABCP and non-ABCP securitisations to ensure .......

    Market Moves 14 February 2023

  • MK&C acquisition prompts CS carveout

    Sector developments and company hires

    MK&C acquisition prompts CS carveout
    Credit Suisse has progressed the carveout of CS First Boston as a distinct capital markets and advisory-led business (SCI 28 October 2022) through the acquisition of The Klein Group (MK&C), for a purchase price of US$175m. The seller will receive equity in CS First Boston in the form of a convertible note, while Michael .......

    Market Moves 10 February 2023

  • Status quo or status go?

    Law firm designation practices questioned

    Dissatisfaction is growing among private credit funds and direct lenders regarding the common practise of law firm designation, whereby sponsor counsel can choose which counsel advises the lenders. The concern is that such a scenario could force them into less favourable positions in negotiations over securitisation transactions.

    “The problem really is as simple as the private equity funds .......

    News Analysis 10 February 2023

  • SPG spin-out rebranded as ATLAS

    Sector developments and company hires

    SPG spin-out rebranded as ATLAS
    Apollo and Credit Suisse have completed a substantial first close of their previously announced transaction, under which affiliates of the former purchased a significant portion of the latter’s securitised products group (SCI 28 October 2022). A majority of the assets and professionals associated with the transaction are now part of or managed by the .......

    Market Moves 9 February 2023

  • QT underway

    'Slight' tightening forecast for ECB-eligible ABS

    Rabobank credit strategists predict a drop of 45.8% in ECB reinvestments across all APP sub-programmes between March and June, equating to a potentially sizeable €1.5bn in redemptions not being reinvested, as the central bank embarks on its quantitative tightening programme. This figure is expected to rise to 80.7% in the second half of this year, given seasonality of redemptions .......

    News 8 February 2023

  • Alternatives combination agreed

    Sector developments and company hires

    Alternatives combination agreed
    FS Investments and Portfolio Advisors have entered into a definitive agreement to combine their firms. The move is set to see a joint growth in excess of their combined US$73bn in assets under management and a significant expansion to their resources - including a permanent capital base and a new distribution platform. As a combined company, the .......

    Market Moves 6 February 2023

  • Electronic loan trade completed

    Sector developments and company hires

    Electronic loan trade completed
    Octaura has completed its first entirely electronic syndicated loan trade. The news comes after the official launch of Octaura Holdings last year, which was founded with the intention to improve efficiency, liquidity and transparency in the CLO and syndicated loan trading processes (SCI 14 June 2022).

    At present, the US$1.5trn syndicated loan market functions .......

    Market Moves 2 February 2023

  • Time to shine

    Multi-sector structured credit 'top performer'

    Gapstow Capital Partners’ composite credit hedge fund index last year posted its lowest annual return – having declined by 3.9% - since its inception in 2009, with no peer group within the index producing a positive average return. Nevertheless, the multi-sector structured credit peer group - the funds of which invest across CLOs, MBS and ABS - was the .......

    News 2 February 2023

  • The affordability conundrum

    Impact of alternative credit scores explored

    The GSEs are under considerable political pressure to extend credit to the underserved. But what does this mean for CRT investors, issuers and rating agencies? This Premium Content article investigates.

    In October of last year, Sandra Thompson, director of the FHFA, unveiled potentially far-reaching policy changes with the aim of making US homes more affordable. All involve ......

    News Analysis 1 February 2023

    Premium Content

  • Fee fears

    FHFA opens another front in the war on affordability to industry concern

    The mortgage and securitization market has reacted with anxiety to the changes to the Loan Level Price Adjustments (LLPAs) announced by the Federal Home Finance Agency (FHFA) at the end of last week.

    Essentially, these changes make it less costly for borrowers with lower credit scores to secure a mortgage while and more costly those borrowers with higher credit scores.

    Not only, of .......

    News Analysis 26 January 2023

  • ECON votes on output floor

    Sector developments and company hires

    ECON votes on output floor
    The European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted to apply the capital requirements output floor at the consolidated EU level under CRR3, in order to engender comparable risk weights and avoid variations in capital levels. Additionally, the Committee has agreed transitional adjustments for low-risk exposures secured by residential mortgages to mitigate .......

    Market Moves 24 January 2023

  • Alternative credit acquisitions hit record AUM

    Sector developments and company hires

    Alternative credit acquisitions hit record AUM
    The AUM of acquired alternative credit managers hit a record US$326bn across 37 transactions in 2022, according to Gapstow Capital Partners figures, with acquisitions of private lending firms accounting for nearly half of this activity (15 acquisitions at US$161bn in target AUM). In comparison, the tally for the prior two years was US$140bn in .......

    Market Moves 23 January 2023
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