RMBS
-
STACR three
Freddie Mac completes Q1 CRT borrowing
Freddie Mac issued a US$1.8bn high LTV STACR transaction late on Friday via Bank of America and Nomura.
The bond, designated STACR 2022-HQA1, is the first high LTV deal that Freddie Mac has sold in 2022. It references loans put on in 3Q21 and completes Freddie’s credit risk transfer business for this quarter.
The GSE plans to .......
News 21 March 2022
-
Barrow Hanley closes inaugural CLO equity fund
Sector developments and company hires
Barrow Hanley Global Investors has closed on its inaugural CLO equity fund – the Barrow Hanley CLO Fund I LP. The fund will be managed by the existing alternative credit team and follows the aims of the firm’s strategic partner, Perpetual Limited, to expand the product offering at Barrow Hanley. Perpetual, alongside employees at Barrow Hanley, have invested 35% of .......
Market Moves 17 March 2022
-
Some stabilisation
European ABS/MBS market update
The European and UK ABS/MBS markets saw some elements of stabilisation in the last few sessions of last week. Nevertheless, spreads continue to widen in both a very active secondary and a quiet primary space.
The secondary market saw its busiest week of 2022, with over €350m paper on BWIC and dealers reporting healthy bilateral activity as well. As the .......
News 14 March 2022
-
Growing presence
Mia Drennan, president, founder and co-chair of GLAS, answers SCI's questions
Q: What is your strategic vision for GLAS and its continued expansion and growth in the US?
Provider Profile 10 March 2022
A: GLAS was founded in 2011 and we expanded into the US in 2016. Once we secured the necessary regulatory licenses and approvals to operate in the US, we began serving clients on a cross-border basis across the UK, Europe, Australia and the .......
-
Carlyle tops rankings on CLO acquisition
Sector developments and company hires
Carlyle is set to acquire from CBAM Partners a portfolio of assets using a combination of US$615m in cash from Carlyle’s balance sheet and approximately 4.2 million newly issued common shares. CBAM’s US$15bn in assets under management - the majority of which are in CLO funds - will be integrated into Carlyle’s global credit platform. The transaction will increase .......
Market Moves 10 March 2022
-
Coordinating outfit
ESG advisors gaining traction
ESG advisors are gaining traction in the securitisation market, as sustainability becomes an ever-more import consideration for investors and issuers. This Premium Content article investigates what the role entails.
As sustainability becomes an ever-more important consideration for securitisation investors and issuers, the role of the ESG advisor on transactions is gaining traction. Not only do they assist issuers in ......
News Analysis 10 March 2022Premium Content
-
MV Credit plans to open new office
Sector developments and company hires
Natixis Investment Managers affiliate, MV Credit, is set to open a new Paris office under the leadership of Arnaud Heck. The new entity will integrate Ostrum Asset Management’s former private debt team to establish a new team of 16 at MV Credit France. Heck will serve as md and head of MV credit France, and under his leadership the .......
Market Moves 8 March 2022
-
Expectation gap
European ABS/MBS market update
Macro volatility continued to push European and UK ABS/MBS spreads wider last week in a quiet secondary market, with activity further hampered by differences in participants’ expectations. Meanwhile, the primary market remains side-lined.
“As the escalation of the crisis in Ukraine fuels further deterioration in the technical backdrop for financial markets, European ABS spreads extended their sell-off in .......
News 7 March 2022
-
SLC continues expansion
Sector developments and company hires
SLC Management has promoted Bryan Rowe, Daniel Lucey, Jacqueline Gallant and Jeffery Meyer as the firm continues to expand its business and investment capabilities. Effective from 26 March, the four will work as senior mds at the firm. Firstly, Rowe has been promoted to senior md for global portfolio management, having spent more than 15 years at the firm, and .......
Market Moves 3 March 2022
-
Transitioning to green
Call for EU GBS to be extended to securitisation
In a new report examining how to foster transparency and credibility across the EU sustainable securitisation market, the EBA suggests that it would be “premature” to establish a dedicated framework for ‘green’ securitisation. Instead, the authority believes that the forthcoming EU Green Bond Standard (GBS) regulation should also apply to securitisation, providing some adjustments are made to the standard.
News Analysis 2 March 2022
-
Team building
Brian Roelke, president and cio of Kuvare Insurance Services, answers SCI's questions
Q: What were the motivations behind the launch of Kuvare Insurance Services’ new third-party asset management business (SCI 8 February)?
The Structured Credit Interview 2 March 2022
A: Unlike a lot of entrants into this space, Kuvare Insurance Services (KIS) started as an insurance-focused asset manager, as all of our activities today are focused on our affiliated insurance balance sheets. The announcement of the new platform signifies .......
-
ERCF final rule published
Sector developments and company hires
The FHFA has published a final rule that amends the Enterprise Regulatory Capital Framework (ERCF) by refining the prescribed leverage buffer amount and risk-based capital treatment of retained credit risk transfer (CRT) exposures for Fannie Mae and Freddie Mac. The amendments reflect the feedback the FHFA received last year and aim to advance its mission of ensuring the enterprises are .......
Market Moves 28 February 2022
-
Going digital
Stablecoin securitisation tipped for growth
Appropriate regulation of digital payment could pave the way for the issuance of securitisations in stablecoins. However, this Premium Content article argues that further standardisation across the blockchain ecosystem is needed for the technology to reach a critical mass.
The regulatory attention that digital payment is currently attracting – as exemplified by the US Fed’s recent report on central ......
News Analysis 25 February 2022Premium Content
-
Agency avoidance
Originators set to turn to private market as fees rise
The GSE footprint in the US MBS market is set to shrink, and even a minor diminution would have a dramatic impact upon volume seen in the private label RMBS market, say analysts.
The potential reduction in MBS issued by Freddie Mac and Fannie Mae is due to two chief reasons. Firstly, the GSEs will increase the loan level pricing adjustments (LLPAs) in .......
News Analysis 23 February 2022
-
Borrower beware
Cost of living crisis to have 'unequal impact' on UK RMBS
The fallout from the UK’s ‘cost of living crisis’ will hit lower-income mortgage borrowers hardest, according to a recent DBRS Morningstar analysis. However, while inflation may cause challenges for all consumers, RMBS portfolios will not all be impacted equally.
The Bank of England anticipates that inflation rates will peak this spring, rising from the current level of 5.5% .......
News 21 February 2022
-
Drifting wider
European ABS/MBS market update
The European ABS/MBS primary market continued to be impacted by macro volatility last week. However, while spreads drifted wider, the few deals that were done still generally managed to attract healthy investor demand.
“The market has been very calm in the past few weeks,” notes one European ABS/MBS trader. “Spreads have without a doubt widened, however not at .......
News 21 February 2022
-
Greater progression
Sector developments and company hires
Maples Group has announced the hire of two new structured finance professionals, expanding its offering in its London and Jersey offices. Emma Tighe will join the firm in its London office as vp, having spent more than 14 years working in structured finance and most recently serving as relationship manager on the US Bank CLO team. Tighe has expertise across .......
Market Moves 17 February 2022
-
Continued growth
Sector developments and company hires
Briarcliffe has made two more new appointments as it continues the expansion of its private credit business. Kyle Abel joins the firm as new head of GP advisory from First Avenue, where he served as md and US head of project management. Additionally, Robert Molina has been promoted to head of origination, having previously worked as md of GP advisory, .......
Market Moves 16 February 2022
-
Social mobility
'Cultural progression' puts social bonds in focus
Securitisations designated as social bonds are gaining traction, with the underlying asset classes expected to broaden. Indeed, at present, it is easier to define lending in a socially responsible way than defining it as ‘green’.
Edward Baker, capital markets director at Prodigy Finance, attests to the reasons this may be. “I think it perhaps chimes with the broader ethical and .......
News Analysis 15 February 2022
-
HKMC inks infrastructure MoUs
Sector developments and company hires
HKMC inks infrastructure MoUs
Market Moves 11 February 2022
The Hong Kong Mortgage Corporation (HKMC) has signed a memorandum of understanding on an infrastructure loans framework with 14 partner banks. The MoUs set out the principal terms for potential infrastructure loan cooperation between the HKMC and the partner banks on both primary participation and secondary sale bases, including the loan selection criteria, mode of participation .......
-
Increasing allocation
Innovation, transparency attracting institutional investors
The majority of institutional investors polled in a recent Aeon Investments survey have increased their allocation to structured credit investments across different asset classes over the past 18 months. When asked why there is growing interest in structured credit investment vehicles, the top three reasons were given as greater innovation in the sector, an improving regulatory environment and greater .......
News Analysis 11 February 2022