RMBS

  • Strong technical

    WFH lifestyle boosts RMBS market

    The UK stamp duty land tax (SDLT) break, which was introduced by the government in July 2020 to support the housing market during the pandemic, is being scaled back at the end of this month. Although the tax break has had a positive impact on the RMBS sector, other factors have also contributed to boost the market.

    “There .......

    News Analysis 28 June 2021

  • Aussie green RMBS bags Nochu support

    Sector developments and company hires

    Aussie green RMBS bags Nochu support
    Firstmac has closed a groundbreaking A$750m green RMBS, backed by the Clean Energy Finance Corporation (CEFC) and Norinchukin. The underlying properties will be among the most energy efficient in Australia, meeting or exceeding a seven-star rating under the Nationwide House Energy Rating Scheme (NatHERS). The seven-star rating materially exceeds the minimum standards of the .......

    Market Moves 25 June 2021

  • Volatility hedge

    Bart Bakx, head of ABS and mortgages at NN Investment Partne...

    Q: Do you believe private credit will take on a more significant role in investor portfolios in 2021? If so, which factors are driving this forward?
    A: We see that many investors are undertaking searches and these are increasing towards private credit. Looking for opportunities to allocate, investors seek alternatives in the private market space in view of continued volatility .......

    The Structured Credit Interview 25 June 2021

  • Ever tighter?

    European ABS/MBS market update

    European ABS/MBS primary spreads continue to edge in on heavy investor demand. That looks unlikely to change, especially in core Europe, as supply begins to ease into the summer.

    “The most notable development of the past four months for me has been that spreads keep going tighter and tighter,” says one core Europe ABS trader. “Current pricing levels .......

    News 24 June 2021

  • Digital investment ABS prepped

    Sector developments and company hires

    Digital investment ABS prepped
    DigitalBridge Group is in the market with its debut securitisation, the US$500m DigitalBridge Issuer Series 2021-1. The unusual transaction is secured by the firm’s digital investment management fees and carried interest, including from future investment vehicles.

    The triple-B rated notes will be issued in two classes: a US$300m class A2 secured fund fee revenue tranche, .......

    Market Moves 22 June 2021

  • Generali debuts green cat bond

    Sector developments and company hires

    Generali debuts green cat bond
    Assicurazioni Generali has priced an innovative catastrophe bond. Dubbed Lion III Re, the €200m ILS has a number of sustainable finance features.

    First, Generali freed up €28.1m in capital as a result of the protection provided by Lion III Re, which will be allocated to eligible projects as defined by Generali’s Green ILS Framework. .......

    Market Moves 21 June 2021

  • Adopting change

    Class A loan note attracts attention

    Together Money earlier this month priced its second public small balance CMBS, the £249m Together Asset Backed Securitisation 2021-CRE2. The transaction is notable for including a class A loan note in the capital structure – a feature previously only seen in the CLO market.

    “[The deal] is very similar to a traditional securitisation; it is structured with notes .......

    News Analysis 21 June 2021

  • SRT upgraded on CE build-up

    Sector developments and company hires

    SRT upgraded on CE build-up
    Scope Ratings has affirmed its single-A rating on the class C credit-linked notes issued by SSPAIN 2019-A and upgraded the class D to F notes to triple-B plus, triple-B minus and double-B plus respectively from triple-B minus, double-B and double-B minus. The transaction is a significant risk transfer deal, which closed on 28 June 2019 .......

    Market Moves 18 June 2021

  • Pricing flurry

    European ABS/MBS market update

    Yesterday saw five new European ABS/MBS price in one of the busiest days the primary market has seen this year. However, volumes are still short of pre-Covid levels.

    Despite the flurry of deals yesterday, paper throughout the stack saw strong demand. Indeed every offered tranche priced inside initial price talk.  

    “Across European ABS/MBS, sentiment has been pretty positive for .......

    News 18 June 2021

  • Auto turnover dampens DFP issuance

    Sector developments and company hires

    Auto turnover dampens DFP issuance
    Accelerated dealer auto inventory turnover has resulted in insufficient collateral available for US dealer floorplan (DFP) ABS master trusts in 2021, Fitch reports. The agency notes that this is indirectly accounted for by deal structures, for the most part, through the use of excess funding accounts (EFAs). EFAs are meant to protect trusts against inventory .......

    Market Moves 14 June 2021

  • Euro CLOs could still soften

    Sector developments and company hires

    Euro CLOs could still soften
    European CLO new issue triple-A spreads are now out to 87bp-88bp from their post-Covid tights of 79bp-80bp. While there appears to be considerable support at current levels, technicals could yet push them to the low-90s, according to Bank of America European CLO research analysts.

    Offsetting factors currently at play include broader credit market direction, rates moves .......

    Market Moves 7 June 2021

  • Domi debut

    Domivest transaction attracts strong investor appetite

    The debut STS-compliant buy-to-let (BTL) RMBS transaction, issued by Dutch lender Domivest and dubbed Domi 2021-1, has now closed and the transaction saw significant demand across the capital structure and also from new investors, according to the borrower.

    Investor response to the transaction demonstrates the validity of the structure and the market is likely to see more of it in the future, suggests .......

    News 2 June 2021

  • ETL waiver requested following cyberattack

    Sector developments and company hires

    ETL waiver requested following cyberattack
    European truck lease provider Fraikin SAS was subject to a ransomware attack that started on 11 May. S&P notes that the credit quality of its two securitisations - FCT Eurotruck Lease II and FCT Eurotruck Lease III (ETL II and III) - is unlikely to be affected, providing the company can make a swift return .......

    Market Moves 28 May 2021

  • Moving forward

    Positive consumer sentiment emerging post-pandemic

    As the European securitisation market moves beyond the coronavirus crisis, an overall positive picture appears to be emerging. However, the withdrawal of governmental support measures remains a risk for many jurisdictions in the region.  

    “As we came out of the financial crisis in 2009, lending was picking up, both net and gross levels. The pandemic hit and there .......

    News 28 May 2021

  • CRT return for FNMA?

    Supreme Court ruling on Calabria's future imminent

    A US Supreme Court decision about whether President Biden can remove Mark Calabria as director of the Federal Housing Finance Authority (FHFA) may arrive as soon as next week, say well-placed sources.

    Following recent precedent, it seems likely that the court will rule that Calabria can be removed by the executive ‘for cause’. This will have profound ramifications .......

    News Analysis 27 May 2021

  • Missed opportunity

    ESA report disappoints on securitisation treatment

    The recent European Supervisory Authorities (ESA) report on the implementation and functioning of the EU Securitisation Regulation (SCI 17 May) disappointed many in the industry, since it avoided tackling long-standing issues in the treatment of securitisations. In particular, the lack of a level playing field in terms of disclosure and due diligence remains a concern.

    The ESA .......

    News Analysis 27 May 2021

  • CLO conflicts of interest eyed

    Sector developments and company hires

    CLO conflicts of interest eyed
    IOSCO has issued four questionnaires for industry participants on conduct risks in leveraged loans (LLs) and CLOs targeting bank lenders, CLO investors, CLO managers and LL sponsors. Through its Committee 3 on Regulation of Market Intermediaries and its Committee 5 on Investment Management, IOSCO is conducting work to understand the potential conflicts of interest and .......

    Market Moves 24 May 2021

  • Strategic credit commitment inked

    Sector developments and company hires

    Strategic credit commitment inked
    The Investment Management Corporation of Ontario (IMCO) has closed a US$500m commitment with a new strategic partner, Ares Management Corporation. IMCO has allocated US$400m of the commitment to a fund of one structure and US$100m to Ares Pathfinder Fund, a flagship global alternative credit fund. Pathfinder pursues a differentiated strategy of providing tailored financial solutions for .......

    Market Moves 20 May 2021

  • Data centre leverage 'inconsistent' with ratings

    Sector developments and company hires

    Data centre leverage ‘inconsistent’ with ratings
    A number of wholesale data centre securitisations issued in recent years carry elevated leverage that is inconsistent with the single-A rating category, Fitch suggests. The rating agency states that these transactions have weaker credit characteristics and substantially higher leverage multiples than other comparable digital real estate securitisations, such as wireless tower transactions, and higher .......

    Market Moves 19 May 2021

  • Blue investable markets study underway

    Sector developments and company hires

    Blue investable markets study underway
    The European Commission and the EIB Group have increased their cooperation to implement a new EU Sustainable Blue Economy policy. Under the agreement, both institutions will work jointly with EU Member States to meet financing needs to reduce pollution in European seas and support investment for blue innovation and blue bioeconomy.

    As such, the .......

    Market Moves 18 May 2021

  • Virtuous circle?

    Bullish sentiment underpins securitisation opportunity

    A strong rebound in global growth appears to be underpinning the opportunity in securitised credit, notwithstanding the ongoing impact of the coronavirus pandemic. As economic activity picks up and more collateral is available to be securitised, further supply should hit the market and generate increased interest from investors.

    Sentiment in the securitisation market remains bullish, according to Mark .......

    News 14 May 2021
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