RMBS
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CLO firm incorporates ESG approach
Company hires and sector developments
Cayman CLO first
Maples Group has supported the first ever US CLO to issue out of the Cayman Island. The transaction was a US$501m middle market CLO from Natixis, which closed on 13 August 2019.
ESG implementation
THL Credit has developed and begun utilising a new investment framework for assessing environmental, social, and governance (ESG) factors .......
Market Moves 11 September 2019
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Country md announced
Company hires and sector developments
Country md announced
Jervis Smith has been appointed country md of Vistra Luxembourg, responsible for leading Vistra’s Luxembourg office and growing the business, together with the Vistra office in the Netherlands to maximise joint opportunities between the two offices. Based in Luxembourg, he will report to Vincent Bremmer, regional md, Europe, Vistra. Smith previously spent over 25 years .......
Market Moves 10 September 2019
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Maltese benefits
Jurisdiction especially suited to innovative transport ABS
Malta provides a legal and tax framework that provides the same benefits for the establishment of SPVs as more well-known jurisdictions, such as Luxembourg and Ireland. Malta is also especially well suited to shipping and aviation securitisations, with several innovative transactions of this kind having been successfully completed through Maltese SPVs.
A legal framework for securitisation was enacted in Malta .......
News Analysis 10 September 2019
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ILS deputy head hired
Company hires and sector developments
Blockchain standardisation steps taken
The standardisation of blockchain technology, which the International Organisation for Standardisation (ISO) and others are promoting, will be credit positive for future securitisations that utilise the technology, says Moody’s. Although the technology itself has the potential to provide many benefits to the securitisation market, namely via interoperability and operational efficiencies, the current lack of .......
Market Moves 6 September 2019
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Reform plans released
GSEs to be recapitalised and repositioned
The US Treasury has released its plan to reform the country’s housing finance system. The Treasury Housing Reform Plan (THRP) consists of a series of recommendations that are designed to “protect American taxpayers against future bailouts, preserve the 30-year fixed-rate mortgage and help hardworking Americans fulfil their goal of buying a home.”
The THRP includes both legislative and .......
News 6 September 2019
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Ceo appointed
Sector developments and company hires
Analytics head nabbed
Merion Square Capital has hired Jeff Fraser as head of analytics, based at the firm’s Ardmore, Pennsylvania headquarters. Fraser joins Merion Square from Chubb, where he was an avp of CAT Pricing and Systems, responsible for Chubb’s catastrophe pricing, portfolio optimisation and global risk aggregation platforms.
Ceo appointed
Cairn Capital Group has appointed .......
Market Moves 5 September 2019
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STS success?
Market warms to STS, but threats hover on the horizon
While STS lead to a dampening effect on ABS issuance at the start of the year, it is starting to bring in longer term investors, such as bank treasuries, according to panellists at S&P’s European securitisation seminar today. They added, however, that STS still presents investor and issuer challenges and warned that the stability of the market is threatened .......
News 5 September 2019
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Structured credit vets nabbed
Sector developments and company hires
EBA makes STS digital move
The EBA has announced that it has added the STS Regulation to its online Interactive Single Rulebook and Q&A. It allows market participants to access the EBA’s guidelines, and it will also enable them to ask questions on any aspect of the criteria where it is felt require clarification under the EBA’s .......
Market Moves 4 September 2019
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Boost for Brazilian RMBS?
Number of risks from index-linked mortgages possible
A resolution in Brazil, intended to widen the pool of funds available to finance the purchase of homes in the country, has been passed, removing restrictions on the use of market indices-adjusted interest rates on residential mortgages. It is expected to boost RMBS issuance in the country, but there are certain risks associated with the resolution, particularly tied to inflation .......
News Analysis 2 September 2019
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RAIT sale
Company developments and sector hires
Aussie bank secures warehouse line
Yellow Brick Road (YBR), an Australian non-bank lender, has received final credit approval from an Australian Bank for it to provide an initial A$120m RMBS warehouse facility. The facility will be provided to the intended RMBS programme trust manager, sponsor and servicer, Resi Warehouse Funding (RWF), which is currently a wholly-owned subsidiary of .......
Market Moves 2 September 2019
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NPL relief
ECB extends provisioning calendar
The ECB is set to align its supervisory expectations regarding the provisioning of new non-performing loans with an April 2019 amendment to the CRR that outlines Pillar 1 requirements for the assets. The alignment offers banks more time to provision for recently classified NPLs, but is expected to have a minimal impact on NPL securitisations, given that the bulk .......
News Analysis 30 August 2019
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Back to work
UK deal flow restarts ahead of expected busy months ahead
Oak No. 3 has become the first ‘post-summer’ UK ABS/MBS deal to price. It is expected to be the first of many in a hectic UK primary market into year-end.
The £343.5m STS-compliant senior notes of Aldermore Bank’s third prime RMBS printed at SONIA plus 80bp today. The tranche came in at the lower end of initial price .......
News Analysis 29 August 2019
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Broker charged over mispricing
Sector developments and company hires
Broker charged over mispricing
The US SEC has charged New York-based broker-dealer AOC Securities and its former ceo Ronaldo Gonzalez with failing to supervise AOC broker Frank Dinucci, who provided inflated price quotes to Premium Point Investments (PPI). The orders find that PPI traders dictated to Dinucci the prices at which he should value certain MBS in PPI .......
Market Moves 23 August 2019
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Counterintuitive results
EBA consultation incentivises unfunded SRT format
The EBA’s consultation on the determination of the weighted average maturity of a securitisation tranche (SCI 2 August) is seen as a positive step for synthetic securitisations, since it takes into account the conditional payments of the underlying assets. However, by not recognising the effect of prepayments and pool amortisations, the proposal creates counterintuitive results that incentivise banks .......
News Analysis 23 August 2019
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Red ahead
Non-resident Aussie RMBS hits the market
Columbus Capital is prepping a rare Australian RMBS backed by fully amortising (accounting for 86.1% of the pool) and interest-only converting to amortising investment loans to non-Australian residents. Dubbed Vermilion Trust No. 1 Bond Series 2019-1, the A$250m transaction is consequently not only exposed to macroeconomic events that affect Australia, but also to events that affect the borrowers' countries .......
News 20 August 2019
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CLO ESG impact assessed
Sector developments and company hires
ESG impact assessed
The credit impact of environmental, social and governance (ESG) investment criteria on CLOs rated by Moody’s remains neutral, the agency says in a report. The firm adds that while restricting the pool of CLO eligible collateral has the potential to be credit negative, CLOs limited exposure to the industries subject to ESG restrictions largely mitigates .......
Market Moves 19 August 2019
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Whole biz downgrade announced
Company developments and company hires
Acquisitions
Crescent Capital BDC is set to acquire Alcentra Capital Corp, a middle-market BDC. The transaction is the result of Alcentra Capital’s previously announced review of strategic alternatives led by an independent director committee. Under the terms of the transaction, in exchange for approximately 12.9 million shares of Alcentra Capital common stock, Alcentra Capital’s stockholders will receive approximately .......
Market Moves 16 August 2019
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Brexit impact gauged
UK ABS expected to withstand no-deal
A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS transactions. However, Brexit raises challenges by splitting UK and EU regulation.
One risk to ABS investors from a no-deal Brexit is the potential for a recession or a sharp downturn in the UK economy, and whether this would be severe enough to prevent a meaningful .......
News Analysis 16 August 2019
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Higher yields?
Bluestone debuts UK RMBS
Bluestone Mortgages is in the market with its first UK RMBS. Dubbed Genesis Mortgage Funding 2019-1, the transaction is backed by a £198.05m portfolio of owner-occupied (comprising 80.8% of the pool) and buy-to-let loans secured by first-ranking mortgages in the higher-yielding market segment.
DBRS notes that in comparison to other specialist lenders, Bluestone’s portfolio and origination are geared .......
News 16 August 2019
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Syncora Guarantee acquired
Sector developments and company hires
Syncora sale
Market Moves 15 August 2019
GoldenTree Asset Management entity Star Insurance Holdings is set to acquire Syncora Holdings’ New York financial guarantee insurance subsidiary Syncora Guarantee (SGI) for US$392.5m in cash, subject to adjustment. The cash purchase price for SGI represents a premium to the closing share price of Syncora’s common stock on 1 March 2019, the trading day prior to the announcement of .......
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NPL disposals inked
Sector developments and company hires
ABSF tender
The Australian Office of Financial Management is inviting tender submissions for the provision of investment management services for the Australian Business Securitisation Fund (ABSF) by 6 September (SCI 24 June). The AOFM is seeking to appoint an investment manager to assist with the evaluation of investment proposals and provide ongoing portfolio management services. The investment .......
Market Moves 14 August 2019