ABS
-
Turbo feature for CLO reset
Sector developments and company hires
Early upgrade
Market Moves 9 December 2019
DBRS Morningstar has taken the unusual step of upgrading from double-B (low) to double-B the class E notes issued by Autonoria Spain 2019 a week after the transaction priced (SCI 2 December). The move follows the final pricing of the coupons on the notes and the three interest rate swaps, which resulted in an overall reduction in costs .......
-
ABS focus
Music, sports, entertainment firm grows securitisation capabilities
23 Capital recently made a number of hires to boost their securitisation capabilities, signalling the firm’s commitment to securitisation as a key part of its funding strategy. After an inaugural securitisation backed by football royalties successfully closed in 2016, it may also look to offer deals backed by different collateral in the future.
Sreesha Vaman, hired to the role .......
News Analysis 6 December 2019
-
Grattan refinanced
Bank of Ireland completes CRT
Bank of Ireland has originated a €265m funded and unfunded financial guarantee that references a partially disclosed €2bn Irish and UK corporate portfolio. Dubbed Vale Securities, the transaction is a refinancing of a 2016 capital relief trade called Grattan Securities (see SCI’s capital relief trades database).
The refinancing follows the exercise of an optional early termination right for Grattan .......
News 6 December 2019
-
Alternative appetite
Euro CMBS specialist property exposure to rise
Appetite for European CMBS secured by specialist or alternative assets is expected to grow in 2020, as the sector becomes less niche. Such properties are characterised by their operating nature, with the availability of alternative operators being a key driver in their assessment.
Stephen Hughes, avp - analyst at Moody’s, notes that there are two main factors driving increased appetite .......
News 6 December 2019
-
ABS head retired
Sector developments and company hires
ABS head retires
Janus Henderson’s head of ABS investment Ed Panek has now retired from the company and the industry. Colin Fleury, the head of secured credit will assume direct responsibility for the ABS team. Fleury has extensive experience working with ABS, having previously fulfilled the head of ABS investment role. A more junior securitisation expert is being recruited to .......
Market Moves 6 December 2019
-
Moving into the mainstream
Booming aviation ABS sector shakes off esoteric label?
Aviation ABS issuance has seen strong growth, with 2019 set to be a bumper year and investors also drawn to the asset class due its long term, stable nature, prompting some market participants to suggest it has shaken off its esoteric label. The asset class isn't without any concerns, however, with a small number of issuers lacking skin in the game .......
News Analysis 5 December 2019
-
Cigarette slump?
Dispute revenue to offset declining MSA cashflows
US cigarette shipments have declined by an average of 3.2% per year since 2000 and are expected to decrease by 4%-5% over the next 12-18 months, hitting the cashflow available to pay down tobacco ABS bonds. However, revenue from future potential settlements and other special payments could partially offset the risk from slowing tobacco sales.
Moody’s notes that some US .......
News 4 December 2019
-
Credit analysts poached
Sector developments and company hires
Credit analysts poached
Cairn Capital has appointed José Ferrero and Vihren Jordanov as senior credit analysts, focusing on loans and reporting to credit research head Mark Stieler. Ferrero was previously a credit analyst at Partners Group, where he was responsible for European coverage of the business and consumer services, chemicals and healthcare sectors. Jordanov joins from Alcentra, where he was .......
Market Moves 4 December 2019
-
Full-stack debut
BDK completes first auto SRT
Bank Deutsches Kraftfahrzeuggewerbe (BDK) has debuted its first full-stack capital relief trade. Dubbed Red & Black Auto Germany 6, the €1bn German true sale auto ABS differs from previous transactions from the same programme due to the existence of pro-rata amortisation and the fact that it has been undertaken for both capital relief and funding purposes.
According to Laurent Mitaty, .......
News 2 December 2019
-
Spanish SRT inked
Banco Cetelem completes full-stack auto ABS
Banco Cetelem has completed the first full-stack Spanish auto significant risk transfer transaction from BNP Paribas’ Autonoria programme. The €1bn Autonoria Spain 2019 true sale ABS differs from previous Autonoria deals in that the class G notes have been assigned a rating.
The deal is the first capital relief trade from the programme that references Spanish auto loans and it .......
News 2 December 2019
-
Euro AM promotes three
Sector developments and company hires
AM promotes three
Alcentra has promoted Daniel Fabian to president and coo. In this role, he will manage the company’s growth strategy and oversee day-to-day operations in order to continue to drive value for clients and employees. Fabian has spent the past 12 years at Alcentra, of which the last four years have been as coo and cfo, bringing the .......
Market Moves 2 December 2019
-
Dutch consumer ABS prepped
Transaction features several departures from previous deals
Credit Agricole is marketing a securitisation of Dutch consumer loans originated via subsidiaries of Credit Agricole Consumer Finance Nederland (CACF NL). Dubbed Magoi, the transaction references a €418m eight-month revolving pool of 23,282 unsecured, fixed-rate personal loans and displays several differences compared to previous transactions from the firm.
This ABS is also structured to meet the STS criteria, .......
News 29 November 2019
-
Euro lending support announced
Sector developments and company hires
Euro lending support announced
The EIF has committed €100m to online lending marketplace October. The investment renews its support to European SMEs, under the “Private Credit Tailored for SMEs” programme, alongside other institutional investors including CNP Assurances, Bpifrance and Zencap - all of whom were already part of the latest institutional fund launched in 2018.
This new €100m commitment will .......
Market Moves 28 November 2019
-
Italian market developments 'positive' for ABS
Sector developments and company hires
Italian market developments ‘positive’ for ABS
Recent market developments in in the Cessione del Quinto (CDQ) and Delegazione di Pagamento (DP) loan market are credit positive for ABS, according to structured finance analysts from Moody’s. The analysts add that increasing regulatory scrutiny limits the risk of poor underwriting, while lower capital requirements support further loan growth. Both developments .......
Market Moves 27 November 2019
-
Indian innovation
Diverse Indian ABS market sees growing, global investor base
The Indian securitisation market continues to grow and develop, with an increasingly global investor base eager to tap into an ever-innovating product range, including CLOs, green bonds and microfinance-backed transactions. On top of this, new legislation proposes a government-backed partial guarantee structure for select transactions, which has the potential to enable almost US$15bn worth of placements with public sector .......
News Analysis 26 November 2019
-
Mortgage partnership announced
Sector hires and company developments
Euro credit team bulks up
CIFC has hired Anders Samuelsen from Muzinich as it continues to build its European team. Samuelsen, who began his career as a credit portfolio manager at Saxo Privatbank in Denmark, will be based in London, and joins as vp, focusing on northern Europe. CIFC has also announced the hire of Aidan Reynolds, from .......
Market Moves 25 November 2019
-
SCI Start the week - 25 November
A review of securitisation activity over the past seven days
Transaction of the week
Alpha Bank is set to securitise a €12bn mixed portfolio of retail secured and unsecured loans, mortgage and wholesale non-performing loans in 1H20. Dubbed Project Galaxy, the transaction protects shareholders from dilution and is one of the first to utilise the Greek government's Hercules asset protection scheme (HAPS) (SCI 11 October).
Alpha .......
News 25 November 2019
-
FRTB consultation launched
Sector developments and company hires
APAC poll highlights key risks
More than 80% of market participants polled by Moody’s at its recent Asia Pacific Structured Finance Conference in Singapore identified slowing global economic growth as posing a key risk for the Asia Pacific finance sector in 2020. In particular, 54% of respondents said that trade tensions were the biggest threat to Asia Pacific economies next year – .......
Market Moves 22 November 2019
-
New ground
O&G securitisations open up new asset class to ABS investors
For the first time, working interests in oil and gas wellbores have been securitised, marking a new partnership between the oil and gas and ABS industry. These deals have been warmly received by investors and potential issuers, with more transactions expected to follow.
Diversified Gas and Oil (DGO) recently announced an inaugural US$200m securitisation and the first deal backed by .......
News Analysis 22 November 2019
-
Ceo retires
Sector developments and company hires
Capital markets head appointed
23 Capital has hired Sreesha Vaman as md, head of capital markets. 23 Capital is a capital and solutions provider focused on the sports, music and entertainment sectors. Vaman has more than 15 years of experience across the finance, investment banking, sports and entertainment landscape and is joining the team’s New York office with .......
Market Moves 21 November 2019
-
Ramping up
Standard Chartered boosts corporate issuance
Standard Chartered has completed a US$135m CLN that references a US$1.5bn portfolio of US and European corporate revolvers. Dubbed Chakra 4, the deal was carried out for both credit risk management and capital relief purposes.
The disclosed pool totals approximately 150 loans - mainly undrawn commitments - with a replenishment period equal to three years and weighted average life equal .......
News 21 November 2019