ABS
-
Risk transfer round-up - 8 November
CRT sector developments and deal news
BMO will call a capital relief trade dubbed Muskoka Series 2017-1 in December. The senior secured and senior unsecured US and Canadian corporate loan deal is due in 2022. The lender’s last capital relief trade was completed in July and was called Manitoulin USD Algonquin 2019-1 (SCI’s capital relief trades database).
...... News 8 November 2019Premium Content
-
Rollover prepped
NPL CRT to be refinanced
Hoist Finance is readying a rated securitisation backed by Italian unsecured non-performing loans with a gross book value of €5bn, as of end-September. The capital relief trade is the firm’s first public securitisation of NPLs consisting solely of unsecured consumer and SME loans and follows an unrated NPL securitisation that was completed in August (SCI 1 August).
The .......
News Analysis 7 November 2019
-
Pursuing illiquidity premia
Corbin Capital ceo Tracy McHale Stuart and cio Craig Bergstrom answer SCI's questions
Q: How and when did Corbin Capital become involved in the securitisation market?
TMS: We’ve been involved in the securitised markets for roughly 13 years.In the early 2000s, the returns in structured credit were so compressed and we didn’t like the leverage profile required to generate our expected return targets, so we kept away. Then in 2007, we .......
The Structured Credit Interview 6 November 2019
-
CMBS md recruited
Sector developments and company hires
North America
Incapital has appointed William White as md, CMBS. Based in Boca Raton, he will report to co-heads of fixed income George Holstead and Laura Elliot. White was previously md and head of CMBS trading at Raymond James, and before that worked at Wachovia Capital Markets and Bank of America Securities.Ropes & Gray has promoted 16 attorneys .......
Market Moves 6 November 2019
-
SCI Capital Relief Trades Awards 2019
Personal Contribution to the Industry: Mascha Canio, Head of...
Heading up a team responsible for one of the largest investment portfolios in the sector that has driven market growth while setting a benchmark that others follow would perhaps be enough. But Mascha Canio’s personal contribution extends further as one of the most long-standing and visible investors and an advocate for a focus on risk-sharing and transparency to ensure the .......
News 6 November 2019
-
NPL ABS inked
Sector developments and company hires
Eminent domain mods introduced
Market Moves 5 November 2019
To address the heightened risk to borrowers and investors of a multifamily property located in King County being taken by eminent domain (SCI 14 October), Fannie Mae has introduced a prospective modification to its multifamily loan and security agreement and its MBS prospectus for new transactions with properties located in the county. These modifications provide .......
-
SCI Capital Relief Trades Awards 2019
Advisor/Service Provider of the Year: Scope Ratings
Scope Ratings has been selected as SCI’s Advisor/Service Provider of the Year, thanks to its involvement in innovative risk transfer transactions in unusual asset classes, such as project finance, and standardised bank deals. The rating agency’s work has been aided by a multidisciplinary approach to ratings.
According to Guillaume Jolivet, head of Scope Ratings: “The rating of these .......
News 5 November 2019
-
SCI Capital Relief Trades Awards 2019
Credit Insurer of the Year: Arch Capital Group
Arch Capital Group Ltd (ACGL) is SCI’s Credit Insurer of the Year in recognition of its position as global leader in mortgage credit risk transfer and the completion of a first-of-its-kind transaction with ING. With US$300bn of assets under cover already, the firm has significant capacity in place to grow its presence further.
Based in Bermuda, ACGL had .......
News 4 November 2019
-
Tactical opportunity?
Downturn could spur CRT secondary activity
Capital relief trade secondary market activity remains minimal. However, a credit downturn could spur trading opportunities if some investors are forced to sell bonds or choose to reallocate to other sectors.
“While some investors see relative value between exposures and have different views on the market, what really seems to be driving secondary CRT activity at the moment .......
News Analysis 4 November 2019
-
RFC issued on disclosures
Sector developments and company hires
CDO transfer
CVP CLO Manager has resigned as investment manager to the CVP Cascade CLO-1 and CLO-2 transactions. It has been replaced by Barings. For more CDO manager transfers, see SCI’s database.Defeasance surge
Market Moves 1 November 2019
US CMBS 2.0 defeasance volume at end-3Q19 totalled US$10.89bn across 694 loans, exceeding the 2018 full-year total of US$10.88bn across 620 loans, according to Fitch. .......
-
Cautious optimism
NPL ABS opinion welcomed, although challenges remain
The EBA’s recent opinion on non-performing loan securitisations (SCI 24 October) has been welcomed by market participants, given that it represents recognition by the authority that existing rules lead to punitive capital charges for NPL securitisation positions. Nevertheless, its impact will depend on the legal regimes of EU countries and the effect of the new Securitisation Regulation’s tough .......
News Analysis 1 November 2019
-
Tough approach continues
RTS leaves disclosure challenges unresolved
The European Commission’s long-awaited regulatory technical standards on securitisation disclosures (SCI 18 October) fail to address challenges around confidentiality. Further, the ‘no data’ options that were initially posed by ESMA’s RTS on securitisation disclosures (SCI 22 February) have not been clarified.
According to David Saunders, structurer at Santander: “[The Commission’s RTS is] essentially identical to the .......
News Analysis 1 November 2019
-
SRT report pending
EBA to propose harmonised excess spread treatment
The EBA is set to propose a harmonised regulatory treatment for excess spread in significant risk transfer transactions in its final SRT report next year. Since the publication of the EBA’s discussion paper on SRT two years ago, different supervisors have tackled the issue in various ways, partly due to gaps in the securitisation framework.
The EBA’s final .......
News Analysis 1 November 2019
-
SCI Capital Relief Trades Awards 2019
Law Firm of the Year: Clifford Chance
Clifford Chance has been involved in the capital relief trades market from the beginning and the past year has underscored the firm’s dominance and influence across all sectors of the CRT business.
Explaining the firm's dominance in this sector, partner Jessica Littlewood says: "We have always been very active in this market, even before the financial crisis. In the aftermath .......
News 1 November 2019
-
GARC deal expected
Sector developments and company hires
EMEA
Florent Trouiller has joined Norton Rose Fulbright as a partner in its Luxembourg office. Trouiller practises tax law, with a particular focus on cross-border private equity and real estate investments and securitisation transactions. He was previously a partner at Dechert and before that spent 10 years at Allen & Overy in Luxembourg.GARC deal expected
Market Moves 31 October 2019
Intesa Sanpaolo has acquired .......
-
Risk transfer round-up - 31 October
CRT sector developments and deal news
Santander is rumoured to be readying two synthetic securitisations of consumer loans. The issuer has been active in the asset class this year, having closed thus far one synthetic US auto loan ABS in June and two true sale auto SRTs in October (see SCI’s capital relief trades database).
...... News 31 October 2019Premium Content
-
SCI Capital Relief Trades Awards 2019
Investor of the Year: European Investment Fund
The European Investment Fund (EIF) provides an unparalleled level of support to the capital relief trades market in Europe, bringing numerous synthetic securitisations across the line. The EIF is not only a key driver of innovation, participating in numerous benchmark transactions across jurisdiction and asset class, but it has also helped open up the risk transfer market to a broader .......
News 31 October 2019
-
Untapped potential?
New style reinsurance vehicles yet to take off
Almost a year since launch risk-remote reinsurance capacity vehicle Vermeer Re is yet to have any direct imitators. However, other similar structures across a wide variety of insurance risks could potentially still follow suit.
Vermeer was created by Renaissance Re and sole investor PGGM (SCI 19 December) to provide up to US$1bn of US property catastrophe capacity. .......
News 31 October 2019
-
Anti-NSDA provisions welcomed
Sector developments and company hires
Anti-NSDA provisions welcomed
Market Moves 30 October 2019
The inclusion of anti-net short debt activism (NSDA) provisions in offering documentation has become more common in recent months, with Sirius Computer Solutions, Nexstar Broadcasting and Allied Universal Holdco deals incorporating such language. The purpose is to prevent net-short participants - whose interests are not aligned with those of other investors - from using their debtholder rights .......
-
SCI Capital Relief Trades Awards 2019
Innovation of the Year: FCT Jupiter 2019
Societe Generale’s US$3.4bn FCT Jupiter 2019 transaction has won SCI’s Innovation of the Year Award for introducing a number of ground-breaking structural innovations in connection with the redeployment of released RWA. The deal not only frees up a dedicated capital envelope, whereby capital can be reallocated in favour of positive impact finance assets, but also debuts a pricing reduction feature .......
News 30 October 2019
-
SCI Capital Relief Trades Awards 2019
Impact Deal of the Year: Room2Run
As the first-ever synthetic impact securitisation with a multilateral development bank (MDB), Room2Run helped to free up vital capital for the African Development Bank (AfDB) to fund infrastructure projects across multiple African countries. As well as setting the benchmark for how risk transfer technology can be deployed innovatively and to positive effect, the transaction overcame a number of structural and .......
News 29 October 2019