ABS

  • BMO SRT launched

    BMO expands mid-market exposure

    Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian senior secured and unsecured corporate loans. Dubbed Manitoulin USD Algonquin 2019-1, the transaction differs from previous Manitoulin deals due to the additional numbers of mid-sized corporate borrowers in the portfolio.   

    The risk transfer trade features a replenishment period and complies with risk retention rules. .......

    News 26 July 2019

  • Mortgage firm completes residuals sale

    Company hires and sector developments

    Residual sale

    Charter Mortgages is set to sell its residual economic interest in the Precise Mortgage Funding 2019-1B RMBS to JPMorgan - which managed the sale process and purchased the RC2 certificates for onward sale - for a cash consideration of £6.2m. The transaction is expected to complete on 31July and will generate a pre-tax gain of £28.8m and a .......

    Market Moves 26 July 2019

  • Funding trade

    Trade finance fund utilises securitisation technology and assets

    Finance securitisation specialist Channel Capital Advisors has launched its first trade finance fund. The fund is structured utilising securitisation technology and also invests in the instruments.

    Paul Wilson, cio at Channel, says: “We have been looking to launch this for a number of years, but now we have a well-established track record in trade finance and customer confidence, the time .......

    News 25 July 2019

  • Making an impact

    Debut impact ABS provides finance to EM microfinance & SME lenders

    ResponsAbility Investments has closed its debut US$175m impact securitisation, backed by loans to 26 microfinance and SME finance firms in emerging markets across the globe.  Arranged by JPMorgan, with initial capital from the Overseas Private Investment Corporation (OPIC), the transaction is set to be the first of many from the firm, with hopes of it also being replicated by .......

    News Analysis 25 July 2019

  • Risk transfer round-up - 24 July

    CRT sector developments and deal news

    Banca Popolare dell ‘Alto Adige is believed to be readying a capital relief trade that is expected to close in 4Q19. The transaction would be the bank’s first risk transfer transaction and is riding a wave of Italian securitisation issuance (SCI 24 July).

    Indeed, as part of the same trend, BNP Paribas completed its debut Italian auto .......

    News 24 July 2019

  • Italian renaissance?

    Spike in new issuance supported for now

    The uptick in Italian ABS/MBS primary issuance in the past month or so gives the impression of a long-awaited re-start to the market. However, while there are a range of factors supporting the trend, old concerns remain.   

    Despite the flurry of deals recently, the total volume of Italian securitisations this year to date is actually slightly down .......

    News Analysis 24 July 2019

  • Esoteric ABS head announced

    Sector developments and company hires

    Esoteric ABS head named

    MUFG has hired Keith Allman as md and head of esoteric ABS, effective August 14 and he will be responsible for the coverage of all US esoteric ABS assets. Allman brings 17 years of structured-finance and aviation experience as a banker at Deutsche Bank and Citigroup, and most recently as an investor at Loomis Sayles & .......

    Market Moves 23 July 2019

  • First-mover disadvantage

    NPL ABS downgrade structurally specific

    Scope Ratings has downgraded Elrond NPL 2017 after a performance review. The move appears to be a deal-specific one, as most European non-performing loan ABS deals are performing as expected.

    David Bergman, md and head of structured finance at Scope Ratings, explains: “Elrond has been consistently below expectations in terms of timing for the collections and that is .......

    News 23 July 2019

  • Rights firm hits play on ABS debut

    Unusual securitisation backed by music rights collateral

    SESAC, a music rights firm acquired by Blackstone in 2017, is marketing an inaugural whole-business securitisation. Dubbed SESAC Finance 2019-1, the US$560m transaction is structured by Guggenheim and secured by music affiliate agreements, license agreements and software and intellectual property of the SESAC Group.

    The transaction has been assigned provisional ratings by Morningstar and KBRA of triple-B/triple-B minus on the .......

    News 23 July 2019

  • ABS head named

    Company hires and sector developments

    Euro ABS head appointed

    Santander has hired Francesco Dissera as head of continential Europe, securitisation, based out of Milan. He was previously md and partner, head of structuring and advisory at StormHarbour.

    PM appoitment duoble

    Man GLG has hired Patrick Kenney and Santiago Pardo as portfolio managers to its credit business in London. Prior to this, Pardo worked in credit .......

    Market Moves 22 July 2019

  • Revving up

    Italian auto SRT completed

    BNP Paribas has completed a €950m significant risk transfer transaction of Italian auto loans. Dubbed AutoFlorence 1, the true sale securitisation is the bank’s first post-crisis Italian capital relief trade.

    According to Boudewijn Dierick, head of ABS markets at BNP Paribas: “We successfully passed both phases of the SRT tests. First, there’s the SRT tests, where you have .......

    News 22 July 2019

  • Offshore investment in Chinese ABS soars

    Investors find relative value in second largest ABS market

    Foreign investment in the Chinese ABS market is increasing exponentially, as routes to entry have been eased by developments such as the Bond Connect platform and the presence of ratings from international agencies. With issuance volumes in 2018 of around US$300bn, China is now the second largest global ABS market after the US and is seeing a broadening range of deals  which .......

    News Analysis 22 July 2019

  • Co-ceo named

    Sector developments and company hires

    Co-ceo named

    Värde Partners has named Ilfryn Carstairs as co-ceo, alongside co-founder George Hicks, effective from 1 January 2020. Hicks intends to transition to an executive chair role in 2022. Carstairs will retain his role as partner and global cio, overseeing the firm’s global investment strategy and co-chairing its investment committee. Based in Singapore since 2017, he joined Värde Partners .......

    Market Moves 19 July 2019

  • Squaring the circle

    CRT issuers struggling with borrower anonymity

    Capital relief trade issuers are attempting to anonymise loan-by-loan data in transactions, while simultaneously complying with ESMA’s requirement to disclose such data as part of the new securitisation regulation (SCI 22 February). Market participants are concerned that unless regulators address this tension, it could cause a breach of confidentiality provisions.

    According to one legal expert: “The problem is more .......

    News Analysis 19 July 2019

  • Secondary pick-up?

    Aircraft ABS E-notes proliferate, despite residual value risks

    Equity participation in aircraft ABS is picking up, following the execution of transactions with broadly syndicated E-notes, aimed at creating a liquid secondary market. However, the market may be underestimating residual value risk.  

    Aircraft equity notes have historically been an illiquid investment, with only the senior ABS tranches broadly offered to investors. “Residual value is important for .......

    News Analysis 19 July 2019

  • Risk transfer round-up - 19 July

    CRT sector developments and deal news

    Monte dei Paschi di Siena is rumoured to be prepping an Italian SME significant risk transfer transaction for 4Q19. The securitisation would be the lender’s first capital relief trade.

    .......

    News 19 July 2019

  • Operational issues

    CRT key steps outlined

    The operational issues involved in prepping a risk transfer transaction are often overlooked. Indeed, three key steps should be in place before a bank considers executing a capital relief trade.

    “Each department of a bank – whether it’s the front, middle or back office – naturally tends to run its own individual processes and prioritise its own responsibilities; .......

    News Analysis 19 July 2019

  • Czech mate

    SME CRT inked

    The EIB, the EIF and Česká spořitelna (ČS) have inked a capital relief trade. The synthetic securitisation will channel €306m of new financing into SME businesses in the Czech Republic.

    Backed by the European Fund for Strategic Investments, the transaction features a €76.5m mezzanine guarantee to cover potential losses on an existing portfolio of around €1bn SME and .......

    News 18 July 2019

  • Additional resources for disclosure published

    Sector developments and company hires

    Agri-investing appointment

    Arable Capital Partners has appointed Matt Reus a vp in the Bellevue, Washington office. He is responsible for transactional work and due diligence on acquisitions, financial analysis, portfolio management and assisting in overall investment strategy. Reus has 12 years of direct investment, investment banking and fixed income experience, including with securitisation transactions. He was previously with Cascadia Capital .......

    Market Moves 18 July 2019

  • Bank fined over MBS trading failures

    Company hires and sector developments

    Agency heads announced

    Morningstar Credit Ratings (MCR) has named Erin Stafford as head of the combined DBRS/MCR North American CMBS group and Quincy Tang as head of the combined US RMBS group, having both served in similar positions at DBRS. The pair will report to Claire Mezzanotte, who will be the head of global structured finance following the .......

    Market Moves 17 July 2019

  • Growth phase

    Debut trade receivables deal launched, expansion eyed

    Stenn International has launched a debut US$200m securitisation with Natixis, backed by international trade finance receivables. The deal looks set to be the first of many, as the firm intends to become a programmatic ABS issuer while also expanding into back-up servicing and IFRS 10 derecognition services.

    In June this year, the firm hired Chris Rigby to the newly .......

    News Analysis 17 July 2019
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