ABS

  • Green investment partnership launched

    Company hires and sector developments

    Green investment

    Amundi and the EIB have signed a partnership to launch the Green Credit Continuum investment programme, which is designed to foster the development of the green debt market beyond the existing green bonds, supporting small-scale green projects and financing SMEs and mid-caps. The agreement has three components: a diversified fund will invest in green high yield corporate bonds, .......

    News 12 July 2019

  • Pros and cons

    STS conversion benefits weighed

    The incentives for converting pre-2019 securitisations into STS-compliant deals differ across sellers. But conversion may also have negatives for investors in such transactions, depending on how it’s achieved.

    The focus on STS so far has been on new transactions, with more than a dozen compliant transactions launched in the primary market over the last few months, including four .......

    News Analysis 12 July 2019

  • Mixed bag

    Hybrid M&A, ABS transactions on the rise

    Following the financial crisis, a growing number of financial assets have fallen into the hands of non-banks, which has led to a growing number of M&A transactions that feature securitisation and whole loan elements. These multi-faceted, hybrid deals “increase the complexity” of financial transactions and often necessitate advisors equally well-versed in M&A and ABS law to translate for parties on .......

    News Analysis 11 July 2019

  • Risk transfer round-up - 11 July

    CRT sector developments and deal news

    Standard Chartered is believed to be readying a corporate capital relief trade that is expected to close this month. The bank’s last risk transfer transaction was completed in June and is a US$90m CLN called Chakra 3, which references a US$1bn portfolio of corporate revolvers (SCI 21 June). Additionally, Societe Generale is rumoured to be closing an SME .......

    News 11 July 2019

  • Novel approach

    UTPs drive ReoCo rethink

    Investors and servicers in the Italian non-performing loan market are targeting a new approach to ReoCos as they eye the coming unlikely-to-pay (UTP) wave. Such an approach requires capabilities whose development remains a work in progress, however.

    ReoCos are SPVs that have typically been used in the Italian market to buy and auction real estate collateral. However, servicers .......

    News Analysis 11 July 2019

  • Investment chief appointed

    Sector developments and company hires

    Business Mortgage Finance 6 update

    Business Mortgage Finance 6, the issuer, has informed noteholders that on 4 July 2019 it issued a claim against the Issuer issued a claim against the following defendants in the High Court of Justice in London: Greencoat Investments, Greencoat Holdings Limited, Portfolio Logistics Limited, Alfred Oyekoya, Patrick FitzSimons and Maria Stoica. The claim seeks declarations .......

    Market Moves 10 July 2019

  • Renewable debut

    Green ABS could be first of many

    Glennmont Partners has sponsored a debut securitisation backed by a portfolio of project finance loans tied to Italian renewable energy plants. It is hoped that the €51.472m transaction, structured and arranged by Natixis, will act as a catalyst for further securitisations of renewable energy assets.

    The issuance comprises a €41.830m class A floating rate note and a €9.642m class B note, also floating .......

    News 10 July 2019

  • New deals surge

    Quarterly SCI data update

    2Q19 saw a surge in new issuance volume across securitisation markets either side of the Atlantic. The second quarter typically sees an uptick over the previous quarter (SCI 11 April 2019), but this year's boost in European volumes was a reflection of greater regulatory certainty as the new STS rules bedded in and pent-up supply met pent-up demand.

    .......

    News Analysis 10 July 2019

  • Spanish exposure

    Rare NPL RMBS prepped

    Rarely seen Spanish assets are behind the latest non-performing loan RMBS currently marketing. At the same time, price talk is out on the latest Irish NPL RMBS.

    The dual-tranche Spanish deal, dubbed ProSil Acquisition, is backed by a €494.7m by gross book value (GBV) portfolio consisting of mostly secured non-performing loans and some residual unsecured loans. The receivables were originated .......

    News 10 July 2019

  • SRT trio

    Santander expands SME foothold

    Santander has completed three SME significant risk transfer transactions that total €940.6m of tranche notional. This represents Santander’s largest total annual SME synthetic securitisation placement to date (see SCI’s capital relief trades database).

    Jeremy Hermant, structurer at Santander, notes: “We continue to grow our SME issuance, while keeping the size of the balance sheet and the CET1 .......

    News 9 July 2019

  • Senior CLO trader poached

    Sector developments and company hires

    CLO expert nabbed

    BlueBay has appointed Alex Navin to join its structured credit team as pm. Based in London, Navin will report to Sid Chhabra, head of structured credit and CLO management, and will support him in managing BlueBay’s global structured credit strategies. Navin has nearly a decade of structured credit experience. He joins from Citigroup, where he held a number of roles, .......

    Market Moves 8 July 2019

  • Greencoat Investments notice received

    Sector developments and company hires

    BUMF 6 application discontinued

    A notice of discontinuance from Greencoat Investments has been received by Business Mortgage Finance 6, purporting to discontinue its application for an administrative order with respect to the issuer, which had been listed to be heard before a High Court Judge at the beginning of July (SCI 16 April). This hearing has now .......

    Market Moves 5 July 2019

  • Auto SRT completed

    Innovative direct CLN structure debuts

    Santander has completed its first synthetic significant risk transfer transaction that references a portfolio of US auto loans (SCI 2 July). Dubbed Santander Synthetic Prime Auto Issuance 2019-A, the US$1.38bn transaction features a novel CLN structure, whereby notes are issued directly by Santander rather than through an SPV.

    Steve Gandy, md and structurer at Santander, notes: “We completed two .......

    News Analysis 5 July 2019

  • EBRD appoints Greece, Cyprus lead

    Company hires and sector developments

    EBRD hires NPL vet

    The EBRD has appointed Andreea Moraru to lead its operations in Greece and Cyprus from November, following the retirement of the current holder of the role, Sabina Dziurman. Based in Athens, Moraru will continue the EBRD’s efforts to support the private sector in the two countries, improve competitiveness and strengthen the regional integration of the local .......

    Market Moves 4 July 2019

  • Helping hand

    Refugee risk-sharing facility inked

    Dutch development bank FMO has signed a pilot bilateral risk-sharing facility under its NASIRA programme, which guarantees portfolios of loans to vulnerable, underserved entrepreneurs in sub-Saharan Africa and countries neighbouring Europe. The agreement is with Jordanian microfinance institution (MFI) Tamweelcom and will support access to finance for Syrian refugee entrepreneurs.

    Jordanian banks have historically refrained from providing financing to Syrians .......

    News Analysis 4 July 2019

  • Increasing capacity

    Bridging the CRT gap for insurers

    Greater involvement from insurers in capital relief trades should improve any capacity constraints the market faces. However, while banks are seeking alternative pockets of demand in which to place their risk and insurers are seeking to diversify and achieve scale, their approaches to any transaction will be different and that difference needs to be managed.

    At present, capacity .......

    News Analysis 3 July 2019

  • Pre-summer rush

    European ABS market update

    Activity levels are currently high across the European ABS/MBS and CLO markets and that looks set to continue.

    “It’s very busy in both primary and secondary,” confirms one trader. “It feels like the usual rush before the summer holidays, but we’re also feeling the effects of pent-up issuance from the quiet first quarter. We’re seeing lots of new .......

    Market Reports 3 July 2019

  • Rarely-seen synthetic securitisation revealed

    Transaction references unusual pool of US auto loans

    Santander has issued a rare synthetic securitisation referencing a collateral pool of US prime auto loans. Dubbed Santander Synthetic Prime Auto Issuance 2019-A, the deal comprises credit-linked notes (CLNs) referencing the performance of a static US$1.381bn portfolio of 59,771 auto loans made to high-quality borrowers across the US, for the purchase of new and used vehicles.

    DBRS and Scope .......

    News 2 July 2019

  • CLO firm boosts research team

    Company hires and sector developments

    CEDE made public

    AIR Worldwide has published its Catastrophe Exposure Data Exchange (CEDE) database schema publicly. The aim is to facilitate accurate and transparent data exchange throughout the insurance value chain more efficiently, and to encourage additional analytics on a greater number of exposures. In addition, AIR is actively supporting the ModEx Open Exposure Data Format (OED) by freely providing .......

    Market Moves 2 July 2019

  • Latest podcast now live!

    Mascots, Japanese CLO investors and STS struggles

    In this month's edition of the SCI podcast, the editorial team get stuck into some interesting topics affecting the securitisation market today. First, our editor, Corinne Smith discusses some recent structural innovations in US CLOs, including MASCOTs - or modifiable and splitable/combinable tranches - and the benefits these offer investors.

    Next up, Stelios Papadopoulos, senior reporter, looks at some of the .......

    News 1 July 2019

  • Wholesale switch

    Creval eyes NPL reduction strategy

    Credito Valtellinese (Creval) has announced a five-year business plan that aims to reduce its non-performing loan and sovereign exposures and improve profitability via cost-cutting. The successful execution of the plan would make the bank more attractive for a possible merger in the future, in line with supervisory calls for reductions in NPL exposures as well as consolidation, in order to .......

    News 28 June 2019
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