ABS
-
Junior demand
Credit enhancement concerns raised
Last year saw more single-B rated auto ABS paper issued in the US than in all previous years combined. Indeed, demand remains strong for junior notes, despite growing concerns over auto lending practices to less creditworthy borrowers.
Joseph Cioffi, partner and chair of the insolvency, creditors’ rights and financial products practice group at Davis & Gilbert, suggests that .......
News 8 February 2019
-
Insurer boosts ILS capability
Sector developments and company hires
Acquisitions
Eldridge Industries has increased its investment in Maranon, now holding a majority ownership position. In addition to the equity investment, affiliates of Eldridge have made further commitments to Maranon’s platform, which will support Maranon’s ongoing strategic initiatives, including expanding the company’s underwriting and hold capability. Eldridge will acquire the additional stake from Maranon’s co-founder and Managing Director .......
Market Moves 6 February 2019
-
BoE, ESMA seal no-deal plan
Company hires and sector developments
No-deal agreement sealed
ESMA has agreed Memoranda of Understanding (MoUs) with the Bank of England (BoE) for the recognition of central counterparties (CCPs) and of the central securities depository (CSD) established in the United Kingdom (UK), that would take effect should the UK leave the European Union (EU) without a withdrawal agreement, the no-deal Brexit scenario.
US
Market Moves 5 February 2019
-
SCI Start the week - 4 February
A review of securitisation activity over the past seven days
Transaction of the week
Bank of Montreal has printed a US and Canadian leveraged loan capital relief trade dubbed Manitoulin. The US$92.5m 7.3-year financial guarantee pays Libor plus 12.75%.
The transaction has been rated as triple-A on the class A notes, single-A on the class B notes and triple-B on the class C notes. Further features include the presence of .......
News 4 February 2019
-
NPL securitisation flourishes
Extention of GACS to UTPs to fuel further growth?
European NPL securitisation has flourished over the past two years, reaching a total of €15bn in new issuance since 2016, with many deals coming from Italy since the introduction of the GACS guarantee. Further transactions are expected given the possibility of extending the guarantee to unable to pay (UTP) loans.
DBRS notes that there have been 26 NPL securitisations since .......
News Analysis 4 February 2019
-
Growing momentum
Regulatory provisioning boosts shipping NPL prospects
The European Central Bank’s provisioning push has led to a more positive sentiment around the prospects for the disposal of shipping non-performing loans (NPLs). However, the small size of the market compared to other NPL asset classes, alongside other market dynamics, renders a long-term deleveraging drive an unlikely scenario.
2018 saw a significant uplift in shipping loan .......
News Analysis 1 February 2019
-
Staying strong
MetLife Investment Management speaks to SCI about the year ahead
Q: What’s your general outlook for the structured finance sector in 2019?
William Moretti, head of structured finance, MetLife Investment Management: “On the whole, I’d say that structured finance is in a much better position to face another potential downturn than it was in 2007, before the last crisis. There have been a number of structural improvements to transactions and .......
The Structured Credit Interview 1 February 2019
-
Euro ABS deals mooted
Company hires and sector developments
European RMBS transactions mandated
A pair of European RMBS transactions have been mandated, marking the first European securitisations of the year, barring CLOs. The first is a UK RMBS, dubbed Lanark 2019-1, from Clydesdale Bank, which has mandated BAML, BNP Paribas, Citi and Wells Fargo for the transaction, subject to market conditions. The second, from Italian lender Cassa di .......
Market Moves 31 January 2019
-
CLO UCITS launched
Company hires and sector developments
CDS publication launched
Jochen Felsenheimer, md at XAIA Investment, Wolfgang Klopfer, chairman of the management board of XAIA Investment and Ulrich von Altenstadt, md of XAIA Investment have co-authored a new publication looking at the evolution, functioning and regulatory environment of CDS. Titled, Credit default swaps: trading strategies, valuation and regulation, it also looks at the modeling and valuation of .......
Market Moves 30 January 2019
-
Securitisation swaps book launched
New publication aims to quench knowledge drought
Spotting a gap in the market, a team of structured finance veterans have collaborated on a new publication on an under-explored topic, which bridges the gap between credit derivatives and securitisation. Titled Securitisation Swaps, the book is aimed at all securitisation and derivatives industry participants and is set to be published by Wiley on 18 February, with the e-book available .......
News 30 January 2019
-
CMBS tender launched
Company hires and sector developments
BUMF tender
Greencoat Investments has launched a tender offer for the Business Mortgage Finance 4, 5, 6 and 7 CMBS. Fixed purchase prices for the bonds range from 0.50% to 101% per £1,000/€1,000/US$1,000 in principal amount of notes and an additional 0.50%-10% per £1,000/€1,000/US$1,000 is available as an early tender premium. The early tender deadline is 8 February .......
Market Moves 28 January 2019
-
Minerva closed
Innovative guarantee completed
Banca Nazionale Del Lavoro has closed a €100m mezzanine guarantee with the EIF. Dubbed Minerva, the transaction was completed with funds from the European Fund for Strategic Investments (EFSI) and is expected to release €600m for lending to Italian SMEs. The guarantee is the first SRT transaction that the EIB Group has executed for Italian corporate loans and includes .......
News 25 January 2019
-
New ILS unit launched
Sector developments and company hires
ABS outfit launched
US Bancorp has launched a new ABS lending business, providing non-recourse commitments secured by consumer and commercial receivables. Bo Weatherly - who joined the firm in 2016 - will serve as md for the new business, based in Charlotte, North Carolina. He has brought together a team of established industry experts, each with an average .......
Market Moves 25 January 2019
-
Risk transfer round-up - 25 January
CRT sector developments and deal news
Deutsche Bank issued a leveraged loan capital relief trade in December among a flurry of risk transfer transactions (SCI 21 December 2018). Dubbed LOFT 2018-1, the US$240m 10-year CLN was priced at 13.25%. According to SCI data, it is the widest print of the year.
The deal is non-callable and features an eight-year weighed average life. The leveraged finance ......
News 25 January 2019Premium Content
-
CLOs retain top ranking
Quarterly SCI data update
CLOs remained the top asset class in terms of deal count for European and US new issuance in 4Q18, according to SCI data - although the numbers are down on those posted in Q3 (SCI 23 October 2018), reflecting market volatility in the final quarter of the year. In contrast, CLO BWIC volumes rose in both regions.
.......
News Analysis 24 January 2019
-
Alt investor boosts global presence
Sector developments and company hires
Europe
Palamon has hired Aqib Kadar as director of tax and structured finance. Kadar was previously at PwC where he was a director in M&A tax.
Global
Värde Partners has appointed Elena Lieskovska and Haseeb Malik to partner, and promoted Brad Bauer to deputy cio. Based in London and Singapore respectively, Lieskovska is head of European .......
Market Moves 24 January 2019
-
Slow start
European ABS and CLO market update
The European ABS market is experiencing its “slowest start to a year since 2011” as STS and Brexit uncertainty dampen primary activity. Attention is being focused on secondary trading and CLO issuance.
“CLOs have started the year fairly well,” says one portfolio manager. “The latest St Paul’s CLO has just been announced, and there are a few more already in .......
Market Reports 23 January 2019
-
Two depart at ILS firm
Sector developments and company hires
Europe
M&G Investments has appointed Vincent Charles-Gervais as portfolio manager within its ABS division. Charles-Gervais will report to James King, head of ABS portfolio management, and will be based in London. Charles-Gervais has 15 years’ experience in structured and alternative credit and joins from ICG where he was a portfolio manager for ICG alternative credit. Prior to that .......
Market Moves 22 January 2019
-
Chinese equipment lease ABS prepped
Transaction features several firsts for experienced issuer
Far East Horizon Corporation (FEH) is marketing a CNY1.865bn securitisation backed by equipment lease receivables. The transaction, dubbed Far East Leasing 2019-1, is the first deal from FEH to be supported by smaller-ticket and more diversified finance lease contracts as well as being the first that S&P has rated.
S&P has assigned preliminary ratings on the transaction of single A .......
News 22 January 2019
-
Pepper up
European ABS market update
European secondary market activity is picking up, following a quiet start to the year. However, the new issue pipeline remains sparse, with only four CLO managers lining up deals.
“We’re not hearing of anything imminent,” confirms one portfolio manager. “There is talk of a UK master trust issuer potentially tapping the market – it already delivers to .......
Market Reports 22 January 2019
-
Latest SCI podcast available
SCI podcast episode four is now live
SCI’s latest podcast is now live. This month the team round up asset class performance from 2018 and look ahead to the expectations for 2019.
2018 was a landmark year, with US new issue supply outpacing maturing debt for the first time since 2007. Furthermore, while non-mortgage ABS and structured credit have had positive net issuance since 2014, last year .......
News 21 January 2019