ABS

  • Gaining traction

    The rise of project finance SRT

    Synthetic securitisation is expected to play a key role in assisting Europe’s transition towards a more sustainable economy. This Premium Content article explores the significance of project finance SRT transactions within this context.

    Given the challenging macroeconomic conditions over the past 12 months and the unprecedented write-down of Credit Suisse’s AT1 bonds, banks are increasingly adopting synthetic ......

    News Analysis 21 November 2023

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  • Global goals

    Chris Whitcombe, head of European and US ABS at Challenger I...

    Q: Challenger IM recently launched its first securitisation-only investment fund – the Challenger IM Global ABS Fund (SCI 1 November). What makes now the right time?
    A: At Challenger IM, we manage assets for leading global and Australian institutions. We have been actively investing in ABS since 2005, including the private ABS market for the last decade. So, although .......

    The Structured Credit Interview 20 November 2023

  • BlackRock launches Article 8 ABS fund

    Market updates and sector developments

    BlackRock has launched the BlackRock Senior Securitised Fund (BSSF), its new flagship securitisation fund, in the existing BlackRock Specialist Strategies Fund range. The firm says that BSSF is designed to meet the strong demand for securitised assets from both institutional and wealth clients seeking to diversify their fixed income exposures. Clients have demonstrated a desire for the diversification benefits, .......

    Market Moves 20 November 2023

  • Manulife acquires CQS

    Market updates and sector developments

    Manulife Investment Management is to acquire London-based alternative credit manager CQS. The transaction will see CQS’s investment team continue to operate autonomously, though Manulife will take ownership of the firm’s brand and credit platform.

    Following completion of the deal, CQS will benefit from exposure to new investors and the scaling of its distribution footprint, according to a statement. .......

    Market Moves 17 November 2023

  • Job swaps weekly: BNP bulks up in Americas

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees BNP Paribas building out its Americas-focused advisory and solutions teams, with two senior securitisation-focused appointments among a number of hires. Elsewhere, American Century Investments has appointed two industry veterans to its securitised markets team, while Academy Securities has snapped up a senior Citi exec as md and head of RMBS capital .......

    Market Moves 17 November 2023

  • Risk transfer round-up - 16 November

    The week's CRT developments and deal news

    Market news
    Freddie Mac last week priced the high-LTV STACR 2023-HQA3 deal, its first CRT transaction since the end of June, introducing a new deal structure. The trade included an A1 class structured as a three-year bullet-like bond, which is pro-rata to the senior retained AH class from day one, but receives all AH cashflows at the three-year mark and .......

    News 16 November 2023

  • Value covered

    LibreMax Capital cio Greg Lippmann and ABS head Kevin Tyler...

    Q: How has the evolution of the banking system and regulatory environment over time shaped private credit markets?
    GL: Before the global financial crisis (GFC), there were certain aggressive financial products which enabled consumers to become overleveraged, as well as light bank capital charges for investment bank holdings of structured products, which ultimately brought Lehman Brothers to default and spurred .......

    The Structured Credit Interview 16 November 2023

  • Angel Oak ABS-focused ETF reaches US$100m in AuM

    Market updates and sector developments

    Angel Oak Capital Advisors, based in Atlanta, has announced its Ultra Short Income ETF, chiefly invested in ABS, has grown to over US$100m in assets under management in the year since launch. Most ultra short ETFs with assets of a year or less in duration are invested in commercial paper and Treasury bills, but Angel Oak perceived a gap .......

    Market Moves 15 November 2023

  • Inflection point?

    Dennis Heuer, partner at White & Case, discusses the...

    Q: Having historically been secretive and opaque, is the SRT market likely to transition from highly private to increasingly more syndicated deals? Are we witnessing an inflection point? 
    A: I wouldn’t describe it as a clear shift but rather something I can foresee happening. Currently the market is divided between small club (often anchored by one lead investor) or bilateral .......

    Talking Point 15 November 2023

  • Waiting game?

    Islamic securitisation gaining traction

    Saudi Real Estate Refinance Company (SRC) is widely anticipated to become the first to issue a Shari’ah-compliant RMBS transaction in the Kingdom. However, the drivers for a broader lift-off in Islamic limited recourse securitisation are yet to materialise.

    The Islamic finance market is not dissimilar to the conventional securitisation market. In the conventional market, consumer retail banks seek .......

    News Analysis 13 November 2023

  • Job swaps weekly: ESG debt-swap pioneer transitions to UBS

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees a Credit Suisse veteran take on a senior ESG- and structured-credit role at UBS Group following the latter’s acquisition of the former. Elsewhere, Colliers has lured two ex-George Smith Partners (GSP) executives as vice presidents, while a senior Federal Housing Finance Agency (FHFA) exec has joined Guy Carpenter.

    Credit Suisse .......

    Market Moves 10 November 2023

  • Securitisation due in H1 for international student loan provider

    Goldman, Deutsche and Värde backed MPOWER's latest debt funding round

    MPOWER Financing, a provider of loans for international university students, is due to price its first securitisation in the first half of 2024 after closing its latest debt funding round. The business has raised further commitments from Goldman Sachs, Deutsche Bank and Värde Partners to bring its total deployable capital to more than US$300m.

    “There are three forces .......

    News Analysis 10 November 2023

  • Scope sees ratings drift reverse in Q3

    Market updates and sector developments

    Ratings drift in structured finance instruments improved in the third quarter of 2023 for the first time in more than a year, Scope Ratings has revealed. The metric measures the ratio between upgrades minus downgrades and the total number of monitored ratings over the past year.

    While the agency oversaw just 12% of 294 instruments upgraded against 17% .......

    Market Moves 7 November 2023

  • Esoteric explosion

    Data centre securitisation seeing strong fundamentals

    Insatiable demand for connectivity is fueling a rise in data centre securitisation issuance. This Premium Content article tracks the market’s development.

    Demand for data centres outstrips supply by a hefty margin and, as more and more regions join the established areas of data centre building, the need for financing shows no sign of abating. While some developers seek ......

    News Analysis 6 November 2023

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  • Bank retreat

    Basel endgame to slash bank securitization lending

    Next year in the securitization industry will be dominated by the fallout from the Basel III endgame and the consequent inevitable contraction of bank lending, says Jodi Schwimmer, global co-lead of Reed Smith’s Financial Industry Group.

    “The reality is that the Basel III endgame will constrain bank lending. There is only so much money that banks can put out. So, who .......

    News Analysis 3 November 2023

  • SRT Market Update

    Project finance transactions in focus

    SRT market conditions currently remain stable, with banks and investors looking to close trades before the end of the year, notably in the project finance sector. But pricing is poised to rise and spreads to widen heading into 2024.

    Corporate and SME transactions typically dominate the lion’s share of SRT issuance, but activity in the project finance and .......

    News 3 November 2023

  • Latest SRTx fixings released

    Volatility spikes in November index values

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Notably, the volatility indexes have widened considerably across the board, in response to the conflict in the Middle East.

    .......

    News 2 November 2023

  • PRA consults on CRR rules

    Market updates and sector developments

    The UK PRA has launched a consultation on draft rules to replace firm-facing requirements regarding securitisation under the CRR in 2H24. As such, it has published a discussion paper (DP) that raises certain key issues for feedback, in order to inform its approach - including the use of unfunded credit risk mitigation (CRM) in SRT transactions.

    In particular, the .......

    Market Moves 1 November 2023

  • EIB Group backs BNP's €627m energy efficiency drive

    Market updates and sector developments

    The EIB Group has signed its first true sale securitisation in France in more than 15 years, in support of BNP Paribas’s commitment to provide €627m of financing for home energy efficiency equipment.

    The deal sees the European Investment Bank contributing €400m and the European Investment Fund providing a further €50m. The investors will take senior and mezzanine .......

    Market Moves 31 October 2023

  • Growing the core

    Overcoming hurdles in unfunded CRT execution

    (Re)insurer interest in CRTs is rising, but execution of unfunded transactions remains limited. This Premium Content article outlines the hurdles that still need to be overcome.

    (Re)insurer participation in the capital relief trades sector is seeing continued growth, with an estimated 30 unfunded deals anticipated to close by year-end. Nevertheless, unfunded protection providers still only account for ......

    News Analysis 30 October 2023

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  • Job swaps weekly: Antares beefs up team after strategy launch

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Antares Capital hiring multiple senior executives, as it closes its debut broadly syndicated loan CLO. Elsewhere, Prosperise Capital has appointed PC2 Capital’s founder as partner and head of CRE following its acquisition of the firm, while S&P Global has promoted three securitisation execs to md in the Americas.

    Antares Capital .......

    Market Moves 27 October 2023
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