ABS

  • Market moves - 1 June

    BTL RMBS planned
    UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool of approximately £350m buy-to-let non-member mortgages originated by The Coventry Building Society Group through its Godiva brand. The portfolio comprises 2,077 recently-originated loans with an average balance of approximately £169,000 and an average LTV of 60.8%. The loans have approximately five years until the current fixed rate .......

    Market Moves 1 June 2018

  • RRBs on the rise?

    Signs of an uptick in the US rate reduction bond (RRB) market are emerging, albeit the sector remains a relatively small segment of the securitisation landscape. More states are putting frameworks in place to enable them to issue RRBs and there are indications of innovative transactions on the horizon.

    Deborah Newman, director at S&P, says that while the RRB market .......

    News Analysis 30 May 2018

  • GACS issuance surge expected

    Investor appetite for GACS non-performing loan securitisations will be tested this year, as a strong pipeline of deals come to market before the government guarantee expires in September. Should the guarantee fail to be extended, more outright sales of NPLs are expected rather than securitisations.

    “Only three GACS NPL securitisations where completed before the first GACS law decree expired in .......

    News Analysis 29 May 2018

  • NPL financing hurdle highlighted

    Financing non-performing loan resolutions remains the missing piece in efforts to tackle Europe’s troubled asset burden. While securitisation can help close the NPL bid/ask gap and broaden the investor base, the technology typically isn’t appropriate for volatile or deeply impaired assets.

    There is currently no preferred transfer model for NPLs, nor discussion around different NPL asset classes at .......

    News Analysis 25 May 2018

  • Risk transfer round-up - 25 May

    Standard Chartered is expected to roll over two existing trade finance capital relief trades in 2H18. In particular, Shangren 3 and Sealane 3 will be rolled over into two new deals: Shangren 4 and Sealane 4. Shangren 3 – in which Dutch pension fund PGGM was the investor - is a bilateral deal, while Sealane 3 is a syndicated one.

    News 25 May 2018

  • Landmark NPL securitisation closed

    Banca Monte dei Paschi di Siena’s landmark non-performing loan securitisation, Siena NPL 2018, features several structural innovations that are expected to be replicated in future NPL securitisations. The €4.33bn transaction securitises exposures equivalent to a gross book value of around €24.07bn (SCI 11 May).

    One structural innovation is that the transaction provides for a real estate operating company (ReoCo) to .......

    News Analysis 25 May 2018

  • Market moves - 25 May

    Analytics acquisition

    IHS Markit has signed a definitive agreement to acquire Ipreo for US$1.855bn from private equity funds managed by Blackstone and the Goldman Sachs merchant banking division. The acquisition is expected to close in 2H18, subject to customary closing conditions and regulatory approvals. Following a detailed review of its financial services businesses, the firm has also initiated a process .......

    Market Moves 25 May 2018

  • Securitisation 'right tool' for NPL disposals

    Participants at a recent SCI seminar on non-performing loan securitisation were optimistic about the role of ABS in facilitating disposals of troubled loans across Europe, with or without government guarantees. Concerns persist, however, that work still needs to be done in several jurisdictions in terms of professionalising servicing capabilities and standardising securitisation procedures.

    Iain Balkwill, partner at Reed Smith, commented: .......

    Talking Point 18 May 2018

  • IFRS 9 first-time impact gauged

    Banks have begun releasing their first quarterly results for this year, with the reports suggesting a limited impact from the first-time adoption of IFRS 9. However, the lack of a requirement to restate comparative figures means that the potential volatility in reporting generated by the accounting standard’s three credit stages will have to be monitored over time. Furthermore, banks appear .......

    News Analysis 14 May 2018

  • BMPS deal taps ReoCo

    Banca Monte dei Paschi di Siena (BMPS) has completed its much-anticipated non-performing loan securitisation (SCI passim). Dubbed Siena NPL 2018, the €4.33bn transaction securitises exposures equivalent to a gross book value of around €24.07bn and envisages the involvement of a real estate operating company (ReoCo).

    Rated by DBRS, Moody’s and Scope, the deal comprises €2.92bn BBB/A3/BBB+ rated class .......

    News 11 May 2018

  • NPL recovery boost expected

    Greek systemic banks are teaming up to create a platform that will manage and settle mortgage and retail non-performing loans to borrowers who have filed for protection under a much-abused law providing favourable restructuring terms (SCI 8 December 2016). Greek lenders have used this procedure for corporate loans, but not for mortgages, consumer and SME loans.

    The arrangement .......

    News Analysis 4 May 2018

  • Market moves - 4 May

    Acquisitions

    Five Oaks Investment Corporation has acquired 100% of the equity interests of Hunt CMT Equity from hunt Mortgage Group for US$68m. Assets of Hunt CMT Equity include the junior retained notes and preferred shares of a commercial real estate CLO, a licensed commercial mortgage lender and eight loan participations. The assets of the CLO consist of performing transitional floating .......

    Market Moves 4 May 2018

  • Investor-led start-up targets capital market niches

    Travis Miller, co-founder and joint md of iPartners, answers SCI’s questions

    Q: How did iPartners become involved in the market?

    A: We were observing a broad range of fintech firms launching with a technology and product focus which struck us as a “build it and they will come” approach; it was not obvious that any were investor focused.

    The driver .......

    The Structured Credit Interview 30 April 2018

  • Market moves - 27 April

    Australia

    FIIG Securities has hired Anne-Marie Hunter-Brown to the role of markets business manager, Australia. She was previously at Deutsche Bank as IB markets coo and business manager across global credit including structured credit.

    Assured Guaranty rebuttal

    Hedge fund manager David Einhorn recently stated that he is betting on Assured Guaranty’s stock falling, and that it .......

    Market Moves 27 April 2018

  • Risk-sensitive update for Solvency 2

    The European Commission has launched a consultation on its proposed new risk-sensitive treatment of securitisations under Solvency 2. The proposal – which seeks to harmonise existing legislation with the STS framework - has been welcomed for its potential to attract insurers back into the ABS market.

    The Commission proposes replacing the existing Solvency 2 classification of securitisation positions .......

    News 23 April 2018

  • Proportional protection reviewed

    EU policymakers are currently negotiating an amendment to Article 234 of the CRR that would allow banks to treat first-loss protection as proportional protection. If successful, the move is expected to boost mortgage significant risk transfer issuance.

    According to Article 234 of the CRR, loan-level insurance protection for synthetic securitisations that is tranched first-loss protection must apply Chapter .......

    News Analysis 20 April 2018

  • Risk transfer round-up - 20 April

    The capital relief trades market is undergoing a quiet period, following some unusual activity for Q1. Sources point to three transactions during this period from Deutsche Bank, Credit Suisse and a “UK bank with a non-standard portfolio”. Meanwhile, a Spanish bank is rumoured to be prepping another deal.

    Drivers behind the Q1 activity include pent-up supply from last .......

    News 20 April 2018

  • Libor transition frailties exposed

    The New York Fed has begun publishing the Secured Overnight Financing Rate (SOFR), a much-touted Libor replacement, despite industry participants suggesting that a thorough plan has yet to be made for the transition away from the benchmark. At the same time, there is concern over whether enough consideration has been given to the financial products tied to Libor - .......

    News 19 April 2018

  • NPL partnership inked

    Intesa Sanpaolo and Intrum have agreed to form a strategic partnership in respect of non-performing loans. The agreement involves two transactions, including what is expected to be a landmark securitisation for the Italian market.

    Under the partnership, the Italian NPL platforms of Intesa Sanpaolo and Intrum will be integrated to create a servicer with around €40bn of assets .......

    News 18 April 2018

  • Market moves - 13 April

    Aircraft ABS on watch
    KBRA has placed the class A, B and C notes of the US$411m Prop 2017-1 ABS on watch for downgrade. The ABS represents the first securitisation from Elix Aviation Capital, with the proceeds being used to buy 63 aircraft on lease to 17 airlines in 12 countries. KBRA notes that one aircraft was not delivered to .......

    Market Moves 13 April 2018

  • Microfinance ABS regroups after defaults

    A number of Indian microfinance loan securitisations recently defaulted, halting a trend of strong performance and steady growth in the asset class. While demonetisation is partly to blame, lender overexpansion and the introduction of a competing credit instrument also took their toll.

    Several firms have historically used securitisation to fund their microfinance lending in India, culminating in 2016 .......

    News Analysis 13 April 2018
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