ABS
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Thames Water WBS extended
'Significant' write-downs expected under liquidity extension transaction
The maturities of all class A and class B debt issued by the Thames Water Utilities Finance (TWUF) whole business securitisation have been extended by two years. The move follows the High Court’s approval of the restructuring plan proposed by Thames Water Utilities Holdings in connection with implementing a liquidity extension transaction.
The liquidity extension transaction will .......
News 27 February 2025
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Europe's solar ABS market plays catch-up
Continent's solar ABS market trails the US, though potential Italian deal may spark growth
The European solar ABS market is exploring innovative routes to accelerate issuance, with market insiders anticipating increased activity following last year’s debut public transaction for the continent. Yet, while the European market shares similarities with its glowing US counterpart, key structural differences and macroeconomic volatility continue to cast shade on its emergence.
The solar ABS market is still .......
News Analysis 26 February 2025
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SCI in Focus: Broader and deeper
SRT supply and demand dynamics set to stabilise
A recurring theme within the SRT market last year was its characterisation as ‘bank-friendly’, with a deluge of new capital altering supply and demand dynamics. While issuance volumes continue to grow, the sector is also gaining depth due to increasing standardisation.
“The last year has been characterised by new or newer entrants ramping up. Some, particularly US .......
News Analysis 25 February 2025
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Job swaps weekly: Reckoner launches with backing from RedBird
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees the launch of Reckoner Capital Management, an alternative credit asset manager led by a former Panagram Structured Asset Management ceo and cio. Elsewhere, a former Goldman Sachs partner and securitisation specialist has joined One William Street Capital Management as deputy cio and partner, while Chorus Capital has snapped up a former senior exec .......
Market Moves 21 February 2025
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European and UK ABS: strong start, mixed views
January saw €8.1bn in ABS issuance, with strong de...
The European ABS market has delivered a dynamic start to the year, with strong issuance activity and robust investor demand, according to monthly European and UK factsheets monitored by SCI.
TwentyFour AM Momentum Bond Fund’s managers note that January witnessed significant issuance volumes, with €8.1bn in ABS transactions coming to market. The ABS market was particularly diverse, with .......
News Analysis 20 February 2025
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Balance sheet expansion eyed
ABF commoditisation set to boost sector adoption
Regulatory clarity will be a major theme this year as banks adapt to new capital rules under Basel 4. Investors are closely watching whether banks expand their balance sheets or shift assets into the non-bank sector, particularly in the asset-backed finance (ABF) space.
Alongside broader regulatory clarity, the potential lifting of Wells Fargo’s US$1.95trn asset cap - .......
News Analysis 20 February 2025
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SRT fast-track testing underway
Market updates and sector developments
The ECB is set to begin testing a new fast-track process for the supervisory assessment of SRT, which it has developed in close dialogue with the European Banking Federation. The SRT assessment of an individual securitisation transaction currently takes about three months, but the fast-track process aims to substantially reduce this time for sufficiently simple securitisations meeting certain requirements.
Market Moves 19 February 2025
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Scope of ESMA consultation questioned
Private securitisation disclosure proposal 'puzzling'
ESMA last week launched a consultation on revising the disclosure framework for private securitisations under the Securitisation Regulation (SECR), proposing a simplified reporting template designed to improve proportionality in information-sharing processes. However, the timing and restricted scope of this latest consultation is questionable.
“ESMA's proposals could streamline the reporting requirements for certain transactions. However, they also exclude a .......
News 18 February 2025
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Job swaps weekly: ARC promotes two and appoints APAC chair
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees ARC Ratings making a number of senior structured-credit-focused appointments spanning Europe and Asia. Elsewhere, Cadwalader has added three fund finance partners in London, while CIFC Asset Management has named a new md overseeing CLO tranche investing in its New York office.
ARC Ratings has promoted two Lisbon-based structured finance executives .......
Market Moves 14 February 2025
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Tech to streamline funding solutions
AI meets ABF in new strategic partnership
Encina Lender Finance (ELF) and securitisation fintech Cardo AI have formed a strategic partnership aimed at improving efficiency, transparency and accessibility across the burgeoning ABF market. The two firms hope to “revolutionise” ABF transactions by combining Cardo AI’s expertise in AI analytics with ELF’s expertise in structuring and credit risk management.
The agreement highlights the increasing role .......
Market Moves 12 February 2025
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Real Madrid: future of football finance?
Wave of stadium financing deals set to modernise European sports investment
Real Madrid President Florentino Pérez is reportedly considering plans to restructure the football club’s ownership model with one that may resemble the German 50+1 approach, with the club introducing private investment while remaining under fan control. This model – which has boosted profitability and sustainability across Bundesliga clubs – could accelerate a broader trend of financial modernisation in .......
News Analysis 12 February 2025
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Record levels of US auto ABS to continue in 2025
Country could exceed last year's record issuance, but tariff-related uncertainty looms
The US auto ABS market is set to experience another strong year of issuance in 2025, based on strong investor demand for recent transactions and positive consumer sentiment surrounding lower interest rates. However, it will have to contend with geopolitical uncertainties if it is to surpass the record levels reached last year, with ongoing questions surrounding the impact of .......
News Analysis 11 February 2025
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SABL 'mutually beneficial' for private credit funds and banks
Cadwalader partner Jeffrey Nagle and special counsel Michael...
The rise of private credit has been one of the biggest stories in finance in the last decade, and some observers forecast that by 2028 the private credit market once again will double in size. This continued growth, as well as other market and regulatory forces affecting bank lenders, has promoted innovation in the space. Increasingly, and perhaps out .......
Talking Point 10 February 2025
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SCI in Focus: ABF key motivator in private credit consolidation
Acquisitions driven by opportunities beyond traditional corporate lending
The alternative credit sector saw a continued drive towards market consolidation in 2024, with asset-backed finance (ABF) emerging as a key motivator for such activity. Last year saw a near-record US$260bn in acquired AUM, according to Gapstow’s annual review of acquisitions among alternative credit managers, with direct lending dominating the space.
Direct lending firms accounted for 70% of .......
News Analysis 7 February 2025
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Job swaps weekly: Haynes Boone poaches asset securitisation team
Securitisation people moves and key promotions
This week’s round-up of securitisation job swaps sees Haynes Boone strengthen its fund finance and asset securitisation practices with the hiring of seven attorneys from Seward & Kissel in New York. Elsewhere, several other law firms have added partners in Australia and Japan, while ARC Ratings has recruited a new Hong Kong-based ceo to spearhead its expansion in the .......
Market Moves 7 February 2025
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MA reforms set to boost UK securitisation
PRA to deliberate on 'Matching Adjustment Investment Accelerator' in 1H25
The UK securitisation sector is poised to see a steady increase in activity, following the implementation of Matching Adjustment (MA) reforms introduced in late 2024. While the reforms offer more flexibility in asset-backed investments – shifting the requirement from a fixed to a highly predictable (HP) cashflow for part of insurers’ portfolios – the market can expect a gradual .......
News Analysis 7 February 2025
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British Business Bank backs EV financing
New support for £100m+ EV lending facility amid market uncertainty
The British Business Bank has committed to support a structured lending facility from Paragon Bank geared at incentivising the adoption of EVs in the UK’s used auto market. The announcement comes amid ongoing regulatory uncertainty in the UK car financing market, which could impact auto finance providers and, in turn, the flow of auto ABS deals.
Through .......
News 6 February 2025
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UK auto ABS outlook diverges from European peers
Recent court ruling weighs on 2025 expectations for some auto finance providers
Regulatory uncertainty in UK car financing is suppressing the outlook for auto ABS in the country. A decision taken last year by the Court of Appeal of England and Wales will likely impact some auto finance providers – and the auto ABS pipeline – in the country in 2025, according to a report by Morningstar DBRS, in contrast to .......
News Analysis 5 February 2025
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Best of frenemies
Bank-asset manager ABF partnerships set to accelerate
ABN AMRO and Ares Management this week forged a strategic collaboration on a €1.3bn infrastructure loan portfolio, marking the latest in a growing wave of partnerships between banks and alternative asset managers. The deal highlights the increasingly intertwined relationship between traditional lenders and private credit sponsors.
“This collaboration will not only strengthen our position in the infrastructure .......
News Analysis 31 January 2025