ABS

  • Opportunity knocks

    Debut RPL ABS could be first of many

    The first publicly rated European unsecured reperforming loan ABS hit the market in April. With Covid-induced moratoriums limiting the supply of non-performing loans, further such transactions could emerge, as debt purchasers with excess liquidity seek to deploy capital.

    Dubbed Wolf Receivables Financing, the transaction represents Lowell Financial’s debut public securitisation and is also the first UK RPL ABS .......

    News Analysis 8 June 2022

  • Open house

    European CRE lending continues to diversify

    A combination of growth in specialist lenders and the tightening of commercial real estate lending standards triggered by the Covid-19 pandemic represents an opportunity for European securitisation investors. In particular, CRE ABS deals offer a significant premium and momentum over more traditional CMBS transactions from well-established sponsors. 

    “Against a backdrop of record CMBS issuance, I feel that a .......

    News Analysis 8 June 2022

  • Goodbye convention?

    Demand for inclusive credit scoring intensifies

    Institutional investors have joined the charge of securitisation professionals demanding more inclusive credit scoring methodologies, following the SFA’s call for the use of alternative credit scores amid enduring concerns over the wealth inequality gap in the US (SCI 6 April). A new study, commissioned by VantageScore Solutions and conducted by FTI Consulting, finds that institutional investors also desire more .......

    News 6 June 2022

  • MidOcean bags PE bigwig

    Sector developments and company hires

    Erik Oken has joined MidOcean Partners as chairman of its private equity business, based in New York. He will work directly with the firm’s private equity investment team, with the aim of adding valuable senior insights and oversight to its thematic investment approach. Prior to joining MidOcean, Oken spent over 30 years at JPMorgan, most recently serving as global .......

    Market Moves 1 June 2022

  • Crash landing

    Aircraft ABS market papering over the cracks, say critics

    There are gaping fault lines in the aircraft ABS market which the industry is doing little to solve, say some investors and structurers.

    The Ukraine war has exposed serious imperfections but even more deep-seated problems in the key areas of valuation and transparency bedevil the sector, they add.

    Aircraft securitization got under way about four years ago, but volume picked up sharply .......

    News 1 June 2022

  • Fit for purpose?

    ESAs urged to revive securitisation market

    AFME and Paris Europlace have jointly called for the European Commission and co-legislators to step up efforts to finalise the European securitisation framework and make it “fit for purpose”. The move follows a High-Level Forum, which took place today (31 May), organised by the two associations to discuss the role that securitisation can play in helping to meet Europe’s .......

    News 31 May 2022

  • Slow and steady

    Dutch auto ABS to remain stable as car ownership declines

    Adoption of Mobility as a Service (MaaS) in the Netherlands could lead to the end of individual car ownership for the country’s residents. At present, Dutch auto ABS only represents 1% of the total European auto ABS market, so the impact of this shift is likely to be marginal overall. Nevertheless, concentration risk and residual value risk remain important .......

    News Analysis 27 May 2022

  • El Clásico?

    Groundbreaking AV bond closes

    CVC Capital Partners has closed an innovative hybrid transaction backed primarily by revenues from audio-visual (AV) rights commercialised by La Liga, the organisation that runs the top two divisions of professional football in Spain. Dubbed Loarre Investments, the deal represents the first-ever European bond used to finance a leading sports league.

    Late last year, Spanish football clubs voted .......

    News 26 May 2022

  • Portfolio progress

    Business model rethink continues apace

    The trend of banks rationalising their business models continues apace across Europe. This Premium Content article explores the role of securitisation in their portfolio optimisation efforts.

    The need for banks to fundamentally rethink their business models emerged post-financial crisis and continues still across Europe. Beyond disposals of non-performing assets, this entails focusing on core strategies and markets, ......

    News Analysis 25 May 2022

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  • Complex picture

    European ABS/MBS market update

    With two deals being pulled in the space of a week, the European ABS/MBS markets are facing thorny times. The current complex environment and volatility is set to hinder issuance in the short term.

    Last Friday, HSBC announced it had to pull its UK student accommodation CMBS transaction – HXGN CMBS Finance 2022-1 – due to “exceptional market .......

    News 20 May 2022

  • Climate countdown

    Green SRT challenges highlighted

    A green synthetic securitisation framework remains lacking, despite the current regulatory focus on ESG. This Premium Content article explores why.

    Green lending targets in use-of-proceeds synthetic securitisations are expected to become more of an obligation going forward, but such a change should be accompanied by clear parameters and consequences for failing to satisfy that obligation. Nevertheless, a framework for ......

    News Analysis 20 May 2022

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  • Accelerating change

    NPL ABS evolution gathers pace

    Regulatory change in the European non-performing loan securitisation market has picked up speed over the last month, with the publication of the EBA’s final draft risk retention regulatory technical standards (RTS) (SCI 13 April) and the launch of an EBA consultation on draft implementing technical standards (ITS) in connection with NPL data templates (SCI 17 May). However, .......

    News Analysis 19 May 2022

  • Juicy CRT

    Historical wides entice fast money

    Spread levels in GSE CRT securities at the bottom end of the capital stack are now so cheap relative to comparable ABS assets that they are attracting attention from hedge fund and private equity money, say analysts.

    Five-year B2 notes are currently priced close to 1100bp over SOFR, more than twice the levels at which high yield ABS .......

    News Analysis 18 May 2022

  • New path

    Mexican securitisation marks firsts for StepStone

    Global private markets firm StepStone has structured a US$102.5m public offering of a securitised portfolio of direct loans via Certificados Bursátiles Fiduciarios on Mexico’s BIVA stock exchange earlier this year. Significantly, the transaction represents the first securitisation in Mexico of a portfolio of direct loans granted to North American companies, as well as the first time that StepStone acted .......

    News 16 May 2022

  • 'Investor-friendly' features introduced

    Sector developments and company hires

    Rising interest rates and widening spreads have spurred changes in US non-prime RMBS structures that introduce investor-friendly features for senior noteholders, Fitch reports. The move comes amid growing concern over coupon cap shortfalls and lower availability of excess spread.

    As such, many issuers have reduced the aggregate servicing fee to 25bp (which historically has been 50bp), while some have introduced .......

    Market Moves 11 May 2022

  • ITRN 'club deal' debuts

    Sector developments and company hires

    NN Investment Partners (NN IP) has launched the first vintage of a customised solution to invest in trade finance through its Insured Trade Receivables Notes (ITRN) strategy. Structured as a club deal and delivered via a mutual debt vehicle (a fonds commun de titrisation), the offering was specifically designed for a group of high-profile insitutional investors in France, with initial .......

    Market Moves 9 May 2022

  • MSCI and MarketAxess collaborate

    Sector developments and company hires

    MSCI has announced its entry into a strategic collaboration with MarketAxess to establish new portfolio analytics solutions and fixed income indexes. The two firms hope to improve the fixed income investment process, empower investors, and drive innovation through their collaboration by developing portfolio optimisation, trading, and analytics tools. The collaboration will rely on MarketAxess’ fixed income indexes and AI-informed pricing .......

    Market Moves 29 April 2022

  • A buyer's market

    European ABS/MBS market update

    Following a flurry of deal announcements (SCI 22 April 2022), the primary European and UK ABS/MBS markets were extensively testing investor demand during the week. With so many deals to absorb, deal performance has been disparate.

    In a context of large volumes of paper, UK RMBS transactions were playing a central role with four transactions hitting the market. On .......

    News Analysis 29 April 2022

  • Ex-employees resurrect Highland

    Sector developments and company hires

    Ex-employees resurrect Highland
    A trio of former senior Highland Capital Management portfolio managers have resurrected the firm under a new moniker, Highland ERA Management. Patrick Daugherty – who was partner, senior CLO portfolio manager and head of distressed/special situations at Highland – is partnering with ex-Highland team members Kevin Rourke and Niles Chura in the venture.

    Through a sub-advisory .......

    Market Moves 22 April 2022

  • Full steam ahead

    European ABS/MBS market update

    With seven deals marketing, the European and UK primary ABS/MBS markets are set for bustling days ahead. While the market remained relatively unmoved either side of the Easter break, this strong surge in deals all scheduled for next week will certainly test investors’ appetite.

    “With so many deals being announced, the doors are clearly open,” notes one European .......

    News 22 April 2022

  • Fasten your safety belts

    Aircraft ABS set for further turbulence

    The fallout from the Ukraine crisis is likely to affect the entire aircraft ABS market, rather than simply those deals with exposure to Russian assets. This Premium Content article outlines why the sector is bracing for a bumpy ride.

    The Russia-Ukraine conflict has exposed fault lines in the aircraft ABS market that participants had hitherto tended to ......

    News Analysis 22 April 2022

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