ABS
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Endgame alarm
Speakers at SFA mull the chances of re-proposal of Basel Endgame
There is only a 30% chance that the highly controversial US bank capital rules known as the Basel III endgame will be re-proposed, said a speaker today at the Structured Finance Association (SFA) conference in Las Vegas.
This gives a .......
News 27 February 2024
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Into the blue
Alpha Bank's latest SRT unveiled
Further details have emerged regarding Alpha Bank’s synthetic securitisation that it executed in Q4 last year. The significant risk transfer trade – called Project Blue – references a €1.6bn portfolio of Greek corporate and SME loans.
The financial guarantee on the mezzanine tranche was executed with a diversified pool of investors, going against the norm of bilateral transactions usually experienced in .......
SRT Market Update 23 February 2024
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Getting ahead
SRT Market Update
Investors continue to highlight the notable pipeline of European corporate mandates in the SRT market as a clear trend. Meanwhile, across the pond, what to expect from the US market in terms of volume and growth for this year remains unclear.
Asked if, as reported last week, the significant number of European corporate SRT trades currently in .......
SRT Market Update 23 February 2024
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Landmark DFC facility inked
Market updates and sector developments
Fintech provider StoneCo has obtained a landmark commitment of US$467.5m from the US International Development Finance Corporation (DFC) in the form of a revolving securitisation facility. The facility - which has a final maturity of seven years and a six-month availability period - finances the acquisition of up to US$14bn accounts receivables due by over 20 Brazilian financial institutions .......
Market Moves 23 February 2024
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Historic opportunity?
MPL ABS set to benefit from credit card refinancing needs
Marketplace loan ABS issuance in the US posted volumes of US$7.6bn last year, lower than the US$9.5bn of supply seen in 2022, as post-pandemic headwinds combined with macroeconomic pressures to drive underperformance across the sector. However, the market is poised to benefit from an influx of private credit money and the need to address historic levels of credit card .......
News Analysis 22 February 2024
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Unlocking new frontiers
TRS market to grow as investor demands and market needs collide
The trade receivables securitisation (TRS) market is set for growth, as strong investor appetite and the ongoing squeeze in SME financing boost the asset class’s potential. TRS programmes – particularly those in emerging markets – could evolve into a new frontier in SME funding, as banks retrench in response to concerns over weak economic growth and potential recessions.
News Analysis 22 February 2024
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US SRT: First waves - video
Seer Capital's Terry Lanson speaks to SCI about the outlook for SRT in 2024
....... News Analysis 21 February 2024
Challenger firm
Having recently joined law firm Dentons, partner Toby Gray a...
Q: Tell us about your recent move to Dentons and your targets within this new practice?
Provider Profile 20 February 2024
TG: I joined Dentons in October 2023 (SCI 6 October 2023). After nearly 28 years at Linklaters, I was ready for a new challenge. Dentons was an attractive option for me, as it is what I like to refer to as a ‘challenger’ .......
Record breakers
SRT benefiting from 'greater public awareness'
SRT issuance volumes reached another record last year, as new funded investors entered the market and bank interest in synthetic securitisation increased. At the same time, the sector continues to benefit from support by regulatory bodies, which bodes well for the future.
Robert Bradbury, head of structured credit execution and advisory at Alvarez & Marsal, identifies four key themes .......
News Analysis 19 February 2024
Corporate flow
SRT Market Update
As the halfway mark in Q1 approaches, a backlog of European corporate mandates appears to be building in the SRT market.
“From the main banks active in the SRT market, I’m mostly seeing a corporate flow right now,” confirms one SRT investor.
He continues: “It seems that a lot of the European banks that were not in the .......
News 16 February 2024
Job swaps weekly: Hogan Lovells adds dozens from Orrick
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Hogan Lovells snapping up a hoard of Italy-based finance and M&A lawyers from Orrick, including a number of securitisation partners. Elsewhere, First Eagle Alternative Credit (FEAC) has revealed its leadership transition plan, as its president prepares to leave the firm early next year, while Newmark has appointed a UK- and Europe-focused .......
Market Moves 16 February 2024
On the cards?
BBUK acquisition could spell end of DELAM issuance
Barclays Bank UK (BBUK) last week entered into an agreement to purchase Tesco’s retail banking business for an estimated total consideration of £600m. Tesco Bank’s Delamare Cards MTN Issuer master trust (DELAM) is expected to transfer to BBUK upon completion of the acquisition, but the move could halt further new issuance from the programme, as the diversity of funding channels available .......
News 13 February 2024
Tectonic shift
Evolution of European NPL market could change geography of ABS opportunities
The European NPL market is poised for change this year, as Italy sees volumes decline and government-backed schemes coming to an end. Yet, while the evolution is likely to be gradual, NPL stocks are rising in less fancied geographies, offering some promise for prospective ABS issuance – as demonstrated by iQera’s recent closure on a private NPL ABS deal.
News Analysis 13 February 2024
Job swaps weekly: Interpath poaches four from EY
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Interpath Advisory hiring four senior professionals from EY, including a securitisation-focused md. Elsewhere, Sumitomo Mitsui Banking Corporation (SMBC) has hired a new md and deputy head of Asia Pacific to oversee structured lending and private wealth, while Natixis has appointed a Paris-based global head of securitised product trading and expanded its real .......
Market Moves 9 February 2024
Capital velocity
SRT market update
With February now well underway, SRT investors repeatedly report a busy start to the year. Describing a context in which increasing volumes are mostly driven by growth and repeat issuance, participants already expect 2024 to be another record year for the SRT market.
“I think that everyone at the moment is driven by capital velocity,” notes one SRT investor. .......
News 9 February 2024
Break in the clouds
2024 investment opportunities eyed across Europe
With brighter skies forecast for 2024 as some normalcy returns to the European economy, several interesting pockets of investment opportunities are opening up in the structured finance market. Indeed, the outlook for European ABS in the year ahead is markedly more hopeful than 12 months ago – with interesting opportunities for investors in the French, Italian and UK structured .......
News Analysis 8 February 2024
Transition boost
Climate-focused guarantor eyes emerging markets
The Green Guarantee Company (GGC), the first-ever climate-focused financial guarantor, is set to boost climate finance in developing countries by providing guarantees for institutional investors buying green loans issued in the private credit market and green bonds listed on the London Stock Exchange (LSE). Instruments that are eligible for a GGC guarantee include securitisation bonds that are certified under .......
News 7 February 2024
Economic risk underestimated?
RWA density study shows downward convergence
A new Deutsche Bundesbank discussion paper points to a downward convergence of banks’ RWA densities over time after switching to the IRB approach for calculating capital requirements for credit risk. The paper demonstrates that such a convergence cannot be entirely explained by differences in bank size, loss levels, country risk or time of IRB implementation and therefore could underestimate .......
News 6 February 2024
FCA review spells uncertainty for UK auto ABS
Market updates and sector developments
The UK FCA last month announced a review of the historical commission structures across several auto lenders in the UK, with a warning that should widespread misconduct be found, appropriate redress measures will be taken to compensate customers. While the overall credit risk profile of UK auto ABS transactions is unlikely to be negatively affected, the investigation exposes the .......
Market Moves 6 February 2024
Latest SRTx fixings released
Index values indicate tightening in spreads in line with ove...
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Spread indexes have tightened compared with January’s fixings (SCI 8 January), mirroring trends seen elsewhere in global risk markets. There have been improvements in both the volatility and liquidity indexes reflecting a more accommodative market and high deal volumes.
After last month’s widening .......
News 5 February 2024
Navient unveils 'strategic actions'
Market updates and sector developments
Navient has unveiled a strategic action plan designed to simplify the company, reduce its expense base and enhance its flexibility, following an in-depth review overseen by the Board over the past several months. The strategic actions include outsourcing the servicing of its student loan portfolio to a third party; exploring strategic options for its business processing division, including potential .......
Market Moves 5 February 2024