ABS
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Latest SRTx fixings released
Index values indicate gradual tightening in spreads and impr...
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Spread indexes have moved higher compared with December’s fixings (SCI 4 December), particularly in the large corporate space, owing to typical year-end volatility.
After two months of tightening in SRTx Spread Indexes, this month’s survey responses show a widening of both the large .......
News 8 January 2024
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Competitive spirit
'Structural evolution' drives Oceanic auto ABS volumes
Australian securitisation volumes are this year expected to surpass 2023’s record-breaking highs of A$52.3bn across 77 transactions, primarily due to the country’s budding ABS sector, as well as improved macro conditions for prime non-bank lenders and the likelihood of ADI issuers returning to the market in order to maintain relevance. However, competition with covered bond programmes, changing operating conditions .......
News Analysis 8 January 2024
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Performance shift?
Indian cross-border ABS debuts
Shriram Finance last month closed the first Indian cross-border ABS. The US dollar-denominated India Vehicle Finance deal also represents the country’s first two-tier securitisation, featuring an onshore trust named Sansar Vehicle Finance Trust Dec 2022.
Rated triple-B minus by Fitch, the transaction is backed by a pool of commercial vehicle loans and benefits from an experienced servicer (Shriram .......
News 5 January 2024
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Riverstone co-founders launch Breakwall Capital
Market updates and sector developments
Riverstone Holdings co-founders have launched a new independent energy focused asset-manager, Breakwall Capital, dedicated to supporting energy companies through the complexities of the energy transition. The new firm will be led by Riverstone co-founders and colleagues of close to 20 years, Christopher Abbate, Jamie Brodsky and Daniel Flannery.
Breakwall will support conventional, renewable and ‘next generation’ energy companies .......
Market Moves 5 January 2024
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Job swaps weekly: Greenberg Traurig appoints three new partners from Seward & Kissel
People moves and key promotions in securitisation
The first weekly roundup of securitisation job swaps of 2024 sees Greenberg Traurig appointing a trio of structured finance specialists as partners. Elsewhere, Obra Capital has hired two senior investment executives from AllianceBernstein and RiverRock Funds, while Stout’s md and co-lead of structured credit leaves the firm for a new project.
Kalyan Das has joined Greenberg Traurig, along .......
Market Moves 5 January 2024
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Accretive process
Wasif Kazi, structurer at UniCredit, forecasts continued gro...
Q: Given that 2022 was widely viewed as a breakthrough year in terms of CEE capital relief trade issuance, is the Polish market still a trend to monitor, or is it becoming an established jurisdiction for SRT transactions?
The Structured Credit Interview 5 January 2024
A: I would say it's somewhere in between the two. We see more transactions each year coming out of Poland. We see .......
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CIFC launches multi-strategy credit fund
Market updates and sector developments
CIFC has launched a UCITS multi-strategy credit fund, combining sub-investment grade fixed income with structured finance, senior secured loans and liquid credit investments identified by its distressed team. The firm is looking to capitalise on growing sentiment that rates have peaked and on investors' resulting appetite for fixed-rate credit in order to "lock in the current high rates".
The .......
Market Moves 4 January 2024
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ESMA launches RTS and ITS consultation
Market updates and sector developments
The European Securities and Markets Authority (ESMA) has launched a consultation on revisions to the securitisation disclosure framework. The process is due to run until 15 March and aims to collect stakeholders’ views on proposed changes to the disclosure regulatory technical standards (RTS) and implementing technical standards (ITS).
In particular the consultation will focus on the four proposed options. These include “putting .......
Market Moves 21 December 2023
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Risk transfer round-up - 21 December
The week's CRT developments and deal news
Deal news
News 21 December 2023
The EIB Group has provided a €163m unfunded guarantee to Santander’s latest synthetic securitisation, supporting energy efficiency and climate action projects in the Spanish residential property market. The transaction will facilitate new green and sustainable mortgages, enabling individuals to invest in building renovations or new construction with high energy-efficiency standards, in compliance with the eligibility conditions defined by .......
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Basel banks
Banks forced away from loans and into low RWA assets in 2024
An unintended consequence of the implementation of Basel III endgame rules in the US is that banks will be forced into more capital efficient agency MBS at the expense of loans, according to Mohib Karzai, head of agency MBS trading at JP Morgan.
Talking Point 20 December 2023
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Redefining moneyball
European football clubs turn to securitisation for financing
Multi-club and petrostate-backed projects are becoming increasingly headline-grabbing themes in global football, but securitisation is also emerging as somewhat of a trend in the financing landscape. Olympique Lyonnais became the latest big name to make use of the practice in November, closing a €385m refinancing arranged by Goldman Sachs, in a deal that represents the first securitisation for a French .......
News Analysis 19 December 2023
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Job swaps weekly: Reed Smith poaches Linklaters' Drury
People moves and key promotions in securitisation
This final weekly roundup of securitisation job swaps of 2023 sees Reed Smith snapping up a Linklaters partner and structured finance specialist. Elsewhere, ARIA Commodities has lured a Deutsche Bank veteran as head of structured trade finance, while CBRE has made two senior promotions in its European team.
Linklaters veteran Mark Drury has joined Reed Smith as a .......
Market Moves 18 December 2023
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PRA publishes first Basel policy statement
Market updates and sector developments
The PRA has published the first of two near-final policy statements covering the implementation of the Basel 3.1 standards for market risk, credit valuation adjustment risk, counterparty credit risk and operational risk. The near-final policy statement takes into account feedback received to the PRA’s consultation paper (CP) on the Basel 3.1 standards published in November 2022.
The PRA .......
Market Moves 15 December 2023
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New wings for aircraft ABS
Ashland Place issues first deal for many months
Ashland Place Finance, aided by arranger and bookrunner ATLAS SP Partners, has woken the aircraft ABS market from a deep slumber with the first deal in the sector since June 2022.
The transaction, designated APL Finance 2023-01, is the borrower’s .......
News 15 December 2023
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Producing results
PDP securitisations gaining traction
The number of transactions executed in the nascent proved developed producing (PDP) wellbore oil and gas ABS sector is expected to reach double-digits this year, as familiarity with the product grows. Raisa Energy closed the debut PDP securitisation in September 2019, amid a pull-back from traditional reserve-based lending (RBL) by banks, and the market experienced a meaningful increase in .......
News Analysis 14 December 2023
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Basel 3 'roadmap', reporting ITS published
Market updates and sector developments
The EBA has published its roadmap on the so-called Banking Package, which implements the final Basel 3 reforms in the EU. The roadmap aims to strengthen the prudential framework, as well as ensure an international level playing field. It also seeks to provide clarity on how it will develop the mandates implementing the legislation and finalise the most significant .......
Market Moves 14 December 2023
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Basel 4 series: A swinging pendulum - video
Market participants share their insights into whether Basel 4 is in line with industry expectations
....... News Analysis 14 December 2023
LTEL issue
SES highlights competitiveness concerns
The EBA’s final RTS on synthetic excess spread (SES) generally sparked optimism across the CRT market (SCI 6 May). Nevertheless, divergences around increased calibration and SES on certain portfolios highlight a broader issue of governance and competitiveness within the European regulatory apparatus.
Recently, investors have been reporting of a potential structural shift, leading to a significant .......
News Analysis 14 December 2023
Polish SRT finalised
Bank Millennium closes largest synthetic to date
Bank Millennium has completed a synthetic securitisation referencing a portfolio of Polish unsecured non-mortgage loans with a total value of PLN7.2bn. This latest trade represents Bank Millennium’s largest-ever SRT deal.
The Polish bank transferred a significant part of the credit risk of the securitised portfolio to a single investor. As part of the transaction, Bank Millennium issued on 11 .......
News 12 December 2023
Unusual structure debuts
Santander out with auto CLN
Santander Bank Auto Credit-Linked Notes Series 2023-B (SBCLN 2023-B) has hit the market, representing Santander’s second CLN transaction this year to reference a pool of US auto loans. The deal is unusual in that the source of principal payments for the notes will be a cash collateral account held by a third party with a rating of A2 or .......
News 12 December 2023