ABS
-
Basel 4 series: Levelling the playing field - video
Market participants share their insights about why further a...
....... News Analysis 6 December 2023
Digital download
Up, up and away for digital infrastructure market in 2024
There has been dramatic growth in the US esoteric securitization market in the last three years or so, but the pace isn’t about to slip, says Michael Nowakowski, director and interim head of structured products at Conning, a Hartford, Connecticut-based investment manager which .......
Talking Point 5 December 2023
Salisbury sees momentum
Lloyds' latest SME SRT unveiled
Lloyds has executed Salisbury 2023-1, the seventh synthetic securitisation from its Salisbury programme, following Salisbury 2022-1 in April 2022.
The significant risk transfer transaction references a £1.75bn portfolio of UK SME loans extended to circa 3,500 borrowers located across the UK and originated by Lloyds. In terms of sectors, the portfolio comprises 41% real estate exposures, 28% in healthcare, .......
News 5 December 2023
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. There have been incremental but modest improvements in spread and risk indexes and a tempering of values in volatility indexes, which had risen in November’s fixings (SCI 2 November) in response to conflict in the Middle East.
This month’s survey responses point to .......
News 4 December 2023
Risk transfer round-up - 1 December
The week's CRT developments and deal news
Market news
A pair of auto loan CLNs hit the market this week, including US Bank’s inaugural capital relief trade. Dubbed US Bank Auto Credit-Linked Notes Series 2023-1 (USCLN 2023-1), the synthetic securitisation has a couple of unusual features.USCLN 2023-1 transfers credit risk to noteholders via a financial guaranty on a US$2.46bn reference pool comprising 97,444 prime auto .......
News 1 December 2023
Job swaps weekly: Sirius execs join forces to launch Karis
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees the launch of a new real estate debt advisory firm, Karis Capital UK, led by a number of outgoing Sirius Group executives. Elsewhere, Invesco has lured a Munich-based Patrizia director to its EMEA structured debt finance team, while Sumitomo Mitsui Banking Corporation (SMBC) has appointed a Clifford Chance senior associate as .......
Market Moves 1 December 2023
Positioned for quality and liquidity
Kate Galustian, lead portfolio manager for BlackRock Senior...
Q: When you announced BlackRock Senior Securitised Fund (SCI 20 November), BlackRock stated that this new vehicle will predominantly invest across continental Europe and the UK. To what extent was that driven by current opportunities specific to that geographic market, and could you provide an outline as to what those are?
The Structured Credit Interview 30 November 2023
A: The fund was designed in collaboration with .......
Rules of conflict
Final SEC "conflict of interest" ruling offers crumbs of comfort
The SEC’s final “conflict of interest” ruling, designated Rule 192 and released at the beginning of this week (SCI 29 November), waters down some of the most onerous restrictions but still represents a serious imposition for securitized markets participants, say those in the field.
The new rule prohibits so-called “securitization participants” from engaging in “conflicted transactions” during the life of an .......
News 30 November 2023
SIFMA calls for STC framework
Market updates and sector developments
A new SIFMA blog highlights three actions that will mitigate what the association calls the “perverse incentives” created by the lack of appropriate risk-sensitivity of the SEC-SA framework, under the US Basel 3 Endgame (B3E) proposal. The blog describes the proposal as “the most restrictive approach to set capital requirements for banks’ securitisation exposures in the developed world”.
As .......
Market Moves 29 November 2023
Basel 4 series: Preparing - video
Market participants share their insights about how to prepare for Basel 4
....... News Analysis 29 November 2023
Treasury overhang
Unprecedented Treasury supply dominates agency MBS story for 2024
The enormous Treasury issuance expected next year forms a long shadow falling over the agency MBS market, say investors.
Estimated 10-year Treasury issuance is now projected to be US$1.34trn in 2024, some US$90bn more than earlier estimates and breaking previous records. Assuming the Federal Reserve extends quantitative tightening, overall 10-year Treasury supply will exceed US$1.5trn.
“The biggest risk to agency MBS is Treasury supply. .......
Talking Point 27 November 2023
Job swaps weekly: EverBank lures Forbright's Walsh
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees EverBank hiring a senior Forbright Bank executive as head of structured real estate finance. Elsewhere, National Australia Bank (NAB) has made two senior promotions within its securitisation teams in Melbourne and New York, while Piraeus Bank has elevated an Athens-based director to the role of senior director, head of securitisations and transaction structuring.
EverBank, .......
Market Moves 24 November 2023
Basel 4 series: Industry impacts - video
Exploring the effects of Basel 4 on market participants and their clients or members
....... News Analysis 22 November 2023
Gaining traction
The rise of project finance SRT
Synthetic securitisation is expected to play a key role in assisting Europe’s transition towards a more sustainable economy. This Premium Content article explores the significance of project finance SRT transactions within this context.
Given the challenging macroeconomic conditions over the past 12 months and the unprecedented write-down of Credit Suisse’s AT1 bonds, banks are increasingly adopting synthetic ......
News Analysis 21 November 2023Premium Content
Global goals
Chris Whitcombe, head of European and US ABS at Challenger I...
Q: Challenger IM recently launched its first securitisation-only investment fund – the Challenger IM Global ABS Fund (SCI 1 November). What makes now the right time?
The Structured Credit Interview 20 November 2023
A: At Challenger IM, we manage assets for leading global and Australian institutions. We have been actively investing in ABS since 2005, including the private ABS market for the last decade. So, although .......
BlackRock launches Article 8 ABS fund
Market updates and sector developments
BlackRock has launched the BlackRock Senior Securitised Fund (BSSF), its new flagship securitisation fund, in the existing BlackRock Specialist Strategies Fund range. The firm says that BSSF is designed to meet the strong demand for securitised assets from both institutional and wealth clients seeking to diversify their fixed income exposures. Clients have demonstrated a desire for the diversification benefits, .......
Market Moves 20 November 2023
Manulife acquires CQS
Market updates and sector developments
Manulife Investment Management is to acquire London-based alternative credit manager CQS. The transaction will see CQS’s investment team continue to operate autonomously, though Manulife will take ownership of the firm’s brand and credit platform.
Following completion of the deal, CQS will benefit from exposure to new investors and the scaling of its distribution footprint, according to a statement. .......
Market Moves 17 November 2023
Job swaps weekly: BNP bulks up in Americas
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees BNP Paribas building out its Americas-focused advisory and solutions teams, with two senior securitisation-focused appointments among a number of hires. Elsewhere, American Century Investments has appointed two industry veterans to its securitised markets team, while Academy Securities has snapped up a senior Citi exec as md and head of RMBS capital .......
Market Moves 17 November 2023
Risk transfer round-up - 16 November
The week's CRT developments and deal news
Market news
News 16 November 2023
Freddie Mac last week priced the high-LTV STACR 2023-HQA3 deal, its first CRT transaction since the end of June, introducing a new deal structure. The trade included an A1 class structured as a three-year bullet-like bond, which is pro-rata to the senior retained AH class from day one, but receives all AH cashflows at the three-year mark and .......
Value covered
LibreMax Capital cio Greg Lippmann and ABS head Kevin Tyler...
Q: How has the evolution of the banking system and regulatory environment over time shaped private credit markets?
The Structured Credit Interview 16 November 2023
GL: Before the global financial crisis (GFC), there were certain aggressive financial products which enabled consumers to become overleveraged, as well as light bank capital charges for investment bank holdings of structured products, which ultimately brought Lehman Brothers to default and spurred .......
Angel Oak ABS-focused ETF reaches US$100m in AuM
Market updates and sector developments
Angel Oak Capital Advisors, based in Atlanta, has announced its Ultra Short Income ETF, chiefly invested in ABS, has grown to over US$100m in assets under management in the year since launch. Most ultra short ETFs with assets of a year or less in duration are invested in commercial paper and Treasury bills, but Angel Oak perceived a gap .......
Market Moves 15 November 2023