ABS

  • 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

  • Inflection point?

    Dennis Heuer, partner at White & Case, discusses the...

    Q: Having historically been secretive and opaque, is the SRT market likely to transition from highly private to increasingly more syndicated deals? Are we witnessing an inflection point? 
    A: I wouldn’t describe it as a clear shift but rather something I can foresee happening. Currently the market is divided between small club (often anchored by one lead investor) or bilateral .......

    Talking Point 15 November 2023

  • Waiting game?

    Islamic securitisation gaining traction

    Saudi Real Estate Refinance Company (SRC) is widely anticipated to become the first to issue a Shari’ah-compliant RMBS transaction in the Kingdom. However, the drivers for a broader lift-off in Islamic limited recourse securitisation are yet to materialise.

    The Islamic finance market is not dissimilar to the conventional securitisation market. In the conventional market, consumer retail banks seek .......

    News Analysis 13 November 2023

  • Job swaps weekly: ESG debt-swap pioneer transitions to UBS

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees a Credit Suisse veteran take on a senior ESG- and structured-credit role at UBS Group following the latter’s acquisition of the former. Elsewhere, Colliers has lured two ex-George Smith Partners (GSP) executives as vice presidents, while a senior Federal Housing Finance Agency (FHFA) exec has joined Guy Carpenter.

    Credit Suisse .......

    Market Moves 10 November 2023

  • Securitisation due in H1 for international student loan provider

    Goldman, Deutsche and Värde backed MPOWER's latest debt funding round

    MPOWER Financing, a provider of loans for international university students, is due to price its first securitisation in the first half of 2024 after closing its latest debt funding round. The business has raised further commitments from Goldman Sachs, Deutsche Bank and Värde Partners to bring its total deployable capital to more than US$300m.

    “There are three forces .......

    News Analysis 10 November 2023

  • Scope sees ratings drift reverse in Q3

    Market updates and sector developments

    Ratings drift in structured finance instruments improved in the third quarter of 2023 for the first time in more than a year, Scope Ratings has revealed. The metric measures the ratio between upgrades minus downgrades and the total number of monitored ratings over the past year.

    While the agency oversaw just 12% of 294 instruments upgraded against 17% .......

    Market Moves 7 November 2023

  • Esoteric explosion

    Data centre securitisation seeing strong fundamentals

    Insatiable demand for connectivity is fueling a rise in data centre securitisation issuance. This Premium Content article tracks the market’s development.

    Demand for data centres outstrips supply by a hefty margin and, as more and more regions join the established areas of data centre building, the need for financing shows no sign of abating. While some developers seek ......

    News Analysis 6 November 2023

    Premium Content

  • Bank retreat

    Basel endgame to slash bank securitization lending

    Next year in the securitization industry will be dominated by the fallout from the Basel III endgame and the consequent inevitable contraction of bank lending, says Jodi Schwimmer, global co-lead of Reed Smith’s Financial Industry Group.

    “The reality is that the Basel III endgame will constrain bank lending. There is only so much money that banks can put out. So, who .......

    News Analysis 3 November 2023

  • SRT Market Update

    Project finance transactions in focus

    SRT market conditions currently remain stable, with banks and investors looking to close trades before the end of the year, notably in the project finance sector. But pricing is poised to rise and spreads to widen heading into 2024.

    Corporate and SME transactions typically dominate the lion’s share of SRT issuance, but activity in the project finance and .......

    News 3 November 2023

  • Latest SRTx fixings released

    Volatility spikes in November index values

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Notably, the volatility indexes have widened considerably across the board, in response to the conflict in the Middle East.

    .......

    News 2 November 2023

  • PRA consults on CRR rules

    Market updates and sector developments

    The UK PRA has launched a consultation on draft rules to replace firm-facing requirements regarding securitisation under the CRR in 2H24. As such, it has published a discussion paper (DP) that raises certain key issues for feedback, in order to inform its approach - including the use of unfunded credit risk mitigation (CRM) in SRT transactions.

    In particular, the .......

    Market Moves 1 November 2023

  • EIB Group backs BNP's €627m energy efficiency drive

    Market updates and sector developments

    The EIB Group has signed its first true sale securitisation in France in more than 15 years, in support of BNP Paribas’s commitment to provide €627m of financing for home energy efficiency equipment.

    The deal sees the European Investment Bank contributing €400m and the European Investment Fund providing a further €50m. The investors will take senior and mezzanine .......

    Market Moves 31 October 2023

  • Growing the core

    Overcoming hurdles in unfunded CRT execution

    (Re)insurer interest in CRTs is rising, but execution of unfunded transactions remains limited. This Premium Content article outlines the hurdles that still need to be overcome.

    (Re)insurer participation in the capital relief trades sector is seeing continued growth, with an estimated 30 unfunded deals anticipated to close by year-end. Nevertheless, unfunded protection providers still only account for ......

    News Analysis 30 October 2023

    Premium Content

  • Job swaps weekly: Antares beefs up team after strategy launch

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Antares Capital hiring multiple senior executives, as it closes its debut broadly syndicated loan CLO. Elsewhere, Prosperise Capital has appointed PC2 Capital’s founder as partner and head of CRE following its acquisition of the firm, while S&P Global has promoted three securitisation execs to md in the Americas.

    Antares Capital .......

    Market Moves 27 October 2023

  • Risk transfer round-up - 26 October

    The week's CRT developments and deal news

    People moves
    Alan McNamara is set to join Howden CAP as executive director, balance sheet advisory and structuring, based in Dublin. McNamara was previously at the Bank of Ireland, most recently as head of group balance sheet management and execution, responsible for the bank’s extensive SRT programme. In his new role, he will enhance the advisory and structuring expertise across .......

    News 26 October 2023

  • Polish lease SRT prints

    Millennium, Veld strengthen relationship

    Private credit specialist Veld Capital has acted as investor in Millennium Leasing’s latest significant risk transfer transaction. The trade references a €1bn portfolio, comprising highly granular performing Polish SME leases, underpinned by vehicles and machinery, with Veld Capital investing in the mezzanine tranche of the trade.

    Leases originated by Millennium Leasing in Poland have historically exhibited high payment .......

    News 24 October 2023

  • 'Endgame' comment period extended

    Market updates and sector developments

    US federal bank regulatory agencies have extended the comment period for both the Basel Endgame risk-based regulatory capital proposal and the G-SIB surcharge proposal until 16 January 2024 (SCI 28 July). Comments on both proposals were originally due by 30 November, but the comment period has been extended to allow interested parties more time to analyse the issues .......

    Market Moves 23 October 2023

  • Subprime auto is not the next credit crisis

    Vadim Verkhoglyad, vp and head of research publication at dv...

    Many view the US subprime auto market as a ‘canary in the coal mine’, equating facts like rising delinquencies to an indication of a looming financial crisis. This perspective is false and its adoption could decrease subprime activity and exclude borrowers from a critical market. It is crucial that market participants acknowledge the broader context of subprime auto loans .......

    Talking Point 23 October 2023

  • Job swaps weekly: Octagon elevates Lam to ceo

    People moves and key promotions in securitisation

    This week’s round-up of securitisation-related job swaps sees Octagon Credit Investors appointing senior portfolio manager Gretchen Lam as its new ceo. Elsewhere, structured finance lawyers Martin Bartlam and Elana Hahn have joined Xfinite Global and Fasken respectively.

    The appointment of Lam as Octagon’s new ceo comes as the firm’s cofounder Andrew Gordon transitions into a new role as executive .......

    Market Moves 20 October 2023

  • CRT Market Update

    Diversity on display

    Capital relief trade issuance volume could creep past €200bn by year-end, according to Man GLG’s Q4 credit outlook paper. The report further states that as SRT spreads sit at their widest levels for over a decade, the opportunity for investors to gain exposure to a diversified pool of high-quality loans is currently compelling (SCI 14 September).

    “We’ve seen the .......

    News 20 October 2023

  • Taking charge

    NBFCs boost Indian securitisation issuance

    The Indian securitisation market appears to have beaten the odds, with robust issuance volumes seen so far in 2023. This is despite concerns regarding the impact of the HDFC merger earlier this year (SCI 24 April).

    “The market has been mostly unfazed by the merger,” states Nathan Menon, partner at Reed Smith. “It has noted it, but .......

    News Analysis 20 October 2023
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