ABS
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Lift off
BMO programme details revealed
Further details have emerged of a synthetic securitisation programme launched by BMO in late December 2020. Dubbed Sauble, the programme will exclusively focus on leveraged loan issuance and is one of only two programmes dedicated to this segment. BMO has already printed two transactions from the Sauble programme - executed in December 2020 and June this year (SCI .......
News 12 July 2021
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Stable outlook
NPL ABS potential underlined
Greece is now leading the way in Europe’s bad loan clean-up, participants in a recent DBRS non-performing loan webinar agreed. The outlook for the European NPL market overall is stable, despite decreased collections and extended timeframes for most securitisations.
Greece’s leading banks have embraced securitisation as a way to improve asset quality, replicating what Italy has done with .......
News 9 July 2021
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EU monetary policy to reflect carbon transition
Sector developments and company hires
EU monetary policy to reflect carbon transition
The ECB has published its new monetary policy strategy, which includes what it describes as “an ambitious climate-related action plan”. The central bank states that climate change has profound implications for price stability through its impact on the structure and cyclical dynamics of the economy and the financial system.As such, it .......
Market Moves 9 July 2021
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Issuance boost
BNP Paribas leads the pack
BNP Paribas has completed a full-stack significant risk transfer transaction backed by French unsecured consumer loans. Dubbed Noria 2021, the securitisation is the first capital relief trade from the programme to be backed by personal, debt consolidation and sales finance loans. The transaction renders the bank the most active SRT originator this year to date.
According to .......
News 9 July 2021
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International SLABS debuts
Global legal, regulatory complexity addressed
Prodigy Finance is in the market with the first rated securitisation backed by international private student loans. One differentiating factor of the US$303.5m Prodigy Finance CM2021-1 transaction is the originator’s business model, which allows it to lend to borrowers around the world (currently 186 countries and territories).
Headquartered in London, Prodigy is a student loan lender that began .......
News 7 July 2021
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Sustainable finance strategy unveiled
Sector developments and company hires
Sustainable finance strategy unveiled
The European Commission has adopted a number of measures in connection with sustainable finance. First, a new Sustainable Finance Strategy sets out several initiatives to tackle climate change, as well as increase investment in the EU's transition towards a sustainable economy.The strategy includes six sets of actions: extend the sustainable finance toolbox to facilitate .......
Market Moves 7 July 2021
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NPL facility inked
Sector developments and company hires
NPL facility inked
Market Moves 6 July 2021
Together Financial Services has launched a new £96.2m securitisation vehicle called Brooks Asset Backed Securitisation 1 (BABS), which matures in 2026. The facility consists of a varied pool of residential and commercial purpose non-performing loans, previously funded within the senior borrower group. Consistent with its wider securitisation programme, Together will continue to service and manage the loans .......
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Crazy collateral
ABS yields sink as collateral surges, driving investors to look elsewhere
The bounce-back from the pandemic has been overwhelmingly positive for collateral in US ABS deals, according to a new report from Moody’s.
Indeed, such is the strength of the recovery that investors have been forced to look for attractive opportunities outside the usual avenues.
“We do see across all securitizations, not just consumer ABS, that investors are looking widely to see where there .......
News Analysis 2 July 2021
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Tight summer
European ABS/MBS market update
Following a busy quarter that saw every new deal being met with heavy investor demand, there is no sign of the appetite for paper diminishing. Secondary has picked up too over the last week and is showing a similar trend.
Even with the summer holidays quickly approaching, primary spreads still appear to be tightening, matching levels not seen .......
News 2 July 2021
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Pick a card, any card
Covid credit card usage soared, but ABS issuance is strangled
US credit card usage increased dramatically due to the pandemic, but, as yet, this is not expected to result in elevated credit card-backed ABS issuance, agree analysts.
Credit card balances have declined significantly in the last year while the major banks all enjoy richer reserves of capital than has been the case for some time.
‘’The big credit card banks simply don’t have .......
News Analysis 30 June 2021
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Italian SME ABS first finalised
Sector developments and company hires
Italian SME ABS first finalised
Market Moves 30 June 2021
Banca Carige and Banca del Monte di Lucca have completed Lanterna Finance 2021, the first Italian SME ABS backed by loans fully guaranteed by the Italian government. The up to €30,000 unsecured loans have been originated based on the ‘Liquidity decree’, converted into law on 5 June 2020, and are fully guaranteed by the Central .......
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Innovative NPL ABS inked
CF opts for ReoCo rather than GACS
Credito Fondiario has finalised an unusual Italian non-performing loan securitisation that falls outside the GACS scheme. Dubbed Palatino SPV, the transaction features a ReoCo with much larger firepower compared to previous non-GACS deals.
According to Monica Curti, vp and senior credit officer at Moody’s: ‘’It’s an unusual transaction, given that it’s a non-GACS deal - although these sorts .......
News Analysis 30 June 2021
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Finish line
ESMA designates securitisation repositories
ESMA has announced the European DataWarehouse (EDW) and SecRep as the EU’s official securitisation repositories. The decision addresses an important element of the disclosure framework under the Securitisation Regulation that was long left open. More saliently, originators of synthetic securitisations will now have to submit data to the repositories as part of the new ESMA rules, albeit there is .......
News Analysis 29 June 2021
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Aussie green RMBS bags Nochu support
Sector developments and company hires
Aussie green RMBS bags Nochu support
Market Moves 25 June 2021
Firstmac has closed a groundbreaking A$750m green RMBS, backed by the Clean Energy Finance Corporation (CEFC) and Norinchukin. The underlying properties will be among the most energy efficient in Australia, meeting or exceeding a seven-star rating under the Nationwide House Energy Rating Scheme (NatHERS). The seven-star rating materially exceeds the minimum standards of the .......
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Leading the pack
UniCredit tops NPL sales
UniCredit has topped the list for European non-performing loan sales since 2019, according to new data released by KPMG. Indeed, Italian banks overall remain the most active sellers across the sector.
The European NPL market is highly concentrated, with only a few players conducting the majority of deals. The top 20 sellers account for 74% of GBV transacted .......
News 25 June 2021
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Volatility hedge
Bart Bakx, head of ABS and mortgages at NN Investment Partne...
Q: Do you believe private credit will take on a more significant role in investor portfolios in 2021? If so, which factors are driving this forward?
The Structured Credit Interview 25 June 2021
A: We see that many investors are undertaking searches and these are increasing towards private credit. Looking for opportunities to allocate, investors seek alternatives in the private market space in view of continued volatility .......
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Riding a wave
BNP Paribas executes capital call SRT
BNP Paribas has finalised a significant risk transfer transaction backed by capital call facilities. Dubbed Wagner 2021-1, the deal is the French lender’s first such transaction and is riding a wave of capital call SRTs.
Banks that have successfully executed such deals over the last 18 months include Credit Agricole, Standard Chartered, Citi and Societe Generale (SCI .......
News 25 June 2021
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Ever tighter?
European ABS/MBS market update
European ABS/MBS primary spreads continue to edge in on heavy investor demand. That looks unlikely to change, especially in core Europe, as supply begins to ease into the summer.
“The most notable development of the past four months for me has been that spreads keep going tighter and tighter,” says one core Europe ABS trader. “Current pricing levels .......
News 24 June 2021