ABS

  • Capital blues

    Securitisation set to become more costly for US banks

    US regulators appear set to march in the opposite direction to their European counterparts with regard to the capital treatment of securitisation. The 1,087-page document released on 27 July as part of the Basel 3 Endgame by the Federal Reserve, the FDIC and the OCC (SCI 28 July) proposes increasing the so-called p-factor from 0.5 to 1.0, News Analysis 29 August 2023

  • Job swaps weekly: Stream of hires at Flowcarbon

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees carbon fintech business Flowcarbon bulk up its structured finance muscles with a promotion and two new hires. Elsewhere, Atom Bank has appointed a former Arrow Global ceo as chair designate, while Bespoke Real Estate Advisers has promoted a founding member to chief investment officer. 

    Flowcarbon has promoted Martin Kessler to .......

    Market Moves 25 August 2023

  • Securitisation exempt from private fund rule

    Market updates and sector developments

    The US SEC has determined that securitised assets funds, including CLOs, are exempt from its Private Fund Advisers Rule. The new rules aim to protect private fund investors by increasing transparency, competition and efficiency in the private funds market. To enhance transparency, the rules will require private fund advisers registered with the Commission to provide investors with quarterly statements - .......

    Market Moves 25 August 2023

  • Skid marks

    Sub-prime auto ABS shows sign of pain

    After several years of trying economic conditions during which the ABS market has been robust, the sub-prime auto sector could be about to see the first delinquencies since the 1990s.

    The Fed hiked rates again in July, its 11th increase since it began in March 2022, taking rates to the highest level seen since 2001. Rather worryingly, the committee gave no indication .......

    News Analysis 24 August 2023

  • Risk transfer round-up - 24 August

    The week's CRT developments and deal news

    Deal news
    Standard Chartered has executed the eighth synthetic securitisation from its Chakra programme. The significant risk transfer transaction – Chakra 8 – references a portfolio of global corporate revolving facilities, 30% of which are US exposures.

    Two tranches were offered to investors. According to market sources, the first loss tranche (0%-6.5%) priced at SOFR plus 12%, while the mezzanine tranche .......

    News 24 August 2023

  • Janus Henderson rounds out securitisation ETF suite

    Market updates and sector developments

    Janus Henderson is preparing the launch of a new fund that the firm says will complete its suite of securitisation-focused ETFs and enable it to invest in almost all of the US securitised market. The US$253.3bn asset manager filed a preliminary registration statement with SEC for Janus Henderson Securitized Income Exchange Traded Fund on Friday.

    The new ETF’s objective is to “seek .......

    Market Moves 21 August 2023

  • Job swaps weekly: TCW snaps up American Century securitisation head

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees TCW Group appoint a successor to its recently departed global co-head of securitised products. Elsewhere, ARC Ratings has hired a European industry veteran as non-executive director, while Guy Carpenter has appointed a senior marketing and business development executive as md. 

    Los Angeles-headquartered asset manager TCW has appointed American Century Investments’ Peter Van Gelderen as .......

    Market Moves 18 August 2023

  • Risk transfer round-up - 17 August

    The week's CRT developments and deal news

    Pipeline update
    August is living up to its reputation as a low point of activity for the capital relief trades market and the financial markets as a whole. With no deals expected to close this month, the sector is slowly but surely getting ready for year-end.

    “August has been strangely calm; calmer than usual, I would say,” notes one .......

    News 17 August 2023

  • Fine-tuning UK securitisation

    FCA and PRA take pragmatic approach to post-Brexit regulations

    The FCA’s consultation on UK securitisation regulations suggests there will be some welcome changes to retained regulations ‘onshored’ post-Brexit. But the British government is unlikely to secure the bonfire of regulations it set out to achieve.

    The FCA published its plans last week (SCI 7 August), two weeks after the PRA released its consultation and less than a .......

    News Analysis 15 August 2023

  • Prelios acquisition agreed

    Market updates and sector developments

    ION subsidiary X3 Group is set to acquire Prelios from Davidson Kempner Capital Management. Established in 1990 in Milan, Italy, Prelios has more than €40bn of assets under management across non-performing loans, unlikely-to-pay exposures and real estate funds. Since investment funds advised by Davidson Kempner acquired the business in 2018, Prelios has grown its revenue from €100m to over .......

    Market Moves 14 August 2023

  • Job swaps weekly: New faces for Newmark

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Newmark Group making a number of senior appointments to its debt and structured finance team. Elsewhere, Helaba has hired a former Deutsche Bank md to lead its asset finance team, while CRED iQ has appointed a new head of data and analytics. 

    Commercial real estate manager Newmark has made three senior appointments in its .......

    Market Moves 11 August 2023

  • Risk transfer round-up - 10 August

    The week's CRT developments and deal news

    Market news
    Western Alliance Bank has amended its WAL 2021-CL2 transaction, to collateralise the deal and reduce corporate credit risk. Principal payments on the notes are now secured by a cash collateral account equal to the full principal amount. Interest payments remain the obligation of WAB but are newly secured by a line of credit by JPMorgan for up to .......

    News 10 August 2023

  • Green front

    EIF obvious candidate to scale up SRT amid energy transition

    A new paper highlights how SRT transactions could be scaled up to support Europe’s shift to the green economy. Central to the proposal is the potential for the EIF to participate as a ‘fronter’ in synthetic securitisations.

    In the paper, entitled ‘A proposal for the European Green Transition via Significant Risk Transfer Securitisations’, ECB senior advisor Fernando Gonzalez .......

    News Analysis 9 August 2023

  • Latest SRTx fixings released

    Stabilising trend continues in August index values

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. The stabilising trend seen across the sub-indexes over the last few months generally appears to have continued, albeit views are slightly mixed on certain segments.

    Spreads across the SRTx Spread Indexes have stabilised to improved month-on-month, reflecting the economic backdrop. Values now stand at .......

    News 3 August 2023

  • Innovative financing inked for Deutsche Bahn

    Market updates and sector developments

    The EIB and HypoVereinsbank are providing credit lines totalling up to more than €2bn to Deutsche Bahn for the procurement of 90 new trains for the Munich S-Bahn. Deutsche Bahn will receive financing for the new vehicles from Bayerische Eisenbahngesellschaft (BEG), which plans, finances and controls the regional and S-Bahn traffic in Bavaria on behalf of the Bavarian Ministry .......

    Market Moves 3 August 2023

  • Risk transfer round-up - 3 August

    The week's CRT developments and deal news

    Market news
    Risk Control has received funding from the MDB Challenge Fund for two projects with the objective of helping Multilateral Development Banks (MDBs) build on the recommendations of the G20’s Independent Review of MDB Capital Adequacy Frameworks (CAF). One of the projects will deliver analysis to support MDB risk transfer, creating insights and technical tools for balance sheet optimisation .......

    News 3 August 2023

  • Groundbreaking cannabis CMBS closed

    Market updates and sector developments

    Groundbreaking cannabis CMBS closed
    Pelorus Capital Group has closed PCG 2023-1, the first-ever securitisation backed by cannabis-linked real estate assets. The firm retained a third of the US$70m offering, selling US$45m of bonds, which it says attracted a range of institutional investors and hedge funds that were “drawn to the high yield and growth of the businesses”. The single-tranche CMBS .......

    Market Moves 2 August 2023

  • Closing the gap

    SRT 'unlevel playing field' called out

    A reduction of the p-factor is inarguably positive for IRB banks and the significant risk transfer space in general, as these banks account for the bulk of synthetic securitisation issuance volume (SCI 25 July). However, the absence of changes positively affecting banks under the standardised approach points to an unlevel playing field across the market.

    The hurdles .......

    News Analysis 1 August 2023

  • New tricks

    Banks' backing boosts AI utilisation in ABS

    Artificial Intelligence (AI) is increasingly being embraced by banks seeking to improve workflows and support securitisation processes. But other benefits of the technology are also becoming apparent in the current challenging economic environment.

    “We knew mathematically how an AI model could be used, but now we can actually see the benefit of it,” explains Altin Kadareja, co-founder and .......

    News Analysis 31 July 2023

  • After the gold rush

    Digital revenues resuscitate music royalty ABS

    With the European summer festival season in full swing and rocket man Elton John announcing his retirement from live music, securitisation is certainly not a word on many music fans’ lips. Yet music royalty ABS is making a comeback, two and a half decades after its rise to fame and subsequent fall.

    KBRA anticipates that music royalty issuance .......

    News Analysis 28 July 2023

  • PRA launches SecReg consultation

    Market updates and sector developments

    The UK PRA has launched a public consultation on proposed changes to the retained EU Securitisation Regulation and the accompanying technical standards on risk retention and disclosure. Rather than a complete overhaul, the authority is seeking to introduce targeted adjustments to the existing EU securitisation framework by 2Q24.

    The key changes include a more principles-based approach to due .......

    Market Moves 28 July 2023
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