ABS

  • EU authorities call for improved climate data

    Sector developments and company hires

    EU authorities call for improved climate data
    ESMA, in collaboration with the EBA, EIOPA and the ECB, has disclosed that it is working towards enhancing disclosure standards for securitised assets by including new, proportionate and targeted climate change-related information. At the same time, the ESAs and the ECB are also calling on issuers, sponsors and originators of such assets at .......

    Market Moves 14 March 2023

  • SVB failure liquidity-driven

    Outsized, unhedged MBS holdings behind bank run

    Securitisation analysts have been quick to emphasise that the collapse on 10 March of Silicon Valley Bank (SVB), which marks the largest bank failure since the financial crisis, is not a credit story and that the broad US banking system remains well-capitalised. Indeed, there are some very specific circumstances surrounding SVB’s demise, with rising interest rates – and the .......

    News 13 March 2023

  • ICE merger challenged on 'competitive harm'

    Sector developments and company hires

    ICE merger challenged on ‘competitive harm’
    The US FTC is seeking to block the proposed merger between Intercontinental Exchange (ICE) and its top competitor, Black Knight (SCI 5 May 2022). The regulator claims that the merger would drive up costs, reduce innovation and reduce lenders’ choices for tools necessary to generate and service mortgages.

    ICE owns the dominant .......

    Market Moves 10 March 2023

  • Hybrid stop-loss deal closed

    Sector developments and company hires

    Hybrid stop-loss deal closed
    Swiss Re has closed its second hybrid bank financing and ILS transaction (SCI 22 April 2022). Building on the firm’s first innovative hybrid transaction from April last year, the latest multi-year stop-loss transaction provides Swiss Re with US$700m in underwriting protection for the financial years of 2023 to 2027, as it continues to pursue profitable .......

    Market Moves 8 March 2023

  • SEC-SA and the death of public securitisation

    Adam Croskery, head of debt financing and structuring at Arr...

    In the early 2010s, I was a mortgage structurer at the forefront of the birth of NC2.0 (the non-conforming 2.0 sector). Even before then, I rated RMBS transactions at a major rating agency. If anyone should be a cheerleader for public securitisations, it’s me.

    There is no doubt that public transactions are academically appealing (if somewhat exhausting) to .......

    Talking Point 8 March 2023

  • BREP default an 'inflection point'?

    Sector developments and company hires

    BREP default an ‘inflection point’?
    A senior loan EOD has occurred in connection with Finnish single-loan CMBS FROSN-2018, after Blackstone Real Estate Partners failed to repay the loan on 1 March (SCI ABS Markets Daily - 2 March). The episode marks one of the first high-profile securitisation defaults of the current cycle.

    The FROSN-2018 loan had been granted .......

    Market Moves 6 March 2023

  • SRTx inaugural fixings released

    Index values project worsening conditions for CRTs

    The inaugural fixings for the SRTx (Significant Risk Transfer Index) have been released. The index values suggest that pricing volatility is rising and credit risk is worsening for US capital relief trades at a higher level than for European CRTs.

    Overall, both pricing volatility and SRT execution conditions are shown to be skewing higher for SME transactions in .......

    News 3 March 2023

  • Supreme Court grants CFPB petition

    Sector developments and company hires

    Supreme Court grants CFPB petition
    The US Supreme Court has granted the CFPB’s Petition for a Writ of Certiorari in the case of ‘CFPB v. Community Financial Services Association of America’ and denied the cross-petition filed by Community Financial Services Association of America (CFSAA). The CFPB’s petition asked the court to overturn the 19 October 2022 ruling by the US .......

    Market Moves 3 March 2023

  • Window of opportunity

    German auto ABS dominates primary issuance

    After the first European ABS deal of the year – Dutch Property Finance 2023-1 - printed on 25 January, a flurry of paper has hit the primary market as issuers sought to capitalise on strong market conditions. Auto ABS has dominated activity, with German lenders leading the way.

    “It’s mainly issuers capitalising on the strong market conditions before .......

    News Analysis 2 March 2023

  • Confidence and convenience

    Brian Bejile, founder and ceo of Octaura Holdings, answers SCI's questions

    Q: After launching the platform last year, Octaura reported the completion of its first fully electronic syndicated loan trade last month (SCI 2 February). What has Octaura been working on since then?
    A: Since we launched last June, we have covered a lot of ground. We have spent a lot of time recruiting and bringing people into the ranks, .......

    Provider Profile 1 March 2023

  • Direct lending platform unveiled

    Sector developments and company hires

    Direct lending platform unveiled
    Oaktree Capital Management has launched private credit-focused Oaktree Lending Partners (OLP) and its related vehicles. OLP is targeting US$10bn in equity commitments from institutional investors and will seek to originate senior secured loans of US$500m or more to private equity-owned US companies, typically with over US$100m in EBITDA.

    Oaktree believes this market is especially attractive .......

    Market Moves 28 February 2023

  • Lightning rod?

    Dealer incentives eyed in CAC complaint

    The CFPB and the New York State Office of the Attorney General (NYOAG) recently brought a lawsuit against subprime auto ABS issuer Credit Acceptance Corp (CAC) for “misrepresenting the cost of credit” and “hiding” costs in loan agreements. Unusually, the allegations centre on the company’s business model, which is unique among auto lenders.

    “Credit Acceptance is somewhat of .......

    News 28 February 2023

  • Independent considerations

    Daniel Drummer, cfo of German digital lender auxmoney, answers SCI's questions

    Q: auxmoney re-opened the European securitisation market with its third social bond issuance, Fortuna Consumer Loan ABS 2023-1. How does this latest deal compare to auxmoney’s first two ABS transactions?
    A: This is our third and largest securitisation at €350m, which directly follows our first securitisation in September 2021 at €250m and our second in May 2022 at €225m. Overall, .......

    Provider Profile 28 February 2023

  • FEAC promotes four in direct lending

    Sector developments and company hires

    FEAC promotes four in direct lending
    First Eagle Alternative Credit (FEAC) has promoted four members of its tradable credit and direct lending investment teams. Within the tradable credit team, Robert Hickey has been named deputy cio, reporting to FEAC cio James Fellows.

    Hickey joined the firm in 2004 and was formerly senior portfolio manager in the tradable credit team. .......

    Market Moves 22 February 2023

  • Nice and niche

    Investors eye life ILS strategies as uncertainties loom

    The life ILS sector has been caught up in the capital availability dynamics of the wider catastrophe bond market retrenchment caused by several recent big loss events. However, the resultant wider spreads could represent an opportunity this year for those seeking reliable investment strategies amid macroeconomic uncertainties.

    “Providing nimble, expert capital to solving problems is the raison d’être .......

    News Analysis 22 February 2023

  • CS duo snapped up

    Sector developments and company hires

    CS duo snapped up
    Financial services firm Baird has expanded its fixed income offering with the addition of two ex-Credit Suisse professionals focusing on CLOs and securitised products. James Gray and Daniel Bates join the firm’s London office respectively as md, European fixed income sales and director, European fixed income trader.

    Gray was previously executive director, securitised products sales .......

    Market Moves 21 February 2023

  • Social housing RMBS debuts

    Sector developments and company hires

    Social housing RMBS debuts
    Caisse des Dépôts et Consignations (CDC) has completed a rare securitisation collateralised by social housing loans originated by its savings fund division. Dubbed FCT FE Durable 2023, the €1bn transaction is backed a portfolio of 1,890 performing loans extended to 206 French social and affordable housing providers (SAHPs).

    The largest, the top five and top .......

    Market Moves 17 February 2023

  • Cloudy skies for aircraft ABS

    Despite a deal in December, aircraft ABS has problems to solve

     

    Investment bankers are keen for the aircraft ABS market to take to the skies, but it remains grounded due to inherent structural defects, say sources.

    “Bankers are pushing very hard to have the capital markets open again but in my opinion it will take some time before this happens. I don’t know when this will be,” says Ali Ben Lmadani, .......

    News Analysis 16 February 2023

  • CLO portfolio management tie-up inked

    Sector developments and company hires

    CLO portfolio management tie-up inked
    S&P has partnered with LevPro to offer enhanced transparency and efficiency for CLO credit portfolio management in the US and Canada. Under the agreement, S&P Global Market Intelligence will combine LevPro’s SaaS-based trade order management systems (OMSs) with existing WSO loan administration capabilities to support customers in the CLO market.

    The LevPro platform provides .......

    Market Moves 16 February 2023

  • Backing blockchain

    Credit risk considered as DeFi eyed to fund real world assets

    Further efforts are underway to demystify the credit risk associated with DeFi securitisations as interest in its capability to finance real world assets (RWAs) grows (SCI 2 February). A new S&P report analysing the key credit and legal risk considerations associated with such transactions marks a further step by the rating agency to better understand the digital space, .......

    News 15 February 2023

  • Homogeneity RTS released for STS synthetics

    Sector developments and company hires

    Homogeneity RTS released for STS synthetics
    The EBA has published its final draft regulatory technical standards (RTS) setting out the conditions for the assessment of the homogeneity of underlying exposures in STS on-balance sheet securitisation pools. At the same time, the authority has extended the existing work on the RTS on homogeneity for both ABCP and non-ABCP securitisations to ensure .......

    Market Moves 14 February 2023
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