ABS
-
Looking east
CEE SRT issuance prospects gauged
Polish SRT issuance boosted synthetic securitisation volumes last year. This Premium Content article assesses the prospects for increased activity across the CEE region.
Significant risk transfer issuance in Central and Eastern Europe received a boost in 2022, with the opening up of the Polish market. However, activity across the rest of the region will likely continue to ......
News Analysis 6 January 2023Premium Content
-
Raiffeisen inks Romanian trade
Sector developments and company hires
Raiffeisen inks Romanian trade
Raiffeisen Bank has partnered with the EIB Group to strengthen its financing capacity in Romania through a synthetic securitisation. The transaction enables Raiffeisen to provide up to RON523m of new financing to eligible SMEs and MidCaps over the next two years, with a reduced interest rate compared to other similar financing.The securitisation references a .......
Market Moves 3 January 2023
-
NPL forward flow sale agreed
Sector developments and company hires
NPL forward flow sale agreed
Market Moves 23 December 2022
NPL Markets has acted as advisor to UniCredit on the sale of a portfolio of Italian non-performing unsecured loans with a claim value of approximately €90m to a vehicle managed by Kruk and to Credit Factor. Concurrently, the forward flows of Italian consumer loans that will be classified as bad loans in 2023 and 2024, .......
-
Capital ideas
Taxonomy-aligned RWAs, sustainability-linked pricing touted
SMARTER Finance for Families has submitted a number of policy recommendations to the Climate Bonds Initiative, as part of the organisation’s recent public consultation entitled ‘101 Sustainable Finance Policies for 1.5°C’. The SMARTER recommendations include top-down and bottom-up policy frameworks that harness the securitisation market.
“Engaging the capital markets is crucial in order to achieve net-zero – an .......
News 21 December 2022
-
Italian mid-cap deal debuts
Sector developments and company hires
Italian mid-cap deal debuts
Market Moves 21 December 2022
illimity Bank has closed what is believed to be the first securitisation backed by a portfolio of 82 unsecured loans granted to Italian mid-caps and corporates that are predominantly guaranteed by the country’s export credit agency SACE. Dubbed Colt SPV, the €570.11m transaction was originated based on the ‘Liquidity decree’, enacted in June 2020 to help .......
-
NPL data templates introduced
Sector developments and company hires
NPL data templates introduced
Market Moves 19 December 2022
The EBA has launched NPL transaction data templates, aimed at introducing information standardisation to increase the efficiency of secondary markets for non-performing loans and to reduce entry barriers for smaller banks and investors. The proposed NPL transaction data templates are built on previous voluntary loan-by-loan templates and consider the experience of market participants from the sell- .......
-
Regulatory storm?
CRT market split over new rules
Concern over the future viability of synthetic securitisation is rising, in light of the impending Basel output floor and the EBA’s synthetic excess spread proposals. This Premium Content article investigates whether such regulatory change is likely to be as severe as it seems.
The coming implementation of the Basel output floor and the EBA’s proposal for a ......
News Analysis 15 December 2022Premium Content
-
Play it forward
Evolution of BNPL securitisation eyed
The cost-of-living crisis and growing regulatory scrutiny are set to shape the evolution of the BNPL securitisation sector. This Premium Content article explores what the next 12 months may bring for the asset class.
The cost-of-living crisis may stall the securitisation of buy now, pay later (BNPL) assets before the sector has had chance to take off, ......
News Analysis 14 December 2022Premium Content
-
Mind the gap
'Regulatory impediments' stalling ESG securitisation
Securitisable green lending in respect of residential mortgages on energy-efficient properties, loans for green home renovations and electric vehicle financing could exceed €300bn annually by 2030, according to a new AFME analysis. The findings are part of a study that provides a comprehensive overview of the current European regulatory landscape for green securitisation, challenges preventing the instrument from fully .......
News 12 December 2022
-
Survey suggests improved sentiment
Sector developments and company hires
Survey suggests improved sentiment
KBRA has published the results of its December survey of European structured finance investors, which was conducted to gauge their views and expectations regarding the market. The report reveals a more positive picture than the rating agency’s previous investor survey from June.“While many challenges remain for the European securitisation sector, sentiment for the market .......
Market Moves 9 December 2022
-
Ambitious objective
LEV financing investigation underway
The European DataWarehouse (EDW) and Leibniz Institute for Financial Research SAFE’s Green Auto Securitisation (GAS) project has an ambitious objective of developing a green finance framework for low-emission vehicles (LEVs) (SCI 4 October). The initiative is expected to help shape the future of green car policies, while having a profound impact on European financial institutions.
“We’ve really .......
News Analysis 5 December 2022
-
Agency activism
Divided Congress means greater agency intervention
The split US Congress, as a result of the recent mid-term elections, is likely to lead to the agencies responsible for the housing market to steer a course which will be both more independent and more interventionist, say analysts.
News Analysis 1 December 2022
-
Don't panic!
Vadim Verkhoglyad, vp and head of research publication at dv...
Concerns of a recessionary impact on US consumer markets, and comparisons to the global financial crisis, are rampant across the media. This fearmongering is not accurate, is harming the market and is not in our best interest.
Widespread media analysis suggests that we are in a crisis: headlines focus on the increase in subprime auto delinquencies, the downturn .......
Talking Point 29 November 2022
-
Less dilutive
Dan Trolio, executive svp and cfo of Horizon Technology Finance Corporation, answers SCI's questions
Q: Horizon recently completed a US$158m ABS - Horizon Funding Trust 2022-1 - backed by non-investment grade performing loans advanced to venture capital-backed companies in the technology, life science, healthcare information and sustainability industries. DBRS Morningstar assigned a single-A rating to the US$100m class A notes, which bear interest at a fixed interest rate of 7.56% per annum and .......
The Structured Credit Interview 25 November 2022
-
Encouraging activity
European ABS/MBS market update
The UK and European ABS/MBS primary market saw some signs of recovery this week, with eight deals pricing. Further, following weeks of volatile market conditions and a lengthy trend of exclusively fully privately/pre-placed deals, the UK market finally welcomed a public transaction.
Yesterday, Nationwide priced the £750m 1A class of its RMBS securitisation Silverstone 2022-2. In an impressive .......
News 25 November 2022
-
Sell-side specialisms
SRT bank relationships, technical knowledge transferred
SRT arranger/structurer departures from Citi have been notable over the last year, with Olivier Renault (SCI 1 December 2021), Mark Kruzel (SCI 11 May) and Alexis De Vrieze (SCI 8 September) all moving to the buy-side, for example. Capital relief trade sell-siders bring specialisms – including technical knowledge and bank relationships – that can be particularly .......
News 24 November 2022
-
Unlimited mandate
Robert Bradbury, head of structured credit execution and adv...
Q: A&M’s structured credit offering is a core component of the firm’s portfolio advisory group, which acts for both the buy-side and the sell-side in respect of portfolio and credit opportunities across asset classes, including core lending books, non-performing loans, aviation, shipping and specialty lending, as well as all structured finance opportunities relating to these segments. What does your .......
Provider Profile 23 November 2022
-
Grounds for optimism
US equipment ABS stays strong
US equipment ABS has had a good year, notwithstanding macro-driven spread widening. As this premium content article shows, there is also hope for 2023.
While most sectors throughout the global capital markets have struggled in 2022, the US equipment ABS market quietly but surely had a record year. That is not to say it’s all been easy, ......
News Analysis 23 November 2022Premium Content
-
Staying strong
Partnership approach hailed as basis of SRT success
SRT pricing is, generally speaking, currently approximately 200bp wider compared to the beginning of 2022. Yet pricing has remained relatively sticky within a range, demonstrating the success of the partnership approach involved in capital relief trades, which tend to be much more negotiated and tailored.
“Despite the difficult economic environment, we believe 2022 has been a successful year .......
News Analysis 15 November 2022
-
Irish, UK NPE disposals inked
Sector developments and company hires
Irish, UK NPE disposals inked
The Bank of Ireland has reached agreements to dispose of portfolios of Irish and UK non-performing exposures, through two .......
Market Moves 9 November 2022
-
New landscape
ABS litigation 'rules of engagement' explained
US subprime RMBS disputes could impact ABS deal structures and related litigation in five pivotal ways. Against this backdrop, it is incumbent on parties to plan accordingly to navigate the new ABS litigation landscape.
“A lot of the changes over the years and more recently have been in favour of defendants, who have been gaining momentum,” says .......
News Analysis 8 November 2022