ABS

  • Slow and steady

    Dutch auto ABS to remain stable as car ownership declines

    Adoption of Mobility as a Service (MaaS) in the Netherlands could lead to the end of individual car ownership for the country’s residents. At present, Dutch auto ABS only represents 1% of the total European auto ABS market, so the impact of this shift is likely to be marginal overall. Nevertheless, concentration risk and residual value risk remain important .......

    News Analysis 27 May 2022

  • El Clásico?

    Groundbreaking AV bond closes

    CVC Capital Partners has closed an innovative hybrid transaction backed primarily by revenues from audio-visual (AV) rights commercialised by La Liga, the organisation that runs the top two divisions of professional football in Spain. Dubbed Loarre Investments, the deal represents the first-ever European bond used to finance a leading sports league.

    Late last year, Spanish football clubs voted .......

    News 26 May 2022

  • Portfolio progress

    Business model rethink continues apace

    The trend of banks rationalising their business models continues apace across Europe. This Premium Content article explores the role of securitisation in their portfolio optimisation efforts.

    The need for banks to fundamentally rethink their business models emerged post-financial crisis and continues still across Europe. Beyond disposals of non-performing assets, this entails focusing on core strategies and markets, .......

    News Analysis 25 May 2022

  • Complex picture

    European ABS/MBS market update

    With two deals being pulled in the space of a week, the European ABS/MBS markets are facing thorny times. The current complex environment and volatility is set to hinder issuance in the short term.

    Last Friday, HSBC announced it had to pull its UK student accommodation CMBS transaction – HXGN CMBS Finance 2022-1 – due to “exceptional market .......

    News 20 May 2022

  • Climate countdown

    Green SRT challenges highlighted

    A green synthetic securitisation framework remains lacking, despite the current regulatory focus on ESG. This Premium Content article explores why.

    Green lending targets in use-of-proceeds synthetic securitisations are expected to become more of an obligation going forward, but such a change should be accompanied by clear parameters and consequences for failing to satisfy that obligation. Nevertheless, a framework for ......

    News Analysis 20 May 2022

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  • Accelerating change

    NPL ABS evolution gathers pace

    Regulatory change in the European non-performing loan securitisation market has picked up speed over the last month, with the publication of the EBA’s final draft risk retention regulatory technical standards (RTS) (SCI 13 April) and the launch of an EBA consultation on draft implementing technical standards (ITS) in connection with NPL data templates (SCI 17 May). However, .......

    News Analysis 19 May 2022

  • Juicy CRT

    Historical wides entice fast money

    Spread levels in GSE CRT securities at the bottom end of the capital stack are now so cheap relative to comparable ABS assets that they are attracting attention from hedge fund and private equity money, say analysts.

    Five-year B2 notes are currently priced close to 1100bp over SOFR, more than twice the levels at which high yield ABS .......

    News Analysis 18 May 2022

  • New path

    Mexican securitisation marks firsts for StepStone

    Global private markets firm StepStone has structured a US$102.5m public offering of a securitised portfolio of direct loans via Certificados Bursátiles Fiduciarios on Mexico’s BIVA stock exchange earlier this year. Significantly, the transaction represents the first securitisation in Mexico of a portfolio of direct loans granted to North American companies, as well as the first time that StepStone acted .......

    News 16 May 2022

  • 'Investor-friendly' features introduced

    Sector developments and company hires

    Rising interest rates and widening spreads have spurred changes in US non-prime RMBS structures that introduce investor-friendly features for senior noteholders, Fitch reports. The move comes amid growing concern over coupon cap shortfalls and lower availability of excess spread.

    As such, many issuers have reduced the aggregate servicing fee to 25bp (which historically has been 50bp), while some have introduced .......

    Market Moves 11 May 2022

  • ITRN 'club deal' debuts

    Sector developments and company hires

    NN Investment Partners (NN IP) has launched the first vintage of a customised solution to invest in trade finance through its Insured Trade Receivables Notes (ITRN) strategy. Structured as a club deal and delivered via a mutual debt vehicle (a fonds commun de titrisation), the offering was specifically designed for a group of high-profile insitutional investors in France, with initial .......

    Market Moves 9 May 2022

  • MSCI and MarketAxess collaborate

    Sector developments and company hires

    MSCI has announced its entry into a strategic collaboration with MarketAxess to establish new portfolio analytics solutions and fixed income indexes. The two firms hope to improve the fixed income investment process, empower investors, and drive innovation through their collaboration by developing portfolio optimisation, trading, and analytics tools. The collaboration will rely on MarketAxess’ fixed income indexes and AI-informed pricing .......

    Market Moves 29 April 2022

  • A buyer's market

    European ABS/MBS market update

    Following a flurry of deal announcements (SCI 22 April 2022), the primary European and UK ABS/MBS markets were extensively testing investor demand during the week. With so many deals to absorb, deal performance has been disparate.

    In a context of large volumes of paper, UK RMBS transactions were playing a central role with four transactions hitting the market. On .......

    News Analysis 29 April 2022

  • Fasten your safety belts

    Aircraft ABS set for further turbulence

    The fallout from the Ukraine crisis is likely to affect the entire aircraft ABS market, rather than simply those deals with exposure to Russian assets. This Premium Content article outlines why the sector is bracing for a bumpy ride.

    The Russia-Ukraine conflict has exposed fault lines in the aircraft ABS market that participants had hitherto tended to .......

    News Analysis 22 April 2022

  • Ex-employees resurrect Highland

    Sector developments and company hires

    Ex-employees resurrect Highland
    A trio of former senior Highland Capital Management portfolio managers have resurrected the firm under a new moniker, Highland ERA Management. Patrick Daugherty – who was partner, senior CLO portfolio manager and head of distressed/special situations at Highland – is partnering with ex-Highland team members Kevin Rourke and Niles Chura in the venture.

    Through a sub-advisory .......

    Market Moves 22 April 2022

  • Full steam ahead

    European ABS/MBS market update

    With seven deals marketing, the European and UK primary ABS/MBS markets are set for bustling days ahead. While the market remained relatively unmoved either side of the Easter break, this strong surge in deals all scheduled for next week will certainly test investors’ appetite.

    “With so many deals being announced, the doors are clearly open,” notes one European .......

    News 22 April 2022

  • New name

    Dutch auto lease ABS debuts

    Hiltermann Lease is in the market with a rare Dutch auto ABS. The lender’s inaugural transaction, dubbed Hill FL 2022-1, is backed by a €500m pool comprising 33,744 financial lease contracts to 30,896 lessees (see SCI's Euro ABS/MBS Deal Tracker).

    The assets were distributed through dealers to self-employed and commercial borrowers to finance the purchase of new (accounting for .......

    News 20 April 2022

  • Finding funding

    European solar ABS tipped for acceleration

    Securitisation could play a vital role in funding the European energy transition, with households likely to bear the brunt of the switch to renewable energy. As the Ukraine conflict continues to raise concerns over Russian energy dependency across Europe, the development of a solar ABS market in the region is expected to accelerate.

    Following on from forced sustainable .......

    News Analysis 14 April 2022

  • Dutch courage

    European ABS/MBS market update

    The European and UK ABS/MBS markets are looking to take full advantage of a recent surge in activity. This week, with a number of deals due to price, the market will try to maintain its strong momentum into the Easter break.

    After feeling the full effects of macro volatility, the European and UK ABS/MBS markets have over the .......

    News 12 April 2022

  • Hellenic ABS inked

    Project Starlight package transaction agreed

    Hellenic Bank has agreed a package transaction involving the securitisation of the Starlight Portfolio – which comprises circa €1.32bn of non-performing exposures - and the sale of its servicing platform, APS Debt Servicer, to Oxalis Holding. Upon completion, the agreement will de-risk the bank's balance sheet by reducing NPEs by €720m, resulting in a residual NPE portfolio of circa .......

    News 11 April 2022

  • Perfect storm

    Cat bond market set for exponential growth?

    With the climate threat menacing ever more, is the catastrophe bond market set to see exponential growth? This Premium Content article investigates.

    This year, the catastrophe bond sector reached a landmark anniversary, marking 25 years since its inception. This follows record levels of issuance in 2021, with the market seeing volumes of US$12.5bn, surpassing the previous record of US$11bn ......

    News Analysis 11 April 2022

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  • Dual shocks

    Securitisation well positioned to withstand headwinds

    The Covid-19 shock has been replaced by two others - war and worse-than-expected inflation (SCI 7 April). However, the securitisation market appears to be well positioned to withstand these headwinds.

    “We came into the year coming out of one shock – pandemic - only to be hit by two others: worse-than-expected inflation and now war. Those new shocks are .......

    News Analysis 8 April 2022
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