ABS
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Greek SRT finalised
Alpha Bank closes capital relief trade
Alpha Bank has completed a €145m synthetic securitisation that references a €1.9bn portfolio of Greek corporate and SME loans. The transaction is the third Greek significant risk transfer trade and the first Greek SRT involving multiple investors.
Indeed, CRC, Anacap and the EBRD all invested in the deal. The EBRD put down €10m of credit protection, but CRC bought the .......
News 20 December 2021
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Spanish private debt fund wins EIF backing
Sector developments and company hires
Spanish private debt fund wins EIF backing
Beka Finance has formed a private debt management unit, dubbed Beka Credit, which it hopes will help consolidate the firm’s growth and leadership position in the alternatives market. The unit is already preparing to launch its first private debt fund, with which it expects to raise around €250m.The Luxembourg-based vehicle will .......
Market Moves 17 December 2021
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Offshore appeal
International ratings for CMB credit card ABS
The first Chinese credit card ABS rated by an international agency (S&P) has closed. Zhaoyin Hezhi 2021 Phase I Personal Consumer Loan Asset-backed Securities is backed by a CNY2.97bn pool of credit card receivables originated by China Merchants Bank (CMB), which will also act as servicer on the transaction.
On why CMB sought international ratings, Andrea Lin, lead analyst and .......
News Analysis 17 December 2021
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Auto CRT priced
Santander engineers US return
Santander has completed its synthetic securitisation that references a US$2.17bn portfolio of US auto loans (SCI 9 December). The transaction is the first post-Covid US synthetic auto ABS issued by a European originator and marks Santander’s return to the US market.
Rated by Fitch, the transaction consists of US$1.656bn unrated class A1 notes, US$10m unrated class A2 .......
News 17 December 2021
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UK review released
HMT 'broadly supportive' of securitisation market
The UK government has published its report on the review of the securitisation regulation (SCI 28 June), which outlines specific areas of the regime that HM Treasury may revisit to ensure it “best delivers” for the UK securitisation market. The report appears to be broadly supportive of the industry - although notably isn’t supportive of extending the public .......
News 14 December 2021
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Legal fees
Litigation finance market ripe for securitization wizards
Dislocation and delays of normal procedure during the 21 months of Covid-19 have boosted the litigation finance market and with it the possibility of greater securitization, says Jordan Goldstein, partner at Selendy & Gay in New York
Goldstein was speaking today about new trends in structuring and underwriting at the ABS East conference in Miami.
Lenders in the litigation finance market advance capital .......
News 14 December 2021
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Road rage
Soaring used car prices turbo charge auto ABS but risks loom, say Miami panellists
An unprecedented surge in US used car values has led to a remarkable recovery in the auto ABS market from the pandemic lows, agreed panellists today at the ABS East conference in Miami.
Spreads have narrowed from an average of Libor plus 300bp-350bp at the beginning of Q2 2020 to something in the region of plus 150bp at the end of 2021, .......
News 13 December 2021
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Game-changing potential
In the second in our series of year-end interviews with inve...
Opportunities for investment in CRT trades from US names will increase significantly in 2022, says Terry Lanson, a portfolio manager at Seer Capital.
“We think we’ll see significant volume out of the US and also out of Europe. The programme is growing in adoption globally. It is receiving significant attention from investors and capital allocators like state pension .......
News Analysis 13 December 2021
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Year-end?
European ABS/MBS market update
With primary European ABS/MBS market activity fading further away, year-end feels awfully close. As a result, focus is already being directed on the upcoming new year.
“I think it is fair to say that we have hardly looked at any potential trades this week,” says one European ABS/MBS trader. “As is appropriate for this time of year, there .......
News 10 December 2021
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Climate risk analytics firms acquired
Sector developments and company hires
Climate risk analytics firms acquired
Intercontinental Exchange has acquired risQ and Level 11 Analytics, which deploy data-driven technologies for managing climate change risk. RisQ and Level 11 Analytics leverage a variety of advanced geospatial mapping systems and provide extensive expertise in analysing and joining vast amounts of disparate public, corporate and third-party data sources.This data is integrated and .......
Market Moves 9 December 2021
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SME boost
German STS synthetic printed
Deutsche Bank and the EIB Group have executed a €75m unfunded mezzanine guarantee that references a €1bn German mid-market corporate portfolio. The guarantee will provide capital relief to Deutsche Bank and enable the lender to finance €300m of SME and mid-cap lending. The transaction is expected to support smaller businesses in their recovery from liquidity shortages caused by the .......
News 9 December 2021
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Growth constraints
Disconnect between Euro ABS ambitions and reality?
European securitisation issuance for the first 11 months of the year stood at a decade high of over €112bn, up by more than 65% compared with the same period in 2020, according to S&P figures. However, despite such record growth, a disconnect appears to remain between the industry’s ambitions and what is being seen on the ground - which .......
News Analysis 9 December 2021
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Perfect harmonisation?
Transparency and standardisation key to EU NPL initiatives
Although fears of a Covid-induced wave - or a tsunami even - of European non-performing loans (NPLs) has dissipated for now, caution and vigilance still appear to dominate the sector. A regulatory approach towards increased transparency and harmonisation of the secondary market for NPL transactions should, however, facilitate more efficiency across the sector.
“The European Commission has tried .......
News Analysis 9 December 2021
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Flowers among weeds
CMBS yields value to canny buyers despite distress
In the first of a series of interviews with SCI, investment managers discuss where they have seen most value recently and where they expect to see it in 2022.
Despite - or because of - the continued uncertainties that beset many areas of the CMBS market, this is the sector of the structured finance marker that currently offers the best returns to .......
Talking Point 8 December 2021
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CRT bonanza
Record 2021 origination and Fannie's return to drive banner 2022 for CRT
Next year will see record GSE CRT issuance of around $20bn, around $6bn higher than 2021, predicts Pratik Gupta, head of CLO and RMBS research at Bank of America.
In addition, he predicts a resurgence of interest in CRT issuance from mortgage insurers seeking to lay off risk and suggests that there could be as much as $10bn of supply in this .......
News 8 December 2021
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Positive prospects?
CRE tops Stage Two allocations
Commercial real estate loans were allocated the largest share of Stage Two classifications, according to the latest EBA data. This coincides with an overall growth in Stage Two allocations following the coronavirus crisis, as well as a boost in significant risk transfer transactions backed by Stage Two exposures and commercial real estate.
According to the EBA’s latest risk .......
News 8 December 2021
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ESG data coverage scrutinised
Sector developments and company hires
The European Leveraged Finance Association (ELFA) has analysed coverage by three ESG data vendors for three debt indices - the CS Western European Leveraged Loan Index, the ICE BofAML Developed Markets High Yield Constrained Index and the BBG Global Aggregate Corporate Index – and found what it describes as “major discrepancies” in data coverage across asset classes. The research shows .......
Market Moves 7 December 2021
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Digital ABS debuts
Fully blockchain-based securitisation completed
German fintech Cadeia has completed the first-ever fully blockchain-based corporate loan securitisation via its Digital Services Platform (DSP). Dubbed GreyPeak 2021-1, the deal was privately placed in the form of digital securities.
“GreyPeak 2021-1 is the first loan securitisation to fully store and execute the complex terms and processes of a securitisation transaction in a blockchain,” explains Rolf .......
News 7 December 2021