ABS
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Synthetic Libor settings confirmed
Sector developments and company hires
Synthetic Libor settings confirmed
Market Moves 29 September 2021
The UK FCA has confirmed that to avoid disruption to legacy contracts that reference the one-, three- and six-month sterling and Japanese yen Libor settings, it will require ICE Benchmark Administration to publish these settings under a 'synthetic' methodology, based on term risk-free rates, for the duration of 2022. However, these six Libor settings will be .......
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Mobilising capital
Call for risk transfer adoption in development finance
Aid agencies, development finance institutions (DFIs) and multilateral development banks (MDBs) must make development finance work harder to achieve impact, according to a new OECD policy briefing. Entitled ‘Making blended finance work for sustainable development: the role of risk transfer mechanisms’, the report calls for the adoption of portfolio approaches that connect large-scale commercial finance supply with small-scale borrower .......
News 28 September 2021
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Fraud charges for Honor Finance pair
Sector developments and company hires
Fraud charges for Honor Finance pair
Market Moves 24 September 2021
The US SEC has announced fraud charges against James Collins and Robert DiMeo, the former principals of Honor Finance, for misleading investors about the subprime automobile loans that backed its US$100m offering. The SEC's complaint, filed in US District Court for the Northern District of Illinois, alleges that the pair were responsible for false .......
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Excellent shape
European ABS/MBS market update
September is living up to its reputation as a busy month for the European ABS/MBS primary market. Even though four deals are due to price today and tomorrow and three printed yesterday spreads remain tight and demand is still strong.
“It’s pleasing to see that the primary ABS market is in excellent shape,” notes one trader. “Although there is an .......
News 23 September 2021
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New frontiers?
Prospects for further NPL ABS guarantee schemes weighed
Given the success of both GACS and HAPS in facilitating the development of a market for non-performing loans, and consequently bank deleveraging, could similar government-backed measures emerge in other European jurisdictions? This Premium Content article examines the prospects for the introduction of further national guarantee schemes.
Italy and Greece appear to have embraced the most efficient model for de-risking ......
News Analysis 23 September 2021Premium Content
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US CLOs, Trups CDOs under observation
Sector developments and company hires
US CLOs, Trups CDOs under observation
Market Moves 22 September 2021
Fitch has placed 102 tranches issued by 43 US CLOs and 13 tranches issued by seven Trups CDOs under criteria observation (UCO), following the publication of its CLO and corporate CDO rating criteria last week (SCI 17 September). The agency intends to resolve the UCO status by applying the updated criteria to each .......
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Pandemic 'feedback loop' highlighted
Sector developments and company hires
Pandemic ‘feedback loop’ highlighted
Market Moves 21 September 2021
Secular changes affecting the recovery of in-person office occupancy in New York City is consequential not only for property-level cashflow, but may also have ripple effects on other sectors, Fitch suggests. The city is the largest US office market and the rating agency says it provides a good case study of the potential feedback loop of .......
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Pagaya goes public via SPAC
Sector developments and company hires
Pagaya goes public via SPAC
Fintech securitisation issuer Pagaya Technologies and EJF Acquisition Corp (EJFA), a publicly traded SPAC, have entered into a definitive business combination agreement. As a result of the transaction, which values the combined company at an estimated enterprise value of approximately US$8.5bn at closing, Pagaya will become a publicly listed entity.Founded in 2016 by .......
Market Moves 20 September 2021
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Securitisation execs promoted in PGIM reorg
Sector developments and company hires
Securitisation execs promoted in PGIM reorg
PGIM Fixed Income has reorganised its senior management team, with the appointments effective from 1 January 2022. Under the reorganisation, md John Vibert has been promoted to the newly created role of president.Vibert joined PGIM Fixed Income in 2014 as the head of securitised products and serves in that role currently. Prior .......
Market Moves 17 September 2021
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Tight pricing
Santander sets post-Covid record
Santander has completed a €580.8m 14-year full-stack significant risk transfer transaction that references a portfolio of Spanish auto loans. Dubbed SC Spain Auto 2021, the transaction’s first loss tranche achieved the tightest print at that level for a full-stack SRT following the onset of the coronavirus crisis, as pre-pandemic dynamics return to the ABS market (SCI 15 September).
News 17 September 2021
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Traffic jam
Bumper two days in auto ABS underlines strength of fundamentals
No less than eight US auto loan-backed ABS deals have been priced in the last two days, making the last 48 hours the busiest two day period in the sector in recent memory as borrowing costs continue to be alluring and investor appetite vigorous.
This follows $9.6bn of issuance in August, in the form of 12 prime, non-prime and leasing deals. In .......
News Analysis 16 September 2021
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NPR issued on GSE capital framework
Sector developments and company hires
NPR issued on GSE capital framework
Market Moves 16 September 2021
The FHFA is seeking comment on a notice of proposed rulemaking that would amend the Enterprise Regulatory Capital Framework (ERCF) for Fannie Mae and Freddie Mac. The proposed amendments would refine the prescribed leverage buffer amount (PLBA) and the capital treatment of credit risk transfers (CRT) to better reflect the risks inherent in the .......
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SRT debut
First Nordic green synthetic executed
Nordea and the EIF have finalised a significant risk transfer transaction that references a €1.8bn portfolio of corporate and SME loans (SCI 23 July). The deal will free up capital for green lending to Swedish and Finnish firms, rendering it the first such deal from a Nordic bank.
The transaction features tranches that amortise on a pro-rata .......
News 16 September 2021
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Strong opportunities
European NPL investment trends discussed
Emerging non-performing loan opportunities across a number of jurisdictions in Europe are boosting sentiment in the market, with particularly strong demand seen in Italy. However, challenges are anticipated in this jurisdiction for transactions that are more complex in nature, according to participants at SCI’s 3rd Annual NPL Securitisation Seminar.
“The Italian NPL market is currently very active, with .......
News 15 September 2021
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Specialist lender stake acquired
Sector developments and company hires
Specialist lender stake acquired
Market Moves 15 September 2021
BNP Paribas Asset Management (BNPP AM) is set to acquire a majority stake in Dynamic Credit Group, the Amsterdam-based asset manager and specialist lender with €9bn of assets under management. The deal will allow BNPP AM’s private debt and real assets (PDRA) investment division - which currently managed €11bn of client commitments - to significantly grow .......
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Pick-up continues
European ABS/MBS market update
Following on from last week’s pick-up, the European ABS/MBS market is set for another busy week. The pre-summer dynamic has returned, with activity in both primary and secondary.
“It appears as though this week will be particularly busy on the auto ABS front, with four deals currently in the market,” notes one trader. “It is a similar story .......
News 15 September 2021
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Digital lender debuts
German consumer collateral on offer
Digital lending platform auxmoney Investments is in the market with its inaugural public securitisation – Fortuna Consumer Loan ABS 2021. The transaction, which will be certified as STS by SVI, is backed by a €227.75m portfolio of near-prime consumer loans granted to private individuals in Germany.
The portfolio is concentrated in North Rhine-Westphalia (accounting for 21% of the .......
News 15 September 2021
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Servicing expansion
SitusAMC executive md and head of Europe Lisa Williams and d...
Q: Alfonso, tell us a bit about your new role at SitusAMC?
Provider Profile 14 September 2021
AP: I joined SitusAMC this past July to lead the expansion of the firm’s servicing business beyond commercial real estate to include corporate direct debt, infrastructure and social housing loans (SCI 13 August). I’ve spent the last 15 years of my career servicing debt at some of .......
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