ABS

  • Actuarial approach

    Alphidem co-founder Ken Sutter outlines how the quantitative...

    In light of the current regulatory and interest rate environment, it could be assumed that capital relief trades enjoy great popularity, even outside of the dedicated investor community. However, despite growth and positive market trends, the asset class still leads a niche existence and sticks to its esoteric label. This is even more astonishing considering that many alternative credit managers .......

    Talking Point 25 May 2021

  • CLO conflicts of interest eyed

    Sector developments and company hires

    CLO conflicts of interest eyed
    IOSCO has issued four questionnaires for industry participants on conduct risks in leveraged loans (LLs) and CLOs targeting bank lenders, CLO investors, CLO managers and LL sponsors. Through its Committee 3 on Regulation of Market Intermediaries and its Committee 5 on Investment Management, IOSCO is conducting work to understand the potential conflicts of interest and .......

    Market Moves 24 May 2021

  • Climate risks disclosed

    EBA publishes landmark banking study

    The EBA has published the first EU-wide pilot exercise on climate risk for the banking sector. The exercise shows that over half of banks’ exposures are allocated to sectors that might be sensitive to climate transition risk. However, the study qualifies that limited data availability and reliability can affect results in terms of comparability.  

    The revised CRR/CRD .......

    News 24 May 2021

  • Strategic credit commitment inked

    Sector developments and company hires

    Strategic credit commitment inked
    The Investment Management Corporation of Ontario (IMCO) has closed a US$500m commitment with a new strategic partner, Ares Management Corporation. IMCO has allocated US$400m of the commitment to a fund of one structure and US$100m to Ares Pathfinder Fund, a flagship global alternative credit fund. Pathfinder pursues a differentiated strategy of providing tailored financial solutions for .......

    Market Moves 20 May 2021

  • SRT boost

    Barclays expands Colonnade platform

    News 20 May 2021

  • Data centre leverage 'inconsistent' with ratings

    Sector developments and company hires

    Data centre leverage ‘inconsistent’ with ratings
    A number of wholesale data centre securitisations issued in recent years carry elevated leverage that is inconsistent with the single-A rating category, Fitch suggests. The rating agency states that these transactions have weaker credit characteristics and substantially higher leverage multiples than other comparable digital real estate securitisations, such as wireless tower transactions, and higher .......

    Market Moves 19 May 2021

  • Blue investable markets study underway

    Sector developments and company hires

    Blue investable markets study underway
    The European Commission and the EIB Group have increased their cooperation to implement a new EU Sustainable Blue Economy policy. Under the agreement, both institutions will work jointly with EU Member States to meet financing needs to reduce pollution in European seas and support investment for blue innovation and blue bioeconomy.

    As such, the .......

    Market Moves 18 May 2021

  • Gaining momentum

    European solar ABS issuance tipped to emerge

    The development of a European solar ABS market is gaining momentum, with the first few securitisations potentially anticipated to emerge over the next 12-18 months. The first structures to market are expected to have many of the features observed on US solar transactions.

    “We could envisage a situation where we would see the inaugural public transaction in the .......

    News Analysis 18 May 2021

  • Virtuous circle?

    Bullish sentiment underpins securitisation opportunity

    A strong rebound in global growth appears to be underpinning the opportunity in securitised credit, notwithstanding the ongoing impact of the coronavirus pandemic. As economic activity picks up and more collateral is available to be securitised, further supply should hit the market and generate increased interest from investors.

    Sentiment in the securitisation market remains bullish, according to Mark .......

    News 14 May 2021

  • Lone Star rising

    A soup to nuts profile of TCBI's inaugural CRT

    It took Texas Capital Bank nine months to finalise its landmark capital relief trade, becoming the first US regional bank to tap the risk transfer market (SCI passim). This CRT Premium Content article tracks the deal’s progress from inception to launch.

    When Texas Capital Bank began to contemplate issuing a capital relief trade in late spring of ......

    News Analysis 13 May 2021

    Premium Content

  • Asset managers partner on pensions initiative

    Sector developments and company hires

    Asset managers partner on pensions initiative
    DWS has launched the DWS Secured Income Fund, aimed at small to medium-sized defined benefit pension plans seeking stable, long-term returns. The fund provides a diversified portfolio of secured income assets, including ABS and CLO bonds.

    Over half of UK defined benefit pension plans are in deficit, with insufficient assets to meet their .......

    Market Moves 13 May 2021

  • Bad weather bonds

    Utilities to make use of ABS to rebuild after extreme weather

    This year has already seen two utility recovery charge (URC) ABS transactions in the US and, say analysts, more will be priced as extreme weather becomes more common – which some climate modellers predict.

    “We’ve seen two so far this year and there is rumbling of more to come due to legislation already in place, as well as .......

    News Analysis 12 May 2021

  • Iberian RMBS investment disclosed

    Sector developments and company hires

    Iberian RMBS investment disclosed
    The EIB has disclosed that it invested €50m in UCI’s latest RMBS, Prado VIII, aimed at promoting the renovation of existing residential buildings in Spain and Portugal, as well as the purchase of new near zero energy housing. The project is expected to contribute to climate change mitigation, delivering energy savings of almost 57GWh a year .......

    Market Moves 12 May 2021

  • STS BTL RMBS prepped

    Sector developments and company hires

    STS BTL RMBS prepped
    Domivest is in the market with the first-ever STS buy-to-let RMBS. Dubbed Domi 2021-1, the €352.2m transaction is backed by a €370.7m provisional pool of Dutch BTL mortgage loans, including €30.61m in prefunding.

    Interest-only loans comprise 93.5% of the pool, according to Moody’s. Loans with initial LTVs above 70% amortise linearly to either the 70% .......

    Market Moves 11 May 2021

  • Geographical divergence

    CSEE moratoria more likely to underperform

    EU banks set aside large provisions in 2020 in anticipation of Covid-induced higher default rates, but most loans that benefited from payment holidays in the region resumed regular payment schedules during 2020 with less than expected difficulty. However, the credit performance of loans exiting moratoria weakened in the last quarter of the year, indicating that loans under long-running moratoria .......

    News Analysis 11 May 2021

  • Risk transfer round-up - 11 May

    CRT sector developments and deal news

    Bank of Montreal has called Muskoka Series 2020-1. The US$132m financial guarantee was executed in April 2020, becoming the first post-Covid capital relief trade (SCI 15 May 2020). The lender exercised another call option on 9 February for Muskoka Series 2017-2 (SCI 9 February).   

    .......

    News 11 May 2021

  • Hertz reorganisation proposals weighed

    Sector developments and company hires

    Hertz reorganisation proposals weighed
    Hertz has determined that a revised proposal to provide equity capital to fund its exit from Chapter 11 - made by affiliates of Knighthead Capital Management, Certares Opportunities and Apollo Capital Management - constitutes a superior proposal than the one contemplated by its agreement with its existing plan sponsors, affiliates of Centerbridge Capital Partners, Warburg Pincus .......

    Market Moves 10 May 2021

  • Mortgage-backed SRT priced

    Credit Suisse executes Elvetia refinancing

    News 10 May 2021

  • Alternative support

    Infrastructure ABS boosts Italian direct lending

    Further details have emerged regarding the debut syndication of an Italian infrastructure loan via a securitisation vehicle (SCI 4 May). The transaction was undertaken with aim of enabling alternative lenders to access the Italian credit market.

    “The objective of the deal was to syndicate both drawn and undrawn loan commitments to non-banking institutions that were not licensed .......

    News 7 May 2021

  • Green railcar ABS debuts

    Sector developments and company hires

    Green railcar ABS debuts
    Trinity Industries has priced its inaugural green railcar ABS, following the publication of its green financing framework in January. The US$355m TRP Series 2021-1 transaction is backed by a US$482.68m portfolio comprising 6,350 railcars.

    The notes constitute green bonds based on the generally accepted market principles for such classification published by ICMA. Sustainalytics, acting as an external .......

    Market Moves 7 May 2021

  • Niche exposure

    CFE Finance business development manager Duccio Duranti and...

    Q: How and when did CFE Finance become involved in the securitisation market?
    DD: CFE Finance was founded by Mario Cordoni in 2001 to support the trade of commercial transactions both to and from emerging markets, including pre-export finance and export credit agency (ECA) financing. As a metals trader, Mario often faced credit risk exposure when dealing with emerging market .......

    The Structured Credit Interview 7 May 2021
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