ABS
-
BMO SRT inked
Repeat Manitoulin trade completed
Bank of Montreal has completed a capital relief trade referencing US and Canadian senior secured and senior unsecured corporate loans. Dubbed Manitoulin USD Algonquin 2020-1, the five-year financial guarantee is a repeat transaction of another Manitoulin SRT from the same series that was finalised in July 2019.
Rated by DBRS Morningstar, the transaction consists of a triple-A rated class A .......
News 31 January 2020
-
Risk transfer round-up - 28 January
CRT sector developments and deal news
Deutsche Bank has completed a capital relief trade from the CRAFT programme. Dubbed CRAFT 2020-1, the US$150m 9.5-year CLN priced at Libor plus 9.5%. The floater is non-callable and has a weighted average life and expected maturity equal to 7.5 years. Deutsche Bank’s last CRAFT transaction was finalised in March 2019 (see SCI’s capital relief trades database).
...... News 28 January 2020Premium Content
-
Valuations provider bought by investor consortium
Sector developments and company hires
Acquisitions
Market Moves 28 January 2020
A consortium led by funds managed by Stone Point Capital and Further Global has agreed to acquire Duff & Phelps for US$4.2bn. The equity sellers include the Permira funds, which will continue to hold a significant stake in the company as part of the consortium. As part of the transaction, the Duff & Phelps management team will maintain a .......
-
Hedge fund liquidated amid accounting probe
Sector developments and company hires
Hedge fund liquidated amid accounting probe
Market Moves 27 January 2020
TCA Fund Management Group is liquidating its main credit hedge fund, TCA Global Credit Master Fund, after the fund received redemption and withdrawal requests in excess of available cash. The redemptions come amid a US SEC probe into the firm’s accounting practices. According to whistleblowers, the firm has US$300m in assets - not US$500m - .......
-
Tail risk debut
Innovative cat bond completed
Goldman Sachs has completed an unusual catastrophe bond that covers the tail risk that State National Insurance Company is exposed to through its insurance agreements with ILS manager Nephila Capital as capacity provider. Principal reduction of the notes under the transaction - dubbed Stratosphere Re Series 2020-1 - can only be triggered after at least two industry insured loss .......
News 27 January 2020
-
Risk transfer round-up - 27 January
CRT sector developments and deal news
Banco BPM is rumoured to be readying a capital relief trade for this year. The issuer launched its first risk transfer transaction in June 2019, which was carried out with the EIF (see SCI’s capital relief trades database).
...... News 27 January 2020Premium Content
-
NPL ABS settled
Multi-originator trend continues
Twelve Italian popular banks - including Banca Popolare di Puglia e Basilicata and Banca di Credito Popolare - have settled a securitisation backed by an €826.7m GBV portfolio of secured and unsecured non-performing loans. The ABS continues a trend of multi-originator transactions that began over a year ago in the Italian NPL market (SCI 13 July 2018).
News 23 January 2020
-
Chinese reference centre upgrade 'credit positive'
Sector developments and company hires
Credit system upgraded
Market Moves 23 January 2020
The People's Bank of China’s Credit Reference Center last week upgraded its credit information system to record and provide more comprehensive credit information on individuals and enterprises. The upgraded system can lead to better measurement and understanding of risk by lenders, which is credit positive for the asset quality of their loan books and any securitisations that .......
-
Climate fund launched
Blended finance structure offers four classes of risk
ResponsAbility Investments has announced the first closing of an innovative climate fund, set up as a blended finance structure that offers different classes of risk and has received commitments from a number of public and private investors. The private debt fund addresses the lack of access to clean power globally, with a strong focus on Sub-Saharan Africa, as well .......
News 23 January 2020
-
Risk transfer round-up - 23 January
CRT sector developments and deal news
Caixabank is rumoured to be prepping a consumer SRT for this year. The lender printed its last transaction in May 2019 (see SCI’s capital relief trades database). Dubbed Gaudi Synthetic 3, the €100m financial guarantee was carried out with the EIF.
...... News 23 January 2020Premium Content
-
Bespoke service
Emma-Jane Fulcher, founder of Grovewood Capital Consultancy, answers SCI's questions
Q: How and when did Grovewood Capital Consultancy become involved in the securitisation market?
Provider Profile 23 January 2020
A: I founded Grovewood Capital Consultancy at the end of last year (SCI 23 December 2019). In my previous role as head of structured finance at ARC Ratings, more and more clients were asking for structuring advice during the ratings process – which, of course, .......
-
Parametric cyber risk trade inked
Sector developments and company hires
Acquisition
Market Moves 22 January 2020
Ares Holdings is set to acquire a controlling interest in Asian alternative asset manager SSG Capital Holdings and its subsidiaries. Headquartered in Hong Kong with offices across Asia, SSG manages private credit and special situations funds totaling approximately US$6.2bn in assets under management, as of 30 September 2019. The SSG leadership team, including ceo Edwin Wong, and their colleagues .......
-
Risk transfer round-up - 22 January
CRT sector developments and deal news
BBVA is rumoured to be readying a capital relief trade for 1Q20. The transaction would be the lender’s fourth ever risk transfer transaction (see SCI’s capital relief trades database).
Dubbed Vela Corporate 2018-1, BBVA’s last capital relief trade was completed in December 2018 (SCI 11 January 2019). All of the bank’s CRTs were carried out with the EIF.
...... News 22 January 2020Premium Content
-
CEE SME guarantee increased
Sector developments and company hires
EMEA
Market Moves 21 January 2020
Alvarez & Marsal has launched a European debt advisory practice with the appointment of Tim Metzgen as a London-based md, with the aim of providing clients with independent advice on accessing and managing their interactions with the international debt markets. The new practice - initially comprising a team of five led by Metzgen - will help companies source, negotiate .......
-
DSB wind-down begins
Dutch bank to exercise first ABS call option and aims for more
Bankrupt DSB Bank is preparing for the possible sale of its loan portfolio by winding down its securitisation programmes. The Dutch bank is beginning with consumer ABS Chapel 2003-1 before hoping to move on to its other four outstanding ABS and RMBS deals.
DSB says it has informed the issuer that it will repurchase Chapel 2003’s loan portfolio .......
News 21 January 2020
-
'No Data' threshold consultation underway
Sector developments and company hires
C-PACE partnership
Eyzenberg & Company and Greenworks Lending have formed Eyzenberg Green Capital, a partnership dedicated to funding commercial real estate transactions through commercial PACE. Eyzenberg Green Capital is a direct balance sheet provider, with significant lending capacity. The aim is to achieve a low cost of capital for C-PACE financing, supported by permanent capital and multiple funding outlets.Market Moves 17 January 2020
-
FFELP transition legislation mooted
Sector developments and company hires
Call for FFELP solution
Market Moves 16 January 2020
The SFA has joined the Education Finance Council (EFC) in calling for wholesale legislation to smoothly transition FFELP student loans and the related subsidy away from Libor, to avoid potential disruption to over US$277bn of loans spread across 13 million borrowers. The EFC is working on a legislative solution that would transition the subsidy - called .......
-
Consumer boost
Santander completes innovative SRTs
Santander has completed two synthetic securitisations of consumer loans. The transactions are the bank’s final consumer SRTs from 2019 and feature a number of innovations.
One of the transactions is a mezzanine trade consisting of a €66m senior mezzanine tranche (10.5%-16.5%) and an €88m junior mezzanine tranche (2.5%-10.5%). Dubbed SC Germany Consumer Synthetic 2019, the financial guarantee references .......
News 16 January 2020
-
Aircraft equity investment disclosed
Sector developments and company hires
Aircraft equity investment
Market Moves 15 January 2020
Floreat has disclosed that it invested US$25m in the equity certificates of Air Lease Corporation’s recent Thunderbolt III aircraft ABS. The securitisation is secured by a portfolio of 19 commercial aircraft on operating lease to 18 airlines in 15 countries. The airlines are diversified globally and over half are national flag carriers, including Vueling, Air France, China Airlines .......
-
Hong Kong ABS recommendations released
Sector developments and company hires
Alternative risk transfer
Arthur J Gallagher has increased its interest in Capsicum Reinsurance Brokers from 33% to 100%. Capsicum Re launched in December 2013 through a strategic partnership with Gallagher. There are no management changes as a result of the deal.Gilles Dellaert, former co-president and cio of Global Atlantic, has been appointed global head of Blackstone Insurance Solutions .......
Market Moves 14 January 2020
-
Under pressure
US student loan ABS holding firm so far
US student loan ABS faces a difficult year from both technical and political pressures. However, there is room for a little cautious optimism and for now at least spreads are holding up reasonably well.
BofA global research analysts underline the broadly held market view, stating: “Libor transition will continue to pressure spreads for student loan ABS, especially for .......
News Analysis 14 January 2020