ABS
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Broader base
New investors come to STS, but for what reason?
A growing number of new investors, including bank treasuries, are participating in European STS securitisations, according to panellists at KNect 365’s European Securitisation Regulation seminar today. They added, however, that there is uncertainty about whether this is due to STS or other factors, such as a lack of yield in other asset classes.
Nicholas Curmi, head of securitisation and .......
News 18 September 2019
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Drilling down
Opportunities on offer in consumer, despite downturn concerns
Consumer finance in the US is still a relatively untapped asset class among institutional investors, despite the relative value opportunities on offer. This is according to an asset manager in the space that suggests too that negative connotations pertaining to subprime lending are unfair, particularly when investors are largely being compensated for the risks they are taking on.
Ed Mallon, .......
News Analysis 17 September 2019
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CLO downgrade announced
Sector developments and company hires
CDS hire announced
Axiom Alternative Investments has appointed Bedis Gharbi as senior portfolio manager, to support the continued development and diversification of its growing London office and fund range. Gharbi brings over 20 years’ experience in the investment management industry, most recently as head of synthetic credit funds at RiverRock European Capital Partners. He will join Axiom’s London .......
Market Moves 16 September 2019
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SCI Start the week - 16 September
A review of securitisation activity over the past seven days
Transaction of the week
Alior Leasing has launched a 12 month revolving cash securitisation of auto leasing loans and leases extended to sole traders and SME obligors in Poland. Dubbed AL Poland Securitisation 01, the transaction is the first to receive a public rating by Moody's.
Moody's has assigned a rating of Baa2 on the PLN359.9m floating rate secured notes, .......
News 16 September 2019
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Targeting opportunities
Servicers continue hunt for Greek NPL ABS
Hipoges Iberia, the Iberian servicer, is targeting opportunities in the Greek non-performing loan market that include NPL securitisations. Servicers are targeting Greek NPL ABS deals (SCI 31 May) amid actual and pending completions of NPL ABS transactions, as well as the European Commission’s pending approval of a government-backed NPL securitisation programme (SCI 12 October 2018).
The .......
News Analysis 13 September 2019
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ECB stimulus announced
Sector developments and company hires
ECB stimulus package outlined
The ECB has announced that it is cutting the interest rate on the deposit facility will be decreased by 10 basis points to -0.50%. The interest rate on the main refinancing operations and the rate on the marginal lending facility will remain unchanged at their current levels of 0.00% and 0.25% respectively. Additionally, net purchases will .......
Market Moves 13 September 2019
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Green ABS recommendations outlined
Securitisation could be key tool in climate change battle
Green securitisation can play an important role in helping to close the yearly investment gap of almost €180bn needed to meet EU climate and energy targets by 2030, according to AFME. The industry body, and its members, “strongly support” the growth of a green ABS market but recommends the need for greater clarity around definitions of green securitisation, as well as .......
News 12 September 2019
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Risk transfer round-up - 12 September
CRT sector developments and deal news
Intesa Sanpaolo is rumoured to be prepping for 4Q19 two capital relief trades that reference respectively corporate and SME loans. The bank printed its last corporate and SME SRTs last year from the GARC programme (see SCI’s capital relief trades database).
The alleged transactions are riding a wave of Italian SRT issuance this year, fuelled by rising standardised bank ......
News 12 September 2019Premium Content
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Risk profile
Basel 4 impact to vary based on business model
The EBA last month published its advice on the implementation of Basel 4 in the EU, with its impact assessment suggesting that the full implementation of the new framework under conservative assumptions will increase the minimum capital requirement (MRC) by 24.4% on average. Although the resulting capital impact is highly dependent on the strategy of each bank, it is .......
News Analysis 12 September 2019
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Polish ABS inked
Securitisation features auto lease collateral
Alior Leasing has launched a 12 month revolving cash securitisation of auto leasing loans and leases extended to sole traders and SME obligors in Poland. Dubbed AL Poland Securitisation 01, the transaction is the first to receive a public rating by Moody’s.
Moody’s has assigned a rating of Baa2 on the PLN359.9m floating rate secured notes, while the .......
News 11 September 2019
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CLO firm incorporates ESG approach
Company hires and sector developments
Cayman CLO first
Maples Group has supported the first ever US CLO to issue out of the Cayman Island. The transaction was a US$501m middle market CLO from Natixis, which closed on 13 August 2019.
ESG implementation
THL Credit has developed and begun utilising a new investment framework for assessing environmental, social, and governance (ESG) factors .......
Market Moves 11 September 2019
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Country md announced
Company hires and sector developments
Country md announced
Jervis Smith has been appointed country md of Vistra Luxembourg, responsible for leading Vistra’s Luxembourg office and growing the business, together with the Vistra office in the Netherlands to maximise joint opportunities between the two offices. Based in Luxembourg, he will report to Vincent Bremmer, regional md, Europe, Vistra. Smith previously spent over 25 years .......
Market Moves 10 September 2019
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Maltese benefits
Jurisdiction especially suited to innovative transport ABS
Malta provides a legal and tax framework that provides the same benefits for the establishment of SPVs as more well-known jurisdictions, such as Luxembourg and Ireland. Malta is also especially well suited to shipping and aviation securitisations, with several innovative transactions of this kind having been successfully completed through Maltese SPVs.
A legal framework for securitisation was enacted in Malta .......
News Analysis 10 September 2019
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CLO firm bulks up
Company hires and sector developments
CLO firm bulks up
Adrienne Dale has joined MidOcean Credit Partners a portfolio manager for its CLO strategies. She will report to Jim Wiant, who oversees MidOcean’s existing CLO business, as the firm looks to expand and scale the business further. Most recently, Dale held senior positions in Credit Suisse Asset Management’s credit investments group, where she spent the past .......
Market Moves 9 September 2019
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ILS deputy head hired
Company hires and sector developments
Blockchain standardisation steps taken
The standardisation of blockchain technology, which the International Organisation for Standardisation (ISO) and others are promoting, will be credit positive for future securitisations that utilise the technology, says Moody’s. Although the technology itself has the potential to provide many benefits to the securitisation market, namely via interoperability and operational efficiencies, the current lack of .......
Market Moves 6 September 2019
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SME initiatives inked
EIF launches further guarantee programmes for businesses across Europe
The EIF has launched two new funding initiatives to support SMEs in Europe, including a first-of-its kind initiative in Finland. The second provides funding support for Lithuanian micro businesses and SMEs.
The Finnish programme comprises a guarantee agreement signed by the EIF and Finnish specialist lender, Finnvera. The guarantee is designed to facilitate around €190m of new lending .......
News 6 September 2019
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Ceo appointed
Sector developments and company hires
Analytics head nabbed
Merion Square Capital has hired Jeff Fraser as head of analytics, based at the firm’s Ardmore, Pennsylvania headquarters. Fraser joins Merion Square from Chubb, where he was an avp of CAT Pricing and Systems, responsible for Chubb’s catastrophe pricing, portfolio optimisation and global risk aggregation platforms.
Ceo appointed
Cairn Capital Group has appointed .......
Market Moves 5 September 2019
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STS success?
Market warms to STS, but threats hover on the horizon
While STS lead to a dampening effect on ABS issuance at the start of the year, it is starting to bring in longer term investors, such as bank treasuries, according to panellists at S&P’s European securitisation seminar today. They added, however, that STS still presents investor and issuer challenges and warned that the stability of the market is threatened .......
News 5 September 2019
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Going concern?
Synthetics could help address UTP burden
Synthetic securitisation is being put forward as one way of proactively addressing the unlikely-to-pay loan burden in Italy. However, although risk transfer technology would allow banks to maintain their relationships with borrowers while benefiting from capital relief, the cost of such structures – among other challenges – may be prohibitive for some.
Robert Bradbury, head of structuring and .......
News Analysis 5 September 2019
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Structured credit vets nabbed
Sector developments and company hires
EBA makes STS digital move
The EBA has announced that it has added the STS Regulation to its online Interactive Single Rulebook and Q&A. It allows market participants to access the EBA’s guidelines, and it will also enable them to ask questions on any aspect of the criteria where it is felt require clarification under the EBA’s .......
Market Moves 4 September 2019
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Tesco portfolio disposal sealed
Company developments and sector hires
Auto deal debut
Oodle Financial Services is marketing an inaugural static cash securitisation of auto receivables extended to obligors located in the UK. Dubbed Downson 2019-1, the £353.4m transaction is provisionally rated Aaa on the £229.8m class A notes, A2 on the £75.9m class Bs, Baa3 on the £15.9m class C notes, Ba3 on the £14.1m class Ds .......
Market Moves 3 September 2019