ABS
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SME boost
Commerzbank completes CRT
Commerzbank, the EIF and the EIB have completed a €125m mezzanine guarantee that references a €1.9bn German SME and midcap portfolio. The guarantee will enable Commerzbank to provide new lending of up to €500m to SMEs and mid-caps in Germany as a countermeasure to the ongoing Covid-19 crisis.
The transaction benefits from the support of the European Fund .......
News 2 October 2020
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New IMA inked
Sector developments and company hires
New IMA inked
Market Moves 2 October 2020
Pollen Street Secured Lending (PSSL) has appointed Waterfall Asset Management as its investment manager, replacing PSC. An investment management agreement has also been signed with a new AIFM, Mirabella Financial Services. PSSL has agreed to pay PSC a sum representing the approximate balance of the unpaid base management fee, including the unexpired notice period. The PSSL board believes that .......
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'Dual-track' approach touted for SRT
Sector developments and company hires
‘Dual-track’ approach touted for SRT
Market Moves 1 October 2020
The EBA is finalising its report on significant risk transfer and hopes to be able to publish it by year-end, according to Pablo Sinausia, policy expert at the authority. He disclosed during a TSI Congress 2020 panel today that the report builds on the EBA’s recent report on STS synthetics and will address structural features that .......
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SME ABS debut for Italian fintech
Sector developments and company hires
SME ABS debut for Italian fintech
Market Moves 30 September 2020
Banca Valsabbina has supported fintech BorsadelCredito.it as arranger, account bank and subscriber - together with other institutional investors – of ABS notes in a €100m securitisation backed by trade receivables granted to SMEs and guaranteed by the Central Guarantee Fund for SMEs. This is the first unrated securitisation operation listed on Borsa Italiana’s ExtraMOT-PRO .......
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Programmatic approach
Chinese ABCP market gaining traction
Four public ABCP programmes have launched in China since the market opened in June. However, there are a number of differences between Chinese ABCP programmes and those in more developed jurisdictions.
“It is a new market, so at the moment both the programme structure and the underlying assets are less diverse in comparison to the more developed markets .......
News 30 September 2020
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Mezz CLO fund closed
Sector developments and company hires
Mezz CLO fund closed
Market Moves 29 September 2020
Pearl Diver Capital has completed the final closing of its eighth closed-end CLO investment fund, PDC Opportunities VIII, at US$400m. Launched with a target raise of US$300m, the fund hit its hard cap, with LPs represented by public pension systems, corporate pension plans, high net-worth family offices and endowments. The fund is designed to invest opportunistically .......
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Latest Magdalena finalised
Santander prices first post-Covid SME SRT
Santander, the EIF and the EIB have completed a €55m and €143m CLN that references a €2.2bn Spanish SME portfolio. Dubbed Magdalena Four, the transaction is Santander’s first post-Covid SME significant risk transfer trade.
The transaction consists of a €1.969bn retained senior tranche, a €55m senior mezzanine tranche (priced at three-month Euribor plus 1.6%), a €143m junior mezzanine tranche (plus 6%) and a €33m retained first loss tranche. .......
News 29 September 2020
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Risk transfer round up - 28 September
CRT sector developments and deal news
BNP Paribas is rumoured to be readying a full-stack consumer significant risk transfer trade for 2H20.The transaction would be the lender’s first post-Covid full stack SRT following the finalisation of E-CARAT 11 in February (see SCI’s capital relief trades database).
....... News 28 September 2020
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Tight pricing
BNP Paribas completes SRT
BNP Paribas has finalised a €324m funded financial guarantee and is scheduled to complete a €100m insurance policy before the end of 3Q20. Dubbed Resonance Five, the tranches reference a static €8bn global corporate portfolio that consists of both drawn and undrawn commitments. The transaction is so far the most tightly priced corporate capital relief trade of the year.
The .......
News 25 September 2020
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Revolver exposures on offer
Sector developments and company hires
Revolver exposures on offer
Goldman Sachs is in the market with a balance sheet synthetic securitisation referencing a portfolio of predominantly investment-grade senior unsecured revolving loan facilities. Dubbed Goldman Sachs Bank USA credit-linked notes due 2025, the transaction comprises two classes of S&P-rated CLNs for a total of US$184.8m.The transaction documentation links the ability of Goldman Sachs to .......
Market Moves 25 September 2020
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Risk transfer round-up - 25 September
CRT sector developments and deal news
Goldman Sachs is rumoured to be prepping two US corporate significant risk transfer deals for 4Q20 and the lender is believed to have closed another corporate deal in 3Q20. The trades would be the bank’s first SRTs (see SCI’s capital relief trades database).
....... News 25 September 2020
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Spread compression
European securitisation market update
European auto and consumer ABS have seen a strong reception this week, despite renewed virus-related concerns. The first German auto ABS since May printed at tight levels, for example, while a rare UK consumer ABS from Premium Credit has entered the pipeline.
One trader notes: “Over the last session, we had seen a slight pause in the market .......
News 23 September 2020
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Private credit fund formed
Sector developments and company hires
Private credit fund formed
FrontWell Capital Partners has launched with committed seed capital of more than US$350m from a group of international investors. Headquartered in Toronto, the firm aims to provide transitionary senior debt financing - including asset-based and cashflow loans - to middle-market companies in the US and Canada.FrontWell is led by founder and ceo Patrick Dalton, who previously .......
Market Moves 23 September 2020
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Doubling up
Record year anticipated for the EIF
The bulk of European SME capital relief trades in 1H20 were public, with the EIF a particularly active participant, given its mandate to support the sector. Indeed, it is shaping up to be a record year for the organisation in terms of synthetic securitisation, with easily double the volumes than issued under normal circumstances.
“Part of the EIF’s .......
News Analysis 22 September 2020
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Tech crazy
Securitizations of tech assets finding favour in Covid world
Securitizations of technology assets are proving popular with US investors in the Covid marketplace, according to a new Moody’s report based on interviews with “dozens” of structured finance issuers, arrangers and investors around the world.
In particular, securitizations of data centres, both as a constituent asset of CMBS transactions and corporate ABS deals, have caught the eye of buyers, say .......
News Analysis 18 September 2020
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Pagaya on hiring spree
Sector developments and company hires
Pagaya brings in new blood
Pagaya, the data-driven asset manager, has made five key hires across all areas of its business. It has hired Jeff Andrews and Paul Limanni as, respectively, head of originations and head of structured products. Andrews joins from LendingClub where he was vp of strategic partnerships, and Limanni joins from Shelter Growth Capital Partners. Limanni will oversee all .......
Market Moves 17 September 2020
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SYME securitisation underway
Sector developments and company hires
SYME securitisation underway
Market Moves 11 September 2020
Supply@ME Capital (SYME) reports that it has received offers, subject to contract, from a number of large, global institutional investors for a securitisation note issuance via StormHarbour, in order to monetise more than €300m of inventory (SCI 24 April). The company says it is currently analysing whether to syndicate this first securitisation issuance or work on .......
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Volksbank debuts
Delayed Italian SRT inked
Volksbank has completed a financial guarantee with the EIF and the EIB that references a static €700m Italian SME portfolio of roughly 3600 borrowers. The transaction is the Italian bank’s first significant risk transfer transaction.
Martin Schweitzer, cfo and deputy ceo at Banca Popolare dell’Alto Adige, notes: “It’s an important transaction for us in several respects, not least because of .......
News 11 September 2020
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APAC SRTs eyed
Balance sheet optimisation in focus
Asia Pacific banks are eyeing synthetic securitisations to optimise their balance sheets and as Basel 4 is incorporated into local laws. However, portfolios tend to be structured as blind pools, which could potentially limit future investor interest.
APAC SRTs are not a new phenomenon, as the activity of Standard Chartered and Credit Suisse demonstrates. Credit Suisse, for instance, closed three APAC .......
News Analysis 11 September 2020
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Auto opportunities
Euro residual values holding up
The European second-hand car market has been relatively strong since lockdown ended, supporting auto ABS residual values, according to panellists at S&P’s recent European Structured Finance Virtual Conference. Mezzanine tranches in consumer and auto paper were highlighted as areas of opportunity.
Vittoria Ferraris, senior director and sector lead automotive EMEA at S&P, noted that auto ABS residual values .......
News 11 September 2020
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Multi-level Libor exposure eyed
Sector developments and company hires
Multi-level Libor exposure eyed
Market Moves 9 September 2020
Japanese securitisations with exposure to Libor on multiple levels will face the highest risks in the transition away from the benchmark rate when it is phased out at end-2021, Moody's notes. Around 20% of Japanese structured finance transactions the agency rates have Libor exposure and, in some cases, there is Libor exposure through notes, as well .......