ABS
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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
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RAIT sale
Company developments and sector hires
Aussie bank secures warehouse line
Yellow Brick Road (YBR), an Australian non-bank lender, has received final credit approval from an Australian Bank for it to provide an initial A$120m RMBS warehouse facility. The facility will be provided to the intended RMBS programme trust manager, sponsor and servicer, Resi Warehouse Funding (RWF), which is currently a wholly-owned subsidiary of .......
Market Moves 2 September 2019
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Strong performance
Refi PSL ABS upgraded
Moody's has lowered its expected default rate for typical unseasoned refinancing private student loan (PSL) ABS to 1.5% from 2.5%, in light of the sector’s strong performance, borrower characteristics and underwriting criteria. Concurrently, the rating agency has upgraded a raft of 2015-2017 vintage bonds issued by CommonBond, Laurel Road and SoFi.
In a recent analysis, Moody's compared borrower .......
News 30 August 2019
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Regulatory boost
Italian SRT issuance picks up
Italian capital relief trades are experiencing a strong pick-up in issuance this year as regulatory changes enable more standardised banks to execute risk transfer transactions and open up the market to private investors. However, these banks will need time to adapt their IT and reporting systems, while risk-sharing transactions involving both SSAs and private investors are a more promising .......
News Analysis 30 August 2019
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Portuguese ABS framework updated
Sector developments and company hires
Portuguese ABS framework updated
A new regulation has been introduced in Portugal providing for the execution of regulation 2017/2402 of the European Parliament and of the Council, which lays down a general framework for securitisation. It also creates a specific framework for STS securitisation. Along with modifications to the Portuguese Legal Framework, the new regulation impacts: the definition .......
Market Moves 30 August 2019
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NPL relief
ECB extends provisioning calendar
The ECB is set to align its supervisory expectations regarding the provisioning of new non-performing loans with an April 2019 amendment to the CRR that outlines Pillar 1 requirements for the assets. The alignment offers banks more time to provision for recently classified NPLs, but is expected to have a minimal impact on NPL securitisations, given that the bulk .......
News Analysis 30 August 2019
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Esoteric opportunities
Structured solutions to address corporate risk transfer needs
The newly-formed CAC Specialty (SCI 21 August) is seeking to capitalise on the convergence of the insurance and capital markets on a broader basis than that represented by the ILS market. Indeed, the firm aims to transfer the more esoteric risks via insurance and place them in a structured format.
“Insurance brokerage and investment banking have a .......
News 30 August 2019
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Structured credit head steps down
Company hires and sector developments
BUMF 6 claim filed
Business Mortgage Finance 6 has issued a claim against Roundstone Technologies (RTL) in the London High Court of Justice stating, among other things, that the purported sale and purchase agreement between the issuer and RTL is void and that RTL has acquired no right to act for or on behalf of the issuer pursuant to a .......
Market Moves 29 August 2019
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Back to work
UK deal flow restarts ahead of expected busy months ahead
Oak No. 3 has become the first ‘post-summer’ UK ABS/MBS deal to price. It is expected to be the first of many in a hectic UK primary market into year-end.
The £343.5m STS-compliant senior notes of Aldermore Bank’s third prime RMBS printed at SONIA plus 80bp today. The tranche came in at the lower end of initial price .......
News Analysis 29 August 2019
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Risk transfer round-up - 28 August
CRT sector developments and deal news
Credit Suisse has called two transactions from its Magnolia Finance V programme. The transactions were issued in 2013 and 2014 and both risk transfer trades referenced US and Swiss corporate loans. The exercise of the calls concerned the underlying US loans.
One transaction, dubbed Magnolia Finance V series 2013-1, was an eight-year US$75m CLN that printed in .......
News 28 August 2019
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Ceo replaced
Sector developments and company hires
New ceo appointed
Oaktree Specialty Lending has announced that ceo and cio Edgar Lee has resigned from the company for personal reasons, effective 30 September 2019. He is to be replaced by Armen Panossian who will take over both roles. Panossian is currently md and head of Oaktree’s Performing Credit organisation and has spent 12 years at the .......
Market Moves 27 August 2019
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Broker charged over mispricing
Sector developments and company hires
Broker charged over mispricing
The US SEC has charged New York-based broker-dealer AOC Securities and its former ceo Ronaldo Gonzalez with failing to supervise AOC broker Frank Dinucci, who provided inflated price quotes to Premium Point Investments (PPI). The orders find that PPI traders dictated to Dinucci the prices at which he should value certain MBS in PPI .......
Market Moves 23 August 2019
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Debut consumer securitisation prepped
Australian non-bank markets inaugural ABS
Wingate Consumer Finance is marketing an inaugural term securitisation of personal loans extended to borrowers in Australia. Dubbed NOW Trust 2019-1, the A$200m transaction is backed entirely by receivables originated by Wingate Consumer Finance, an established non-bank lender in the Australian personal loan market.
Moody’s has provisionally rated the transaction as Aaa on the A$143m class A notes, .......
News 23 August 2019
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Counterintuitive results
EBA consultation incentivises unfunded SRT format
The EBA’s consultation on the determination of the weighted average maturity of a securitisation tranche (SCI 2 August) is seen as a positive step for synthetic securitisations, since it takes into account the conditional payments of the underlying assets. However, by not recognising the effect of prepayments and pool amortisations, the proposal creates counterintuitive results that incentivise banks .......
News Analysis 23 August 2019
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Warehouse line closed
Company hires and sector developments
CRE appointments
Arbor Realty Trust has appointed Danny van der Reis as evp, structured asset management, reporting to Arbor president and ceo Ivan Kaufman. In this newly developed role, van der Reis will be responsible for managing the structured asset management department and loan restructurings for all of Arbor's balance sheet loans, as well as strategically developing and expanding the .......
Market Moves 22 August 2019
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Private market thriving
Specialty finance firms find multiple benefits in private deals
Private securitisations are thriving, particularly among specialty finance companies, as a flexible and economic funding option. Equally, many insurers are turning to the private market to securitise equity release mortgages, finding it the most cost-effective way to free up capital.
According to Anton Krawchenko, associate partner, capital and debt advisory at EY, says private securitisations largely come in two forms .......
News Analysis 22 August 2019
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Volcker rule amended
Company hires and sector developments
Aviation firm appoints treasurer
Wings Capital Partners has hired Jakob Gallagher as vp, treasurer and capital markets. Prior to joining Wings, Gallagher served as vp on the MUFG aviation team who covered originations for the Americas. Prior to joining MUFG, he worked at Aircastle where he focused on capital markets and joint ventures. Jakob raised secured and unsecured .......
Market Moves 21 August 2019
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CLO ESG impact assessed
Sector developments and company hires
ESG impact assessed
The credit impact of environmental, social and governance (ESG) investment criteria on CLOs rated by Moody’s remains neutral, the agency says in a report. The firm adds that while restricting the pool of CLO eligible collateral has the potential to be credit negative, CLOs limited exposure to the industries subject to ESG restrictions largely mitigates .......
Market Moves 19 August 2019
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Whole biz downgrade announced
Company developments and company hires
Acquisitions
Crescent Capital BDC is set to acquire Alcentra Capital Corp, a middle-market BDC. The transaction is the result of Alcentra Capital’s previously announced review of strategic alternatives led by an independent director committee. Under the terms of the transaction, in exchange for approximately 12.9 million shares of Alcentra Capital common stock, Alcentra Capital’s stockholders will receive approximately .......
Market Moves 16 August 2019
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Consent challenges
Transactions losing value without Libor fallback language
Investors are working with an asset registry and communication platform to obtain noteholder consent in order to insert Libor fallback language in certain securitisations, ahead of the 2021 deadline. This is driven by concerns that transactions without fallback language are losing value compared to newer deals with the necessary language to transition to a new reference rate.
DealVector has been .......
News 16 August 2019
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Brexit impact gauged
UK ABS expected to withstand no-deal
A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS transactions. However, Brexit raises challenges by splitting UK and EU regulation.
One risk to ABS investors from a no-deal Brexit is the potential for a recession or a sharp downturn in the UK economy, and whether this would be severe enough to prevent a meaningful .......
News Analysis 16 August 2019