ABS

  • 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

  • Risk transfer round-up - 16 August

    CRT sector developments and deal news

    UBI Banca is rumoured to be prepping an SME and corporate SRT for 3Q19. The alleged transaction is riding a wave of Italian SRT issuance that includes a number of standardised banks.

    Banca Popolare di Bari completed the first SRTs between a standardised bank and a private investor last month (SCI 2 August). Banca Popolare dell'Alto Adige .......

    News 16 August 2019

  • Syncora Guarantee acquired

    Sector developments and company hires

    Syncora sale
    GoldenTree Asset Management entity Star Insurance Holdings is set to acquire Syncora Holdings’ New York financial guarantee insurance subsidiary Syncora Guarantee (SGI) for US$392.5m in cash, subject to adjustment. The cash purchase price for SGI represents a premium to the closing share price of Syncora’s common stock on 1 March 2019, the trading day prior to the announcement of .......

    Market Moves 15 August 2019

  • NPL disposals inked

    Sector developments and company hires

    ABSF tender

    The Australian Office of Financial Management is inviting tender submissions for the provision of investment management services for the Australian Business Securitisation Fund (ABSF) by 6 September (SCI 24 June). The AOFM is seeking to appoint an investment manager to assist with the evaluation of investment proposals and provide ongoing portfolio management services. The investment .......

    Market Moves 14 August 2019

  • Tweaking tradition

    Dutch securitisation evolving across established sectors

    The Dutch securitisation market is seeing innovation and growth away from its traditional strong focus on prime RMBS. This trend is evolutionary rather than revolutionary, as participants seek to build on the sector’s well-established foundations.

    Some asset classes are simply returning to life, notably CMBS. “CMBS has been picking up since last year and the two big issuers, .......

    News Analysis 13 August 2019

  • STS mirage

    "Still no level playing field" despite regulation

    Despite the high bar that issuers must clear to achieve the STS designation on securitisations, the deals continue to have unfair levels of capital treatment compared with other investment products, even backed by the same underlying collateral.  A lack of incentive to invest in securitisation - even STS deals – therefore continues to remain, but the task of addressing this .......

    News Analysis 12 August 2019

  • Venture ABS prepped

    Horizon Technology Finance hits the market

    Horizon Technology Finance is marketing an ABS backed by secured liens on non-investment grade performing loans made to growth stage companies in the technology, life sciences and healthcare sectors. Venture debt ABS is an emerging asset class, but is expected to remain constrained by the very nature of the market.

    The assets in venture debt ABS are distinct .......

    News 9 August 2019

  • AM acquisition

    Sector developments and company hires

    Asset management acquisition

    Assured Guaranty US Holdings is set to acquire all of the outstanding equity interests in BlueMountain Capital Management and its associated entities for approximately US$160m, subject to certain adjustments, as part of a strategic objective to diversify into fee-based revenue sources. The acquisition is expected to complete in 4Q19, subject to customary closing conditions. As .......

    Market Moves 9 August 2019

  • Senior mezz eyed

    CRT issuers target asset managers

    Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief trades, given that the market for the senior mezzanine remains less deep relative to that of the junior mezzanine tranche. Asset managers are drawn to the risk/return profile of the senior mezzanine, although their approach to capital relief trades will likely remain opportunistic going forward. .......

    News Analysis 9 August 2019

  • New ventures

    Asset manager building out structured credit strategies

    BlueBay is expanding its structured finance and CLO investment strategies. As well as aiming to launch a US focused structured credit strategy this year, the firm is looking at the possibility of issuing a debut CLO in 2020.

    In line with this expansion, BlueBay hired Sid Chhabra last year as partner and global head of structured credit and CLOs and, more recently, .......

    News Analysis 9 August 2019

  • Risk transfer round-up - 9 August

    CRT sector developments and deal news

    BNP Paribas is rumoured to be prepping a corporate capital relief trade for 3Q19. The lender’s last risk transfer transaction closed last month. Dubbed AutoFlorence 1, the true sale deal is its first post-crisis Italian SRT (SCI 22 July).

    The BNPP transaction follows rumours of another risk transfer trade from Societe Generale. The bank is believed to .......

    News 9 August 2019

  • NPL disposals sealed

    Two banks offload Italian loan portfolios

    Two disposals of Italian non-performing and performing loans (NPLs) originated by Unicredit and ING have been sealed. The first transaction comprises a portfolio of unsecured SME NPLs while the second, from ING, comprises performing and non-performing real estate leasing positions.

    ING’s disposal was valued at €1.6bn by gross book value, consists of 4,000 performing and non-performing real estate .......

    News 8 August 2019

  • Branching out

    UK marketplace lender brings US deal

    Funding Circle Holdings is in the market with its first ABS collateralised by loans made to SMEs incorporated in the US. Dubbed Small Business Lending Trust 2019-A, the US$198.45m transaction is backed by 1,394 loans originated via the Funding Circle online lending platform, secured by a lien on the assets of each borrower and a personal guarantee.

    In .......

    News 7 August 2019

  • Alt credit co-head hired

    Company hires and sector developments

    Alt credit co-head nabbed

    Ares has hired Joel Holsinger to its credit group as co-head of alternative credit, effective immediately. Holsinger will serve on the Ares management committee and work alongside Keith Ashton as co-head of alternative credit to expand the firm's global coverage of the US$4trn alternative credit sector. Ares' alternative credit strategy pursues asset-focused direct investments primarily in North America and Europe across .......

    Market Moves 7 August 2019

  • JV agreed

    Intesa readies UTP securitisation

    Intesa San Paolo has reached an agreement with Prelios that involves the securitisation of a €3bn (GBV) corporate and SME unlikely-to-pay portfolio. The deal follows a similar NPL agreement with Intrum that was finalised last year and is part of a wider joint venture trend (SCI 14 December 2018).

    The agreement consists of a 10-year contract for .......

    News 7 August 2019

  • Whole biz debut double

    Early learning, pet supply franchises securitised

    Two US whole business securitisations are marketing, representing debut transactions from both firms. The deals comprise the US$250m Primrose Funding 2019-1, from an early childcare education company and the second is a US$355m ABS dubbed PSP Funding 2019-1, from a company that provides pet supplies.

    Primrose Funding 2019-1 comprises US$10m class A1 notes and US$265m class Bs, both provisionally rated .......

    News 6 August 2019

  • CLO partner appointed

    Sector developments and company hires

    CLO firm partner promotion

    DFG Investment Advisers has promoted Timothy Milton to partner. Since joining the firm in 2014, Milton has been responsible for the management of the Vibrant Capital CLO platform in his capacity as co-portfolio manager. In addition, Eduardo Cabral has joined DFG’s credit research team as an md, having been a portfolio manager and senior .......

    Market Moves 6 August 2019

  • CLO head hired

    Sector developments and company hires

    BUMF 6 injunctions granted

    Final injunctions have been granted against Greencoat Investments (GIL) (including against its directors, which include Clifden IOM No.1, Rizwan Hussain, Rajnish Kalia and Alfred Oyekoya), Greencoat Holdings (GHL), Portfolio Logistics (PLL), Patrick Anthony FitzSimons, Maria Stoica and Oyekoya in connection with Business Mortgage Finance 6 (SCI 17 July). A court order has also .......

    Market Moves 2 August 2019

  • Landmark SRTs inked

    BP Bari completes capital relief trades

    Banca Popolare di Bari has completed two capital relief trades that reference respectively a €1.1bn Italian SME portfolio and a €1.8bn Italian residential mortgage portfolio. This is the first time that transactions have been carried out between an Italian standardised bank and a private investor.

    The risk transfer trades were arranged by Banca IMI and they are funded .......

    News 2 August 2019

  • COSME tapped

    SME risk-sharing agreement signed

    Italian national promotional bank Cassa Depositi e Prestiti (CDP) has tapped the EU's COSME loan guarantee facility that is managed by the EIF and backed by the European Fund for Strategic Investments, which provides first-loss guarantees. The agreement is expected to provide €3.75bn in counter-guarantees for Italy’s Guarantee Fund for SMEs, thereby facilitating up to €5.8bn of loans to .......

    News 1 August 2019

  • NPL SRT inked

    Hoist Finance tackles backstop regulation

    Hoist Finance has sold a €225m portfolio of Italian unsecured non-performing loans via an unrated securitisation to a fund managed by CarVal Investors. The significant risk transfer transaction is mainly carried out for capital relief purposes and will be followed by future NPL ABS deals.

    The SPV will fund 95% of the net purchase price of the receivables .......

    News Analysis 1 August 2019
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