ABS
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Private placement
Unusual tranched securitisation closed
Fintex Capital has completed a structured finance transaction within its UK real estate lending business, Fintex Confluence. The transaction involved the refinancing of a portfolio of property loans - warehoused by Fintex - with senior financing provided by Europa Capital Debt Investment (ECDI) and junior financing by Fintex, with additional monies invested by Europa and Fintex to finance a .......
News 14 February 2019
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Bank expands credit derivatives business
Company hires and sector developments
Credit trading expansion
HSBC has hired Asgar Rahemtulla as a director in credit trading. In his new role, Asgar will be responsible for trading European iTraxx index products. He joins HSBC from Bluecrest where he was a Partner and worked as a portfolio manager. Prior to this he spent eight years at Goldman Sachs in a variety of roles including .......
Market Moves 14 February 2019
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Insurance firm expansion
Sector hires and company developments
Insurance firm expansion
Nassau Re is expanding into additional specialty finance asset classes as it grows assets under management in a three-pronged move. First, the firm has established Nassau Private Credit (NPC), which will invest directly in CLO equity and related investments for third-party institutional investors. Second, under its Nassau CorAmerica brand, it will expand its existing real estate .......
Market Moves 12 February 2019
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Juno 2 completed
BNL closes NPL securitisation
Banca Nazionale del Lavoro has completed a €968m (GBV) non-performing loan securitisation of both senior secured and unsecured loans. Dubbed Juno 2, the transaction has a short weighted average life for collections, compared to other NPL securitisations rated by Scope.
“The vector is usually delayed compared to the business plan, but in this case the procedures are at .......
News 11 February 2019
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RMAC claim
Company hires and sector developments
The RMAC Securities No. 1 Series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 issuers have confirmed that they have been validly served with a Part 8 claim form by Clifden, naming them, the corporate services provider and the share trustee as defendants (SCI 28 January). The defendants consider the claim to be both procedurally defective and without merit, and .......
Market Moves 8 February 2019
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Leviticus closed
Banco BPM completes NPL securitisation
Banco BPM has completed a €7.4bn (GBV) securitisation of secured and unsecured Italian non-performing loans dubbed Leviticus SPV. The transaction involves the transfer of the bank’s servicing platform to Credito Fondiario, which is part of a broader joint-venture trend in the Italian NPL market (SCI 14 December 2018).
“The trend is driven by the desire to monetise ......
News 8 February 2019Premium Content
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European middle market maturing
US MM sector set to grow following BDC no-action letter
The middle market securitisation sector is only set to grow in the US, with relaxed regulatory constraints paving the way for BDCs to securitise their exposures. While the equivalent European sector is some way behind the US, the private debt market is now regarded as a “vanilla” asset class with institutional investor buy-in, suggesting middle-market securitisations will result after further .......
News Analysis 8 February 2019
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Junior demand
Credit enhancement concerns raised
Last year saw more single-B rated auto ABS paper issued in the US than in all previous years combined. Indeed, demand remains strong for junior notes, despite growing concerns over auto lending practices to less creditworthy borrowers.
Joseph Cioffi, partner and chair of the insolvency, creditors’ rights and financial products practice group at Davis & Gilbert, suggests that .......
News 8 February 2019
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Insurer boosts ILS capability
Sector developments and company hires
Acquisitions
Eldridge Industries has increased its investment in Maranon, now holding a majority ownership position. In addition to the equity investment, affiliates of Eldridge have made further commitments to Maranon’s platform, which will support Maranon’s ongoing strategic initiatives, including expanding the company’s underwriting and hold capability. Eldridge will acquire the additional stake from Maranon’s co-founder and Managing Director .......
Market Moves 6 February 2019
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BoE, ESMA seal no-deal plan
Company hires and sector developments
No-deal agreement sealed
ESMA has agreed Memoranda of Understanding (MoUs) with the Bank of England (BoE) for the recognition of central counterparties (CCPs) and of the central securities depository (CSD) established in the United Kingdom (UK), that would take effect should the UK leave the European Union (EU) without a withdrawal agreement, the no-deal Brexit scenario.
US
Market Moves 5 February 2019
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SCI Start the week - 4 February
A review of securitisation activity over the past seven days
Transaction of the week
Bank of Montreal has printed a US and Canadian leveraged loan capital relief trade dubbed Manitoulin. The US$92.5m 7.3-year financial guarantee pays Libor plus 12.75%.
The transaction has been rated as triple-A on the class A notes, single-A on the class B notes and triple-B on the class C notes. Further features include the presence of .......
News 4 February 2019
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NPL securitisation flourishes
Extention of GACS to UTPs to fuel further growth?
European NPL securitisation has flourished over the past two years, reaching a total of €15bn in new issuance since 2016, with many deals coming from Italy since the introduction of the GACS guarantee. Further transactions are expected given the possibility of extending the guarantee to unable to pay (UTP) loans.
DBRS notes that there have been 26 NPL securitisations since .......
News Analysis 4 February 2019
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Growing momentum
Regulatory provisioning boosts shipping NPL prospects
The European Central Bank’s provisioning push has led to a more positive sentiment around the prospects for the disposal of shipping non-performing loans (NPLs). However, the small size of the market compared to other NPL asset classes, alongside other market dynamics, renders a long-term deleveraging drive an unlikely scenario.
2018 saw a significant uplift in shipping loan .......
News Analysis 1 February 2019
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Staying strong
MetLife Investment Management speaks to SCI about the year ahead
Q: What’s your general outlook for the structured finance sector in 2019?
William Moretti, head of structured finance, MetLife Investment Management: “On the whole, I’d say that structured finance is in a much better position to face another potential downturn than it was in 2007, before the last crisis. There have been a number of structural improvements to transactions and .......
The Structured Credit Interview 1 February 2019
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Euro ABS deals mooted
Company hires and sector developments
European RMBS transactions mandated
A pair of European RMBS transactions have been mandated, marking the first European securitisations of the year, barring CLOs. The first is a UK RMBS, dubbed Lanark 2019-1, from Clydesdale Bank, which has mandated BAML, BNP Paribas, Citi and Wells Fargo for the transaction, subject to market conditions. The second, from Italian lender Cassa di .......
Market Moves 31 January 2019
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CLO UCITS launched
Company hires and sector developments
CDS publication launched
Jochen Felsenheimer, md at XAIA Investment, Wolfgang Klopfer, chairman of the management board of XAIA Investment and Ulrich von Altenstadt, md of XAIA Investment have co-authored a new publication looking at the evolution, functioning and regulatory environment of CDS. Titled, Credit default swaps: trading strategies, valuation and regulation, it also looks at the modeling and valuation of .......
Market Moves 30 January 2019
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Securitisation swaps book launched
New publication aims to quench knowledge drought
Spotting a gap in the market, a team of structured finance veterans have collaborated on a new publication on an under-explored topic, which bridges the gap between credit derivatives and securitisation. Titled Securitisation Swaps, the book is aimed at all securitisation and derivatives industry participants and is set to be published by Wiley on 18 February, with the e-book available .......
News 30 January 2019
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CMBS tender launched
Company hires and sector developments
BUMF tender
Greencoat Investments has launched a tender offer for the Business Mortgage Finance 4, 5, 6 and 7 CMBS. Fixed purchase prices for the bonds range from 0.50% to 101% per £1,000/€1,000/US$1,000 in principal amount of notes and an additional 0.50%-10% per £1,000/€1,000/US$1,000 is available as an early tender premium. The early tender deadline is 8 February .......
Market Moves 28 January 2019
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Minerva closed
Innovative guarantee completed
Banca Nazionale Del Lavoro has closed a €100m mezzanine guarantee with the EIF. Dubbed Minerva, the transaction was completed with funds from the European Fund for Strategic Investments (EFSI) and is expected to release €600m for lending to Italian SMEs. The guarantee is the first SRT transaction that the EIB Group has executed for Italian corporate loans and includes .......
News 25 January 2019
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New ILS unit launched
Sector developments and company hires
ABS outfit launched
US Bancorp has launched a new ABS lending business, providing non-recourse commitments secured by consumer and commercial receivables. Bo Weatherly - who joined the firm in 2016 - will serve as md for the new business, based in Charlotte, North Carolina. He has brought together a team of established industry experts, each with an average .......
Market Moves 25 January 2019
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Risk transfer round-up - 25 January
CRT sector developments and deal news
Deutsche Bank issued a leveraged loan capital relief trade in December among a flurry of risk transfer transactions (SCI 21 December 2018). Dubbed LOFT 2018-1, the US$240m 10-year CLN was priced at 13.25%. According to SCI data, it is the widest print of the year.
The deal is non-callable and features an eight-year weighed average life. The leveraged finance ......
News 25 January 2019Premium Content