ABS
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Market moves update
Sector developments and new hires in structured finance
Acquisitions
Franklin Templeton has acquired Benefit Street Partners, expanding its fixed income capabilities to include an array of alternative credit strategies. The combination of BSP’s experience and capabilities with Franklin Templeton’s global scale and extensive resources in more liquid credit investing is expected to enhance the firm’s origination capabilities and increase its expertise across the leveraged finance market. .......
Market Moves 30 October 2018
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Market moves update
Sector developments and company hires in structured finance
Moody's has downgraded the ratings of 123 tranches, placed on review for upgrade two tranches and affirmed 34 tranches in 84 Italian RMBS auto ABS, consumer loan ABS and consumer CDQ ABS deals . The rating actions were prompted by the rating agency's lowering of Italy's local-currency bond ceiling to Aa3 from Aa2. This which follows the downgrade of the ......
Market Moves 26 October 2018Premium Content
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Mixed outlook
Risk transfer diversity set to increase
The outlook for risk transfer issuance volumes is mixed, according to panellists at SCI’s Capital Relief Trades Seminar last week. However, they agreed that the market will continue to increase in diversity, in line with bank origination channels and balance sheet needs.
The traditional Northern European CRT jurisdictions have seen a lot of activity over the last couple .......
Talking Point 26 October 2018
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Heightened holding
European ABS market update
Invesco is preparing a new €410m European CLO deal, along with GSO Capital Partners, which is planning a CLO reset. Elsewhere, Och-Ziff’s latest OZLME deal is reported to be sized at €412m (see SCI’s deal pipeline).
Overall European CLO spreads remain unchanged to slightly wider, as only a handful of bonds are out for the bid today. .......
Market Reports 26 October 2018
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Market moves update
Sector developments and company hires in structured finance
China
Fitch Ratings has launched Fitch Bohua Credit Ratings to serve China's onshore bond market and has appointed Danny Chen as Fitch Bohua's ceo. Initially, the company will cover banks, non-bank financial institutions and insurers, as well as the structured finance sector. Chen was previously ceo of Qingdao Conson Financial Holdings. A team of analysts, business development and support staff .......
Market Moves 25 October 2018
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CLOs in demand
Quarterly SCI data update
Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in both primary and secondary markets. Meanwhile, a bias towards Northern European jurisdictions is evident in capital relief trade volumes.
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News Analysis 23 October 2018
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Market moves update
Company hires and sector developments in structured finance
[b]Acquisition[/b]
[b]Miller[/b] is to acquire the independent London market (re)insurance broker[i], Alston Gayler and Co[/i], currently majority owned by Nelson Holdings Limited. The transaction will bolster Miller’s offering to clients and strengthen its position as a leading London wholesale and specialist broking platform. The transaction is subject to regulatory approval and financial terms were not disclosed.
[b]UK[/b]
Market Moves 23 October 2018
Premium Content
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Market moves update
Company hires and sector developments in structured finance
Accrual clause nixed
The New York State Court of Appeals last week held that contractual attempts to extend the statute of limitations for causes of action involving breaches of contract are unenforceable because they violate New York law and public policy. In the case at issue, the plaintiff (Deutsche Bank National Trust Company) argued that the accrual clause ......
Market Moves 22 October 2018Premium Content
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Performance blueprint
Positive predictions for NPL securitisations
Northern Italian non-performing loan portfolios are performing better than Southern Italian portfolios, and Irish transactions are also outperforming assumptions. There are 11 transactions currently in the European NPL pipeline, most of which are Italian.
“At the moment, the majority of the transactions are outperforming DBRS plan assumptions,” says Alessio Pignataro, svp at DBRS. “However, it is early in .......
Talking Point 19 October 2018
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Technicals eyed
European ABS market update
Porsche’s FACT Compartment 2018-1 auto lease ABS has seen no substantial resistance in the European primary market. Indeed, spreads appear rangebound for now.
“Because we are in the last few months of the year, people know that whatever they have done so far, they will have to stick with,” says one trader. “They cannot change their numbers. At .......
Market Reports 19 October 2018
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Risk transfer round-up - 19 October
CRT sector developments and deal news
Credit Suisse is believed to be readying a Swiss corporate deal from its Elvetia programme. The issuer’s last Elvetia transaction was a Sfr300m ticket referencing a Sfr5bn Swiss mortgage portfolio (see SCI capital relief trades database).
...... News 19 October 2018Premium Content
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Market moves update
Company hires and sector developments in structured finance
Alternatives alliance
Market Moves 18 October 2018
DWS Group and Tikehau Capital have entered into an alliance, following Tikehau’s participation in the IPO of DWS in March 2018. Under the agreement, DWS and Tikehau intend to launch a joint product leveraging the two companies’ alternative asset management expertise and platforms, which is expected to launch in 2019. The partners intend to cross-invest in respective funds, with .......
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Primary energy
European ABS primary market update
The European primary RMBS market has come to life after the BPCE Home Loans FCT 2018 priced today (18 October). The senior tranches printed at between high-20s to low-30s.
“With a lot of new issues pricing, investors are putting their energy into primary instead of secondary,” says one trader. “Of note, Porsche’s Austrian auto ABS has appeared on .......
Market Reports 18 October 2018
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Latest SCI podcast now live
SCI podcast episode two has been released
SCI’s latest podcast is now live. This month the team discuss the African Development Bank’s Room2Run CRT, how fintech is affecting MPL ABS and the changing use of credit derivatives.
The AfDB’s Room2Run deal, scheduled to close imminently, has shaken up the CRT sector, emphatically underlining that issuers do not have to be European and assets do not have to be .......
News 18 October 2018
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Steady subscription
European ABS primary market update
European primary ABS activity continues to be robust. In the RMBS sector, the BPCE Home Loans FCT 2018 deal is set to price tomorrow (18 October).
“A variety of asset classes are represented in the primary market at the moment, with the French BPCE Home Loans RMBS and the German auto deal that priced last week,” says one .......
Market Reports 17 October 2018
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Default proxy
Second income-contingent SLABS prepped
The UK government is readying a £3.88bn securitisation backed by English plan 1 income-contingent loans granted to students whose repayment date fell between 2007 and 2009, the second public transaction of its type (SCI 14 December 2017). Dubbed Income Contingent Student Loans 2 (2007-2009), the deal is characterised by the loans being written-off once the borrowers reach the ......
News 17 October 2018Premium Content
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Market moves update
Company hires and sector developments in structured finance
CRT poll results
Market Moves 17 October 2018
The results from SCI’s ‘What’s in a name?’ survey are in. Delegates at SCI’s Capital Relief Trades Seminar yesterday were polled as to what the most appropriate term should be for capital relief trades from 11 different choices. Out of over 80 responses, 22% voted for ‘credit risk transfer’, 20% for ‘risk-sharing transaction’, 18% for ‘capital relief .......
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Second wave
Synthetic CRE transactions launched
Santander and NatWest have completed two commercial real estate risk transfer transactions and the market is expecting another CRE deal in 4Q18. This marks the second wave of synthetic CRE transactions, following the first wave last year, with the issuance of three transactions by Santander, Lloyds and Barclays (see SCI’s capital relief trades database). The second synthetic CRE .......
News Analysis 15 October 2018
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Market moves update
OFS equity investment
OFS Credit Company has disclosed that it has invested in the equity tranches of 19 CLOs, 17 of which have a reinvestment period ending in 2022 or beyond, for a total cost of US$43.6m (US$53.4m principal amount). The move follows OFS Credit’s IPO, which closed on 10 October and resulted in net proceeds of US$50m. OFS Capital .......
Market Moves 15 October 2018
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Market moves - 12 October
Company hires and sector developments in structured finance
Cliff edge concerns
ISDA has published a paper highlighting widespread concerns in Europe that the UK may withdraw from the EU without a withdrawal agreement under Article 50 of the Treaty on European Union and without any transition, or implementation period, to allow market participants time to adjust. The paper sets out why a ‘no deal’ scenario has the potential .......
Market Moves 12 October 2018
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Greek GACS?
Greek government considering asset protection scheme
The Greek government is considering the creation of an asset protection scheme as part of the state’s non-performing loan reduction strategy. The scheme will involve state guarantees on bonds issued by SPVs, rendering it similar to the Italian GACS guarantee.
Market sources note that the proposed Greek scheme can only work if the guarantee covers both the senior .......
News Analysis 12 October 2018