Complete news archive
-
Balancing act
Alexander Batchvarov, md, head of international structured f...
Q: How would you describe European investor appetite for esoteric securitisations currently?
A: We have a situation on the market, where corporate spreads are moving very tight and at present high yield spreads are in the 300bp area in Europe. Investors seek beta, but also keep an eye over their shoulders – ECB reaction function is of concern.With .......
Talking Point 30 April 2021
-
Greek investment partnership inked
Sector developments and company hires
Greek investment partnership inked
Market Moves 29 April 2021
Mount Street Group has formed a strategic partnership in Greece and Cyprus with Technical Olympic, a Greek real estate, construction and investment group. As part of the partnership and through its subsidiary PFC Premier Finance Corporation (Cyprus), Technical Olympic has entered into a Memorandum of Understanding to acquire a stake in Mount Street’s businesses in Greece .......
-
Convexity clues
CLOs hold firm but opportunities arise
Booming CLO primary activity either side of the Atlantic continues to be met with sufficient demand to keep supporting spreads. However, there are still opportunities for investors in some areas.
“Mezz in particular has continued to come in over the past couple of weeks,” says one investor. “The only area where we are seeing a hint of .......
News Analysis 29 April 2021
-
Vertical structure
Rare Spanish NPL ABS closed
Morgan Stanley last month closed a rare Spanish non-performing loan securitisation, dubbed Retiro Mortgage Securities. The €470m transaction features a vertical structure for the management of four sub-portfolios, with a mortgage lender, an SPV with credit rights over the loan collateral and a respective propco with security rights over the REO assets.
The NPL collateral has a total .......
News Analysis 29 April 2021
-
Irish RPL refi prepped
Sector developments and company hires
Irish RPL refi prepped
Market Moves 28 April 2021
A refinancing of two Irish reperforming RMBS - European Residential Loan Securitisation 2019-PL1 and Grand Canal Securities 1 - has hit the market. Dubbed Primrose Residential 2021-1, the transaction is backed by a €869.8m portfolio of seasoned first lien performing and reperforming mortgages secured by majority owner occupied (accounting for 57.6% of the pool) and buy-to-let .......
-
-
Funded reinsurance roll-out
Pass-through longevity swap completed
Prudential Insurance Company of America’s (PICA) international reinsurance business last month closed an innovative longevity swap with a UK pension scheme using a UK-regulated insurer, Zurich Assurance, as intermediary. The transaction - which transfers longevity risk associated with £6bn of pensioner liabilities - features a limited recourse structure, whereby the longevity and default risks can be passed through the .......
News 28 April 2021
-
APAC ESG expansion eyed
Sector developments and company hires
APAC ESG expansion eyed
Market Moves 27 April 2021
Moody’s is set to expand its Singapore office with the aim of spearheading ESG, climate and sustainable finance efforts in the Asia Pacific region, as well as fostering the ESG ecosystem in Singapore. Included in the firm’s plans are several initiatives, such as the establishment of an ESG Centre of Excellence for investor outreach, engagement and .......
-
Risk transfer round-up - 27 April
CRT sector developments and deal news
Credit Suisse has redeemed and delisted two Magnolia Finance Five transactions. Magnolia Finance Five Series 2017-1 is a US$400m CLN that matures in 2024. The other transaction, dubbed Magnolia Finance Five series 2017-2, is a US$75m CLN that matures in 2025.
....... News 27 April 2021
-
Democratising data
Stephane Michel, senior portfolio manager at the internation...
Q: How does Federated Hermes integrate ESG in its CLO business?
The Structured Credit Interview 27 April 2021
A: CLOs are still very much a universe where we are trying to build an analytical framework that is comparable to what our equity colleagues have been able to do for much longer, due to the provision of data that we haven’t got. That’s the challenge for ESG across .......
-
Downgrades for 'lower quality' mall CMBS
Sector developments and company hires
Downgrades for ‘lower quality’ mall CMBS
Market Moves 26 April 2021
Moody's has downgraded 119 principal and interest, 26 interest-only and 11 exchangeable classes from 36 US CMBS and placed eleven P&I, one exchangeable and three IO classes under review for possible downgrade from a further two CMBS. The rating actions affect approximately US$6.2bn of securities and were prompted primarily by increased loss expectations and .......
-
Non-prime pick-up
UK RMBS driving European volumes
UK RMBS led European placed securitisation volume in 1Q21, rising to €12.7bn-equivalent from €300m-equivalent in 4Q20, according to AFME data. The non-prime sector, in particular, saw a significant pick-up in activity during the quarter.
The UK RMBS market appears to be diverging across different issuer segments - fintech and new money lenders, private equity players and the large .......
News Analysis 26 April 2021
-
SCI Start the Week - 26 April
A review of securitisation activity over the past seven days
Last week's stories
News 26 April 2021
Bottoming out
EU NPL ratios improve
Climate concerns
The nexus between insurance risk transfer and ESG
Investor interest
European CLOs attracting new investors to mezz and equity
Regional resilience
Structural enhancements for debut aircraft ABS
RWA boost
ECB reveals TRIM findings
Third 2021 STACR prints
With Fannie Mae still on the sidelines, Freddie corners CRT space
Uncertainty highlighted
UK banks unclear on project finance .......
-
Texas template
TCB CRT establishes blueprint for US banks, say SCI speakers
The recent $275m 3-year CLN capital relief trade from Texas Capital Bank (TCB) has established a precedent that all US banks in the US should be scrutinizing, agreed panellists involved in the roundtable discussion of the deal at SCI’s fifth annual risk transfer and synthetics seminar.
The seminar was held April 21-22, and the speakers at the .......
News 23 April 2021
-
CLO investment firm formed
Sector developments and company hires
CLO investment firm formed
Market Moves 23 April 2021
York Capital Management and Kennedy Lewis Investment Management have formed a strategic partnership and established a new entity called Generate Advisors. Under the agreement, York’s approximately US$4bn CLO business and team - led by Rizwan Akhter - will transition to Generate Advisors and continue to manage York’s current CLO portfolio, as well as any future CLOs .......
-
Uncertainty highlighted
UK banks unclear on project finance slotting
The application of the slotting approach to synthetic securitisations referencing project finance assets remains unclear. The other option for UK banks is ratings, but that approach is accompanied by its own challenges.
According to Steve Gandy, head of private debt mobilisation, notes and structuring at Santander Corporate and Investment Banking: ‘’The PRA has stated publicly that it .......
News Analysis 23 April 2021
-
Investor interest
European CLOs attracting new investors to mezz and equity
European CLO primary activity continues to roll, with seemingly unwavering investor demand supporting prices at the top of the stack. Now, investor interest is growing across the capital structure, as new players look to enter the lower tranche space.
As of yesterday’s close, an impressive 87 European CLOs had priced this year. Nevertheless, the three resets that printed .......
News Analysis 22 April 2021
-
Taxonomy Delegated Act adopted
Sector developments and company hires
Taxonomy Delegated Act adopted
The European Commission has adopted what it describes as an “ambitious and comprehensive” package of measures to help improve the flow of money towards sustainable activities across the EU. The measures – which include the EU Taxonomy Climate Delegated Act - are expected to be instrumental in making Europe climate-neutral by 2050.The EU Taxonomy .......
Market Moves 22 April 2021
-
Climate concerns
KBRA md Peter Giacone and Nephila Climate structured finance...
PG: How does the insurance industry fit into the ESG discussion and where do you see touch points within the Nephila Climate universe?
Talking Point 22 April 2021
AW: The evaluation of climate risk, a key aspect of the ‘Environmental’ factor, is a core capacity and it is what we do every day. In terms of the ‘Social’ element, the obvious thing is that insurance .......
-
Bottoming out
EU NPL ratios improve
Despite the significant decline in economic activity since the coronavirus outbreak, European banks are not at this point facing an asset-quality shock, according to the latest analysis. Non-performing loan ratios have improved and, indeed, they are expected to bottom out in 2021.
According to Scope Ratings estimates and EBA data, the EU NPL ratio declined from around 3% .......
News 22 April 2021
-
Forbearance SPV availability ends
Sector developments and company hires
Forbearance SPV availability ends
The Australian Office of Financial Management has released an update on its Structured Finance Support Fund (SFSF) activities. As of 31 March 2021, total funds committed by the SFSF were A$3.8bn, including A$1.36bn public market investments and circa A$2.3bn across 45 individual warehouses sponsored by 34 eligible lenders.The AOFM notes that public securitisation market .......
Market Moves 21 April 2021