Complete news archive
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FCA review spells uncertainty for UK auto ABS
Market updates and sector developments
The UK FCA last month announced a review of the historical commission structures across several auto lenders in the UK, with a warning that should widespread misconduct be found, appropriate redress measures will be taken to compensate customers. While the overall credit risk profile of UK auto ABS transactions is unlikely to be negatively affected, the investigation exposes the .......
Market Moves 6 February 2024
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Structured finance in private capital's pivot to hybrid fundraising
Growth in CFOs and RNFs driven by ongoing demand from regulated investors
Hybrid products including rated note feeders (RNF) and collateralised fund obligations (CFO) are growing in prominence, as private capital fund managers look to increasingly tap into demand from insurance investors. But uncertainty remains as to whether such instruments will ultimately be treated as securitisations by insurance regulators in the medium and long term.
In a report released in .......
News Analysis 6 February 2024
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Latest SRTx fixings released
Index values indicate tightening in spreads in line with ove...
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Spread indexes have tightened compared with January’s fixings (SCI 8 January), mirroring trends seen elsewhere in global risk markets. There have been improvements in both the volatility and liquidity indexes reflecting a more accommodative market and high deal volumes.
After last month’s widening .......
News 5 February 2024
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Navient unveils 'strategic actions'
Market updates and sector developments
Navient has unveiled a strategic action plan designed to simplify the company, reduce its expense base and enhance its flexibility, following an in-depth review overseen by the Board over the past several months. The strategic actions include outsourcing the servicing of its student loan portfolio to a third party; exploring strategic options for its business processing division, including potential .......
Market Moves 5 February 2024
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SCI Start the Week - 5 February 2024
A review of SCI's latest content
Last week's news and analysis
News 5 February 2024
B note bonanza
GSE CRT benefitting from 'bullish technical'
Job swaps weekly: M&G lures new cio from Allianz GI
People moves and key promotions in securitisation
Mortgage modelling
Agency MBS could 'exacerbate' financial crises
Office loans .......
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Job swaps weekly: M&G lures new cio from Allianz GI
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees M&G Investments snap up a new private markets cio from Allianz Global Investors. Elsewhere, a London-based partner at Allen & Overy leaves the firm after 28 years, while Canopius bids to enhance its SRT business by appointing a new head of structured credit.
M&G Investments has appointed Allianz Global Investors' .......
Market Moves 2 February 2024
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PRA urged to fix non-neutrality issue
Market updates and sector developments
PCS has submitted its response to the UK PRA in connection with the consultation on the introduction of the output floor pursuant to Basel 3.1, as it relates to securitisation (SCI 1 November 2023). While welcoming the PRA’s suggestions, the organisation points out that “all the obvious difficulties that flow from a rigid application of the proposed Basel .......
Market Moves 1 February 2024
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Mortgage modelling
Agency MBS could 'exacerbate' financial crises
Conventional wisdom holds that by fostering diversification and creating a ‘safe’ asset in the form of MBS, securitisation will reduce risk and enhance liquidity, thereby mitigating financial crises. A new Federal Reserve Finance and Economics Discussion Series paper suggests, however, that government-sponsored securitisation - somewhat counterintuitively - is more likely to exacerbate the severity and frequency of financial crises. .......
News 1 February 2024
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Powen pioneers Spanish solar ABS
Market updates and sector developments
Powen Group, a portfolio company of Brookfield Asset Management, has closed a pioneering bank-funded securitisation of Spanish solar assets with a value of up to €120m. The transaction is one of the first private European solar ABS and is the first to finance a combined portfolio, comprising both residential solar loans, as well as solar leases and power purchase .......
Market Moves 30 January 2024
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Office loans face global DFG challenges
Market updates and sector developments
AEW has published its first global commercial real estate debt funding gap (DFG) analysis, which provides insights on the relative refinancing challenges faced by three key regions. The findings indicate that Europe has the largest DFG on a relative basis, standing at 16% of loan originations, closely followed by the US at 14%, with Asia Pacific remaining relatively immune. .......
Market Moves 30 January 2024
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B note bonanza
GSE CRT benefitting from 'bullish technical'
The GSE credit risk transfer market posted one of the highest daily trading volumes on record last Thursday (25 January) at US$910m, exceeding the prior daily trading record of US$895m reached in March 2020. While the latter was driven primarily by the unwinding of levered positions, the former followed Fannie Mae’s strong CAS 24-R01 print (SCI 26 January).
News 29 January 2024
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SCI Start the Week - 29 January 2024
A review of SCI's latest content
Last week's news and analysis
News 29 January 2024
Building momentum
Chinese consumer ABS market tipped for growth
GSEs get set for social MBS
New iteration of social scores revealed
Inside job
Internal ESG assessments and SPOs favoured
Job swaps weekly: Dechert rings the changes .......
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Job swaps weekly: Dechert rings the changes in US securitisation group
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Dechert make two appointments to its US asset finance and securitisation team, including the appointment of a new head. Elsewhere, Fried Frank has appointed a structured finance expert as a London-based partner, while TCW Group has appointed a former Brigade Capital Management partner to lead its newly formed asset-backed finance (ABF) .......
Market Moves 26 January 2024
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Inside job
Internal ESG assessments and SPOs favoured
Second-party opinions (SPOs) are growing in importance as climate credit risks and sustainable impact efforts continue to converge. At the same time, although rating agency ESG criteria have developed extensively alongside regulation, many securitisation market participants still rely on internal ESG performance assessments and scoring.
“We treat a second-party opinion how we’d treat an opinion from any other .......
News Analysis 26 January 2024
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TCW launches ABF business
Market updates and sector developments
The TCW Group has launched a dedicated asset-backed finance (ABF) business that will be anchored with over US$1bn in capital commitments from TCW, partners and affiliates. Dylan Ross has joined the firm as md and portfolio manager to lead the asset-backed finance investment efforts.
Ross brings to TCW almost 20 years of experience in alternative credit investing with .......
Market Moves 26 January 2024
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Risk transfer round-up - 25 January
The week's SRT developments and deal news
Market news
BofA Global Research analysts believe that there is potential for 2021-2022 GSE credit risk transfer transactions to be upgraded, as their credit enhancement levels and mark-to-market LTVs continue to improve and delinquencies remain low. Rating agencies upgraded 292 CRT bonds in 2023, 35 of which were upgraded from non-investment grade to investment grade.In particular, bonds rated .......
News 25 January 2024
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Pilot transaction
IDB expands focus and lending capacity to the private sector
The Inter-American Development Bank (IDB), the main source of development financing for Latin America and the Caribbean, recently completed a risk-transfer transaction using credit-insurance protection with private insurance companies to optimise the use of resources and unlock capital for additional lending to the region. This is the IDB's first such transaction with the private sector.
Previously, the IDB .......
The Structured Credit Interview 25 January 2024
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The way back
SRT gives US banks chance to regain market share
Greater use of synthetic securitization will allow US banks to compete more effectively with the burgeoning private credit market, according to a detailed research piece from Seer Capital Management, the experienced SRT investor based in New York.
Private credit, as .......
News Analysis 24 January 2024
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GSEs get set for social MBS
Market updates and sector developments
Fannie Mae and Freddie Mac have unveiled a new iteration of their social scores, rebranding them as ‘Mission Index Scores’, which will serve as the basis for future social-labeled agency MBS. As part of the move, the GSEs have launched Single-Family Social Bond Frameworks and intend to begin disclosing new impact reporting metrics for investors.
Compared to the .......
Market Moves 24 January 2024
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Building momentum
Chinese consumer ABS market tipped for growth
Chinese securitisation issuance posted a 7% decline in volumes last year. However, backed by solid mortgage originations, vehicle sales and foreign investor interest, China could well be on its way to long-term growth if its structured finance market can stay afloat.
After seeing the market’s first triple-A rated consumer ABS last year, the consumer segment is likely to .......
News 24 January 2024
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SCI Start the Week - 22 January 2024
A review of SCI's latest content
Last week's news and analysis
Back in the game
Citi sells SRT, more in the works, say sources
Fed checks banks' homework
CLN submission path is clearer, but Fed approval far from automatic
Gathering momentum
SRT market update
Hanging in the balance
UK green securitisation market falling behind
News 22 January 2024