Complete news archive
-
CRT Market Update
Closing days
As the final week before the Christmas break rolls around, the remainder of the Q4 SRT pipeline is making its way across the line.
While earlier in the week it had been reported that Bank Millennium and Santander (in the US) had finalised transactions, news has additionally emerged that both Eurobank and BNP Paribas have recently closed .......
News 15 December 2023
-
Basel 3 'roadmap', reporting ITS published
Market updates and sector developments
The EBA has published its roadmap on the so-called Banking Package, which implements the final Basel 3 reforms in the EU. The roadmap aims to strengthen the prudential framework, as well as ensure an international level playing field. It also seeks to provide clarity on how it will develop the mandates implementing the legislation and finalise the most significant .......
Market Moves 14 December 2023
-
Basel 4 series: A swinging pendulum - video
Market participants share their insights into whether Basel 4 is in line with industry expectations
In the final instalment of SCI’s Basel 4 video series, ex-issuer Frank Benhamou provides a brief outline of what’s new in Basel 4 and SCI’s Kenny Wastell asks market participants about the extent to which Basel 4 is in line with expectations.
....... News Analysis 14 December 2023
-
Producing results
PDP securitisations gaining traction
The number of transactions executed in the nascent proved developed producing (PDP) wellbore oil and gas ABS sector is expected to reach double-digits this year, as familiarity with the product grows. Raisa Energy closed the debut PDP securitisation in September 2019, amid a pull-back from traditional reserve-based lending (RBL) by banks, and the market experienced a meaningful increase in .......
News Analysis 14 December 2023
-
LTEL issue
SES highlights competitiveness concerns
The EBA’s final RTS on synthetic excess spread (SES) generally sparked optimism across the CRT market (SCI 6 May). Nevertheless, divergences around increased calibration and SES on certain portfolios highlight a broader issue of governance and competitiveness within the European regulatory apparatus.
Recently, investors have been reporting of a potential structural shift, leading to a significant .......
News Analysis 14 December 2023
-
Arch enemy
Wider ILN new issue spreads foreseen post-Bellemeade calls
The negative repercussions of Arch’s cancellation of eight Bellemeade insurance-linked notes (ILNs) will be felt in the market for the foreseeable future, say well-placed sources.
The decision to call these bonds on November 21 has soured the market and .......
News Analysis 13 December 2023
-
Polish SRT finalised
Bank Millennium closes largest synthetic to date
Bank Millennium has completed a synthetic securitisation referencing a portfolio of Polish unsecured non-mortgage loans with a total value of PLN7.2bn. This latest trade represents Bank Millennium’s largest-ever SRT deal.
The Polish bank transferred a significant part of the credit risk of the securitised portfolio to a single investor. As part of the transaction, Bank Millennium issued on 11 .......
News 12 December 2023
-
Unusual structure debuts
Santander out with auto CLN
Santander Bank Auto Credit-Linked Notes Series 2023-B (SBCLN 2023-B) has hit the market, representing Santander’s second CLN transaction this year to reference a pool of US auto loans. The deal is unusual in that the source of principal payments for the notes will be a cash collateral account held by a third party with a rating of A2 or .......
News 12 December 2023
-
Generating traction in a stalled market
Matteo Cidonio, managing partner at GWM Group, answers SCI's...
Q: The past couple of years have been a very difficult period for the CRE market globally. You recently said there are opportunities for investors who target the right real estate categories and more specifically segments, even in the current market. What would you see as being the top segments in Europe currently, and why?
The Structured Credit Interview 11 December 2023
A: Commercial real estate has .......
-
SCI Start the Week - 11 December 2023
A review of SCI's latest content
Last week's news and analysis
News 11 December 2023
Basel 4 series: Levelling the playing field - video
Why further amendments to the Basel framework are required
CRT Market Update
Looking ahead
Digital download
Up, up and away for digital infrastructure market in 2024
Fix-and-flip fund debuts
Update on a .......
-
CRT Market Update
Looking ahead
With only a couple of weeks left before the Christmas break, market participants’ focus already appears to be geared towards the new year.
Regarding the past and current SRT pipeline, one investor does not expect any new deals to price between now and the end of the year, noting that “pretty much everybody has closed their books.”
Previously News 8 December 2023
-
Job swaps weekly: EU finance ministers choose Calviño for EIB
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Nadia Calviño chosen to become head of the European Investment Bank (EIB). Elsewhere, the Structured Finance Association welcomes seven industry leaders to its new board of directors, while a Mayer Brown partner and structured finance specialist has joined Jones Day as partner in its London office.
Spain’s deputy prime minister .......
Market Moves 8 December 2023
-
Global Risk Transfer Report: Chapter six
In the final chapter of our report surveying the synthetic s...
IACPM’s latest risk-sharing survey notes that 2022 highlighted not only a substantial growth in SRT product utilisation by banks, with €200bn in new issuance, but also some structural changes in the risk-sharing activity of banks. Nevertheless, a number of regulatory challenges remain outstanding.
SCI’s Global Risk Transfer Report examines how the risk transfer community is addressing these .......
Talking Point 6 December 2023
-
Basel 4 series: Levelling the playing field - video
Market participants share their insights about why further a...
In the fourth instalment of SCI’s Basel 4 video series, Alantra md Holger Beyer provides a brief outline of what’s new in Basel 4 and SCI’s Kenny Wastell asks market participants why further amendments to the framework are required.
....... News Analysis 6 December 2023
-
SRT inspection
Lawmaker warns of perceived SRT risks
The risks of SRT trades “may not be fully understood” Senator Jack Reed, (D-RI) has warned US regulators. In a letter to the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), Reed, a .......
Market Moves 5 December 2023
-
Digital download
Up, up and away for digital infrastructure market in 2024
There has been dramatic growth in the US esoteric securitization market in the last three years or so, but the pace isn’t about to slip, says Michael Nowakowski, director and interim head of structured products at Conning, a Hartford, Connecticut-based investment manager which .......
Talking Point 5 December 2023
-
Fix-and-flip fund debuts
Market updates and sector developments
Faes & Co, an investment firm led by LendInvest founder Christian Faes, has launched its maiden private credit fund focused on the US real estate bridging finance market. The Faes & Co Income Fund intends to capitalise on the firm’s domain knowledge of the short-term mortgage market to provide investors with consistent, superior risk-adjusted returns.
The fund will .......
Market Moves 5 December 2023
-
Salisbury sees momentum
Lloyds' latest SME SRT unveiled
Lloyds has executed Salisbury 2023-1, the seventh synthetic securitisation from its Salisbury programme, following Salisbury 2022-1 in April 2022.
The significant risk transfer transaction references a £1.75bn portfolio of UK SME loans extended to circa 3,500 borrowers located across the UK and originated by Lloyds. In terms of sectors, the portfolio comprises 41% real estate exposures, 28% in healthcare, .......
News 5 December 2023
-
Latest SRTx fixings released
Index values indicate gradual tightening in spreads and impr...
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. There have been incremental but modest improvements in spread and risk indexes and a tempering of values in volatility indexes, which had risen in November’s fixings (SCI 2 November) in response to conflict in the Middle East.
This month’s survey responses point to .......
News 4 December 2023
-
SCI Start the Week - 4 December 2023
A review of SCI's latest content
Last week's news and analysis
News 4 December 2023
Arch agony
Cancellation of 8 ILNs leaves investors stewing
Basel 4 series: Preparing - video
Market participants share their insights about how to prepare for Basel 4
Global Risk Transfer Report: Chapter five
In the fifth of six chapters examines trends in North .......
-
Risk transfer round-up - 1 December
The week's CRT developments and deal news
Market news
A pair of auto loan CLNs hit the market this week, including US Bank’s inaugural capital relief trade. Dubbed US Bank Auto Credit-Linked Notes Series 2023-1 (USCLN 2023-1), the synthetic securitisation has a couple of unusual features.USCLN 2023-1 transfers credit risk to noteholders via a financial guaranty on a US$2.46bn reference pool comprising 97,444 prime auto .......
News 1 December 2023