Complete news archive

  • 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

  • Job swaps weekly: Sirius execs join forces to launch Karis

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees the launch of a new real estate debt advisory firm, Karis Capital UK, led by a number of outgoing Sirius Group executives. Elsewhere, Invesco has lured a Munich-based Patrizia director to its EMEA structured debt finance team, while Sumitomo Mitsui Banking Corporation (SMBC) has appointed a Clifford Chance senior associate as .......

    Market Moves 1 December 2023

  • Arch agony

    Cancellation of 8 ILNs leaves investors stewing

    The decision last week by Arch Capital to cancel eight Bellemeade insurance-linked notes (ILN) issued between 2018 and 2021 has not gone down well with all investors, say market sources.

    Arch was able to redeem the note at par, but some were trading at a premium to par, leaving some investors highly dissatisfied with the decision. They now have a sizeable hole to .......

    News 30 November 2023

  • Positioned for quality and liquidity

    Kate Galustian, lead portfolio manager for BlackRock Senior...

    Q: When you announced BlackRock Senior Securitised Fund (SCI 20 November), BlackRock stated that this new vehicle will predominantly invest across continental Europe and the UK. To what extent was that driven by current opportunities specific to that geographic market, and could you provide an outline as to what those are?
    A: The fund was designed in collaboration with .......

    The Structured Credit Interview 30 November 2023

  • Rules of conflict

    Final SEC "conflict of interest" ruling offers crumbs of comfort

    The SEC’s final “conflict of interest” ruling, designated Rule 192 and released at the beginning of this week (SCI 29 November), waters down some of the most onerous restrictions but still represents a serious imposition for securitized markets participants, say those in the field.

    The new rule prohibits so-called “securitization participants” from engaging in “conflicted transactions” during the life of an .......

    News 30 November 2023

  • SIFMA calls for STC framework

    Market updates and sector developments

    A new SIFMA blog highlights three actions that will mitigate what the association calls the “perverse incentives” created by the lack of appropriate risk-sensitivity of the SEC-SA framework, under the US Basel 3 Endgame (B3E) proposal. The blog describes the proposal as “the most restrictive approach to set capital requirements for banks’ securitisation exposures in the developed world”.

    As .......

    Market Moves 29 November 2023

  • Basel 4 series: Preparing - video

    Market participants share their insights about how to prepare for Basel 4

    In the third 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 what they can do to prepare for the regulatory changes. 

    .......

    News Analysis 29 November 2023

  • Global Risk Transfer Report: Chapter five

    In the fifth of six chapters surveying the synthetic securit...

    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 29 November 2023

  • Treasury overhang

    Unprecedented Treasury supply dominates agency MBS story for 2024

    The enormous Treasury issuance expected next year forms a long shadow falling over the agency MBS market, say investors.

    Estimated 10-year Treasury issuance is now projected to be US$1.34trn in 2024, some US$90bn more than earlier estimates and breaking previous records. Assuming the Federal Reserve extends quantitative tightening, overall 10-year Treasury supply will exceed US$1.5trn.

    “The biggest risk to agency MBS is Treasury supply. .......

    Talking Point 27 November 2023

  • SCI Start the Week - 27 November

    SCI event tomorrow
    Join us for our     European CRE Finance Seminar in London tomorrow, 28 November

    Last week's news and analysis
    Basel 4 series: Industry impacts - video
    Exploring the effects of Basel 4 on market participants and their clients or members
    BlackRock launches Article 8 ABS fund
    Updates on .......

    News 27 November 2023

  • Job swaps weekly: EverBank lures Forbright's Walsh

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees EverBank hiring a senior Forbright Bank executive as head of structured real estate finance. Elsewhere, National Australia Bank (NAB) has made two senior promotions within its securitisation teams in Melbourne and New York, while Piraeus Bank has elevated an Athens-based director to the role of senior director, head of securitisations and transaction structuring.

    EverBank, .......

    Market Moves 24 November 2023

  • Basel 4 series: Industry impacts - video

    Exploring the effects of Basel 4 on market participants and their clients or members

    In the second instalment of SCI's Basel 4 video series, The D. E. Shaw Group's Syril Pathmanathan 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 will affect them and their clients or members.

    .......

    News Analysis 22 November 2023

  • Global Risk Transfer Report: Chapter four

    In the fourth of six chapters surveying the synthetic securi...

    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 22 November 2023

  • Hotel upgrades

    Uplift in fortune seen for lodging CMBS

    The lodging sector is one of the few bright spots in the US CMBS landscape. This Premium Content article uncovers the reasons why.

    The US lodging sector has enjoyed an uplift in fortunes over the past 18 months, with pent-up demand from holidaymakers driving a post-Covid recovery. Despite a slight uptick in delinquencies in recent months, sector-specific metrics ......

    News Analysis 21 November 2023

  • Gaining traction

    The rise of project finance SRT

    Synthetic securitisation is expected to play a key role in assisting Europe’s transition towards a more sustainable economy. This Premium Content article explores the significance of project finance SRT transactions within this context.

    Given the challenging macroeconomic conditions over the past 12 months and the unprecedented write-down of Credit Suisse’s AT1 bonds, banks are increasingly adopting synthetic ......

    News Analysis 21 November 2023

    Premium Content

  • Fannie signs off for 2023

    Multi-family CAS and last 2023 CIRT for the GSE

    Fannie Mae has executed its third multi-family CAS deal and also its ninth and final CIRT trade of the year.

    Placed by structuring manager and lead bookrunner Bank of America, the US$595m MCAS 2023-01, consists of 423 multi-family loans with an unpaid principal balance (UPB) of US$24bn.

    The US$154.6bn M7 tranche was priced at SOFR plus 400bp and has 3.5% credit support. The .......

    Market Moves 20 November 2023

  • Global goals

    Chris Whitcombe, head of European and US ABS at Challenger I...

    Q: Challenger IM recently launched its first securitisation-only investment fund – the Challenger IM Global ABS Fund (SCI 1 November). What makes now the right time?
    A: At Challenger IM, we manage assets for leading global and Australian institutions. We have been actively investing in ABS since 2005, including the private ABS market for the last decade. So, although .......

    The Structured Credit Interview 20 November 2023

  • BlackRock launches Article 8 ABS fund

    Market updates and sector developments

    BlackRock has launched the BlackRock Senior Securitised Fund (BSSF), its new flagship securitisation fund, in the existing BlackRock Specialist Strategies Fund range. The firm says that BSSF is designed to meet the strong demand for securitised assets from both institutional and wealth clients seeking to diversify their fixed income exposures. Clients have demonstrated a desire for the diversification benefits, .......

    Market Moves 20 November 2023

  • SCI Start the Week - 20 November

    A review of SCI's latest content

    New SCI video series
    In the first 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 whether the new regulations will be a game changer for the SRT market.

    Last week's news and analysis
    News 20 November 2023

  • Stand by, CRT

    CRT boom but adverse regulations loom, say SCI conference speakers

    Echoing what is now a familiar refrain, speakers at SCI’s inaugural esoterics conference in New York Last week said that the US CRT market is set to get very big.

    “Every bank is now looking at assets that don’t justify a 100% risk weighting,” said one.

    The rise of subscription credit facilities means that CRT deals that offer synthetic exposure to this class .......

    News 17 November 2023

  • Reissue, renew, reprint

    Big banks focus on retention in German RMBS

    The reissuing, renewing and reprinting of retained structures seems to be the name of the game in German RMBS, as covered bonds remain the preferred secured wholesale funding tool of German banks as TLTROs disappear. However, with higher all-in coupons and widening covered bond spreads, the relative pricing differential is narrowing and the funding diversification argument may become stronger.

    News Analysis 17 November 2023

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