Complete news archive

  • 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

  • CAS and out

    Fannie Mae prints 8th and final CAS of 2023

    Fannie Mae has printed its US$609m CAS 2023-08, the eighth and final CAS offering of 2023.

    Morgan Stanley was the lead structuring manager, and joint bookrunner. Wells Fargo is the co-lead and also joint bookrunner.

    There are three tranches to the trade. The A-/A- US$278m M1 has been priced at 30-day SOFR plus 150bp, the BBB/BBB+ US$206m M2 at SOFR plus 250bp and .......

    Market Moves 17 November 2023

  • Manulife acquires CQS

    Market updates and sector developments

    Manulife Investment Management is to acquire London-based alternative credit manager CQS. The transaction will see CQS’s investment team continue to operate autonomously, though Manulife will take ownership of the firm’s brand and credit platform.

    Following completion of the deal, CQS will benefit from exposure to new investors and the scaling of its distribution footprint, according to a statement. .......

    Market Moves 17 November 2023

  • Job swaps weekly: BNP bulks up in Americas

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees BNP Paribas building out its Americas-focused advisory and solutions teams, with two senior securitisation-focused appointments among a number of hires. Elsewhere, American Century Investments has appointed two industry veterans to its securitised markets team, while Academy Securities has snapped up a senior Citi exec as md and head of RMBS capital .......

    Market Moves 17 November 2023

  • Risk transfer round-up - 16 November

    The week's CRT developments and deal news

    Market news
    Freddie Mac last week priced the high-LTV STACR 2023-HQA3 deal, its first CRT transaction since the end of June, introducing a new deal structure. The trade included an A1 class structured as a three-year bullet-like bond, which is pro-rata to the senior retained AH class from day one, but receives all AH cashflows at the three-year mark and .......

    News 16 November 2023

  • Value covered

    LibreMax Capital cio Greg Lippmann and ABS head Kevin Tyler...

    Q: How has the evolution of the banking system and regulatory environment over time shaped private credit markets?
    GL: Before the global financial crisis (GFC), there were certain aggressive financial products which enabled consumers to become overleveraged, as well as light bank capital charges for investment bank holdings of structured products, which ultimately brought Lehman Brothers to default and spurred .......

    The Structured Credit Interview 16 November 2023

  • Angel Oak ABS-focused ETF reaches US$100m in AuM

    Market updates and sector developments

    Angel Oak Capital Advisors, based in Atlanta, has announced its Ultra Short Income ETF, chiefly invested in ABS, has grown to over US$100m in assets under management in the year since launch. Most ultra short ETFs with assets of a year or less in duration are invested in commercial paper and Treasury bills, but Angel Oak perceived a gap .......

    Market Moves 15 November 2023

  • Inflection point?

    Dennis Heuer, partner at White & Case, discusses the...

    Q: Having historically been secretive and opaque, is the SRT market likely to transition from highly private to increasingly more syndicated deals? Are we witnessing an inflection point? 
    A: I wouldn’t describe it as a clear shift but rather something I can foresee happening. Currently the market is divided between small club (often anchored by one lead investor) or bilateral .......

    Talking Point 15 November 2023

  • Global Risk Transfer Report: Chapter three

    In the third 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 15 November 2023

  • Ares flies high

    Top alt credit investor predicts CRT boom

    Ares Management, founded in 1997, is a leading investor in alternative credit products. It has US$395bn under management, of which some US$32bn, or a little under 10%, is invested in alternative credit. It recently closed Pathfinder II, one of its alternative credit funds devoted to illiquid instruments, with US$6.6bn in commitments, measurably more than the US$5bn target. It is also almost .......

    The Structured Credit Interview 14 November 2023

  • Basel 4 series: SRT game changer - video

    Market participants share their views on the extent to which...

    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.

    .......

    News Analysis 14 November 2023

  • Waiting game?

    Islamic securitisation gaining traction

    Saudi Real Estate Refinance Company (SRC) is widely anticipated to become the first to issue a Shari’ah-compliant RMBS transaction in the Kingdom. However, the drivers for a broader lift-off in Islamic limited recourse securitisation are yet to materialise.

    The Islamic finance market is not dissimilar to the conventional securitisation market. In the conventional market, consumer retail banks seek .......

    News Analysis 13 November 2023

  • SCI Start the Week - 13 November

    A review of SCI's latest content

    Last week's news and analysis
    A global market
    Man GPM answers SCI's questions
    Canadians coming
    Scotia back in the CRT market
    Esoteric explosion
    Data centre securitisation seeing strong fundamentals
    Glass half full?
    PRA publishes discussion paper on capital requirements for securitisation transactions
    Global Risk Transfer Report: Chapter .......

    News 13 November 2023

  • Job swaps weekly: ESG debt-swap pioneer transitions to UBS

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees a Credit Suisse veteran take on a senior ESG- and structured-credit role at UBS Group following the latter’s acquisition of the former. Elsewhere, Colliers has lured two ex-George Smith Partners (GSP) executives as vice presidents, while a senior Federal Housing Finance Agency (FHFA) exec has joined Guy Carpenter.

    Credit Suisse .......

    Market Moves 10 November 2023

  • Securitisation due in H1 for international student loan provider

    Goldman, Deutsche and Värde backed MPOWER's latest debt funding round

    MPOWER Financing, a provider of loans for international university students, is due to price its first securitisation in the first half of 2024 after closing its latest debt funding round. The business has raised further commitments from Goldman Sachs, Deutsche Bank and Värde Partners to bring its total deployable capital to more than US$300m.

    “There are three forces .......

    News Analysis 10 November 2023

  • Motor Securities 2023-1 prices

    Santander completes UK capital relief trade

    Santander has executed Motor Securities 2023-1, a synthetic securitisation of UK auto loans.

    Similarly to last year, the transactions consists of two placed tranches; a £26.7m class D tranche (with an expected AAA rating from ARC and KBRA) and a £41.2m unrated class E tranche. The D tranche priced at SONIA plus 400bp, while the E tranche landed at .......

    News 9 November 2023

  • Glass half full?

    PRA publishes discussion paper on capital requirements for securitisation transactions

    Following consultations by the PRA and FCA, which set out proposed non-prudential rules for the UK securitisation market as part of the broader post–Brexit regulatory framework, the PRA has recently published a discussion paper on certain securitisation prudential regulation issues, all of which are relevant to, and potentially impactful for, synthetic securitisations.

    One of the measures .......

    News Analysis 9 November 2023

  • Global Risk Transfer Report: Chapter two

    In the second 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 8 November 2023

  • A global market

    Matthew Moniot, co-head of credit risk sharing at Man GPM, answers SCI's questions

    Q: Could you tell us about your recent move to Man GPM?

    A: We joined Man Group in 2022, from Elanus Capital, the firm I founded back in 2010. By 2020 two things were apparent. Firstly the SRT market had grown significantly and was starting to attract large, institutional managers and secondly, technology, an area of focus at Elanus, would be an .......

    The Structured Credit Interview 8 November 2023

  • Canadians coming

    Scotia back in the CRT market

    Scotia Bank is back in the SRT market, only three months after it sold its inaugural deal in this sector, say well-placed sources.

    It is selling a synthetic securitization of a US$4bn pool of loans, some 20%-25% of which are non-investment grade, add sources.

    It is selling a first loss position of 0%-7.5% and the price range is between 9.25% and 9.50%, .......

    News 8 November 2023

  • Scope sees ratings drift reverse in Q3

    Market updates and sector developments

    Ratings drift in structured finance instruments improved in the third quarter of 2023 for the first time in more than a year, Scope Ratings has revealed. The metric measures the ratio between upgrades minus downgrades and the total number of monitored ratings over the past year.

    While the agency oversaw just 12% of 294 instruments upgraded against 17% .......

    Market Moves 7 November 2023
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