Complete news archive

  • 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

  • Esoteric explosion

    Data centre securitisation seeing strong fundamentals

    Insatiable demand for connectivity is fueling a rise in data centre securitisation issuance. This Premium Content article tracks the market’s development.

    Demand for data centres outstrips supply by a hefty margin and, as more and more regions join the established areas of data centre building, the need for financing shows no sign of abating. While some developers seek ......

    News Analysis 6 November 2023

    Premium Content

  • Bank retreat

    Basel endgame to slash bank securitization lending

    Next year in the securitization industry will be dominated by the fallout from the Basel III endgame and the consequent inevitable contraction of bank lending, says Jodi Schwimmer, global co-lead of Reed Smith’s Financial Industry Group.

    “The reality is that the Basel III endgame will constrain bank lending. There is only so much money that banks can put out. So, who .......

    News Analysis 3 November 2023

  • SRT Market Update

    Project finance transactions in focus

    SRT market conditions currently remain stable, with banks and investors looking to close trades before the end of the year, notably in the project finance sector. But pricing is poised to rise and spreads to widen heading into 2024.

    Corporate and SME transactions typically dominate the lion’s share of SRT issuance, but activity in the project finance and .......

    News 3 November 2023

  • Job swaps weekly: Balance sheet distribution head steps up

    People moves and key promotions in securitisation

    This week’s round-up of securitisation job swaps sees ING promoting its global head of balance sheet distribution. Elsewhere, Orrick strengthens its structured finance group in New York.

    ING has appointed Gertjan van Toorn as global head of the loan distribution group within its wholesale banking capital markets and advisory unit. He was previously global head of balance sheet .......

    Market Moves 3 November 2023

  • GSEs glisten

    CAS and STACR look good versus comps as supply dwindles

    Agency CRT bonds continued to outperform rates and both high yield and investment grade product in October, making it the seventh month in a row that the sector has recorded positive returns, according to data compiled by industry leader Mark Fontanilla and Co.

    The CRTx, the company’s flagship index, returned 0.49% for the month, in the face of considerable market volatility occasioned .......

    News 2 November 2023

  • Latest SRTx fixings released

    Volatility spikes in November index values

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Notably, the volatility indexes have widened considerably across the board, in response to the conflict in the Middle East.

    .......

    News 2 November 2023

  • CLO ESG scores compared

    Market updates and sector developments

    Sustainable Fitch reports that European CLOs – with an average ESG Score of 50.4 - have noticeably higher ESG scores, environmental scores and social scores than North American CLOs, which demonstrate an average ESG Score of 47.9. Governance scores are broadly similar across the two regions, however.

    These insights are based on an assessment of 317 European CLOs .......

    Market Moves 2 November 2023

  • Depletion analysis

    CRT loan mods stress-tested

    Excessive loan modifications could result in credit support depletion for US agency credit risk transfer transactions, according to S&P. A scenario analysis undertaken by the rating agency on typical CRT structures suggests that the presence of an associated coupon on the most subordinate B3H class, along with an elevated SOFR mitigates modification losses - particularly under higher interest rate .......

    News 2 November 2023

  • Global Risk Transfer Report: Chapter one

    In the first 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 1 November 2023

  • PRA consults on CRR rules

    Market updates and sector developments

    The UK PRA has launched a consultation on draft rules to replace firm-facing requirements regarding securitisation under the CRR in 2H24. As such, it has published a discussion paper (DP) that raises certain key issues for feedback, in order to inform its approach - including the use of unfunded credit risk mitigation (CRM) in SRT transactions.

    In particular, the .......

    Market Moves 1 November 2023

  • EIB Group backs BNP's €627m energy efficiency drive

    Market updates and sector developments

    The EIB Group has signed its first true sale securitisation in France in more than 15 years, in support of BNP Paribas’s commitment to provide €627m of financing for home energy efficiency equipment.

    The deal sees the European Investment Bank contributing €400m and the European Investment Fund providing a further €50m. The investors will take senior and mezzanine .......

    Market Moves 31 October 2023

  • Top-tech

    Private credit managers increasingly leveraging fintech

    Top-tier CLO and private credit managers are increasingly leveraging fintech support to facilitate proactive management through recent issuance spikes. Siepe, for one, cites technology as the key to optimising portfolios and enabling trading into better quality credits – having closed on a milestone US$1.2bn in BSL CLOs and an additional US$500m in private credit transactions in Q3.

    “By .......

    News 30 October 2023

  • SCI Start the Week - 30 October

    A review of SCI's latest content

    Last week's news and analysis
    'Endgame' comment period extended
    Updates on Fed’s extension, Algonquin rating and Alpha/Unicredit partnership
    EU leads the pack
    Delegates at SCI CRT event stress jurisdictional divergence
    Job swaps weekly: Antares beefs up team after strategy launch
    People moves and key promotions .......

    News 30 October 2023

  • Growing the core

    Overcoming hurdles in unfunded CRT execution

    (Re)insurer interest in CRTs is rising, but execution of unfunded transactions remains limited. This Premium Content article outlines the hurdles that still need to be overcome.

    (Re)insurer participation in the capital relief trades sector is seeing continued growth, with an estimated 30 unfunded deals anticipated to close by year-end. Nevertheless, unfunded protection providers still only account for ......

    News Analysis 30 October 2023

    Premium Content

  • SCI CRT Awards: Personal Contribution to the Industry

    Winner: Bruno Bancal, head of active management & transactions at BNP Paribas

    In the significant risk transfer space, BNP Paribas has gone from French ground-breaker to international powerhouse and throughout that journey it has been led by Bruno Bancal, its head of active management & transactions. Described as the bank’s “driving force” by one investor, Bancal has also filled a similar role for the market more broadly, as both a leading .......

    News 27 October 2023

  • Job swaps weekly: Antares beefs up team after strategy launch

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Antares Capital hiring multiple senior executives, as it closes its debut broadly syndicated loan CLO. Elsewhere, Prosperise Capital has appointed PC2 Capital’s founder as partner and head of CRE following its acquisition of the firm, while S&P Global has promoted three securitisation execs to md in the Americas.

    Antares Capital .......

    Market Moves 27 October 2023

  • SCI CRT Awards: Contribution to CRT

    Winner: PGGM

    PGGM has closed 79 transactions since the inception of its credit risk-sharing (CRS) mandate in 2006, investing €16bn globally across diverse asset types and partnering with 19 global and regional banks through the GFC, Covid-19 pandemic and now during the current environment of inflationary pressures and geopolitical unrest. The firm is SCI’s pick for the Contribution to CRT award .......

    News 27 October 2023

  • SCI CRT Awards: Law Firm of the Year

    Winner: Clifford Chance

    Clifford Chance’s stated objective is to be the leading law firm in the CRT market, advising on nearly every transaction and leading the sector’s evolution. In recognition of its success, the firm is SCI’s CRT Law Firm of the Year.

    Given how both the firm’s practice and the market have grown over the last 20 years, Clifford Chance .......

    News 26 October 2023

  • Risk transfer round-up - 26 October

    The week's CRT developments and deal news

    People moves
    Alan McNamara is set to join Howden CAP as executive director, balance sheet advisory and structuring, based in Dublin. McNamara was previously at the Bank of Ireland, most recently as head of group balance sheet management and execution, responsible for the bank’s extensive SRT programme. In his new role, he will enhance the advisory and structuring expertise across .......

    News 26 October 2023

  • SCI CRT Awards: Arranger of the Year

    Winner: BNP Paribas

    BNP Paribas (BNPP) declares it is that rarest of beasts in the jungle of significant risk transfer: a flow monster. “We like taking an illiquid product and making it mainstream,” says Bilal Husain, head of EMEA securitised products and real assets syndicate, in London.

    For not only its prominence in this market, but also for its influence in .......

    News 26 October 2023
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