Complete news archive

  • 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

  • SCI CRT Awards: North American Issuer of the Year

    Winner: Bank of Montreal

    Bank of Montreal (BMO) is both a veteran of the SRT market and a highly frequent issuer. But it is not content to rest on its laurels and has introduced a couple of striking innovations within the last 12 months. For its longevity, its energy and its inventiveness, the Canadian lender is SCI’s North American Issuer of the Year.

    News 25 October 2023

  • Legacy adjustments

    Call for enhanced transparency for restructured mortgages

    A number of recent RMBS have securitised legacy Irish and Spanish restructured residential mortgages (see SCI’s International ABS Deal Tracker). Fitch says it anticipates an increase in both loan restructurings and non-performing loan formation in both of these jurisdictions amid affordability constraints, as borrowers face higher interest rates and greater cost of living pressures.

    “Loan restructuring arrangements .......

    News 25 October 2023

  • SCI CRT Awards: Issuer of the Year

    Winner: Santander

    Santander has won the Issuer of the Year category in this year’s SCI Capital Relief Trades Awards. Such recognition further illustrates the bank’s leading and predominant position in the CRT market.

    Despite a volatile and challenging wider macro environment, the group successfully issued a total of 15 capital relief securitisations in the 12 months to September 2023. All .......

    News 25 October 2023

  • SCI CRT Awards: Investor of the Year

    Winner: AXA IM Alts

    AXA IM Alts has won Investor of the Year in this year’s SCI Capital Relief Trades Awards. A global leader in alternative investments, AXA IM Alts is equally a seasoned and dominant investor in the the credit risk transfer (CRT)/significant risk transfer (SRT) space, with over 20 years of experience across nine generations of funds and more than 90 .......

    News 24 October 2023

  • Polish lease SRT prints

    Millennium, Veld strengthen relationship

    Private credit specialist Veld Capital has acted as investor in Millennium Leasing’s latest significant risk transfer transaction. The trade references a €1bn portfolio, comprising highly granular performing Polish SME leases, underpinned by vehicles and machinery, with Veld Capital investing in the mezzanine tranche of the trade.

    Leases originated by Millennium Leasing in Poland have historically exhibited high payment .......

    News 24 October 2023

  • SCI CRT Awards: Credit Insurer of the Year

    Winner: Arch MI

    Following two years of significant growth in the European SRT space, Arch MI has been named Credit Insurer of the Year in SCI’s 2023 CRT Awards. The firm has significantly increased the aggregate value of its insured SRT book, expanded its team and increased its deal volume significantly, most notably in central and southern Europe.

    With a significant .......

    News 24 October 2023

  • EU leads the pack

    Delegates at SCI CRT event stress jurisdictional divergence

    The striking asymmetry between regulators in the EU, UK and the US in their approach to the implementation of the Basel III capital regime was noted by speakers at SCI’s ninth annual capital relief trades seminar in London last week.

    There are “big differences” between regulators, with the EU seeking to “mitigate” some of the effects of Basel III upon banks, the .......

    News 23 October 2023

  • 'Endgame' comment period extended

    Market updates and sector developments

    US federal bank regulatory agencies have extended the comment period for both the Basel Endgame risk-based regulatory capital proposal and the G-SIB surcharge proposal until 16 January 2024 (SCI 28 July). Comments on both proposals were originally due by 30 November, but the comment period has been extended to allow interested parties more time to analyse the issues .......

    Market Moves 23 October 2023

  • SCI CRT Awards: Innovation of the Year

    Winner: SLG2

    Credit Suisse’s SLG2 transaction is SCI’s Innovation of the Year for pushing the envelope in the SRT market in not one, but three ways. Most notably, the deal features a captive insurance vehicle that enables the participation of reinsurance companies that cannot enter into an insurance policy.

    SLG2 is a dual-tranche SRT transaction, whereby Credit Suisse buys credit .......

    News 23 October 2023

  • SCI Start the Week - 23 October

    A review of SCI's latest content

    Free Special Report available to download
    SCI Global Risk Transfer Report 2023: New frontiers in CRT
    Capital relief trade issuance witnessed another record-breaking 12 months in 2022, yet a number of regulatory challenges remained outstanding by the end of the year. SCI’s latest Special Report examines how the risk transfer community is addressing these issues – whether through regulatory fixes or structural enhancements .......

    News 23 October 2023

  • Subprime auto is not the next credit crisis

    Vadim Verkhoglyad, vp and head of research publication at dv...

    Many view the US subprime auto market as a ‘canary in the coal mine’, equating facts like rising delinquencies to an indication of a looming financial crisis. This perspective is false and its adoption could decrease subprime activity and exclude borrowers from a critical market. It is crucial that market participants acknowledge the broader context of subprime auto loans .......

    Talking Point 23 October 2023

  • SCI CRT Awards: Impact Deal of the Year

    Winner: Project Bocarte

    Project Bocarte has won Impact Deal of the Year in this year’s SCI Capital Relief Trades Awards. Bocarte is a significant risk transfer transaction executed bilaterally between Banco Santander and Newmarket Capital. The deal’s ESG components and ramp-up mechanism provide clear and impressive impact features.

    The transaction – which closed in Q4 last year - provides first loss .......

    News 23 October 2023

  • Sculptor merger hit by litigation

    Market updates and sector developments

    Rithm Capital has responded to a complaint filed in the Delaware Court of Chancery by the Former EMD Group regarding the proposed merger between Rithm and Sculptor Capital Management (SCI 26 July). The group comprises the founding partners of Sculptor, including Daniel Och, Harold Kelly, Richard Lyon, James O’Connor and Zoltan Varga.

    The lawsuit asks the Court .......

    Market Moves 20 October 2023

  • Job swaps weekly: Octagon elevates Lam to ceo

    People moves and key promotions in securitisation

    This week’s round-up of securitisation-related job swaps sees Octagon Credit Investors appointing senior portfolio manager Gretchen Lam as its new ceo. Elsewhere, structured finance lawyers Martin Bartlam and Elana Hahn have joined Xfinite Global and Fasken respectively.

    The appointment of Lam as Octagon’s new ceo comes as the firm’s cofounder Andrew Gordon transitions into a new role as executive .......

    Market Moves 20 October 2023

  • SCI CRT Awards: North American Transaction of the Year

    Winner: St Lawrence

    It has been a busy period in the Canadian SRT market. For years, it has been dominated by Bank of Montreal, but in the last 12 months the remaining members of the Big Five have got in on the act. One transaction, however, stood out in our awards year: the debut from Canadian Imperial Bank of Commerce (CIBC), dubbed .......

    News 20 October 2023

  • CRT Market Update

    Diversity on display

    Capital relief trade issuance volume could creep past €200bn by year-end, according to Man GLG’s Q4 credit outlook paper. The report further states that as SRT spreads sit at their widest levels for over a decade, the opportunity for investors to gain exposure to a diversified pool of high-quality loans is currently compelling (SCI 14 September).

    “We’ve seen the .......

    News 20 October 2023

  • Taking charge

    NBFCs boost Indian securitisation issuance

    The Indian securitisation market appears to have beaten the odds, with robust issuance volumes seen so far in 2023. This is despite concerns regarding the impact of the HDFC merger earlier this year (SCI 24 April).

    “The market has been mostly unfazed by the merger,” states Nathan Menon, partner at Reed Smith. “It has noted it, but .......

    News Analysis 20 October 2023

  • SCI CRT Awards: Transaction of the Year

    Winner: Project Seed

    Project Seed represents the first balance sheet synthetic securitisation referencing corporate exposures executed on an unfunded basis in Portugal. But novobanco’s ability to successfully execute such a transaction – amid challenging market conditions – is also a testament to the progress the bank has made during its restructuring journey.

    Created in 2014 from the resolution of Banco Espírito Santo, .......

    News 20 October 2023

  • New normal?

    German house prices see surprise decline

    Growth is not yet on the cards for German RMBS, as surprise house price declines hold little room for market expansion. Additionally, German banks continue to prefer covered bonds as a source of secured wholesale funding.

    Against the backdrop of a resilient labour market throughout the mild recessionary environment in the primarily-exporting nation, the decline in house prices .......

    News 18 October 2023

  • Algonquin prices

    Latest BMO deal closes

    The latest Algonquin synthetic securitization from CRT veteran Bank of Montreal priced at the end of last week and attracted over ten different investors, according to market sources.

    This transaction was reported to be in the market last month, and, as was expected, was upsized from an original US$2.5bn to US$5bn.

    A first loss position of 0% to 6.25% was sold for .......

    News 18 October 2023
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