Complete news archive
-
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
-
JP Morgan inundation
Buyers band together in face of vast deals
CRT investors are forming syndicates to cope with the enormous weight of synthetic securitized paper JP Morgan hopes to sell in the coming weeks, say sources.
The leading US bank is in the market with a CRT trade which has a reference pool as large as US$20bn-US$25bn, as was reported last month. Buyers are being asked to take slugs of US$250m-US$500m, .......
News 18 October 2023
-
US CLN market could reach US$220bn
Market updates and sector developments
JPMorgan securitised products research analysts estimate that the potential size of the US CLN market could amount to US$220bn, as banks become more comfortable with issuing the notes for capital relief purposes, following the Federal Reserve’s clarification of what defines a synthetic securitisation (SCI 29 September). Indeed, they suggest that the move may mark the beginning of a .......
Market Moves 16 October 2023
-
Starting strong
Leland Hart, portfolio manager and cio of performing credit...
Q: Warwick Capital Partners closed its inaugural BSL CLO transaction – the US$400m Warwick Capital CLO 1 – last month. As a new entrant, how does Warwick’s strategy compare to that of existing managers in the market?
The Structured Credit Interview 16 October 2023
A: It’s a pretty seminal time in the CLO market – when risk retention reared its head in the US and Europe and .......
-
Junon 4 prices
SG's latest corporate SRT unveiled
Societe Generale has executed the fourth synthetic securitisation from its Junon programme. The significant risk transfer transaction – called Junon 4 – references a €5bn portfolio of global corporate loans.
Structured as a CLN and issued via a French SPV, the deal further received the STS designation. Regarding the transaction’s syndicated nature, Pascale Olivie, director, asset-backed products at .......
News 16 October 2023
-
SCI Start the Week - 16 October
A review of SCI's latest content
Three events this week
SCI is hosting three major CRT events this week: Women in Risk Sharing, the 9th Annual Capital Relief Trades Seminar and CRT Training for New Market Entrants.Last week's news and analysis
Freddie B-piece investments closed
Updates on a US$2bn investment, a CDO manager swap and NPL template adoption
News 16 October 2023
-
SCI's CRT celebration
Women in risk sharing networking event to debut
Next week is shaping up to be a bumper CRT programme from SCI. Not only are we hosting our 9th Annual Capital Relief Trades Seminar and the third edition of our sell-out CRT Training for New Market Entrants, but also an inaugural Women in Risk Sharing networking event.
Hosted by Reed Smith during the evening .......
News 13 October 2023
-
Job swaps weekly: Fearon steps up at Arch
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Arch Capital Group appoint a new ceo in its global mortgage group. Elsewhere, Gallagher Re has hired a new head of global credit and political risk, while Cushman & Wakefield has snapped up a Patterson Real Estate Advisory exec as md.
Arch Capital Group has promoted Seamus Fearon to ceo, international mortgage for the .......
Market Moves 13 October 2023
-
Risk transfer round-up - 12 October
The week's CRT developments and deal news
Market news
Fannie Mae has commenced fixed-price cash tender offers for the purchase of any and all of 11 Connecticut Avenue Securities (CAS) notes, with an unpaid principal balance of US$1.398bn and vintages ranging from 2016 to 2018. The offers will expire on 16 October and settlement is expected on 18 October.Fannie Mae has engaged BofA Securities as .......
News 12 October 2023
-
Freddie B-piece investments closed
Market updates and sector developments
Sabal Investment Holdings has closed a series of five B-piece investments, representing approximately US$2bn in collateral balance, across three Freddie Mac multifamily CMBS programmes. The programmes comprise SB-Deals, K-Deals and Q-Deals.
Three SB-Deals closed by Sabal are backed by Freddie Mac multifamily small balance loans (SBLs), totalling US$90m in bond balance across US$933m in collateral balance and 338 .......
Market Moves 12 October 2023
-
Wake-up call
Collaboration needed for consistent CLO ESG practices
Consistency across ESG reporting is the next crucial step for sustainability disclosures in the CLO market, as transitional climate risks exert pressure across the entire value chain. ELFA’s recent CLO Carbon and Sustainability Reporting Paper underscores the necessity for collaboration to determine common practices.
Investor interest in ESG disclosures is surging throughout the structured finance industry (SCI .......
News 11 October 2023
-
Snowball effect
EIF expands CEE engagement
The EIF is prepping a third synthetic securitisation with a Bulgarian banking group, following its deals with Bulbank last October (SCI 19 October 2022) and ProCredit Bank in June (SCI 22 June). Meanwhile, a further transaction in Romania is anticipated towards the end of the year, as the fund continues its engagement across Central and Eastern Europe.
News 10 October 2023
-
Quitting coal
Using utility ABS to fund a 'just' energy transition
An uptick in utility ABS is expected as US utilities seek financial solutions for retiring the country’s aging fossil fuel fleet. This SCI Premium Content article explores how the proceeds from these transactions can be used to facilitate an equitable energy transition.
Utility ABS may be set for revival in the US as a means of funding ......
News Analysis 10 October 2023Premium Content
-
Poland first
EBRD and Santander Group close their first synthetic securitisation in Poland
As previously reported in the pipeline, the European Bank for Reconstruction and Development (EBRD) and Santander Bank Polska - the Polish leasing subsidiary of Santander Group - have closed a synthetic securitisation. This is the EBRD’s first CRT trade in Poland.
The EBRD is providing €55m protection on the mezzanine tranche of a synthetic securitisation in the form of an unfunded .......
News 9 October 2023
-
Saying hi to HEI
Cara Newman, head of structured finance at Hometap, answers SCI's questions
Q: Hometap, the home equity investment (HEI) fintech, is expanding into the structured finance market (SCI 7 July). What are Hometap’s motivations behind entering the securitisation market, and why now?
The Structured Credit Interview 9 October 2023
A: For Hometap, it's always about supporting homeowners and fulfilling our mission on their behalf. We view a strong structured finance capability as an important avenue to the capital .......
-
SCI Start the Week - 9 October
A review of SCI's latest content
SCI In Conversation podcast
In this special episode, released today, Matthew Bisanz, a partner in Mayer Brown’s bank regulatory practice, outlines how the Federal Reserve’s update on 28 September of the FAQs on Regulation Q is likely to impact the US capital relief trades market.Last week's news and analysis
News 9 October 2023
Cat bond rebound
'Significant repricing' spurring .......
-
SCI In Conversation podcast: Matthew Bisanz, Mayer Brown
We discuss what the Fed's new CLN guidance means for US CRT
In this special episode of the SCI In Conversation podcast, Matthew Bisanz, a partner in Mayer Brown’s bank regulatory practice, outlines how the Federal Reserve’s update on 28 September of the FAQs on Regulation Q is likely to impact the US capital relief trades market. The long-awaited guidance clarifies the definition of a synthetic securitisation and, crucially, states .......
News 9 October 2023
-
Cat bond rebound
'Significant repricing' spurring renewed interest in ILS
The floods in New York at the end of September were the latest in a series of extreme climate-related events to dominate the global news agenda this year. Yet, while the assumption may be that this onslaught of disasters would lead to a strain on the catastrophe bond market, issuance in the asset class has soared this year.
News Analysis 6 October 2023
-
Rithm strengthens MSR capabilities
Market updates and sector developments
Rithm Capital has entered into a definitive agreement with Computershare to acquire Computershare Mortgage Services and certain affiliated companies, including Specialized Loan Servicing (SLS), for a purchase price of approximately US$720m. The acquisition includes approximately US$136bn in unpaid principal balance of mortgage servicing rights, of which US$85bn is third-party servicing, along with SLS’s origination services business. Following the close .......
Market Moves 6 October 2023
Job swaps weekly: HSBC snaps up former Deutsche Bank CLO head
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees a former head of CLOs at Deutsche Bank taking up a director role at HSBC. Elsewhere, CBRE has promoted a London-based executive md to president and coo in its Tokyo office, while SLC Management has appointed two new co-heads for its private fixed income team.
Deutsche Bank’s former head of CLOs, .......
Market Moves 6 October 2023
Risk transfer round-up - 5 October
The week's CRT developments and deal news
Market news
News 5 October 2023
A new paper published by the European Systemic Risk Board (ESRB) suggests that the synthetic securitisation sector has reached sufficient critical mass to make SRT a permanent feature in the capital management toolkit of European banks. However, it notes that as more banks and investors enter the market, the current assessment process will “need to become .......