Complete news archive

  • Risk transfer round-up - 5 October

    The week's CRT developments and deal news

    Market news
    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 .......

    News 5 October 2023

  • Latest SRTx fixings released

    Index values indicate incremental widening in spreads, while...

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. Participants’ estimates indicate a tightening in European spreads compared with September’s fixings (SCI 7 September), while market sentiment relating to credit risk remains elevated across the board in both Europe and the US.

    This month’s survey responses suggest that European spread estimates have .......

    News 4 October 2023

  • 'Sluggish' September?

    Quarterly SCI CRT data review

    CRT issuance so far this year appears to have consistently tracked below that of last year’s volumes. In terms of deal count, SCI data shows that 39 transactions have closed in the year to end-September 2023, versus 52 for the corresponding period in 2022.

    .......

    News 4 October 2023

  • Roll with the changes

    CLO rating upgrades on the cards

    CLOs may see more rating upgrades, despite current macroeconomic challenges, as more transactions reach their amortisation periods (see SCI CLO Markets). With defaults rising across the credit universe, actively managed CLO transactions are an outlier as the collateral remains stable.

    “Perhaps counterintuitively, we might see more CLO upgrades in the current environment,” stated Andrew South, S&P EMEA .......

    News 4 October 2023

  • Front and centre

    More bank origination expected as TLTROs expire

    An uptick in securitisation originations among European banks is anticipated as central bank funding programmes, including the ECB’s targeted longer-term refinancing operations (TLTROs), reach maturity. Central bank liquidity supressed bank-originated securitisation issuance over the last decade, as banks stepped away from the market due to the abundance of cheap funding.

    “Just 10 years ago, most European securitisation issuance .......

    News 4 October 2023

  • RRAM acquires second slate of CLOs

    Market updates and sector developments

    Redding Ridge Asset Management has acquired CLO management contracts totalling US$2.8bn in AUM from Gulf Stream Asset Management. With the close of the transaction, Redding Ridge will have more than US$26bn of AUM and expects a seamless integration of the contracts and to actively manage the new portfolios consistent with its disciplined CLO strategy.

    Redding Ridge is an .......

    Market Moves 3 October 2023

  • SCI Start the Week - 2 October

    A review of SCI's latest content

    Last week's news and analysis
    Fed clarifies CLN definition
    Updates on US Fed’s Regulation Q and UK PRA’s Basel timetable
    In the fast lane
    US prime auto ABS issuance to set new record
    Job swaps weekly: Khan heads to Natixis CIB
    People moves and key promotions in securitisation
    News 2 October 2023

  • Fundamental review

    FSB response calls for level playing field

    Paris Europlace has filed its response to the Financial Stability Board's (FSB) request for feedback on the effects of the G20 regulatory reforms on securitisation implemented since the GFC. Regarding the CRT market, the organisation underlines several issues, while noting that although volumes have recently improved, a detailed assessment of the kind of measures that should define significant .......

    News 2 October 2023

  • Glad confident morning again

    Fed's CRT clarity both welcome and begins new era

    The Federal Reserve last Friday finally issued guidance on the capital treatment for CRT transactions based on both SPVs and direct CLNs (SCI 29 September), and it ushers in a brave new world of much increased clarity and greater issuance in the US SRT market.

    Not only have SPV-based transactions been given the green light, direct CLNs have received more warmth .......

    News 2 October 2023

  • Fed clarifies CLN definition

    Market updates and sector developments

    The US Fed has updated its FAQs on Regulation Q to provide guidance in connection with the recognition of CLNs under the capital rule, a step that the US CRT market has been awaiting for over a year. Under the capital rule, a Fed-regulated institution can recognise the credit risk mitigation of the collateral on a reference portfolio under the .......

    Market Moves 29 September 2023

  • SME SRT prints

    'CRE-heavy' portfolio revealed

    Further details have emerged regarding Santander’s latest UK SME synthetic securitisation (SCI 28 September). The static reference portfolio comprises 1,040 obligations, the majority of which are term loans (accounting for around 89%), with the remainder being revolving credit facilities (around 11%).

    Of the portfolio, 819 exposures (or 72% of the pool) are secured by CRE assets, including .......

    News 29 September 2023

  • Next level

    ESG back-reporting gaining traction

    ESG back-reporting may be the next step for sustainable disclosures as the battle to beat greenwashing continues. The GSEs are leading the back-reporting charge, with the introduction of Fannie Mae’s Social Index calculations and Freddie Mac’s historical data file release for all active and inactive MBS pools since 2010 (SCI 18 August 2022).

    “They are really driving .......

    News Analysis 29 September 2023

  • LBBW, mBank out of the blocks

    SRT Market Update

    Further details have emerged on one of the Polish SRT trades that had been in the pipeline (SCI 28 September). Meanwhile, LBBW has closed an innovative synthetic securitisation with the EIB Group.

    Polish lender mBank has completed its third SRT transaction, representing the largest-ever synthetic securitisation in the CEE region. Dubbed Makalu, the deal references an approximately .......

    News 29 September 2023

  • Job swaps weekly: Khan heads to Natixis CIB

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Natixis CIB hiring a new head of structured credit capital markets. Elsewhere, Arrow Global has recruited two senior execs to its real estate and credit divisions, while Intesa Sanpaolo has appointed a new head of structured finance and loans legal advisory. 

    MUFG’s Asif Khan has joined Natixis CIB as md .......

    Market Moves 29 September 2023

  • Risk transfer round-up - 28 September

    The week's CRT developments and deal news

    People moves
    ArrowMark Partners has recruited Moritz Ruhdorfer as a senior member of its securitised credit investment team. Based in ArrowMark’s London office, Ruhdorfer will assist the team with origination, structuring and execution for banks of SRT investments. With over 12 years of industry experience, his relationships in the asset class will expand the diversity of the firm’s sourcing networks .......

    News 28 September 2023

  • Wilmington bank adds CLO expertise

    Market updates and sector developments

    WSFS Financial Corporation’s global capital markets team is expanding into the CLO market, as it seeks to grow its wealth business and generate fee income on a national scale. To support this expansion, the company has recruited two new associates with expertise in CLOs.

    WSFS Global Capital Markets provides global services to the leveraged loan and capital markets, .......

    Market Moves 28 September 2023

  • In the fast lane

    US prime auto ABS issuance to set new record

    US prime auto loan ABS issuance is set to hit a new high this year, predict analysts. Supply in this sector is likely to exceed the US$59bn record set in 2002, according to JP Morgan Chase research.

    “Auto ABS is a bright spot this year. Volume is up year on year, and increased volume in autos is offsetting negative volume in pretty .......

    News 27 September 2023

  • Pedal to the metal

    Auto ABS accelerates as supply-chain issues dissipate

    The European auto ABS space is enjoying a drastic pick-up in activity, fueled by the easing of supply chain challenges that weighed on the automotive sector following Covid 19 and the invasion of Ukraine. While a post-summer acceleration in activity was expected, the pace of issuance throughout September has taken some market participants by surprise.

    Aggregate deal value .......

    News Analysis 25 September 2023

  • SCI Start the Week - 25 September

    A review of SCI's latest content

    Last week's news and analysis
    ESMA shines light on private securitisations
    Update on ESMA’s securitisation overview
    Job swaps weekly: CBRE names new debt and structured finance president
    People moves and key promotions in securitisation
    JPM sounds the klaxon
    SRT prices, and .......

    News 25 September 2023

  • JPM sounds the klaxon

    SRT prices, and new mega-deal looms

    Not only is JP Morgan said to have recently priced its heralded SRT deal utilizing the new, regulator-friendly SPV structure, a very large trade referencing a pool of multinational corporate loans is reputed to be in the works.

    According to sources, the pool for this transaction could be as large as US$20bn, with as much as US$2bn sold into the market. This .......

    News 22 September 2023

  • ESMA shines light on private securitisations

    Market updates and sector developments

    ESMA has published an overview of EU securitisation volumes, based on the data it receives under the Securitisation Regulation. The study shows that the size of the European securitisation market has decreased significantly since its peak of €2trn at end-2010. It also highlights that private deals represent 59% of STS securitisation notifications.

    As reported to the registered securitisation .......

    Market Moves 22 September 2023
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