Complete news archive

  • BMO back

    Algonquin transaction in the market, to close next month.

    Bank of Montreal is back in the market with a synthetic securitization from its well-established Algonquin platform, say market sources.

    The transaction is expected to close in October and references a pool of loans worth US$2.5bn, though it can be upsized to $5bn, add sources.

    The bank is selling a 0%-6.25% first loss tranche.

    No other details have been forthcoming. The issuer has been .......

    News 7 September 2023

  • Energy performance regulations yet to impact RMBS

    Market updates and sector developments

    Climate transition risks linked to changes in energy-efficiency performance regulations are having a limited impact on the European RMBS market, according to research by S&P Global.  The view is the result of a scenario analysis conducted by S&P of properties in England, Wales, Ireland, France and the Netherlands with energy performance certificate ratings of F and G.

    The agency acknowledges that, should .......

    Market Moves 7 September 2023

  • Tapping the nest egg

    Growth in ERM demand presents securitisation opportunities in Europe

    Europe is experiencing growing demand for equity release mortgages (ERM) as its ageing population looks to release funds for retirement or to pass on to younger generations. This demand has started translating to a handful of securitisation deals in the continent over the past two years, and some market participants expect deal volumes to increase steadily.

    A number .......

    News Analysis 7 September 2023

  • CLO saviour?

    Collateral managers act to save two CLOs in Q2

    In Q2, two of the 85-90 CLOs rated by DBRS saw old, underperforming loans replaced with new money by the collateral managers before the reinvestment period closed, report analysts at the rating agency.

    This was the first time the phenomenon had been spotted in recent times. Both were commercial real estate (CRE) transactions, backed by office space loans, but no other details .......

    News Analysis 6 September 2023

  • GLAS strengthens European footprint

    Market updates and sector developments

    GLAS SAS is set to acquire Paris-based asset management and trust business Pristine, subject to regulatory approval and customary closing conditions. This is GLAS’s first acquisition as it seeks to strengthen its European footprint and fast-track global expansion.

    Established in 2016, Pristine provides fund structuring and management services to both international and domestic institutions with the primary purpose .......

    Market Moves 1 September 2023

  • Job swaps weekly: All change at Tikehau

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Tikehau Capital making a number of promotions, including the appointment of a new president of Tikehau IM and a new head of structured credit. Elsewhere, Way Capital has snapped up a new head of agency finance from First Foundations, while CBRE has poached two structured finance executives from Greystone & Co. 

    Market Moves 1 September 2023

  • Refi resolution

    Clavel 2 'selective default' an idiosyncratic event

    Non-payment of the principal amount outstanding in full at the time of early redemption of Spanish reperforming RMBS Clavel Residential 2 last month (SCI ABS Markets Daily - 4 August) “turned the concept of principal seniority and subordination on its head”, according to DBRS Morningstar. The rating agency highlights in a recent commentary that the deal’s class A .......

    News 1 September 2023

  • European CRE debt faces €93bn funding gap

    Market updates and sector developments

    Updated AEW research shows an estimated European commercial real estate debt funding gap (DFG) of €93bn, representing the shortfall between the original amount of secured CRE debt originated in 2018-2021 and the amount available for refinance at loan maturity for the 2023-2026 period across all four property sectors in France, Germany, Italy, Netherlands, Spain and the UK (SCI .......

    Market Moves 31 August 2023

  • Missed opportunity

    UK consultations overlook synthetic securitisations

    As part of the broader post-Brexit programme to reform and replace existing EU law in the UK, the FCA and PRA recently published consultation papers setting out proposed rules for the UK securitisation market (SCI 15 August). While the period for both consultations ends on 30 October 2023, the current lack of consideration for synthetic securitisations is evident.

    News Analysis 31 August 2023

  • Bayview branches out into insurance AM

    Market updates and sector developments

    Bayview Asset Management has launched an Insurance Asset Management business, with the aim of appealing to an insurance industry that is increasingly seeking to diversify and expand beyond its traditional focus on corporate credit. The new division will be led by cio Nancy Mueller Handal, who formerly served as head of private fixed income and alternatives at MetLife, with .......

    Market Moves 29 August 2023

  • Expenses review

    Addressing rising operating costs in Euro CMBS

    A recent S&P review of European CMBS transactions has revealed a consistent increase in operating costs, both on an absolute (per square-foot) and relative basis (as a percentage of revenue). Consequently, the rating agency argues that the current challenging macro environment demands a stronger focus on property expenses.

    Reasons for the rise in European CMBS expenses are threefold, with .......

    News 29 August 2023

  • Capital blues

    Securitisation set to become more costly for US banks

    US regulators appear set to march in the opposite direction to their European counterparts with regard to the capital treatment of securitisation. The 1,087-page document released on 27 July as part of the Basel 3 Endgame by the Federal Reserve, the FDIC and the OCC (SCI 28 July) proposes increasing the so-called p-factor from 0.5 to 1.0, News Analysis 29 August 2023

  • Job swaps weekly: Stream of hires at Flowcarbon

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees carbon fintech business Flowcarbon bulk up its structured finance muscles with a promotion and two new hires. Elsewhere, Atom Bank has appointed a former Arrow Global ceo as chair designate, while Bespoke Real Estate Advisers has promoted a founding member to chief investment officer. 

    Flowcarbon has promoted Martin Kessler to .......

    Market Moves 25 August 2023

  • Securitisation exempt from private fund rule

    Market updates and sector developments

    The US SEC has determined that securitised assets funds, including CLOs, are exempt from its Private Fund Advisers Rule. The new rules aim to protect private fund investors by increasing transparency, competition and efficiency in the private funds market. To enhance transparency, the rules will require private fund advisers registered with the Commission to provide investors with quarterly statements - .......

    Market Moves 25 August 2023

  • Skid marks

    Sub-prime auto ABS shows sign of pain

    After several years of trying economic conditions during which the ABS market has been robust, the sub-prime auto sector could be about to see the first delinquencies since the 1990s.

    The Fed hiked rates again in July, its 11th increase since it began in March 2022, taking rates to the highest level seen since 2001. Rather worryingly, the committee gave no indication .......

    News Analysis 24 August 2023

  • Risk transfer round-up - 24 August

    The week's CRT developments and deal news

    Deal news
    Standard Chartered has executed the eighth synthetic securitisation from its Chakra programme. The significant risk transfer transaction – Chakra 8 – references a portfolio of global corporate revolving facilities, 30% of which are US exposures.

    Two tranches were offered to investors. According to market sources, the first loss tranche (0%-6.5%) priced at SOFR plus 12%, while the mezzanine tranche .......

    News 24 August 2023

  • Nomura pays US$35m to settle RMBS fraud case

    Market updates and sector developments

    Nomura Securities International (NSI) has agreed to pay a US$35m penalty to the district of Connecticut and US$800,000 in additional restitution payments over alleged historical fraudulent trading of RMBS. The settlement is part of a non-prosecution agreement between NSI and the US Attorney’s Office for the district.

    The DOJ investigation found that the Japanese investment bank’s US broker-dealer .......

    Market Moves 23 August 2023

  • Janus Henderson rounds out securitisation ETF suite

    Market updates and sector developments

    Janus Henderson is preparing the launch of a new fund that the firm says will complete its suite of securitisation-focused ETFs and enable it to invest in almost all of the US securitised market. The US$253.3bn asset manager filed a preliminary registration statement with SEC for Janus Henderson Securitized Income Exchange Traded Fund on Friday.

    The new ETF’s objective is to “seek .......

    Market Moves 21 August 2023

  • SCI Start the Week - 21 August

    A review of SCI's latest content

    Last week's news and analysis
    Fine-tuning UK securitisation
    FCA and PRA take pragmatic approach to post-Brexit regulations
    Job swaps weekly: TCW snaps up American Century securitisation head
    People moves and key promotions in securitisation
    Prelios acquisition agreed
    Updates on X3’s purchase, an ABS CDO transfer and the Vesttoo .......

    News 21 August 2023

  • Job swaps weekly: TCW snaps up American Century securitisation head

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees TCW Group appoint a successor to its recently departed global co-head of securitised products. Elsewhere, ARC Ratings has hired a European industry veteran as non-executive director, while Guy Carpenter has appointed a senior marketing and business development executive as md. 

    Los Angeles-headquartered asset manager TCW has appointed American Century Investments’ Peter Van Gelderen as .......

    Market Moves 18 August 2023

  • Risk transfer round-up - 17 August

    The week's CRT developments and deal news

    Pipeline update
    August is living up to its reputation as a low point of activity for the capital relief trades market and the financial markets as a whole. With no deals expected to close this month, the sector is slowly but surely getting ready for year-end.

    “August has been strangely calm; calmer than usual, I would say,” notes one .......

    News 17 August 2023
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