Complete news archive
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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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SCI In Conversation podcast: Jeff Krohn, Guy Carpenter
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, Guy Carpenter's md, mortgage and structured credit segment leader Jeff Krohn talks about the recent shape of events in the GSE CRT sector, from the perspective of the capital markets and reinsurance market. He also touches on the topic of recent issuance - or the lack of it - from mortgage insurers .......
News 17 August 2023
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UBS to pay US$1.4bn over pre-crisis RMBS
Market updates and sector developments
UBS has agreed to pay US$1.435bn in penalties to settle a case relating to historical alleged misconduct surrounding the underwriting and issuance of RMBS pre-financial crisis. The US Department of Justice filed a civil action in 2018 alleging that UBS defrauded investors in connection with the sale of 40 transactions between 2006 and 2007 by making “false and misleading statements” about .......
Market Moves 15 August 2023
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Fine-tuning UK securitisation
FCA and PRA take pragmatic approach to post-Brexit regulations
The FCA’s consultation on UK securitisation regulations suggests there will be some welcome changes to retained regulations ‘onshored’ post-Brexit. But the British government is unlikely to secure the bonfire of regulations it set out to achieve.
The FCA published its plans last week (SCI 7 August), two weeks after the PRA released its consultation and less than a .......
News Analysis 15 August 2023
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Prelios acquisition agreed
Market updates and sector developments
ION subsidiary X3 Group is set to acquire Prelios from Davidson Kempner Capital Management. Established in 1990 in Milan, Italy, Prelios has more than €40bn of assets under management across non-performing loans, unlikely-to-pay exposures and real estate funds. Since investment funds advised by Davidson Kempner acquired the business in 2018, Prelios has grown its revenue from €100m to over .......
Market Moves 14 August 2023
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SCI Start the Week - 14 August
A review of SCI's latest content
Last week's news and analysis
News 14 August 2023
California judge backs investors in clean-up call dispute
Updates on court ruling in RMBS case and S&P dropping ESG indicators
Empirical study reveals blockchain efficiency
Updates on a new BIS working paper and the Medalist-Semper partnership
FCA .......
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Empirical study reveals blockchain efficiency
Market updates and sector developments
Blockchain technology can reduce the yield spread on securitisations by approximately 25bp, according to a new BIS Working Paper. Based on an analysis of circa 5,000 ABS products issued in China between 2015 and 2020, the study examines whether blockchain-based ABS enjoy better pricing than those not based on blockchain.
Specifically, the study analyses whether the adoption of .......
Market Moves 11 August 2023
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Job swaps weekly: New faces for Newmark
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Newmark Group making a number of senior appointments to its debt and structured finance team. Elsewhere, Helaba has hired a former Deutsche Bank md to lead its asset finance team, while CRED iQ has appointed a new head of data and analytics.
Commercial real estate manager Newmark has made three senior appointments in its .......
Market Moves 11 August 2023
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Risk transfer round-up - 10 August
The week's CRT developments and deal news
Market news
News 10 August 2023
Western Alliance Bank has amended its WAL 2021-CL2 transaction, to collateralise the deal and reduce corporate credit risk. Principal payments on the notes are now secured by a cash collateral account equal to the full principal amount. Interest payments remain the obligation of WAB but are newly secured by a line of credit by JPMorgan for up to .......
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California judge backs investors in clean-up call dispute
Market updates and sector developments
A court has ruled in favour of investors, in a case centred around RMBS trusts held by Deutsche Bank National Trust and a related clean-up call transaction by mortgage servicer PHH Mortgage Corp. The mortgage servicer had previously announced its intention to exercise its clean-up call rights and purchase the trusts’ assets at a contractually defined price.
The Superior Court .......
Market Moves 10 August 2023
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Green front
EIF obvious candidate to scale up SRT amid energy transition
A new paper highlights how SRT transactions could be scaled up to support Europe’s shift to the green economy. Central to the proposal is the potential for the EIF to participate as a ‘fronter’ in synthetic securitisations.
In the paper, entitled ‘A proposal for the European Green Transition via Significant Risk Transfer Securitisations’, ECB senior advisor Fernando Gonzalez .......
News Analysis 9 August 2023
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FCA seeking a 'more proportionate' SecReg
Market updates and sector developments
The UK FCA has issued its own consultation on proposed changes to the securitisation regime, following the publication of HM Treasury’s near-final statutory instrument (SI) (SCI 13 July) and the UK PRA’s consultation (SCI 28 July) last month. The document appears to focus on fixing some technical issues and clarifying others, rather than recommending any wholesale changes .......
Market Moves 7 August 2023
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SCI Start the Week - 7 August
A review of SCI's latest content
Last week's news and analysis
News 7 August 2023
Closing the gap
SRT 'unlevel playing field' called out
Defensive profiles
Tactical secondary CLO opportunities highlighted
Groundbreaking cannabis CMBS closed
Updates on PCG 2023-1 closing and an LOC controversy
Happy birthday STACR
The GSE CRT market hits 10th birthday
Innovative .......
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Job swaps weekly: Sixth Street signs Salisbury
People moves and key promotions in securitisation
This week’s round-up of securitisation job swaps includes the announcement that Julian Salisbury will join ex-Goldman Sachs colleagues and Sixth Street co-founding partners Alan Waxman and Joshua Easterly next year. Elsewhere, Marsh has made a couple of senior promotions in its credit specialties division.
Salisbury is set to join Sixth Street as a partner and co-cio, alongside ceo Waxman, .......
Market Moves 4 August 2023
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Defensive profiles
Tactical secondary CLO opportunities highlighted
The second half of 2023 is expected to remain a story of strong technicals with weaker fundamentals for the CLO market. Such a scenario should lead to further decompression within the CLO capital structure, with investment grade tranches outperforming more junior tranches.
David Nochimowski, head of global CLO and ABS strategy at BNP Paribas, notes that CLO market technicals .......
News Analysis 4 August 2023
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Latest SRTx fixings released
Stabilising trend continues in August index values
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. The stabilising trend seen across the sub-indexes over the last few months generally appears to have continued, albeit views are slightly mixed on certain segments.
Spreads across the SRTx Spread Indexes have stabilised to improved month-on-month, reflecting the economic backdrop. Values now stand at .......
News 3 August 2023
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Happy birthday STACR
The GSE CRT market hits 10th birthday
Last week marked the tenth anniversary of the GSE CRT market, as, on July 23, 2013, Freddie Mac priced its inaugural US$500m STACR trade.
This debut transaction, STACR 2013-DN1, matured at end of last month.
Fannie Mae got in on the act a couple of months later when it sold its debut CAS deal, dubbed CAS 2013-01, which is due to mature in .......
News 3 August 2023
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Innovative financing inked for Deutsche Bahn
Market updates and sector developments
The EIB and HypoVereinsbank are providing credit lines totalling up to more than €2bn to Deutsche Bahn for the procurement of 90 new trains for the Munich S-Bahn. Deutsche Bahn will receive financing for the new vehicles from Bayerische Eisenbahngesellschaft (BEG), which plans, finances and controls the regional and S-Bahn traffic in Bavaria on behalf of the Bavarian Ministry .......
Market Moves 3 August 2023
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Risk transfer round-up - 3 August
The week's CRT developments and deal news
Market news
News 3 August 2023
Risk Control has received funding from the MDB Challenge Fund for two projects with the objective of helping Multilateral Development Banks (MDBs) build on the recommendations of the G20’s Independent Review of MDB Capital Adequacy Frameworks (CAF). One of the projects will deliver analysis to support MDB risk transfer, creating insights and technical tools for balance sheet optimisation .......
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Groundbreaking cannabis CMBS closed
Market updates and sector developments
Groundbreaking cannabis CMBS closed
Market Moves 2 August 2023
Pelorus Capital Group has closed PCG 2023-1, the first-ever securitisation backed by cannabis-linked real estate assets. The firm retained a third of the US$70m offering, selling US$45m of bonds, which it says attracted a range of institutional investors and hedge funds that were “drawn to the high yield and growth of the businesses”. The single-tranche CMBS .......
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Triple test
UK RMBS can withstand stresses 'never seen in history'
A new TwentyFour Asset Management analysis shows that a benchmark triple-B rated UK RMBS bond with 2.3% of credit enhancement could withstand almost three times the recent Bank of England stress test. Considering a triple-B rated RMBS bond currently yields over 9%, the firm consequently believes that this asset class continues to be one of the most attractive in .......
News 2 August 2023