Complete news archive
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Barings and Lakemore partner up
Market updates and sector developments
Charlotte-headquartered global asset manager Barings has entered into a partnership with CLO-focused private credit investor Lakemore Partners. Lakemore, which primarily takes super-majority control equity positions in new US CLOs, says the partnership will expand its global reach, deepen its institutional client base and boost its Aquatine CLO equity platform.
Barings has around US$351bn in assets under management, spanning public equities and fixed .......
Market Moves 20 July 2023
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Wider still and wider
GSE CRT spreads blow out in 2023
Freddie Mac CRT spreads have mushroomed this year despite the marked diminution of issuance, confirmed the GSE in its quarterly CRT webinar yesterday.
In some cases, spreads are more than 100% wider than 12 months ago. For example, the STACR 2022 DNA1, priced in January 2022, carried spreads of SOFR plus 100bp, plus 185bp, plus 250bp and plus 710bp for the M1, .......
News 19 July 2023
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Consumer goals
EIF, historic champion of SMEs, embraces consumer ABS
Three recent transactions by the European Investment Fund (EIF) reveal a subtle but potentially impactful change in approach to the institution’s securitisation investment strategy. The fund is displaying an increasing willingness to invest in consumer ABS transactions, with green transition and gender diversity goals at the top of the agenda.
In early July, the EIF took a stake .......
News Analysis 19 July 2023
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Capital loss
Fed's scheduled CET1 increase to shred US bank excess capital
The Federal Reserve’s planned 200bp increase to Common Equity Tier One (CET1) requirements will burn through the US$121bn of excess capital the biggest US banks currently enjoy, suggest analysts.
As a result, banks are likely to be parsimonious with shareholder dividends in the next couple of years as they attempt to build up capital, the research report adds. Buybacks are also .......
News Analysis 18 July 2023
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Vertical rebrands
Market updates and sector developments
Vertical Capital Income Fund has appointed Carlyle Global Credit Investment Management as its investment manager and rebranded as Carlyle Credit Income Fund (CCIF). Following the agreement, CCIF will begin focusing on investing in equity and debt tranches of collateralised loan obligations.
The development is part of an agreement that also sees Carlyle building towards a 40% stake in CCIF. In January, the .......
Market Moves 18 July 2023
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SCI Start the Week - 17 July
A review of SCI's latest content
Last week's news and analysis
Capital rising
Regulators announce new rules coming soon
Embracing 'enablement'
Sustainalytics answers SCI’s questions
Polish wave continues
Bank Millennium adds to CEE SRT flow
Regulatory push
Retention RTS, draft SI move forward
SRT boom
IACPM data shows record year for synthetic securitisations
STS shift
Societe Generale executes Colisee two
News 17 July 2023
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Student politics
Refis may increase as Biden plan stalls while broad ABS looks better
Following the June 30 Supreme Court decision to strike down President Biden’s plan to forgive the $430bn federal student debt, refinancings in government-owned loans may accelerate from October as payments recommence, suggest analysts.
Private lenders may offer more competitive rates to the 27m borrowers affected, and as there is no longer any incentive to continue to hold government debt, borrowers will be .......
News Analysis 14 July 2023
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Angelo Gordon REIT moves to poach WMC
Market updates and sector developments
Angelo Gordon’s real estate investment trust, AG Mortgage Investment Trust (MITT), has offered to buy Western Asset Mortgage Capital Corporation (WMC) in a deal that would give the business an enterprise value of around US$300m. The proposed transaction comes shortly after WMC, which is managed by Franklin Templeton, announced an agreement to merge with Mavik Capital Management’s Terra Property Trust (TPT).
MITT .......
Market Moves 14 July 2023
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Job swaps weekly: All change at Deutsche Bank
People moves and key promotions in securitisation
This week’s bumper roundup of securitisation job swaps sees Deutsche Bank Investment Bank appoint two new co-heads on its EMEA capital markets team. Elsewhere, a Virgin Money veteran has retired after 15 years with the bank, while there have been a flurry of senior hires in the US commercial real estate finance space.
Deutsche Bank Investment Bank has promoted two company veterans to .......
Market Moves 14 July 2023
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Regulatory push
Retention RTS, draft SI move forward
The last week has ushered in a couple of regulatory updates in the European securitisation market. The European Commission adopted the regulatory technical standards (RTS) on risk retention under the EU Securitisation Regulation on 7 July, while the UK Treasury on 11 July published a draft of the statutory instrument (SI) that is set to replace the EU Securitisation .......
News 13 July 2023
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Polish wave continues
Bank Millennium adds to CEE SRT flow
Bank Millennium has finalised a funded synthetic securitisation of Polish leasing assets that references a PLN4bn portfolio. Dubbed Project Medea, the transaction is the bank’s third significant risk transfer trade and adds to the Polish SRT deal flow that began last year (SCI passim).
According to sources close to the transaction, the deal features a retained first loss .......
News 13 July 2023
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Wheels down
Aviation ABS wobbles after Covid/Russia war
The airline industry is thriving at the moment with high fares and impressive passenger numbers, yet the aviation ABS market is finding it very difficult to dig itself out of the hole dug by the events of the last few years, according to a new study by rating agency KBRA.
These include, pre-eminently, the collapse of airline traffic during successive global lockdowns .......
News Analysis 13 July 2023
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Gen II's Euro vision drives Crestbridge bolt-on
Market updates and sector developments
New York-headquartered private markets fund administrator Gen II Fund Services has agreed to acquire European competitor Crestbridge, in a move designed to expand its international presence. The acquisition will increase Gen II’s assets under administration to more than US$1trn and give it a foothold in new European jurisdictions including the UK, Jersey and Ireland.
The transaction, which is subject to regulatory approval, .......
Market Moves 13 July 2023
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SRT boom
IACPM data shows record year for synthetic securitisations
The global volume of synthetic securitisation issuance reached its highest ever level in 2022, with both the number of trades and notional pool size far outstripping pre-pandemic levels, according to the latest IACPM survey. The results suggest that 90 significant risk transfer trades were executed last year with an aggregate underlying pool size at inception of €199bn, surpassing previous .......
News 11 July 2023
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Capital rising
Regulators announce new rules coming soon
As expected, US regulators are poised to increase capital requirements for domestic banks imminently, according to a speech yesterday (July 10) made by Michael Barr, vice chair of supervision at the Federal Reserve, at the Bipartisan Policy Center in Washington, DC.
Large banks, described as those with over US$100bn in assets, could be asked to hold an extra 2% of capital .......
News 11 July 2023
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SCI Start the Week - 10 July
A review of SCI's latest content
Last week's news and analysis
News 10 July 2023
Changing agenda
UK RMBS evolving alongside borrowers' needs
Keeping traction in transition
Faster-than-forecast EV take-up could present auto ABS challenges
Latest SRTx fixings released
Improved tone continues in July index values
Out of office
European, US CMBS headwinds diverging?
Popularity contest
Life insurers clash over CLO .......
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Embracing 'enablement'
Begum Gursoy, global technical head, debt capital markets an...
Q: Sustainalytics supports investors develop and implement responsible investment strategies, including by providing second-party opinions (SPOs) on whether a green, social or sustainability bond framework is aligned to market expectations. Could you outline the steps involved in assigning an SPO to an ESG securitisation?
Provider Profile 10 July 2023
A: The overarching function of an SPO provider is to have a holistic view of the .......
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Generali inks Conning acquisition
Market updates and sector developments
Generali Investment Holdings (GIH) is set to acquire Conning and its affiliates, with the aim of enhancing the long-term growth plans of both companies. Conning will continue to execute its growth strategies with support from the company’s current owner, Cathay Life Insurance Co, and Generali.
Conning and its affiliates will continue to operate independently under their current management .......
Market Moves 10 July 2023
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Latest SRTx fixings released
Improved tone continues in July index values
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. The improved tone seen across the sub-indexes in June’s fixings (SCI 2 June) generally appears to have continued, as market conditions stabilise following March’s banking volatility.
Indeed, the overall improved values for the SRTx Liquidity Indexes and SRTx Volatility Indexes suggest that issues across .......
News 7 July 2023