Complete news archive
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Sun King supported via solar ABS
Sector developments and company hires
Sun King supported via solar ABS
Market Moves 31 May 2023
British International Investment (BII), the UK’s development finance institution (DFI), and Stanbic Bank Kenya have unveiled commitments to off-grid solar energy company Sun King via a US$130m-equivalent securitisation and a joint US$20m working capital facility. These commitments will enable the purchase of more inventory - such as solar home systems and solar lanterns - and .......
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Infrastructure CLO debuts
AIIB anchors emerging market pilot
Hong Kong Mortgage Corporation (HKMC) has completed the first CLO issuance under its pilot scheme on infrastructure financing securitisation. Dubbed Bauhinia ILBS 1, the transaction is backed by a US$404.8m portfolio of 35 bank-syndicated senior secured project finance and corporate infrastructure loans secured by 25 individual projects across nine sectors and 12 countries in Asia-Pacific, the Middle East and .......
News 31 May 2023
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ESG impact disclosure RTS inked
Sector developments and company hires
ESG impact disclosure RTS inked
Market Moves 26 May 2023
The three European Supervisory Authorities (ESAs) have jointly submitted to the European Commission draft RTS on ESG impact disclosures for STS securitisations under the Securitisation Regulation (SECR). The amended SECR introduced new optional disclosure provisions related to the principal adverse impacts (PAIs) on sustainability factors of the assets financed by the underlying exposures for both .......
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SCI In Conversation podcast: Alon Lifshitz, Vesttoo
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, Vesttoo co-founder and chief financial engineer Alon Lifshitz outlines how the insurance-linked securities landscape is evolving from catastrophe bonds to a wider range of structures, bringing insurance risk directly to the capital markets. He also discusses ILS modelling approaches, the involvement of rating agencies in the insurance risk transfer space .......
News 26 May 2023
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USAUT noteholders bag successor servicer
Sector developments and company hires
USAUT noteholders bag successor servicer
Market Moves 25 May 2023
KBRA reports that it has received an omnibus amendment, assignment, assumption and consent agreement on each outstanding US Auto Funding Trust (USAUT) securitisation specifying that Westlake Portfolio Management (WPM) has been assigned as successor servicer and the servicing fee has increased to 4.10%, from 3.75%. WPM has assumed the duties and obligations of the servicer, .......
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Proactive participation
CLO manager differentiation eyed
M&A activity, tiering and the paucity of new collateral are all potential headwinds for CLO managers, especially for smaller players and new entrants. Against this backdrop, proactive CLO management is an increasing differentiator.
Current CLO market conditions could provide early-mover advantages for active managers, as failure to sell out of problematic credits in a timely manner could result .......
News Analysis 24 May 2023
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Indian MSE ABS fund debuts
Sector developments and company hires
Indian MSE ABS fund debuts
Vivriti Asset Management has launched Vivriti India Retail Asset Fund (VIRAF), a first-of-a-kind ABS fund in India. The fund aims to strengthen the country’s securitisation market and address gender gaps in formal finance, while expanding additional financing for micro and small enterprises (MSEs).The IFC has invested US$30m in VIRAF, which is backed by .......
Market Moves 23 May 2023
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Estimating exposures
Italian real estate climate risks gauged
Geographic diversification may be the only saving grace for Italian RMBS and CMBS transactions as the physical impacts of climate change infringe on properties across the country. With temperatures set to breach the 1.5 degree limit within the next five years, considering European real estate exposure to flooding and landslide risk is becoming ever more urgent.
New research .......
News 23 May 2023
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Democratising higher education
International student loan expansion targeted
MPower Financing, a provider of loans for international university students, is pursuing its first securitisation following the closing of a US$150m revolving asset-backed warehouse facility with Goldman Sachs. The business may look to expand its offering to include students attending universities and colleges outside North America, as it aims to corner a relatively underdeveloped niche in the student lending .......
News Analysis 23 May 2023
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Debutant bank plots 'social CLOs'
Sector developments and company hires
Debutant bank plots ‘social CLOs’
Market Moves 22 May 2023
A first-of-its-kind investment bank has launched with the goal of driving institutional capital to small businesses and non-profits in the US, positioning ‘social impact’ as a fully investable asset class for institutional investors. Momentus Securities - a New York-based registered broker-dealer and FINRA member - seeks to address the current scale and liquidity limitations in .......
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SCI Start the Week - 22 May
A review of SCI's latest content
Last week's news and analysis
News 22 May 2023
Capital squeeze
Greater capital requirements for regionals highlights case for CRT
Fire sale
FDIC moving at faster pace than expected to sell off failed bank assets
Holding steady
CRT structures unscathed amid bank volatility
International affair
Opportunity for foreign investors in Chinese ABS?
The social struggle
More data needed to .......
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Holding steady
CRT structures unscathed amid bank volatility
Recent banking instability is unlikely to result in contractual changes in synthetic securitisations, but structural divergences are emerging. This Premium Content article investigates further.
The aftermath of UBS’s acquisition of Credit Suisse and the turmoil in the US regional bank market is unlikely to result in any contractual changes around counterparty credit risk in synthetic securitisations. However, opinion ......
News Analysis 19 May 2023Premium Content
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CLO heavyweight to lead combined platform
Sector developments and company hires
CLO heavyweight to lead combined platform
Sound Point Capital Management has appointed Gunther Stein as head and cio of its US performing credit and CLO platform. The move follows Sound Point’s recently announced agreement to acquire Assured Investment Management, the institutional asset management business of Assured Guaranty that was formerly known as BlueMountain Capital Management (SCI 6 April).Market Moves 19 May 2023
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Fire sale
FDIC moving at faster pace than expected to sell off failed bank assets
The Federal Deposit Insurance Corporation (FDIC) yesterday (May 17) sold another $12.5bn of assets from failed Silicon Valley Bank and Signature Bank, which now means it has completed 27% of the $114bn it needs to get off its books.
It was a larger slab than the market had anticipated, but prices have held in with good demand seen from money managers, according .......
News 17 May 2023
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Unfinished business
ESMA review offers opportunity to increase ABS transparency
NPL Markets, the loan trading and analytics platform, has called for increased data transparency in the European private securitisation market, despite resistance from some market participants. The development comes as ESMA conducts its review of mandatory investor disclosure templates in response to a request from the European Commission last year (SCI 15 November 2022).
“Transparency is paramount,” .......
News Analysis 17 May 2023
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The social struggle
More data needed to tackle 'socialwashing'
Concerns around ‘socialwashing’ remain, despite recent advances in defining social securitisations. This Premium Content article investigates why the ‘social’ side of ESG securitisation is more complex than its ‘green’ cousin.
The European social securitisation sector is lagging behind the green securitisation sector, in terms of both standardisation and the availability of qualitative data. Despite advancements in defining ......
News Analysis 17 May 2023Premium Content
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Capital squeeze
Greater capital requirements for regionals highlights case for CRT
More stringent regulatory oversight of US banks is likely to make careful capital management even more relevant, consequently highlighting the virtues of the CRT market, suggest sources.
The recent bank crisis, which has seen the collapse of Silicon Valley Bank, Signature Bank and First Republic, has thrown the spotlight on the relatively light touch regulation and easier capital requirements that smaller regionals .......
News 16 May 2023