Complete news archive
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CLO portfolio management tie-up inked
Sector developments and company hires
CLO portfolio management tie-up inked
S&P has partnered with LevPro to offer enhanced transparency and efficiency for CLO credit portfolio management in the US and Canada. Under the agreement, S&P Global Market Intelligence will combine LevPro’s SaaS-based trade order management systems (OMSs) with existing WSO loan administration capabilities to support customers in the CLO market.The LevPro platform provides .......
Market Moves 16 February 2023
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SCI In Conversation podcast: Jerry Ouderkirk, Pretium Partners
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, we chat to Pretium Partners senior md and structured credit head Jerry Ouderkirk about relative value opportunities in the CLO market. The interview was recorded in early January.
We also highlight three SCI Premium Content articles that were published in December. One is on the prospects for News 16 February 2023
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Backing blockchain
Credit risk considered as DeFi eyed to fund real world assets
Further efforts are underway to demystify the credit risk associated with DeFi securitisations as interest in its capability to finance real world assets (RWAs) grows (SCI 2 February). A new S&P report analysing the key credit and legal risk considerations associated with such transactions marks a further step by the rating agency to better understand the digital space, .......
News 15 February 2023
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Regulatory resentment
Delegates at SCI's New York seminar implore transparency
A near-unanimous call for greater clarity from US regulators was made by investors and practitioners at SCI’s annual risk transfer and synthetics seminar last week in New York.
Some delegates went further, with one noting that US regulators have been “much less constructive than the FHFA” to the CRT mechanism and pleading with them to “align with their European counterparts.”
The US bank .......
News 14 February 2023
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Homogeneity RTS released for STS synthetics
Sector developments and company hires
Homogeneity RTS released for STS synthetics
Market Moves 14 February 2023
The EBA has published its final draft regulatory technical standards (RTS) setting out the conditions for the assessment of the homogeneity of underlying exposures in STS on-balance sheet securitisation pools. At the same time, the authority has extended the existing work on the RTS on homogeneity for both ABCP and non-ABCP securitisations to ensure .......
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Incorporating climate risk
Carbon accounting for CLOs examined
Janus Henderson Investors has developed a bespoke methodology to estimate Scope 1 and 2 carbon emissions represented in secured loans and corporate credit exposures, which can then be applied to CLO portfolios. The benefits of understanding climate-related risks within portfolios include the ability to undertake carbon relative analysis, as well as guide corporate engagements regarding current and future decarbonisation .......
News Analysis 13 February 2023
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SCI Start the Week - 13 February
Last week's news and analysis
Canadian wave begins
TD unlocks Canadian CRT market
Extension risk eyed
Brookfield control would be 'positive' for ELoC 39
Going green?
ESG priorities shifting to meet macroeconomic pressures
Hedging alternatives eyed
JPM said to be exploring alternative risk transfer structures
QT underway
'Slight' tightening forecast for ECB-eligible ABS
News 13 February 2023
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MK&C acquisition prompts CS carveout
Sector developments and company hires
MK&C acquisition prompts CS carveout
Market Moves 10 February 2023
Credit Suisse has progressed the carveout of CS First Boston as a distinct capital markets and advisory-led business (SCI 28 October 2022) through the acquisition of The Klein Group (MK&C), for a purchase price of US$175m. The seller will receive equity in CS First Boston in the form of a convertible note, while Michael .......
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Status quo or status go?
Law firm designation practices questioned
Dissatisfaction is growing among private credit funds and direct lenders regarding the common practise of law firm designation, whereby sponsor counsel can choose which counsel advises the lenders. The concern is that such a scenario could force them into less favourable positions in negotiations over securitisation transactions.
“The problem really is as simple as the private equity funds .......
News Analysis 10 February 2023
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Hedging alternatives eyed
JPM said to be exploring alternative risk transfer structures
News 9 February 2023
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SPG spin-out rebranded as ATLAS
Sector developments and company hires
SPG spin-out rebranded as ATLAS
Market Moves 9 February 2023
Apollo and Credit Suisse have completed a substantial first close of their previously announced transaction, under which affiliates of the former purchased a significant portion of the latter’s securitised products group (SCI 28 October 2022). A majority of the assets and professionals associated with the transaction are now part of or managed by the .......
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Going green?
ESG priorities shifting to meet macroeconomic pressures
Inclusion of lower-income borrowers in US environmentally-linked ABS pools could increase this year, as lenders adapt to the changing needs of consumers amid rising macroeconomic stress. Nevertheless, rising solar and home improvement ABS volumes may not necessarily translate into a shift in focus between the ‘E’ and ‘S’ in ESG.
The U$271.58m KBRA- and S&P-rated GoodLeap Sustainable Home .......
News Analysis 9 February 2023
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Green auto ABS debuts
Sector developments and company hires
Green auto ABS debuts
Market Moves 8 February 2023
Toyota Financial Services Italy is in the market with Koromo Italy, an Italian STS auto ABS backed by a €412.4m portfolio fully comprising new hybrid, plug-in and electric vehicles (SCI ABS Markets Deal Alert - 7 February). The pool consists of 22,344 auto finance contracts extended to 22,298 borrowers, with a weighted average seasoning of .......
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QT underway
'Slight' tightening forecast for ECB-eligible ABS
Rabobank credit strategists predict a drop of 45.8% in ECB reinvestments across all APP sub-programmes between March and June, equating to a potentially sizeable €1.5bn in redemptions not being reinvested, as the central bank embarks on its quantitative tightening programme. This figure is expected to rise to 80.7% in the second half of this year, given seasonality of redemptions .......
News 8 February 2023
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Survey shows rise in ESG disclosure, investing activity
Sector developments and company hires
Survey shows rise in ESG disclosure, investing activity
Market Moves 7 February 2023
ESG disclosure and investing activity within structured finance grew by 15% over the last two years, according to the SFA’s 2nd Biennial ESG Market Sentiment Survey: Securitisation Issuer and Investor Perspective. The findings suggest that issuer disclosure is growing thoughtfully, with 40% of respondents reporting that they provide some ESG disclosure and .......
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Alternatives combination agreed
Sector developments and company hires
Alternatives combination agreed
Market Moves 6 February 2023
FS Investments and Portfolio Advisors have entered into a definitive agreement to combine their firms. The move is set to see a joint growth in excess of their combined US$73bn in assets under management and a significant expansion to their resources - including a permanent capital base and a new distribution platform. As a combined company, the .......
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Extension risk eyed
Brookfield control would be 'positive' for ELoC 39
High extension risk but low default risk is forecast for German multifamily CMBS Haus (European Loan Conduit No. 39). In its latest European Securitisation Weekly publication, BofA Global Research suggests that the transaction is behind its business plan and reliant on equity top-ups from the sponsors.
“The assets and the loan have not deteriorated, in our view, but .......
News 6 February 2023
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