Complete news archive
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Risk transfer line-up finalised
Focus on future of North American CRT
SCI’s 7th Annual Risk Transfer & Synthetics Seminar is taking place in-person on 9 February at the offices of exclusive host Clifford Chance in New York. The event is chaired by Mayer Brown partner and structured finance practice co-head Julie Gillespie, and features a keynote address by Standard Chartered global G10 FX research and North America macro strategy .......
News 6 February 2023
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SCI Start the Week - 6 February
A review of SCI's latest content
Last week's news and analysis
Book building
Obra Capital answers SCI's questionsCRT expansion continues
BBVA taps private market againDefault boost
Corporate defaults rise in 2022Expanding east
Raiffeisen grows CEE footholdGrowing pains?
Blockchain, digitisation addressing securitisation inefficienciesMind the gap
News 6 February 2023
Euro CRE refinancing risk gauged
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Electronic loan trade completed
Sector developments and company hires
Electronic loan trade completed
Octaura has completed its first entirely electronic syndicated loan trade. The news comes after the official launch of Octaura Holdings last year, which was founded with the intention to improve efficiency, liquidity and transparency in the CLO and syndicated loan trading processes (SCI 14 June 2022).At present, the US$1.5trn syndicated loan market functions .......
Market Moves 2 February 2023
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Time to shine
Multi-sector structured credit 'top performer'
Gapstow Capital Partners’ composite credit hedge fund index last year posted its lowest annual return – having declined by 3.9% - since its inception in 2009, with no peer group within the index producing a positive average return. Nevertheless, the multi-sector structured credit peer group - the funds of which invest across CLOs, MBS and ABS - was the .......
News 2 February 2023
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Growing pains?
Blockchain, digitisation addressing securitisation inefficiencies
Blockchain and digitisation are increasingly being incorporated into the securitisation process. This Premium Content article explores the benefits and challenges that these new technologies represent.
Blockchain and digitisation are increasingly being incorporated into the securitisation process, with the aim of facilitating market efficiency. It is hoped that these new technologies will also help overcome some of the ......
News Analysis 2 February 2023
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The affordability conundrum
Impact of alternative credit scores explored
The GSEs are under considerable political pressure to extend credit to the underserved. But what does this mean for CRT investors, issuers and rating agencies? This Premium Content article investigates.
In October of last year, Sandra Thompson, director of the FHFA, unveiled potentially far-reaching policy changes with the aim of making US homes more affordable. All involve ......
News Analysis 1 February 2023Premium Content
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Mind the gap
Euro CRE refinancing risk gauged
European commercial real estate borrowers currently face a tripartite risk of tightening credit standards, rising debt costs and pressure on property values. Against this backdrop, new AEW research suggests that the debt funding gap (DFG) for the sector grew to €51bn in 4Q22 from €32bn the previous quarter.
AEW measures the DFG as the shortfall between the original .......
News 31 January 2023
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Life ILS partnership inked
Sector developments and company hires
Life ILS partnership inked
Market Moves 30 January 2023
Twelve Capital has joined forces with Farsight Partners in a bid to boost their provision of life ILS opportunities. The two firms believe that ILS can offer capital and risk capacity to the life insurance industry – ultimately promoting the growth and efficiency of the industry. The new strategic partnership will allow the pair to combine .......
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Book building
Peter Polanskyj, senior md and head of structured credit at Obra Capital, answers SCI's questions
Q: Vida Capital recently rebranded to Obra Capital (SCI 16 December 2022). Could you explain why this signifies an important milestone for the firm?
The Structured Credit Interview 30 January 2023
A: Rebranding was a natural step for the firm. Vida – which means ‘life’ in Spanish - was historically a life settlements investment firm. However, the firm is now focusing on diversifying its investment mandate, .......
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ABS conflicts of interest eyed
Sector developments and company hires
ABS conflicts of interest eyed
Market Moves 26 January 2023
The US SEC has proposed a rule intended to address conflicts of interests in the securitisation market. Specifically, the rule would prohibit securitisation participants from engaging in certain transactions that could incentivise a securitisation participant to structure an ABS in a way that would put the securitisation participant's interests ahead of those of ABS investors. .......
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Diversification possibilities
Pawel Turek, counsel at DLA Piper, outlines how trade receiv...
In most cases when economic entities need financing, they use traditional methods of obtaining funds. They take out loans, borrowings or issue bonds. But companies that issue invoices and have a very large number of contractors can also consider factoring.
Factoring allows for the sale of receivables before the maturity date and in exchange for an agreed discount .......
Talking Point 26 January 2023
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Fee fears
FHFA opens another front in the war on affordability to industry concern
The mortgage and securitization market has reacted with anxiety to the changes to the Loan Level Price Adjustments (LLPAs) announced by the Federal Home Finance Agency (FHFA) at the end of last week.
Essentially, these changes make it less costly for borrowers with lower credit scores to secure a mortgage while and more costly those borrowers with higher credit scores.
Not only, of .......
News Analysis 26 January 2023
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Panagram CLO ETF debuts
Sector developments and company hires
Panagram CLO ETF debuts
Panagram Structured Asset Management has launched its first ETF - the Panagram BBB-B CLO ETF (CLOZ). The portfolio will primarily comprise triple-B and double-B rated CLO bonds and is expected to pay a monthly dividend.The firm says its goal is to provide investors with a liquid alternative to traditional fixed income, with attractive structural .......
Market Moves 25 January 2023
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Ramping up?
Auto ABS early-stage delinquencies 'vary broadly'
Early-stage delinquency performance across European auto ABS has started to deteriorate as macroeconomic challenges ramp up. However, new research from DBRS Morningstar reveals that while there are deteriorating trends, early-stage delinquencies actually remain higher than historic lows.
Based on an analysis of loan- and lease-level data from the European DataWarehouse’s exposure templates for EU-domiciled transactions and market data, .......
News 25 January 2023
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ECON votes on output floor
Sector developments and company hires
ECON votes on output floor
Market Moves 24 January 2023
The European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted to apply the capital requirements output floor at the consolidated EU level under CRR3, in order to engender comparable risk weights and avoid variations in capital levels. Additionally, the Committee has agreed transitional adjustments for low-risk exposures secured by residential mortgages to mitigate .......
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Alternative credit acquisitions hit record AUM
Sector developments and company hires
Alternative credit acquisitions hit record AUM
Market Moves 23 January 2023
The AUM of acquired alternative credit managers hit a record US$326bn across 37 transactions in 2022, according to Gapstow Capital Partners figures, with acquisitions of private lending firms accounting for nearly half of this activity (15 acquisitions at US$161bn in target AUM). In comparison, the tally for the prior two years was US$140bn in .......
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SCI Start the Week - 23 January
A review of SCI's latest content
Last week's news and analysis
Different speeds
Legislative advances driving C-PACE momentumGenerating impact
Banco BPM executes project finance SRTGovernance impact highlighted
Asset isolation, payment continuity eyedItalian boost
Intesa ramps up CRT issuanceRabobank returns
Rabobank launches synthetic securitisationSeeking stability
Jersey Finance discusses international finance centresNews 23 January 2023