Complete news archive
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WAM understatement hits FFELP SLABS
Market updates and sector developments
Moody's has placed 12 tranches from nine FFELP student loan securitisations administered by Nelnet and 61 tranches from 11 FFELP ABS serviced by Nelnet on review for downgrade. The rating actions follow Nelnet's disclosure of a collateral data reporting approach that appears to have understated the remaining term of loans in Income-based Repayment Plans (IBR).
Nelnet last week .......
Market Moves 29 July 2024
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Job swaps weekly: Reed Smith snaffles top hire
People moves and key promotions in securitisation
Market Moves 26 July 2024
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No endgame in sight
SRT market update
Optimism around the wave of US CRT deals expected during Q3 is fading with the outcome of the Basel 3 Endgame still unresolved.
Commenting on the matter, one source explains: “At the start of this year people were saying 2024 was it – this is happening – but I don’t think people were expecting there to be this .......
SRT Market Update 26 July 2024
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Resonance marketed
SRT market update
Further details have emerged on Citi Bank’s corporate SRT deal (SCI, 10 May). Sources suggest the spread landed somewhere in the sixes, with the tranche thickness at 0-13%.
One tells SCI: “Citi was initially looking to do $500m of first loss, but they might have done more as they got a lot of demand because it’s good .......
SRT Market Update 22 July 2024
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In recovery
Recovery ABS is increasingly big business, despite caveats
Over US$2bn of recovery ABS has been issued so far this year, and though 2024 issuance is unlikely to surpass the record US$20bn seen in 2022, the market is flourishing as more and more states pass the necessary legislation.
New York, for example, passed laws permitting issuance of recovery bonds last month, which now await only the signature .......
News Analysis 19 July 2024
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Job swaps weekly: Proskauer lures A&O Shearman co-head of global banking
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Proskauer Rose snapping up two A&O Shearman partners for its global finance practice. Elsewhere, Womble Bond Dickinson has added a Latin America-focused partner to advise on capital markets and structured finance, while Anchor Health Properties has lured a structured finance-focused senior vice president.
Philip Bowden has left his role as .......
Market Moves 19 July 2024
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CAS five
Market updates and sector developments
Fannie Mae has priced its fifth CAS deal of the year – a US$659m REMIC designated CAS 2024-R05. The transaction is underwritten by Wells Fargo and Morgan Stanley.
It consists of two US$283.86m M1 tranches (2A-M1 and 2M-1) rated Aa3/A .......
Market Moves 18 July 2024
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Speeding ticket
Rate of EV development compounds declining residual values and increased credit risk in auto ABS
Declining residual values of fully electric vehicles (BEV) and plug-in hybrids (PHEV) is leading to increased credit risk in auto ABS pools, according to a report by S&P Global Ratings. With BEVs also performing significantly worse than PHEVs, the agency is adjusting its analytical approach, with separate considerations and concentration limits for each technology.
“Electric vehicle technology is .......
News Analysis 18 July 2024
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Esoteric ABS: Fragmenting industry - video
Revere Capital's Gary Miller speaks to SCI about esoteric ABS
Gary Miller, head of Revere Capital’s specialty finance team, speaks to SCI’s Simon Boughey about some of the latest developments in esoteric ABS. Miller discusses the types of asset classes that currently appeal to him, how those asset class types have changed over the years, the likely short-term growth areas, and more.
....... News Analysis 17 July 2024
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The (re) insurance equation
Insurers have a niche in European SRT, but regulatory hurdles block US market
While insurance company participation in European reg cap trades has become an appreciable segment of the market and likely to grow further, it remains grounded in the US with no indication of imminent lift off, say industry experts.
News Analysis 15 July 2024
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H1 commentary and league tables
SRT market update
While reflecting on the first half of the year, many market participants have often used and repeated the expression ‘more of the same.’
Indeed and although the market has not experienced or faced any fundamental changes in the last six months, the general feeling is that its leading participants are doing all the ‘usual things’, but on an .......
SRT Market Update 12 July 2024
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Expect new issuers
SRT market update
A notable trend during the first half of the year has been the growth and surge in cash SRT transactions. While market sources report a combination of factors accounting for such uptick in true-sale trades, both originator and investor demand has been particularly strong in Italy.
Commenting on the uptick experienced in cash SRTs, one ABS/MBS trader points to favourable .......
SRT Market Update 12 July 2024
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Job swaps weekly: Newmark snaps up industry veteran
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Newmark hiring an experienced executive as md on its UK and EMEA debt and structured finance team. Elsewhere, i80 Group has hired a former Wells Fargo ABF and securitisation director, while law firm Cappelli RCCD has promoted a securitisation and structured finance specialist to partner.
Debt advisory veteran Steve Williamson .......
Market Moves 12 July 2024
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Latest SRTx fixings released
SRT market sentiment highlights balanced trends and market conditions
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. While last month’s data points highlighted an incrementally better market sentiment overall, this month’s figures and calculations calculations generally came back wider than the previous month.
SRTx Spread Indexes have widened across the board, with the European (+8.4%) and US (+8.3%) corporate segment .......
News 11 July 2024
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Fundraising target exceeded
AXA IM Alts announces it has raised €2.3bn for its SRT strategy
The investment management firm, which boasts €184m AUM and has closed 110 deals since the launch of its strategy (the majority of which were bilateral trades), is looking to capitalise on the growing SRT market. The group credits its relationships with banks and the attractiveness of the asset class as key drivers.
Global head of client group Florence .......
News 11 July 2024
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School's out?
SRT market update
It seems summer has officially arrived and with it its traditional hiatus in deal flow. Market sources suggest that activity will pick up later in Q3 and that the end of the year may see new issuers enter the market.
Reflecting on current volumes, one source explains NDAs should pick up towards the end of August and that the .......
SRT Market Update 5 July 2024
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Job swaps weekly: Medalist names Buccola as head of structured credit
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Medalist Partners appointing a former Cantor Fitzgerald senior executive as partner and head of structured credit. Elsewhere, the EIF has named a new head of securitisation, while Davis Polk has promoted six – including two securitisation specialists – to partner.
Medalist Partners has appointed James Buccola as partner and head .......
Market Moves 5 July 2024
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Agriculture CLN incoming
SRT market update
Lloyds is in market with a fresh transaction from its Fontwell programme. It previously issued the agricultural mortgages programme back in 2016 and 2020, with investors suggesting a pricing of 12% and 10% spreads, respectively. Pricing details for the new trade are still unclear, although a combination of a broader investor base and the fact that the .......
SRT Market Update 3 July 2024
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New kid on the block
European data centre ABS now reality as region claims growing share of capital investment
Data centre ABS is to take the EMEA region by storm, as investment in the sector continues to climb and issuers seek out means of optimising financing and unlocking capital. Following the success of inaugural European issuance from industry giant Vantage Data Centers, further data centre securitisations are more than likely, according to research from Linklaters.
2024 marks .......
News Analysis 2 July 2024
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CIRT five for 2024
Market updates and sector developments
Fannie Mae (today) executed its fifth CIRT deal of the year, designated CIRT 2024 L-3, transferring US$337.2m of mortgage risk to 27 insurers and re-insurers.
The GSE retains risk for the first 170bp .......
Market Moves 1 July 2024