Complete news archive
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SCI Start the Week - 17 October
A review of SCI's latest content
Last few days to register!
SCI’s 8th Annual Capital Relief Trades Seminar is taking place this Thursday, 20 October in London. For more information on the event or to register, click here.New free report
News 17 October 2022
SCI has published a Global Risk Transfer Report, which traces the recent regulatory and structural evolution of the capital relief trades market, examines the development of both .......
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Swell spreads
Risk pricing means bonds stay costly for GSEs, say speakers at Miami
The GSEs will be obliged to offer “pricing concessions to increased risk” in 2023, meaning, among other things, that the shift to reinsurance will continue, says a speaker at the ABS East conference in Miami today.
Spreads in STACR and CAS securities have widened sharply this year due to increased supply and worsening macro-economic conditions, which has pushed a larger share of .......
News 17 October 2022
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CRT Seminar line-up finalised
Women in risk sharing breakfast to debut
SCI’s 8th Annual Capital Relief Trades Seminar is taking place in-person on 20 October at the offices of Allen & Overy in London. Chaired by Pemberton Capital Advisors’ Olivier Renault, the event will cover the latest regulatory developments, key trends and emerging opportunities within the significant risk transfer market.
The seminar begins with an overview of CRT .......
News 14 October 2022
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Custom-built capital relief
Customers Bank perhaps side-steps regulators with true sale deal
The unusual regulatory capital relief trade closed by Customers Bank on September 30 is likely to have achieved de-recognition of the assets, meaning that it did not require approval from the New York Federal Reserve Bank, surmise well-placed sources.
Under the terms of the transaction, Pennsylvania-based Customers Bank sold a $500m portfolio of unsecured customer loans to a large asset manager. .......
News 12 October 2022
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UK CRE CLO programme prepped
Sector developments and company hires
Aeon Investments has closed its first commercial real estate CLO warehouse in the UK, backed by three strategic loan agreements totalling £900m, as it continues to grow its private credit business. Loans will be funded through Aeon's balance sheet and a three-year revolving senior warehouse facility provided by Credit Suisse. Aeon expects to issue three CRE CLOs in Europe over .......
Market Moves 12 October 2022
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Stormy weather
Increased default and downgrade risk for CLOs
The US CLO market has thus far sailed through the storms of 2021 and 2022 in eminently seaworthy condition. However, with recession now looming, the sector faces increased downgrade and default risks.
“Loan defaults have started to pick up in the US since August, and six loans totalling US$12bn have defaulted. Meanwhile, loan downgrades have also escalated in some of .......
Talking Point 12 October 2022
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Regional bank CRT pipeline builds
New SCI Global Risk Transfer Report published
A couple more US regional bank capital relief trades are in the pipeline for late 2022 or early 2023, according to SCI’s new Global Risk Transfer Report. In terms of reference pools, a current area of focus is relatively high-quality assets that have a good credit story and are available in some depth.
“I can think of .......
News 12 October 2022
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'Too early to tell' for Sec Reg
Sector developments and company hires
‘Too early to tell’ for Sec Reg
The European Commission has released its report on the functioning of the Securitisation Regulation, as mandated under Article 46 of the Securitisation Regulation. The headline takeaway is that since the regulation only came into force in 2019, the Commission believes it is too early to tell whether the regulation is working and so no meaningful .......
Market Moves 11 October 2022
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Keeping it competitive
Greystone's Jenna Unell, senior md in special servicing, and...
Q: Greystone recently purchased its first primary B-piece in a US$1.09bn conduit CMBS. What makes now the right time to enter this market?
The Structured Credit Interview 11 October 2022
RR: We purchased what was C-III Asset Management at the end of 2019, just before the pandemic, and we are working towards growing that business - which was special servicing. The best way to grow that business .......
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Non-calls to continue?
Extension risk on the rise, particularly for non-bank issuers
Following the announcement that buy-to-let RMBS Towd Point Mortgage Funding 2019 - Auburn 13 will not be called at its first call date this month, “given current market conditions”, extension risk in the European ABS/MBS market is expected to increase. Indeed, noting continued rate volatility, Barclays European securitised research analysts have revised their earlier opinion (SCI 31 August) .......
News 10 October 2022
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SCI Start the Week - 10 October
A review of SCI's latest content
Last week's news and analysis
News 10 October 2022
CLOs in an age of economic uncertainty
A ‘Talking Point’ from Pemberton
Consumer SRT launched
Santander prices significant risk transfer trade
Full stack SRT launched
BNP Paribas executes capital relief trade
Staying on track
IQ-EQ answers SCI's questions
Testing the waters
European ABS/MBS market update
US CRT return continues
Morgan Stanley finalizes capital relief trade
Wide Arch
Pricing wider and more reinsurance in .......
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Opening access
Demand for CLO ETFs set to rise
The popularity of CLO ETFs is set to increase, given the current rising interest rate environment. This Premium Content article investigates how the product has opened up the CLO asset class to a broader set of investors.
The advent of CLO ETFs opened up the CLO asset class to a broader set of investors. Against the backdrop of rising ......
News Analysis 10 October 2022Premium Content
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Syco Entertainment lands US$125m deal
Sector developments and company hires
A landmark US$125m securitisation of intellectual property has been completed by the Simon Cowell-founded company, Syco Entertainment. The intellectual property is the Got Talent Franchise, including the America’s Got Talent and Britain’s Got Talent formats commissioned in 72 territories across the globe. The complex transaction marks the first instance of leveraging royalty income streams for the securitisation of the intellectual .......
Market Moves 7 October 2022
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Testing the waters
European ABS/MBS market update
Following last week’s record €4bn securitisation BWIC volume, European and UK ABS/MBS secondary market activity is fading. At the same time, the primary market is still not completely shut, with a few deals out and testing market conditions.
“The real action has certainly been for the most part in the secondary market with undeniably elevated volumes,” notes one .......
News 7 October 2022
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