Complete news archive
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Wide Arch
Pricing wider and more reinsurance in latest Arch MILN
The pricing was wider than Arch anticipated in its recent Bellemeade Re 2022-02, says the borrower.
Levels across CRT capital markets products have been sharply higher since the spring due to a host of economic and geopolitical factors, and this was certainly reflected in this trade - which was Arch’s first in the mortgage insurance-linked note (MILN) sector since January.
The $52.86m .......
News 5 October 2022
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Leibniz Institute and European DataWarehouse win grant
Sector developments and company hires
The German Federal Ministry for Education and Research has awarded a grant to the Leibniz Institute for Financial Research SAFE and the European Datawarehouse (EDW). The grant has been awarded under the ministry’s Climate Protection and Finance (KlimFi) funding initiative to undertake a three-year project to promote the green auto ABS market. The project, named ‘Green Auto Securitisation’ (GAS), .......
Market Moves 4 October 2022
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CLOs in an age of economic uncertainty
We are currently going through a difficult economic environment – with rising interest rates, a credit squeeze, inflation and currency volatility, explains Rob Reynolds, md and head of CLOs at Pemberton.
After years of cheap money, investors are naturally being more cautious and selective about where they invest their money.
CLOs are one product that has consistently served as a buffer .......
Talking Point 3 October 2022
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Staying on track
Stefan Rolf, global head of securitisation and private debt at IQ-EQ, answers SCI's questions
Q: Your role was established when you joined IQ-EQ in July (SCI 19 July). Why has the new position been created and what does it entail?
Provider Profile 3 October 2022
A: In a nutshell, the new role will see me further developing IQ-EQ’s securitisation and private debt offering worldwide – building out our client base in this space and expanding upon the existing .......
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SCI Start the Week - 3 October
A review of SCI's latest content
Podcast launch
SCI has launched a new podcast series covering all things securitisation and engaging with some of the best minds in the industry! To access the podcast, search for ‘SCI In Conversation’ wherever you usually get your podcasts (including Spotify and iTunes), or click here.Last week's news and analysis
News 3 October 2022
Adapting to change
Ready Capital answers SCI's questions
Bright spots
IRA set .......
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M&G finances tech rental firm Grover via ABS deal
Sector developments and company hires
M&G has announced entry into a funding deal with the consumer-tech subscription platform, Grover. Proceeds from the €270m ABS transaction will be used to grow Grover’s product inventory and expand its presence across European markets. Subscribers to Grover’s platform receive access to over 5,000 tech appliances, which are available to rent on a flexible monthly basis. Grover’s services have seen .......
Market Moves 30 September 2022
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Primary stutters as secondary swamped
European ABS/MBS market update
In what has been a week of political and financial turmoil since last Friday’s UK mini-budget, two deals were pulled, though two more made it over the line. At the same time, the secondary market was flooded with BWICs, driving some hefty volumes.
“This week has been all the about the secondary market,” notes one European ABS/MBS trader. .......
News 30 September 2022
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SCI In Conversation podcast is now live!
We discuss the hottest topics in securitisation today...
In this inaugural episode of the SCI In Conversation podcast, Angela Sharda chats to KBRA European research head Gordon Kerr about a European securitisation investor survey the rating agency undertook in June and the implications of the findings today. We also discuss a couple of new SCI Premium Content articles, one of which tracks the evolution of the STS synthetic .......
News 30 September 2022
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New BMO CRT asset
BMO brings capital call facility CRT
Bank of Montreal (BMO) has added capital call facilities to its broad CRT effort in a new deal which closed yesterday (September 29), say sources close to the issue.
The new trade is dubbed Killarney Series 1, and is worth $100m of party-paid floating rate notes, they add.
It is issued through Manitoulin - BMO’s SPV designed for CRT issuance.
The tranche thickness and .......
News 29 September 2022
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Bright spots
IRA set to boost solar ABS origination
The US solar ABS market is poised for growth, following the passage of the Inflation Reduction Act (IRA) last month. In particular, the extension and expansion of the investment tax credit (ITC) is set to encourage consumer engagement with solar panels.
“Origination continues to be strong and we will continue to see ABS transactions for the rest of the year .......
News Analysis 28 September 2022
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Split opinion
Recession considerations discussed
The jury is still out on the likely impact of next year’s forecast recession on the securitisation market. However, panellists at S&P’s European Securitisation Conference earlier this month did concur that the situation is likely to get worse for the sector before it gets better.
While the forecast for the European securitisation market appears somewhat bleak, the majority .......
News Analysis 27 September 2022
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BlackRock preps CLO ETF
Sector developments and company hires
BlackRock preps CLO ETF
In a recent filing with the US SEC, BlackRock has disclosed that it is prepping a CLO ETF, dubbed BlackRock AAA CLO ETF. The fund seeks to provide capital preservation and current income by investing in a portfolio of predominantly US dollar-denominated triple-A rated CLO securities.
Under normal circumstances, BlackRock AAA CLO ETF will invest at least .......
Market Moves 27 September 2022
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Golden Arch
Arch sells second MILN of 2022 at wide prints
Arch has printed Bellemeade Re 2022-02, worth $201m, its second mortgage insurance-linked note (MILN) of the year.
This is only the fourth deal in this sector in 2022 as wider spreads have deterred issuers. Essent priced Radnor 2022-01 earlier this month, but that was the first MILN seen since April.
Bellemeade 2022-01 is noticeably on the small size - indeed it is .......
News 26 September 2022
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'Specialist-squared' solution?
Renewable energy SRT challenges addressed
Banks are expected to substantially grow their lending in the renewable energy sector, driven by ambitious net-zero programmes and government efforts to meet climate targets, heightened further by recent geopolitical tensions. Risk-sharing transactions can play an important role in allowing banks to manage both regulatory capital and risk limit constraints as lending books grow, while retaining the assets on .......
News Analysis 26 September 2022
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Adapting to change
Adam Zausmer, chief credit officer at Ready Capital, answers SCI's questions
Q: Ready Capital and Starz Real Estate recently formed a joint venture to originate around €300m of new commercial real estate loans over the next two years (SCI 21 July). What prompted the move? What is currently exciting to you in European CRE?
The Structured Credit Interview 26 September 2022
A: It was a great opportunity to further expand and diversify Ready Capital’s international lending business. .......
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SCI Start the Week - 26 September
A review of SCI's latest content
Last week's news and analysis
CRT wave continues
Goldman Sachs prices leveraged loan CRT
Investment slowdown
EIF expected to reduce SRT investments this year
Legitimate questions
STS synthetics adoption discussed
Singular CRT
One-off entry into CRT from PacWest
STACR six priced
Sixth low-LTV STACR of 2022 pricedFor all of last week’s stories including ‘Market moves’ and ‘Risk transfer round-up’ click here.
SCI CLO Markets
News 26 September 2022
CLO Markets provides .......
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Early redemption for Spanish synthetic
Sector developments and company hires
Early redemption for Spanish synthetic
Clifford Chance has advised Santander Consumer Finance regarding the early redemption of bonds issued by Santander Consumer Spain Synthetic Auto 2018-1 and the settlement process. This transaction included obtaining consent from various institutional investors and represents the first early redemption of a synthetic securitisation fund in Spain.
The Clifford Chance team was led by global financial markets .......
Market Moves 23 September 2022
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Legitimate questions
STS synthetics adoption discussed
The adoption of STS synthetic securitisation has helped legitimise the capital relief trades market. However, this Premium Content article outlines how the EBA’s most recent consultations could prove challenging.
STS synthetic securitisation issuance has soared since the execution of the first transaction in June 2021, adding momentum to this year’s capital relief trade deal flow, further legitimising ......
News Analysis 22 September 2022Premium Content