Complete news archive
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Insurance assurance
Christopher Freeze, senior md and head of investor relations...
Q: Churchill closed its inaugural collateralised fund obligation (CFO) last month. The US$700m transaction will invest across the firm’s flagship private capital fund strategies. What were the drivers behind the launch of the deal?
The Structured Credit Interview 22 August 2022
A: At Churchill, we are a solutions-oriented firm solving for investor needs. We asked ourselves: how can we introduce insurance company investors to the full array .......
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L-Street open?
Prior buyers hopeful L-Street will go live again, others sceptical
Fannie Mae is unlikely to re-open the L-Street Securities lender risk-sharing scheme, believe experienced CRT market players.
West coast lender Pennymac was this week reported to be “optimistic” about resuming the programme, which was discontinued in 2020, but others aren’t so sure.
“I personally don’t believe it. Some lenders have been saying it on their earnings call, but I don’t think it is .......
News 19 August 2022
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US CRT return?
US impasse raises corporate and leveraged loan CRT prospects
News Analysis 19 August 2022
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ADB co-financing agreement inked
Sector developments and company hires
ADB co-financing agreement inked
Market Moves 19 August 2022
The Asian Development Bank (ADB) has signed an agreement with five global insurers that will mobilise up to US$1bn of co-financing capacity to support lending to financial institutions in Asia and the Pacific. The Master Framework Program for Financial Institutions will allow ADB to increase its lending to both commercial banks and non-bank financial institutions in .......
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Tangible benefits
Ali Ben Lmadani, founder and ceo of ABL Aviation, argues tha...
Central banks across the globe are tightening monetary policy to curb the highest inflation rate in more than four decades. It’s been a rough ride for consumers – food and living costs have soared, as well as the price of energy. In late July, the US Federal Reserve – which, due to its influence, is a benchmark for the .......
Talking Point 19 August 2022
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Proportional representation
Scaling factor suggested for capital charges
A new Risk Control paper puts forward a scaling factor as a more risk-sensitive method of calibrating capital formulae under SEC-SA. The objective is to encourage European authorities to rectify the incoherence in securitisation prudential rules that exists between actual risk and capital charges at the mezzanine level, and make the senior tranche floor proportional to pool risk weights .......
News Analysis 19 August 2022
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MBS social index proposed
Sector developments and company hires
Fannie Mae has published a proposed methodology for single-family social disclosure, which aims to provide MBS investors with insights into socially-oriented lending while preserving the confidentiality of borrowers. At the core of the methodology are three key outcomes that the GSE is seeking to achieve with its Single-Family Social Index: prioritise borrowers; allow investors to identify pools with high concentrations of .......
Market Moves 18 August 2022
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BMO busy
Canadian lender in SRT market with third Algonquin of 2022
Bank of Montreal (BMO) is in the market with Algonquin 2022-03, its third securitization from this platform this year.
The deal is expected to close early next week.
The SPV is called Manitoulin USD Ltd, and the Algonquin platform is used to securitize North American senior secured and senior unsecured corporate loans originated by BMO.
Bank of Montreal was unavailable for comment.
The previous Algonquin .......
News 17 August 2022
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Unexpected update
Recognition of EU STS securitisations to be extended
Securitisation regulation in the UK has received a surprise amendment, following the publication last month of the new Financial Services and Markets Bill. The Bill is set to provide investors in the UK with access to a larger pool of STS securitisations with the introduction of a new STS equivalence regime for non-UK transactions.
More broadly, the Bill .......
News Analysis 17 August 2022
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Latvian auto ABS debuts
Sector developments and company hires
Signet Bank has launched the first securitisation in Latvia, in cooperation with car leasing company Primero. The bank supported its subsidiary in the issuance of a €9.46m ABS.
The seven-year transaction consists of a senior tranche and a junior tranche and is secured by a lease and leaseback portfolio of secured auto loans. The issuance is aimed at attracting additional .......
Market Moves 16 August 2022
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SCI Start the Week - 15 August
A review of SCI's latest content
Last week's news and analysis
Exposure value disclosed
EBA releases long awaited excess spread consultation
Hedging eyed
Goldman Sachs expected to hedge leveraged loans
MILN revival?
Narrowing spreads and diminished volatility to give CPR to MILNs
Regulatory block
US CRT sector is becalmed and regulators are to blame, say sources
Symbiotic relationship
'Recharacterisation' underway for European ABSFor all of last week’s stories including ‘Market moves’ and .......
News 15 August 2022
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DLT powers bank subordinated debt deal
Sector developments and company hires
DLT powers bank subordinated debt deal
Market Moves 12 August 2022
Blockchain-powered fixed income platform Brightvine and Angel Oak Capital Advisors have launched what is believed to be the first-ever bank subordinated debt issuance leveraging blockchain technology. A US$147.55m securitisation backed by subordinated debt issued by community banks across the US, BFNS 2022-1 leverages Brightvine Portal, a secure management platform for conducting primary offerings of .......
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Symbiotic relationship
'Recharacterisation' underway for European ABS
The paucity of European publicly placed securitisations in recent months, against a backdrop of challenging conditions, is seen as a symptom of a market that is overregulated and has too few participants. Against this backdrop, a seemingly symbiotic relationship between the public and private securitisation markets is emerging.
“The market for publicly issued securitisation bonds is too illiquid .......
News Analysis 12 August 2022
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MILN revival?
Narrowing spreads and diminished volatility to give CPR to MILNs
The mortgage insurance-linked note (MILN) market, which has languished in the doldrums for the best part of 2022, is set to enjoy a pick-up before year-end, say analysts and issuers.
There have been only two MILNs sold this year, for a total of less than $800m, but there could be another $2bn-$4bn in the final four months of this year, they add.
“There has .......
News Analysis 11 August 2022
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Exposure value disclosed
EBA releases long awaited excess spread consultation
News Analysis 11 August 2022
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Angel Oak censured for fix-and-flip RMBS
Sector developments and company hires
The US SEC has charged Angel Oak Capital Advisors and its portfolio manager Ashish Negandhi for misleading investors about the firm’s fix-and-flip loan securitisation’s delinquency rates. Angel Oak and Negandhi have agreed to pay a penalty of US$1.75m and US$75,000 respectively.
According to the SEC’s order, in March 2018, Angel Oak raised US$90m through a securitisation backed by loans to .......
Market Moves 11 August 2022
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Regulatory block
US CRT sector is becalmed and regulators are to blame, say sources
US regulators have blocked regulatory capital relief trades at a time when the mechanism would be of particular value to US banks, say well-placed market sources.
So far in 2022, only Western Alliance Bank (WAB) has issued in the CRT market. Issuers that have been regular presence in the market over the past couple of years, pre-eminently Citi and JP Morgan, have .......
News 9 August 2022
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RFC issued on SES proposals
Sector developments and company hires
The EBA has launched a public consultation on its draft regulatory technical standards (RTS) on the determination by originator institutions of the exposure value of synthetic excess spread (SES) in securitisations. The aim of the proposals is to contribute to a more risk-sensitive prudential framework in the area of synthetic securitisation.
The capital markets recovery package (CMRP) set out a .......
Market Moves 9 August 2022