Complete news archive
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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
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Continued growth
SRT Market Update
As both Q2 and the first half of the year come to a close, SRT investors highlight a consistent and continued growth in issuance.
Reflecting on the level of volumes seen in the last six months, one SRT investor expects figures to show a “15% growth” year-on-year. He notes: “There have been a lot of transactions, with most of .......
SRT Market Update 28 June 2024
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Job swaps weekly: Crescent promotes three to senior leadership team
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Crescent Capital Group bolstering its senior management team with a number of promotions. Elsewhere, S&P Global Ratings has named a successor to president Martina L Cheung, who is to be promoted to president and ceo of S&P Global, while Man Group has hired a credit-risk-sharing-focused head of structuring.
Crescent Capital .......
Market Moves 28 June 2024
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Landmark transaction
SRT Market Update
The EIB group has revealed another transaction, this time with Romanian bank Banca Transilvania (BT). The landmark transaction becomes BT’s first securitisation transaction as well as the first capital relief transaction between BT and the EIB Group.
The transaction aims to provide capital relief for BT in relation to a portfolio of assets subject to the standardised approach, freeing .......
SRT Market Update 28 June 2024
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Northern green light
Norwegian securitisation to benefit from 'plug-and-play' scenario
The EEA’s long-awaited passage of the EU Securitisation Regulation should finally open the door for Norway’s securitisation market (SCI 14 June). Indeed, the jurisdiction is expected to hit the ground running.
Markus Nilssen, partner at BAHR, explains: “Banks here are exposed to higher capital requirements than elsewhere in Europe; for example, a 4.5% systemic risk buffer on .......
News Analysis 28 June 2024
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CEE it to believe it
Three major talking points from SCI's Emerging Europe SRT Seminar in Warsaw
Over 100 SRT practitioners gathered in the Polish capital for SCI’s inaugural Emerging Europe SRT Seminar last week. Panellists spoke about their excitement for the market, barriers to entry for new players and everyone’s favourite villain - regulations.
- A booming market
“Since Covid and somebody in the Kremlin, who shall remain nameless, Europe was forced .......
Talking Point 27 June 2024
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SCI In Conversation Podcast: Chris Hentemann, 400 Capital Management
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, SCI US editor Simon Boughey speaks to Chris Hentemann, managing partner and chief investment officer of 400 Capital Management, about where he sees value today. Hentemann discusses the types of assets and regions of issuance that are of most interest; the attraction to France, Iberia, and northern Europe; the extent to which .......
News Analysis 26 June 2024
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FHFA approves second mortgage pilot
Market updates and sector developments
The FHFA has provided conditional approval for Freddie Mac to engage in a limited pilot to purchase certain single-family closed-end second mortgages (SCI 14 May). The aim of the pilot is to explore whether such a product effectively advances Freddie Mac’s statutory purposes and benefits borrowers, particularly in rural and underserved communities.
The conditional approval of the pilot .......
Market Moves 24 June 2024
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Stairway to securitisation
Alternative lenders taking UK forward flow market by storm
Forward flow transactions continue to rise in popularity, with the private market serving as both a useful tool for existing participants in the structured finance market and a gateway into securitisation for a growing number of alternative lenders in the UK.
“Over the last few years, we’ve seen this funding product become more and more popular,” says Sarah .......
News Analysis 24 June 2024
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Growing up fast
CEE SRT benefitting from breadth and depth
The Central and Eastern Europe (CEE) SRT market is on the cusp of maturity, benefitting from a clear regulatory framework and increasing issuer and investor interest. Indeed, auto and consumer loan portfolios, for example, are being referenced sooner than is usual for a developing synthetic securitisation market.
“Before Covid, there was some sporadic activity [in the CEE region], .......
News Analysis 24 June 2024
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EIB Group and BBVA partnership
SRT market update
Details have emerged of an EIB Group investment in Spanish bank BBVA’s synthetic securitisation from March 2024. The international financial institution’s involvement in the transaction included a commitment of €76m from the EIB, and €25m from the EIF in an upper mezzanine tranche. Private investors – including a re-insurance company – also invested in other tranches of the securitisation .......
SRT Market Update 21 June 2024
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Job swaps weekly: Fitch appoints successor to outgoing Murray
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Fitch Ratings appointing a successor to outgoing BRM head for structured finance Douglas Murray. Elsewhere, Barings has hired a BlackRock director to lead European real estate debt portfolio management, while King & Spalding has rehired two structured finance partners who left the firm for Milbank last year.
Fitch Ratings has promoted .......
Market Moves 21 June 2024
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Double trouble
Senior UK CMBS noteholders face losses after property sale
The full write-down of the outstanding balance of the class B to E notes and a partial loss on the class A notes issued by Elizabeth Finance 2018 is anticipated on the October IPD, marking the first post-crisis loss on a triple-A rated (at closing) European CMBS tranche. The move comes after the special servicer Mount Street accepted a .......
News 20 June 2024
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Bereft of banks
MBS languishes as the market waits for the banks and the Fed
Like many in the US ABS market, portfolio manager Brendan Doucette is waiting for the Federal Reserve to issue new guidance on Basel III Endgame (B3E).
He runs a US$1.5bn book at Boston-based GW&K Investment Management, 90% composed of agency .......
The Structured Credit Interview 19 June 2024
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Embracing diversity
Regulators urged to recognise importance of internal models
Recent proposals regarding the application of the revised Basel 3 standards in the UK and the US favour the standardised approach and include strict restrictions on the use of internal models for calculating regulatory capital. A new paper from PGGM outlines the firm’s concerns that such standardised risk weights oversimplify the diversity in the real world and could disincentivise .......
Talking Point 19 June 2024
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Special situations
Jean-Francois Leclerc and Carlo Perri of Polar Asset Managem...
Q: Can you give us some background to SRT at Polar?
CP: Polar has been investing in SRTs since the mid-2010s and more broadly in structured credit for over 15 years. Historically, we have focused on what we call ‘special situations’ - new issuers, new asset classes, innovative structures and difficult market conditions.Last year we added JF Leclerc .......
The Structured Credit Interview 18 June 2024
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