Complete news archive
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Transatlantic hurdles
CLO managers aim to overcome infrastructure issues
CLO managers are increasingly tapping transatlantic opportunities. However, risk retention financing and transparency requirements can be challenging.
“It tends to be firms that have experience in one market or the other, because they already have some of the structuring expertise and infrastructure necessary to undertake a CLO transaction,” explains Alex Martin, finance partner at Latham & Watkins.
News 22 April 2022
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Ex-employees resurrect Highland
Sector developments and company hires
Ex-employees resurrect Highland
A trio of former senior Highland Capital Management portfolio managers have resurrected the firm under a new moniker, Highland ERA Management. Patrick Daugherty – who was partner, senior CLO portfolio manager and head of distressed/special situations at Highland – is partnering with ex-Highland team members Kevin Rourke and Niles Chura in the venture.Through a sub-advisory .......
Market Moves 22 April 2022
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Full steam ahead
European ABS/MBS market update
With seven deals marketing, the European and UK primary ABS/MBS markets are set for bustling days ahead. While the market remained relatively unmoved either side of the Easter break, this strong surge in deals all scheduled for next week will certainly test investors’ appetite.
“With so many deals being announced, the doors are clearly open,” notes one European .......
News 22 April 2022
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Fasten your safety belts
Aircraft ABS set for further turbulence
The fallout from the Ukraine crisis is likely to affect the entire aircraft ABS market, rather than simply those deals with exposure to Russian assets. This Premium Content article outlines why the sector is bracing for a bumpy ride.
The Russia-Ukraine conflict has exposed fault lines in the aircraft ABS market that participants had hitherto tended to ......
News Analysis 22 April 2022Premium Content
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ESG cat bond fund launched
Sector developments and company hires
Paschal Brooks and Justin Hull have co-founded Sustain ILS Management. Headquartered in New Jersey, the firm is an independent investment manager with a focus on sustainability and ESG within the catastrophe bond and reinsurance sectors. Brooks was previously ceo of AlphaCat Capital, which he joined in December 2011 as a portfolio manager. Before that, he worked at Goldman Sachs and .......
Market Moves 21 April 2022
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New name
Dutch auto lease ABS debuts
Hiltermann Lease is in the market with a rare Dutch auto ABS. The lender’s inaugural transaction, dubbed Hill FL 2022-1, is backed by a €500m pool comprising 33,744 financial lease contracts to 30,896 lessees (see SCI's Euro ABS/MBS Deal Tracker).
The assets were distributed through dealers to self-employed and commercial borrowers to finance the purchase of new (accounting for .......
News 20 April 2022
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17Capital closes largest debut private credit fund
Sector developments and company hires
17Capital has closed its inaugural NAV lending fund with €2.6bn in capital raised, exceeding its €1.5bn target. The 17Capital Credit Fund marks one of the largest debut private credit funds to be raised, and comes as demand for NAV financing continues to rise and is expected to grow from a US$100bn market today to become a US$700bn market by 2030. .......
Market Moves 20 April 2022
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Risk transfer line-up finalised
North American CRT in focus
SCI’s 6th Annual Risk Transfer & Synthetics Seminar is taking place in-person on 27 April at the New York offices of Clifford Chance. The event focuses on the growing North American synthetic securitisation market, which is undergoing a period of significant change and innovation.
The seminar begins with an overview of the most recent trends and banner .......
News 20 April 2022
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Dead CIRT
Fannie Mae places 4th CIRT of 2022
Fannie Mae has placed its fourth CIRT deal of 2022, a little over a week after its fourth CAS transaction of the year, the GSE announced today (April 19).
The transaction, designated CIRT 2022-4, transferred $844.8m of mortgage credit risk to 22 insurance and reinsurance firms.
The reference pool for CIRT 2022-4 is comprised by 76,600 mortgages with an unpaid principal balance .......
News 19 April 2022
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Large Algonquin
BMO prices first Algonquin SRT since 2020
Bank of Montreal has priced and settled Algonquin 2022-1, its first deal off this platform since January 2020, say sources close to the deal.
The five tranche SRT trade references a $7.5bn portfolio of mid-sized Canadian and US corporate loans, and as such it is the largest deal of this kind the borrower has ever sold.
The unrated E tranche, with a face value .......
News 14 April 2022
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IIG exec sentenced to prison
Sector developments and company hires
IIG exec sentenced to prison
Market Moves 14 April 2022
David Hu, former managing partner and cio International Investment Group (IIG), has been sentenced to 12 years in prison for his role in an over US$120m scheme to defraud IIG’s clients and investors (SCI 29 January 2021). The sentence will be formally imposed following the conclusion of forfeiture and restitution proceedings in the case, .......
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Finding funding
European solar ABS tipped for acceleration
Securitisation could play a vital role in funding the European energy transition, with households likely to bear the brunt of the switch to renewable energy. As the Ukraine conflict continues to raise concerns over Russian energy dependency across Europe, the development of a solar ABS market in the region is expected to accelerate.
Following on from forced sustainable .......
News Analysis 14 April 2022
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Legacy issues
STS amendments prove challenging
The amendment of legacy synthetic securitisations into STS compliant trades has proven to be a much more challenging proposition than initially thought. In fact, most STS synthetics are brand new transactions according to STS verification agents, given the auditing and other issues associated with amending legacy deals into STS trades.
According to Michael Osswald, md at STS verification international (SVI), ‘’legacy trades .......
News Analysis 14 April 2022
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Landmark ruling
HEAT decision "watershed" for RMBS litigation
The New York Court of Appeals last month issued a landmark ruling in a case involving US Bank National Association versus DLJ Mortgage Capital, relating to the Home Equity Asset Trust (HEAT) 2007-1 transaction. The precedent-setting decision has ramifications for dozens of other US RMBS repurchase cases pending in the lower courts by significantly limiting the legal exposure of .......
News Analysis 13 April 2022
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Amended risk retention RTS published
Sector developments and company hires
Amended risk retention RTS published
Market Moves 13 April 2022
The EBA has published its final draft regulatory technical standards (RTS) specifying the requirements for originators, sponsors and original lenders related to risk retention, as laid down in the Securitisation Regulation and as amended by the Capital Markets Recovery Package (CMRP). The RTS aim to provide clarity on the risk retention requirements, thereby ensuring a .......
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Dutch courage
European ABS/MBS market update
The European and UK ABS/MBS markets are looking to take full advantage of a recent surge in activity. This week, with a number of deals due to price, the market will try to maintain its strong momentum into the Easter break.
After feeling the full effects of macro volatility, the European and UK ABS/MBS markets have over the .......
News 12 April 2022
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PCMA appoints new MD
Sector developments and company hires
PCMA welcomes Thien Nguyen to its senior leadership and investment team as the firm bolsters its expertise in super prime, private client credit. Nguyen will focus on establishing new and managing existing investment strategies and capital market solutions across secondary market trading, structured credit, syndication, and credit risk exposure across the firm’s enterprises. Nguyen joins PCMA as md for capital .......
Market Moves 12 April 2022
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Risk transfer round up-11 April
CRT sector developments and deal news
Intesa Sanpaolo is believed to be readying a synthetic securitisation that is backed by residential mortgages. The Italian lender’s last synthetic RMBS was finalized in September 2021 (see SCI’s capital relief trades database).
....... News 11 April 2022
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Hellenic ABS inked
Project Starlight package transaction agreed
Hellenic Bank has agreed a package transaction involving the securitisation of the Starlight Portfolio – which comprises circa €1.32bn of non-performing exposures - and the sale of its servicing platform, APS Debt Servicer, to Oxalis Holding. Upon completion, the agreement will de-risk the bank's balance sheet by reducing NPEs by €720m, resulting in a residual NPE portfolio of circa .......
News 11 April 2022