Complete news archive
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Test case
CDS market ponders Russian sanctions
Western sanctions on Russia are putting the CDS market in relatively uncharted territory given the challenges it potentially raises for the running of auctions. Indeed, the latter hampers liquidity and the settlement of CDS contracts. The situation is further complicated by the Kremlin’s decision to allow repayment of bonds in roubles since this could trigger more cumbersome restructuring events.
According to .......
News Analysis 8 March 2022
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Boosting the bottom line
Celebrating IWD: on the need for equal pay
Firms with diverse leadership are 21% more likely to outperform from a profitability perspective, according to findings in McKinsey & Company’s Diversity Series. In the second article in SCI’s series celebrating International Women’s Day, Stephanie Mah, svp, structured finance research at DBRS Morningstar, argues that pay equity is paramount in retaining female representation in the securitisation industry.
“In diversity there .......
Talking Point 8 March 2022
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Paying it forward
Celebrating IWD: on empowering the next generation of women
Alston & Bird’s structured finance practice is notable in the industry for being led by female partners and for women making up the majority of the overall team. For the third article in our series celebrating International Women’s Day, these leaders sat down with SCI deputy editor Angela Sharda to discuss how recruitment and retention policies, as well as mentoring .......
Talking Point 8 March 2022
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MV Credit plans to open new office
Sector developments and company hires
Natixis Investment Managers affiliate, MV Credit, is set to open a new Paris office under the leadership of Arnaud Heck. The new entity will integrate Ostrum Asset Management’s former private debt team to establish a new team of 16 at MV Credit France. Heck will serve as md and head of MV credit France, and under his leadership the .......
Market Moves 8 March 2022
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'Show, don't just tell...'
Celebrating IWD: on why women need more leadership role models
That diversity increases innovation and competitiveness for business is well-understood, but efforts to embrace it may still only be window-dressing in the case of the securitisation market. In the first article in our series celebrating International Women’s Day, Tamara Box, managing partner EME and head of structured finance at Reed Smith, outlines her views on why women need more role .......
Talking Point 7 March 2022
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SCI Start the Week - 7 March
A review of SCI's latest content
IWD: Breaking the bias in structured finance
News 7 March 2022
International Women’s Day, on 8 March, is an opportunity both to celebrate women across the globe from all walks of life and to strive further for their equality. This year, the IWD campaign is #BreakTheBias and we at SCI have compiled a series of interviews and insights – that will be published today through .......
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Expectation gap
European ABS/MBS market update
Macro volatility continued to push European and UK ABS/MBS spreads wider last week in a quiet secondary market, with activity further hampered by differences in participants’ expectations. Meanwhile, the primary market remains side-lined.
“As the escalation of the crisis in Ukraine fuels further deterioration in the technical backdrop for financial markets, European ABS spreads extended their sell-off in .......
News 7 March 2022
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War time blues
International turmoil adds to CRT distress
If January was bad for the GSE CRT market, February was a lot worse.
To add to the seemingly deep-seated problems of the US economy, a full-blown war between Russia and the Ukraine broke out in the waning days of the month.
The CRTx Aggregate, flagship index of market-leading consultancy and data provider Mark Fontanilla and Co, lost 100bp in the month. This .......
News 4 March 2022
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Capital trouble
The final ECRF rule fails to remove impediments, say market experts
The FHFA’s failure to incorporate more far-reaching changes to the final Enterprise Regulatory Capital Framework (ERCF) rule, published on February 28, has excited considerable disappointment among some in the credit risk transfer market.
While the final rule of the new capital framework, which was initially unveiled in the summer of 2021, is much better than its predecessor, it still contains flaws .......
News Analysis 4 March 2022
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Talking control
CLO control equity examined
CLO equity is back in vogue and is attracting attention for all the right reasons. As this Premium Content article suggests, for suitably prepared investors, taking a majority position can increase the benefits still further.
After years of uninformed press coverage setting up CLO equity as the catalyst for the next financial crisis, the bottom of the stack is ......
News Analysis 4 March 2022Premium Content
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SLC continues expansion
Sector developments and company hires
SLC Management has promoted Bryan Rowe, Daniel Lucey, Jacqueline Gallant and Jeffery Meyer as the firm continues to expand its business and investment capabilities. Effective from 26 March, the four will work as senior mds at the firm. Firstly, Rowe has been promoted to senior md for global portfolio management, having spent more than 15 years at the firm, and .......
Market Moves 3 March 2022
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Transitioning to green
Call for EU GBS to be extended to securitisation
In a new report examining how to foster transparency and credibility across the EU sustainable securitisation market, the EBA suggests that it would be “premature” to establish a dedicated framework for ‘green’ securitisation. Instead, the authority believes that the forthcoming EU Green Bond Standard (GBS) regulation should also apply to securitisation, providing some adjustments are made to the standard.
News Analysis 2 March 2022
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Feedback loop
CRE CLO confluence to continue?
US CRE CLO issuance volumes exceeded conduit CMBS issuance volumes for the first time ever last year. Such record growth, illustrated through 51 deals across 28 issuers - amounting to around US$45bn – underlines a shift in commercial real estate financing towards floating rate loans and transitional properties.
“It has clearly been a record year for the [CRE .......
News Analysis 2 March 2022
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Team building
Brian Roelke, president and cio of Kuvare Insurance Services, answers SCI's questions
Q: What were the motivations behind the launch of Kuvare Insurance Services’ new third-party asset management business (SCI 8 February)?
The Structured Credit Interview 2 March 2022
A: Unlike a lot of entrants into this space, Kuvare Insurance Services (KIS) started as an insurance-focused asset manager, as all of our activities today are focused on our affiliated insurance balance sheets. The announcement of the new platform signifies .......
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Pemberton hires head of new CLO platform
Sector developments and company hires
Pemberton, the alternative credit specialist, has announced the appointment of Rob Reynolds as head of its new CLO platform. The new CLO platform, which is subject to FCA UK regulatory approval, compliments existing lines of strategic focus. Reynolds will lead its expansion into the European CLO market, using his European CLO and leveraged loan markets expertise to build the new business .......
Market Moves 1 March 2022
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ERCF final rule published
Sector developments and company hires
The FHFA has published a final rule that amends the Enterprise Regulatory Capital Framework (ERCF) by refining the prescribed leverage buffer amount and risk-based capital treatment of retained credit risk transfer (CRT) exposures for Fannie Mae and Freddie Mac. The amendments reflect the feedback the FHFA received last year and aim to advance its mission of ensuring the enterprises are .......
Market Moves 28 February 2022
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Which probability is the probability of default?
Jack Xu, founder of Modtris Financial Modelling, outlines tw...
Probability has been used to define, measure and price risks in the financial market for a long time. For CLO managers and investors in particular, default risk is firmly equated to the probability of default. The meaning of probability may be self-evident from the example of counting faces and tails in coin tosses, but is the probability of a .......
Talking Point 28 February 2022
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SCI Start the Week - 28 February
A review of SCI's latest content
Last week's news and analysis
Agency avoidance
Originators set to turn to private market as fees rise
Borrower beware
Cost of living crisis to have 'unequal impact' on UK RMBS
Compare and contrast
US auto CLN issuance examined
Drifting wider
European ABS/MBS market update
Trigger timing
Pro-rata rating volatility warningFor all of last week’s stories including ‘Market moves’ and ‘Risk transfer round-up’ click here.
SCI CLO .......
News 28 February 2022
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Going digital
Stablecoin securitisation tipped for growth
Appropriate regulation of digital payment could pave the way for the issuance of securitisations in stablecoins. However, this Premium Content article argues that further standardisation across the blockchain ecosystem is needed for the technology to reach a critical mass.
The regulatory attention that digital payment is currently attracting – as exemplified by the US Fed’s recent report on central ......
News Analysis 25 February 2022Premium Content