Complete news archive
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Remarkable restructuring
Re-tranched NPL ABS set to benefit from GACS
Intesa Sanpaolo last month completed the first restructuring of an Italian non-performing loan securitisation seeking to benefit from the GACS guarantee. Dubbed Penelope SPV, the deal also marks another first for Italian NPL transactions as, at the time of the assignment of ratings, some properties had already been acquired by the associated ReoCo.
“Penelope SPV is unusual because .......
News Analysis 25 January 2022
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New members
Sector developments and company hires
DBRS Morningstar has appointed two new independent non-executive members to its board of directors – Joseph M. Donovan and Katherine L. Frey. Both industry veterans, Donovan presently serves in similar roles on the board of directors at STORE capital and Trip Rail Holdings. Frey previously held role of md at Moody’s, and before this worked on municipal finance, derivatives and .......
Market Moves 24 January 2022
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SCI Start the Week - 24 January
A review of SCI's latest content
Last week's news and analysis
News 24 January 2022
Continued commitments
Deerpath Capital Management, answers SCI's questions
CREFC takeaways
Certain types of mall and certain types of hotel excite worry
How will the CLO market fare in 2022?
Vibrant Capital Partners shares how it expects CLOs to perform in 2022
Longer-dated profile
Project finance exposure embraced
Mortgage marvel
Sharp 2021 drop in foreclosure/delinquency
Primary primary
European ABS/MBS market update
Same as .......
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Mortgage marvel
Sharp 2021 drop in foreclosure/delinquency - serious delinquency still elevated
At the end of 2021, mortgage foreclosures had hit an all-time record low while the delinquency rate was only 0.10% higher than the historic low of 3.28% hit in February 2020 - just before the pandemic hit - according to data released this morning by Black Knight.
This constitutes a dramatic turnaround from the early days of Covid 19. The delinquency rate, .......
News 21 January 2022
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Primary primary
European ABS/MBS market update
Focus remained on the primary market in European ABS/MBS this week. Another swathe of new issues on offer meant secondary had to again take a back seat.
Five deals priced on the week. All were RMBS and all met with healthy investor demand ensuring support for continued tight levels throughout the stack.
Yesterday saw two deals print – Elstree Funding .......
News 21 January 2022
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Community-focused RMBS prepped
Sector developments and company hires
Community-focused RMBS prepped
Change Lending is in the market with its inaugural RMBS – the US$297.26m CHNGE Mortgage Trust 2022-1. Change is certified by the US Treasury as a Community Development Financial Institution (CDFI). As such, the firm is required to lend at least 60% of its production to certain target markets, including low-income borrowers or other underserved communities.
The .......
Market Moves 21 January 2022
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How will the CLO market fare in 2022?
Vibrant Capital Partners shares how it expects CLOs to perform in 2022
Once a niche, widely misunderstood asset class, CLOs have proven resilient across credit cycles, transforming into a core allocation for institutional investors. Today, the global CLO market is over US$1trn in size and includes participation from pension plans, insurance companies, and other mostly institutional investors who have reaped the rewards of CLOs’ solid performance. In sum, the tailwinds are strong, and the .......
Talking Point 21 January 2022
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STACR prices
Innovative double M-tranche STACR 2022-DNA1 sets coupons
Freddie Mac has priced STACR 2022-DNA1, reported to be in the market last Friday (January 14), and is expected to settle the trade tomorrow (January 21).
The ground-breaking transaction includes two investment grade tranches - the M-1A and M-1B- rather than one investment grade M tranche. This is due to higher attachment and detachment points than the GSE CRT sector has .......
News 20 January 2022
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Continued commitments
Derek Dubois, md and treasurer at Deerpath Capital Management, answers SCI's questions
Q: How does Deerpath differentiate itself from its competitors in the lower middle market?
The Structured Credit Interview 20 January 2022
A: Deerpath Capital has been around for a number of years. It was founded in 2007 and we’ve always been focused on lower middle market US secured debt as our investment strategy. The lower middle market offers a nice dynamic for investors; it’s a little less .......
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Junior tranche guaranteed
Sector developments and company hires
Junior tranche guaranteed
The EIB Group and Banco BPM have joined forces to support the working capital requirements and investments of Italian SMEs hit by the Covid economic crisis. In the first operation of this type in Italy, the EIB and the EIF will provide a guarantee of €91m on a junior tranche of a synthetic securitisation that references a portfolio of .......
Market Moves 20 January 2022
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CREFC takeaways
Certain types of mall and certain types of hotel excite worry
While the overall tone at the CREFC conference last week in Miami was “bullish”, concern remains about pockets of assets within the CMBS space, say attendees.
It is, however, insufficiently specific to say that the retail mall or hotel markets are problem areas. Rather, only certain segments of these broad asset classes face ratings action, they add.
“Retail as an overall asset class .......
News Analysis 19 January 2022
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SME mission
Alain Godard, EIF chief executive, discusses Europe's post-C...
Q: What are the ways in which the EIF utilises securitisation to further its mission?
A: Central to the EIF’s mandate is, of course, our support to SMEs across Europe. There are naturally many ways or various instruments to achieve that, including securitisation.By facilitating the execution of securitisation transactions, we provide guarantees to banks and financial institutions, allowing .......
The Structured Credit Interview 19 January 2022
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UniCredit unveils ARTS
Sector developments and company hires
UniCredit, in cooperation with the EIB Group, has finalised a new synthetic securitisation under its Asset Risk Transfer Sharing (ARTS) programme. The transaction references a circa €2bn portfolio of Italian SME and mid-cap loans, with the EIF guaranteeing the mezzanine tranche, which is counter-guaranteed by the EIB. The capital freed up by the operation will be used to deploy €720m .......
Market Moves 18 January 2022
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Same as ever?
Davis+Gilbert partner Joseph Cioffi reflects on the performa...
The pandemic has been a surprising boon to the subprime auto ABS market, due to supply issues that have raised collateral values and a potent mix of government support and private actions that have bridged consumers through financial distress. The pandemic’s persistence is now calling into question how long favourable conditions may continue and what normalisation will look like. .......
Talking Point 18 January 2022
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New leadership
Sector developments and company hires
Crestbridge has appointed Martin Lambert as its new head of UK operations following the retirement of former boss Paul Windsor. Lambert will join the firm with more than 30 years of experience in the field, having most recently served as partner at Grant Thornton. Based in London, Lambert will work as part of the senior leadership team to continue its .......
Market Moves 17 January 2022
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SCI Start the Week - 17 January
A review of SCI's latest content
CRT Training launch
SCI has launched a new Capital Relief Trades training course, providing complete, deep-dive intelligence on the CRT sector. Aimed at new market entrants, this is a fast track opportunity to get the intelligence you need on the Risk Sharing sector. The course will take place on the 8-9 March 2022, and will be held online.To find out more about .......
News 17 January 2022
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Freddie breaks new ground
Debut 2022 STACR increases detachment points - CRT volume to boom this year
Freddie Mac is in the market with its first CRT deal of the year, designated STACR 2022 DNA-1, and the format of the new trade marks a significant shift from STACRs seen in the past.
The deal, worth $1.35bn, comprises two M tranches rather than the customary one and the investment grade slice of the capital stack has increased.
There is now a A/A- .......
News 14 January 2022
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DTI ratios eyed
Affordability changes could 'increase default risk'
Proposed changes to residential mortgage affordability testing in the UK would increase first-time buyers’ (FTBs) access to mortgage credit and support UK home prices. However, Fitch suggests that the changes could increase default risk for some borrowers through higher debt-to-income ratios, a key attribute considered in its RMBS rating analysis.
The Bank of England’s Financial Policy Committee (FPC) .......
News 14 January 2022
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Strong start
European ABS/MBS market update
European ABS/MBS got fully underway for 2022 over the past week. Both primary and secondary markets saw strong execution and a building pipeline.
The first two new issues of the year are due to price today – Dutch BTL RMBS Jubilee Place 3 and UK non-conforming RMBS Tower Bridge Funding 2022-1. The former saw its class A spread .......
News 14 January 2022
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Navient agrees multi-state settlement
Sector developments and company hires
Navient agrees multi-state settlement
Navient has reached agreements with 39 US state attorneys general to provide relief totaling US$1.85bn to resolve their multi-state litigation and investigations in connection with allegations of unfair and deceptive student loan servicing practices and abuses in originating predatory student loans. In the agreements, Navient expressly denies violating any law - including consumer-protection laws - or causing .......
Market Moves 14 January 2022