Complete news archive

  • MCC secures synthetic

    Italian SME counter-guarantee deployed

    The EIF is set to counter-guarantee a portfolio of 5,652 operations backed by the Guarantee Fund for SMEs, which is managed by Mediocredito Centrale (MCC) on behalf of the Italian Ministry of Economic Development. The total portfolio amount corresponds to €3.2bn of funding, including a direct guarantee from the Fund of €2.8bn.

    Under this synthetic securitisation of secured .......

    News 23 December 2021

  • On the rebound

    Pandemic-driven CMBS bifurcation to persist

    European CMBS issuance is expected to continue rebounding in 2022, on the back of strong volumes of nearly €6bn this year. However, collateral composition of new transactions, as well as the performance of existing deals will likely reflect the pandemic-driven bifurcation of the commercial real estate markets.

    “CMBS will be an area that will be increasingly busy over .......

    News Analysis 23 December 2021

  • From strength to strength

    Landmark year for Aussie securitisation

    With A$48.79bn publicly placed across 64 individual transactions in 2021, the Australian securitisation market has reached a post-financial crisis issuance high. Record volumes, combined with the entrance of a series of new issuers and programmes - in a market driven by the non-bank sector - all point to continued growth.

    “Perhaps the most interesting aspect, or at least .......

    News Analysis 23 December 2021

  • Turning tides

    WeWork CMBS winners, losers highlighted

    WeWork is set for a “strong comeback” this year, according to a new Morningstar Credit Information & Analytics (MCIA) report that analyses the company’s post-pandemic performance and its impact on the US CMBS market. The study assessed seven properties – four ‘losers’ that lost WeWork as a tenant at the start of 2021 and three ‘winners’, where WeWork may .......

    News 22 December 2021

  • Double first for the EIB

    EGF, first loss guarantee debuts

    The EIB Group has closed the first synthetic securitisation backed by the European Guarantee Fund (EGF), an instrument set up by the EIB Group together with EU Member States to mitigate the economic consequences of the Covid pandemic (SCI 27 May 2020). The transaction is also the first whereby the EIB Group has invested in the junior tranche .......

    News 22 December 2021

  • Regulatory redemption?

    European CLO sustainability disclosures eyed

    ESG investment criteria are rapidly becoming a standard feature across the European CLO market. Enhanced ESG disclosure is anticipated to be the next step in the sector’s evolution, with more information being made available by CLO managers.

    “You can see from the stats already: the sheer number of deals that include ESG investment criteria has sharply increased and .......

    News Analysis 21 December 2021

  • Nephila taps LBR vehicle

    Sector developments and company hires

    Nephila taps LBR vehicle
    Nephila Capital has funded its newly launched Syndicate 2358, which focuses on short- to medium-term insurance business lines, with capital provided through Lloyd’s London Bridge Risk PCC vehicle. The transaction provides reinsurance capital from a diverse group of investors, including four pension funds, to support underwriting beginning with the 2022 Year of Account.

    Nephila has .......

    Market Moves 21 December 2021

  • European CLO market weathers reset storm

    An extract from SCI's new CLO Markets service

    Ninety-nine European CLOs were reset in 2021, many more than what was anticipated at the end of 2020. The total volume, including the full equity tranche, amounts to €42.2bn. New issue volumes, meanwhile, reached €38.6bn, a new post-crisis record.

    “2021 was a perfect storm for refinancings. CLOs priced in 2020 at wide spreads and with short non-call periods; many CLOs .......

    News 21 December 2021

  • Crucial conclusions

    EBE highlights importance of securitisation to the real economy

    A new joint study by AFME, European DataWarehouse and True Sale International demonstrates that the private cash securitisation market is a crucial element in the funding of the real economy across Europe. Data collated in the report shows that over 80% of private cash securitisations by volume fund sellers in the UK and the EU, and over 70% to .......

    News Analysis 21 December 2021

  • RFC issued on non-sequential amortisation

    Sector developments and company hires

    RFC issued on non-sequential amortisation
    The EBA has launched a public consultation on draft regulatory technical standards (RTS) specifying and, where relevant, calibrating the minimum performance-related triggers for STS synthetic securitisations that feature non-sequential amortisation. For the purpose of standardisation, the amended securitisation regulation sets out that sequential amortisation shall be applied to all tranches of STS synthetic securitisations. However, .......

    Market Moves 20 December 2021

  • Greek SRT finalised

    Alpha Bank closes capital relief trade

    Alpha Bank has completed a €145m synthetic securitisation that references a €1.9bn portfolio of Greek corporate and SME loans. The transaction is the third Greek significant risk transfer trade and the first Greek SRT involving multiple investors.

    Indeed, CRC, Anacap and the EBRD all invested in the deal. The EBRD put down €10m of credit protection, but CRC bought the .......

    News 20 December 2021

  • SCI Start the Week - 20 December

    A review of SCI's latest content

    Last week's news and analysis
    Auto CRT priced
    Santander engineers US return
    Bank bonanza
    Massive potential of US bank CRT market stressed in Miami
    CAS Christmas cracker
    Fannie's third CRT since its return makes Q4 top of the pile
    CLO investors thrive in 2021
    An extract from SCI's new CLO Markets service
    Corporate SRT launched
    Raiffeisen completes capital relief trade
    ESG SRT inked
    Standard Chartered completes capital .......

    News 19 December 2021

  • Spanish private debt fund wins EIF backing

    Sector developments and company hires

    Spanish private debt fund wins EIF backing
    Beka Finance has formed a private debt management unit, dubbed Beka Credit, which it hopes will help consolidate the firm’s growth and leadership position in the alternatives market. The unit is already preparing to launch its first private debt fund, with which it expects to raise around €250m.

    The Luxembourg-based vehicle will .......

    Market Moves 17 December 2021

  • Offshore appeal

    International ratings for CMB credit card ABS

    The first Chinese credit card ABS rated by an international agency (S&P) has closed. Zhaoyin Hezhi 2021 Phase I Personal Consumer Loan Asset-backed Securities is backed by a CNY2.97bn pool of credit card receivables originated by China Merchants Bank (CMB), which will also act as servicer on the transaction.

    On why CMB sought international ratings, Andrea Lin, lead analyst and .......

    News Analysis 17 December 2021

  • Auto CRT priced

    Santander engineers US return

    Santander has completed its synthetic securitisation that references a US$2.17bn portfolio of US auto loans (SCI 9 December). The transaction is the first post-Covid US synthetic auto ABS issued by a European originator and marks Santander’s return to the US market.

    Rated by Fitch, the transaction consists of US$1.656bn unrated class A1 notes, US$10m unrated class A2 .......

    News 17 December 2021

  • Opportunities in interventionism?

    New housing bill opens door to Spanish BTL market

    Spain’s minority coalition partners recently agreed a draft housing law - the first since the country’s transition to democracy in 1975 - which could redefine the local real estate market. As the cost of housing soars, the leftwing government proposes to protect vulnerable tenants against investment funds and corporate landlord firms. The move could accelerate the emergence of a .......

    News Analysis 17 December 2021

  • CLO investors thrive in 2021

    An extract from SCI's new CLO Markets service

    2021 has been a good year for CLO investors, after very mixed results last year when some funds failed to fully recover from the sharp declines recorded in March and April 2020. CLOs are now present in a range of funds – from diversified macro funds to specialised credit funds, in addition to an increasing number of pure CLO funds .......

    News Analysis 17 December 2021

  • CAS Christmas cracker

    Fannie's third CRT since its return makes Q4 top of the pile

    Fannie Mae has priced its third and final CAS deal of the year, and as this trade will settle before year-end it makes 4Q 2021 the busiest ever seen in the GSE CRT space, say sources.

    The US$909m four-tranche offering, dubbed CAS 2021-R03, references a pool of around 117,000 single family mortgages with an outstanding principal balance of .......

    News 16 December 2021

  • ESG SRT inked

    Standard Chartered completes capital relief trade

    Standard Chartered has finalised a US$90m significant risk transfer trade that references a US$1bn portfolio of US and European corporate borrowers. Dubbed Chakra Six, the CLN stands out for its ESG features and was priced in the high single digits, rendering it the most tightly priced SRT so far from the Chakra programme.

    The transaction features a sequential amortisation structure .......

    News 15 December 2021

  • New trends

    Italian NPL ABS capture coronavirus exposures

    Over the medium term, Italian NPL securitisations will capture loans that have defaulted since the outbreak of the pandemic. They will be different compared to pre-pandemic portfolios featuring loans with low seasoning, at early stages of legal proceedings and with increased concentrations.

    According to a new report by Scope Ratings, banks will securitise low-seasoned NPLs, as portfolios will include new .......

    News 15 December 2021

  • Bank bonanza

    Massive potential of US bank CRT market stressed in Miami

    If 10% of the $2trn US wholesale commercial loan market were to receive the CRT treatment it would create $25bn of new tranches  - only $10bn less than the entire current global CRT market, according to a speaker at the ABS East conference in Miami today.

    Moreover, there remains considerable incentive for US banks to take this path: the differential between RWAs .......

    News 14 December 2021
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