Complete news archive
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Record breakers
B1 tranches hit all-time low new issue print
Record tight new issue spreads were recorded in GSE-issued CRT B1 tranches in May, according to research conducted by Mark Fontanilla & Co, the leading CRT consultancy and data provider.
The B1 tranche of Fannie Mae’s recently priced CAS .......
News 6 June 2024
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Treasury survey underlines regulatory constraints
Market updates and sector developments
AFME has published the results of a survey undertaken to examine bank treasuries’ asset allocation drivers in relation to securitisation. The results of the survey demonstrate how various regulatory constraints prevent bank treasuries from fully utilising securitisation as part of their liquidity stress buffer.
Of the 25 respondents to the AFME survey, 80% invest in securitisation in general .......
Market Moves 4 June 2024
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Data dynamics
Investor interest in data centre ABS takes off – SCI esoteric seminar
News 3 June 2024
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SCI Start the Week - 3 June 2024
A review of SCI's latest content
Last week's news and analysis
Italian NPL volumes hit three-year low
Updates on NPL volume drop & release of final STS guidelines
Job swaps weekly: WTW appoints experienced leader from SMBC
People moves and key promotions in securitisation
Mortgage boost?
ICO guarantee to have twofold effect
News 3 June 2024
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Job swaps weekly: WTW appoints experienced leader from SMBC
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees WTW appointing a head of alternative credit insurance, financial solutions, from Sumitomo Mitsui Banking Corporation (SMBC). Elsewhere, Gowling WLG has lured a Toronto-based industry veteran as partner to head up its new structured finance and securitisation group, while Barings has hired an md and global head of fund and asset level .......
Market Moves 31 May 2024
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Italian NPL volumes hit three-year low
Market updates and sector developments
Italian NPL volumes last quarter hit their lowest point since 2021, according to Scope Ratings. Volumes were down 19% on the 2022-2023 average.
March 2024 was particularly poor, with volumes down 36% compared to March 2023 and 2022 - despite the total number of transactions (44) being higher (2022 and 2023 saw 41 and 43 deals respectively).
Over .......
Market Moves 30 May 2024
Stars aligned
Nordic advisory firm to capitalise on constructive outlook
The new advisory venture of two ex-Nordea SRT experts seeks to capitalise on a growing Nordic market (SCI 17 May). Indeed, the stars seem to be aligned for a second wave of capital-focused transactions in the region as regulatory requirements begin to bite.
Jonas Bäcklund, the ceo of the boutique advisory firm Revel Partners, says: “The bet .......
News Analysis 29 May 2024
Mortgage boost?
ICO guarantee to have twofold effect
Abanca and Banco Santander are among the first lenders to sign up to the Official Credit Institute (ICO)’s new Mortgage Guarantee Programme, which promotes mortgage loan origination for young people in Spain. The programme is set to increase home ownership and support house prices, but it could result in higher default risk if guaranteed loans are included in RMBS .......
News 29 May 2024
GACS 2.0 ABS 'better positioned' than GACS 1.0
Market updates and sector developments
GACS 2.0 NPL securitisations appear to be better positioned than GACS 1.0 securitisations, both from an asset side perspective - in terms of greater accuracy of original business plans, better collateralisation and healthier performance - and from a structural perspective, in terms of higher levels of conversion rates and hedging status. A new Morningstar DBRS commentary suggests that this .......
Market Moves 24 May 2024
New SRT jurisdiction?
Israeli banks await securitisation regime
While securitisation transactions have been historically scarce in Israel, last year (30 July) the department of justice published the draft regulation of securitisation transactions law for public review. The new regulatory framework had been enacted in order to create a comprehensive legal and commercial framework for securitisation transactions in Israel. Prior to this publication, no coherent legislative architecture existed .......
News Analysis 24 May 2024
Job swaps weekly: McCarthy Denning appoints CTLA-focused partner
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees McCarthy Denning hiring a former Greenberg Traurig shareholder as a securitisation-focused partner. Elsewhere, Sumitomo Mitsui Finance and Leasing (SMFL) has promoted a long-standing structured finance and corporate banking executive to head up its New York branch, while Offit Kurman has snapped up a former Greenspoon Marder partner as principal.
Helena Nathanson .......
Market Moves 24 May 2024
Transition finance: Mobilising capital - video
Morningstar Sustainalytics' Begum Gursoy speaks to SCI about...
Begum Gursoy, director at Morningstar Sustainalytics, speaks to SCI's Kenny Wastell about transition finance in the context of hard to abate industries. Gursoy outlines activity levels and deal pipelines in transition finance, the way in which a ratings agency goes about assessing environmental impact in deals, the role of labels in any given transaction, and the importance of being alert .......
News Analysis 23 May 2024
Agency angle
SRT ratings on the rise?
Ratings for GSE credit risk transfer transactions are commonplace, given the US agencies’ desire to appeal to a wide range of investors. However, the volume of both public and private ratings for non-agency capital relief trades appears to be on the rise, as the market prepares for Basel 3 Endgame.
Andreas Wilgen, group credit officer for global structured .......
News 23 May 2024
Lever up
Back leverage for CRT buying on the rise
It is becoming increasingly common for buyers of positions in synthetic capital relief trades to use leverage, say well-placed market sources.
Not only does this procedure enhance returns at a time of diminishing yields, there is a growing number of .......
News 23 May 2024
CAS prices
Market updates and sector developments
Fannie Mae’s US$708m CAS 2024 R04, reported to be in the market earlier this week, closed today.
The US$220.4m A1 tranche, rated A+/A+, was priced to yield SOFR plus 100bp, the US$220.4m M1, rated BBB+/A-, yields SOFR plus 110bp, the .......
Market Moves 23 May 2024
MPOWER graduates into securitisation
Provider of loans to international students says deal is first of many
MPOWER Financing, a provider of loans for international university students, has issued its first securitisation, in what it anticipates will develop into a regular stream of issuance. The transaction, MPOWER Education Trust 2024-A, consists of three tranches totalling US$198.1m, which received ratings by KBRA and Morningstar DBRS.
With an underlying collateral pool of US$215.2m, the deal represents the .......
News Analysis 22 May 2024
Picking up the PACE
Consumer protection measures bring benefits
The property assessed clean energy (PACE) ABS market could be set for a renaissance, following progress in bolstering consumer protection measures. Nevertheless, C-PACE activity continues to far outweigh that of the R-PACE sector (SCI 20 January 2023).
“We refer to it as PACE 2.0. We’ve built in many consumer protections, including making sure borrowers have the ability .......
News Analysis 22 May 2024
Agile framework
PRA and FCA publish new UK securitisation rules
Last month, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) published policy statements and the new securitisation rules. Together, both UK regulators have triggered the countdown to 1 November 2024 when the new UK securitisation framework will come into force.
Structurally, both policy statements thoroughly acknowledge industry feedback (following consultation processes that occurred last year) .......
News Analysis 21 May 2024