Complete news archive
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Nascent asset class
Non-performing lease ABS tipped for growth
Issuance of ABS backed by Italian non-performing leases is expected to reach €1bn over the next year, partially driven by increased defaults following the expiry of payment holidays. Recent legal developments and GACS-eligibility of the assets should also facilitate securitisation activity.
“The recent market conditions and legal framework developments have facilitated non-performing lease securitisations. The key challenges for .......
News Analysis 18 November 2021
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SRT chronicle: part one
In the first of a three-part series on bank risk transfer tr...
The bank balance sheet securitisation market has enjoyed significant growth over the past five years and looks set to continue apace on the back of clearer regulation, an increasing number of banks having acquired the technology and economic incentives for banks to free up risk-weighted assets (RWAs) rather than raising capital. In this series of articles, we will use significant .......
Talking Point 18 November 2021
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FFELP follies
Debt servicer in the spotlight as default looms for $3bn SLABS
All eyes are on student loan servicer Navient after Fitch downgraded SLMA 2008-3 to D at the beginning of the month.
It is highly likely that more Federal Family Education Loan Program (FFELP) deals will meet the same fate and Navient must work out a strategy to cope with default on a large scale, say analysts.
The downgrade to SLMA 2008-3 occurred when .......
News Analysis 17 November 2021
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Dutch mortgage alliance expanded
Sector developments and company hires
Dutch mortgage alliance expanded
Market Moves 16 November 2021
Achmea Bank is set to acquire a €500m mortgage portfolio from Dutch insurer a.s.r., which will continue to manage the mortgages for Achmea Bank. The two organisations have expressed the intention to conduct additional transactions of €500m in both 2022 and 2023. In addition, Achmea Bank will acquire roughly €190m of newly originated mortgages from a.s.r. .......
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New tender, new CAS
Debut Fannie tender and new CAS in the market
Fannie Mae has announced a debut tender offer for seven old CAS notes, with an original principal balance of $3.22bn, following the example set by Freddie Mac two months ago.
The notes are the CAS 2016-C03, class 2M-2, the CAS 2016-C04, class 1M-2, the CAS 2017-C02, class 2M-2, the CAS 2017-C06, class 1M-2, the CAS 2018-C02, class 2M-2, the CAS 2018-C04, .......
News 15 November 2021
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ESG exclusion checklist unveiled
Sector developments and company hires
ESG exclusion checklist unveiled
Market Moves 15 November 2021
The European Leveraged Finance Association (ELFA) has launched an ESG exclusion checklist for business activities, which aims to streamline the negative screening and exclusion process for CLO managers. The checklist is designed for arranging banks to complete at the time of a new corporate loan or bond syndication to help investors quickly determine if a corporate .......
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Optimisation impact
GSA CMBS exposure gauged
KBRA Credit Profile (KCP) has published a special report on US CMBS exposure to the General Services Administration (GSA), after federal agencies were instructed in June to evaluate new policies for the workplace, including remote-work strategies. The study finds that the leases for 116 properties – representing US$3.2bn in CMBS exposure – are past their termination date, thereby granting .......
News 15 November 2021
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SCI Start the Week - 15 November
A review of SCI's latest content
FREE Webinar tomorrow - Post pandemic GSE CRT performance
Register here to join a distinguished panel of US Credit Risk Transfer industry experts as they discuss the capital regime, issuance trends and the regulatory landscape. Webinar starts at 10:00am EST November 16.Last week's news and analysis
News 15 November 2021
Back to back STACR
Second STACR in just over a week hits the tape
Evolving landscape
Consolidation, .......
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More of the same?
Euro auto ABS tipped for further diversification
The European auto ABS market is set for further expansion and diversification, according to new research from DBRS Morningstar. The report, which covers auto ABS issuance over the past five years, suggests that present market stability - despite Covid-19 disruptions - indicates at least short-term future growth within the auto finance business.
“We expect to see more transactions .......
News 12 November 2021
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Some softening
European ABS/MBS market update
With the end of the year in sight, issuers are competing for investor demand in the European ABS/MBS primary market. This week saw mixed results for the various actors involved.
“Naturally the market is more complex than a few weeks ago,” notes one European ABS/MBS trader. “2021 has generally been an excellent year for the primary market, which .......
News 12 November 2021
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Risk mitigation
Euro CLO wraps gaining traction
Assured Guaranty (Europe) SA this week closed a financial guarantee for a further European CLO, following the wraps it recently provided for the North Westerly V CLO and Tymon Park CLO deals (SCI 6 September). Financial guarantees are proving attractive to investors seeking to reduce regulatory capital consumption, both on existing exposures and new investments.
The latest .......
News Analysis 12 November 2021
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Sri Lanka eyes remittance securitisation
Sector developments and company hires
Sri Lanka eyes remittance securitisation
The government of Sri Lanka (GOSL) is requesting competitive proposals from banks and investors for consideration to be appointed as counterparts or arrangers for its proposed securitised financing arrangement (SFA). The arrangement would be backed by foreign currency receipts of the Central Bank of Sri Lanka (CBSL) under the mandatory sale of 10% of workers' .......
Market Moves 12 November 2021
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Hedges eyed
CPMs target post-pandemic concentration risks
The International Association of Credit Portfolio Managers (IACPM) has completed its 2021 Principles and Practices in CPM Survey. Conducted every other year, the survey focuses on five key areas of concern to its members, including the evolution of risk and credit portfolio management. The latest survey shows that CPM functions are increasingly concerned about concentration risks, following last year’s .......
News 12 November 2021
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Indian securitisation market presents challenges
The Indian structured finance market has been around for ove...
The market revolves around Indian banks' targets for lending to priority sectors. Banks have traditionally been the largest investors in securitised debt, as they need to fulfil the Indian central bank’s requirements to lend a target percentage of their loan books to priority sectors, which are defined by the central bank and include minorities, agriculture, SMEs and export industries. The .......
Talking Point 11 November 2021
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Too slow
Disappointing timeline for call for evidence on STS reform
The European Commission’s latest call for evidence on its securitisation prudential framework review highlights a familiar pattern in the EU’s regulatory actions. The combination of an elongated timeline and the absence of a holistic approach point to a lack of momentum for the European securitisation market.
Earlier this year (SCI 17 May), the Joint Committee of the European Supervisory .......
News 11 November 2021
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A new chapter for GSE CRT - SCI webinar
Inflation, capital rules, lower origination and regulatory change all loom large
As US inflation hits a 30-year high, the GSE CRT market has a headwind to contend with it hasn’t seen for a long time.
October CPI, reported yesterday, increased by 6.2% from 12 months ago, which represented the fastest annual pace of growth seen since 1990 and was the fifth straight month above 5%.
It’s all change in the CAS and STACR markets .......
News 10 November 2021
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First LBR PCC investor signed
Sector developments and company hires
First LBR PCC investor signed
Lloyds has announced that Ontario Teachers’ Pension Plan Board will be the first investor to support underwriting through its multi-insurance SPV, London Bridge Risk (LBR) PCC. LBR was established in January of this year with sponsorship from Lloyds, with ambitions to create a market that invites new forms of capital and allow for easier access .......
Market Moves 10 November 2021
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