Complete news archive
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Market movers
Leading agency MBS buyer talks taper, inflation and origination
While the encroach of inflationary pressures and the Fed taper will be important factors to consider, the dominant fundamental influence upon MBS in the medium term will be supply, says Brendan Doucette, portfolio manager for GW&K.
Doucette manages an agency MBS portfolio valued at $1.5bn at the end of Q3 2021, up from $1.2bn at yearend 2020. GW&K has over $48bn assets .......
The Structured Credit Interview 9 November 2021
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Multi-currency CLO closed
Sector developments and company hires
Multi-currency CLO closed
Barclays has closed a multi-currency managed cashflow balance sheet CLO. Dubbed Duke Global Funding, the £4bn-equivalent transaction is backed by 519 senior secured and senior unsecured loans extended predominantly to large corporate obligors in Western Europe and the US. The underlying loans are denominated in US dollars, sterling and euro.In terms of geographical diversification, the initial portfolio .......
Market Moves 9 November 2021
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Hurdles ahead?
Dutch RMBS market continues to face challenges
The Dutch prime RMBS market received a boost last week with the announcement of Lloyds Bank’s STS-compliant Candide Financing 2021-1, after the issuer’s almost 10-year absence from the market (SCI 3 November). However, while the prime sector remains in the doldrums, the buy-to-let sector is also facing new regulatory challenges.
“Banks have been historically the main users of securitisation, .......
News Analysis 9 November 2021
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Evolving landscape
Consolidation, fintech driving banking evolution in Ireland and the UK
Consolidation among lenders and the proliferation of fintechs is driving change in the Irish and UK banking sectors. This Premium Content article investigates the impact on the jurisdictions’ RMBS markets.
The banking landscape in Ireland and the UK continues to evolve. Along with consolidation among lenders, the growing market share of fintech platforms is supporting dramatic changes in financial ......
News Analysis 9 November 2021
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Back to back STACR
Second STACR in just over a week hits the tape
Freddie Mac today priced its second STACR in a little over a week, designated STACR 2021-DNA7. The $1.27bn trade is expected to settle on November 12, says the borrower.
The joint lead managers are Wells Fargo and Citi, while co-managers are Barclays, CS, JP Morgan, and StoneX.
This is the GSE’s final DNA transaction of 2021, while an addition HQA deal will be .......
News 8 November 2021
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Irish rebound
Second NPL securitisation marketing
Another Irish non-performing loan securitisation has hit the market less than a month after the Rathlin Residential 2021-1 RMBS priced (see SCI’s Euro ABS/MBS Deal Tracker). The move is in line with the expected growth and post-Covid recovery of the market in the second half of 2021 (SCI 23 July).
Dubbed Portman Square 2021-NPL1, the latest .......
News 8 November 2021
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US CLO equity outperforms
Sector developments and company hires
US CLO equity outperforms
US CLO Equity cashflows average 15.2% across 1,038 BSL transactions that have had four payment dates in 2021, according to a report from JPMorgan CLO research analysts. This is the highest since 2016, which averaged 19.6%.CLOs that were reset in 2021 fared best with a 22% average return driven in part by a small minority that .......
Market Moves 8 November 2021
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SCI Start the Week - 8 November
A review of SCI's latest content
Last week's news and analysis
News 8 November 2021
Back from the brink
Lloyds resurrects UK SME SRTs
Dual-currency deal
Pan-European CMBS prepped
Electric avenue
Adoption of electric cars spells greater volatility for rental car ABS
Freddie and Fannie prosper
Net income/ revenue increased YoY and innovation unveiled in 3Q results
Freddie's eight
Two STACRs to go before yearend after eventful Q3
Holding firm
European ABS/MBS market update
Matryoshka doll?
Use of .......
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Fed set to reduce asset purchases
Sector developments and company hires
Fed set to reduce asset purchases
The New York Fed’s FOMC has increased the System Open Market Account (SOMA) holdings of Treasury securities by at least US$70bn per month and of agency MBS by at least US$35bn per month during the monthly purchase period beginning in mid-November. Additionally, SOMA holdings of Treasury securities will increase by at least US$60bn per .......
Market Moves 5 November 2021
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Electric avenue
Adoption of electric cars spells greater volatility for rental car ABS
If collateral underpinning rental car ABS is increasingly composed of electric cars then the market will be exposed to greater volatility and uncertainty, say credit analysts.
Last week’s purchase of 100,000 new Teslas by Hertz fired the starting gun on the likely increasing adoption of electronic vehicles (EVs) by rental car companies, which will be financed by securitization.
Regulatory pressure and financial incentives .......
News Analysis 4 November 2021
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New originations
Reverse mortgage securitisations re-emerging?
The second post-financial crisis publicly-rated UK securitisation of equity release mortgages (ERMs) and the first to comprise recent-vintage originations has priced. The issuance of two deals this year alone suggests the asset class is re-emerging, driven by lender competition and the improving longevity of the population.
The latest transaction – dubbed ERM Funding Series 2021-1 - follows Towd Point Mortgage .......
News Analysis 4 November 2021
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Servicers facing 'unprecedented' turnover
Sector developments and company hires
Servicers facing ‘unprecedented’ turnover
US commercial mortgage servicers are facing unprecedented turnover levels and filling open positions in the tight labour market may ultimately increase the cost of servicing loans, Fitch suggests. However, the agency notes that to date, there have not been any noted declines in servicing proficiency among Fitch-rated primary, master and special servicers.
Fitch reports lower-than-average employee .......
Market Moves 4 November 2021
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Restricted issuance
STS synthetic volumes to remain constrained
STS synthetic securitisation issuance has been growing since the final framework came into effect earlier in the year (SCI 4 August), as the new regime slashes risk weights on retained tranches, while new structures boost insurer interest by allowing them to execute STS-eligible funded deals. Nevertheless, STS synthetic origination will remain constrained, given the homogeneity and collateral requirements.
News Analysis 4 November 2021
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Holding firm
European ABS/MBS market update
Primary and secondary European ABS/MBS activity is expected to pick up this week after a few slow days. Last week, ABS spreads held firm and were able to maintain a certain pre-summer equilibrium, which could further translate into November.
“We’ve seen strong levels of issuance lately, mainly in the ABS space through auto and leasing deals,” notes one .......
News 3 November 2021
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Dual-currency deal
Pan-European CMBS prepped
Goldman Sachs is in the market with a dual-currency pan-European CMBS. Dubbed Frost CMBS 2021-1, the transaction securitises a £112.35m loan and a €92m loan advanced to Newcold Holdings, a temperature-controlled logistics company based in the Netherlands.
The sterling-denominated loan is secured by a single cold-storage property in Wakefield, Yorkshire. The euro-denominated loan is secured against one cold-storage .......
News 3 November 2021
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Freddie and Fannie prosper
Net income/ revenue increased YoY and innovation unveiled in 3Q results
Freddie Mac announced its 3Q results at the end of last week and, alongside healthy YoY growth in net income, several notable firsts were attained in the three month period.
New income was $2.9bn, an increase of 19% YoY, driven by higher revenues and the release of a credit reserve. Net revenues grew by 4% YoY to $5.2bn, as a result of .......
News 2 November 2021
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Freddie's eight
Two STACRs to go before yearend after eventful Q3
Freddie Mac has priced its eighth CRT trade of the year, designated STACR 2021-DNA6, via joint leads Bank of America and Wells Fargo for a face value of $1.48bn.
This is the borrower’s penultimate DNA STACR transaction of 2021. Another HQA deal, which incorporate mortgages with higher LTVs, is also due to be printed before the end of the year, making 10 .......
News 2 November 2021
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SLM EODs eyed
Sector developments and company hires
Fitch has downgraded from single-B to double-C the outstanding class A4 and B notes of SLM Student Loan Trust 2007-7, 2008-1 and 2008-4, due to the legal final maturity date of the class A4 notes being approximately three months away in January 2022 for SLM 2007-7 and 2008-1 and less than 10 months .......
Market Moves 2 November 2021