Complete news archive
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SOFR-linked green ABCP issued
Sector developments and company hires
SOFR-linked green ABCP issued
Crédit Agricole CIB has issued the first green ABCP indexed to SOFR to finance electric vehicles and hybrids in auto portfolios, as well as solar loan transactions. Issued by Atlantic Asset Securitization, one of Crédit Agricole CIB's ABCP programmes, the notes were placed with two ESG money market funds.The ABCP met green asset ABCP eligibility .......
Market Moves 18 October 2021
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SCI CRT Awards: Innovation of the Year
Winner: Colisée 2020
Societe Generale’s Colisée 2020, a private club capital relief trade that provides protection on a portfolio of equipment lease exposures, is awarded SCI’s Innovation of the Year. The deal - which closed during 4Q20, in the midst of a pressured economic backdrop - references a €1bn portfolio of equipment lease receivables distributed by Societe Generale’s French retail network to over .......
News 18 October 2021
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SRT prints
KIMI X prices tight
Santander has finalised a full-stack capital relief trade backed by a €450m portfolio of Finnish auto loans. Dubbed KIMI X, the transaction priced at pre-Covid levels (see SCI’s capital relief trades database).
Rated by S&P and Fitch, the transaction consists of €411.8m AAA/AAA rated class A notes (which priced at one-month Euribor plus 13bp), €17.6m A/AA+ rated class B .......
News 18 October 2021
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SCI Start the Week - 18 October
A review of SCI's latest content
Last week's news and analysis
News 18 October 2021
Beyond Covid-19:
What effect has the pandemic had on the European RMBS and mortgage markets?
Big bang?
Tokenisation touted as a replacement for securitisation
Challenging valuations
Covid-19 aftermath dogs NPL exposures
SCI CRT Awards: North American Transaction of the Year
Winner: TCB CRT 2021-1
SCI CRT Awards: Transaction of the Year
Winner: Siena 2021 - RegCap-1
Transition trauma
A bumpy road ahead .......
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SCI CRT Awards: Impact Deal of the Year
Winner: Marco Polo Three
Crédit Agricole and the IFC’s Marco Polo Three transaction has won the Impact Deal of the Year category in SCI’s Capital Relief Trades Awards. The significant risk transfer trade stands out for its sustainable finance aspects and size, as well as its impact on securitisation as a tool to help banks in developing countries cope with the effects .......
News 18 October 2021
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Renovation tax credit ABS closed
Sector developments and company hires
Renovation tax credit ABS closed
Market Moves 15 October 2021
Banca Finint has completed an innovative securitisation backed by tax credits originating from energy efficient renovations of building stock under the Italian Ecobonus and Bonus Casa programmes, in collaboration with Easy Transfer, the platform that deals with transfers of credit deriving from tax deductions. The operation involves as transferors over 1,300 window and door companies .......
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SCI CRT Awards: North American Transaction of the Year
Winner: TCB CRT 2021-1
The arrival of the first US regional bank in the capital relief trades sector had been anticipated and talked of for many months, so when Texas Capital Bank - a Dallas-based US$40bn lender founded in 1998 - arrived in the market in March 2021 the interest it elicited can hardly be overstated.
Now, finally, with this deal the .......
News 15 October 2021
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SCI CRT Awards: Transaction of the Year
Winner: Siena 2021 - RegCap-1
Banca Monte dei Paschi di Siena’s Siena 2021 - RegCap-1 has won the Transaction of the Year category in SCI’s Capital Relief Trades Awards. The synthetic securitisation is noteworthy for referencing a riskier asset class - a portfolio of mainly Italian Stage 2 loans - and for representing the bank’s efforts to address Covid-19 related impacts within its .......
News 15 October 2021
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Antares succession revealed
Sector developments and company hires
Antares succession revealed
Timothy Lyne, founding partner and current coo of Antares Capital, is set to succeed David Brackett as ceo. Brackett will be retiring from his role as ceo on 31 December 2021 and will remain with Antares in an advisory capacity.Lyne brings to the role more than three decades of leadership experience in the financial services, .......
Market Moves 14 October 2021
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Big bang?
Tokenisation touted as a replacement for securitisation
Tokenisation is being touted as a potential replacement for securitisation, given its many applications and benefits. However, a number of challenges remain before the technology can be fully adopted by the market.
News Analysis 14 October 2021
“Tokenisation could replace securitisation – but it won’t be a big bang. However, when you see the speed of digitisation in some areas, you see it has the .......
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Beyond Covid-19: What effect has the pandemic had on the European RMBS and mortgage markets?
Andrew South, md, structured finance and Alastair Bigley, se...
The Covid-19 pandemic has provided a novel test of European RMBS credit performance, which the sector looks set to pass with flying colors. As virus-related social restrictions led to an economic shutdown and mortgage lenders introduced unprecedented borrower forbearance schemes, RMBS investors seemed to be at risk of taking a hit.
Mortgage payment holidays posed a potential liquidity .......
Talking Point 14 October 2021
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Transitional financing
Adam Zausmer, chief credit officer at Ready Capital, answers SCI's questions
Q: Why do you feel the US CRE CLO sector is booming?
The Structured Credit Interview 14 October 2021
A: The bridge lending market is certainly red hot at the moment. We tend to focus on less volatile assets, like multifamily, and clear trends we see across the US are tired properties in need of capital expenditure as well as a shortage of quality affordable housing. Non-bank .......
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Challenging valuations
Covid-19 aftermath dogs NPL exposures
The aftermath of the coronavirus crisis is hindering the valuation of properties that back European non-performing loan transactions. Nevertheless, collections have picked up and more NPL ABS issuance is expected.
According to Moody’s, the deterioration in the quality of the valuation of properties underlying securitised exposures in new trades can be ‘’explained by the increased difficulty in carrying .......
News 14 October 2021
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Transition trauma
A bumpy road ahead for shift to post-Libor world
The structured finance market still has a great deal to do before the beginning of next year when contracts can no longer be quoted in Libor, agrees Amy Williams, partner and structured finance expert at Hunton Andrews Kurth.
Very few securitizations or the assets which comprise the reference portfolios have moved over to quote contracts in term SOFR. CLOs, RMBS and warehouse .......
News Analysis 13 October 2021
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Affordable housing UMBS planned
Sector developments and company hires
Affordable housing UMBS planned
Market Moves 12 October 2021
Freddie Mac plans to offer at least US$3bn in single-family affordable housing bonds, including approximately US$285m in Uniform Mortgage-Backed Securities backed by loans purchased through its Home Possible programme. The Home Possible mortgage offers a 3% down payment solution, which helps very low- to low-income potential homebuyers overcome the leading barrier to homeownership: affording a down .......
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SCI Start the Week - 11 October
A review of SCI's latest content
CRT seminar in person THIS WEEK
SCI’s 7th Annual Capital Relief Trades Seminar is taking place in-person on 13 October at the London offices of Allen & Overy. The event will explore the introduction of the STS synthetics regime and publication of the EBA’s final SRT report, as well as examine the latest trends and activity across the market.Last week's news .......
News 11 October 2021
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Forbearances plunge
Fresh data reveals biggest drop in forbearances in a year
The largest drop in the number of US mortgages in forbearance in 12 months was recorded last week in the seven days ending October 4 according to Black Knight data released today.
Active forbearance plans fell by 177,000, or 11%, with healthy declines recorded across all investor classes. There has been a reduction of forbearances of 294,000 in the last 30 days, which .......
News 8 October 2021
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Credit recovery
Rating upgrades outpace downgrades
Rating upgrades are outpacing downgrades this year, although net upgrades so far represent only about 12% of the net Covid-induced downgrades in 2020. Still, credit outlooks in aggregate have stabilised and returned to pre-pandemic levels, while default rates have fallen sharply and are trending towards their long-term average.
According to S&P, credit quality continues to recover slowly from .......
News 8 October 2021
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US insurer CLO exposure 'relatively small'
Sector developments and company hires
US insurer CLO exposure ‘relatively small’
Market Moves 8 October 2021
The NAIC has released stress testing results on US insurers' exposure to CLOs, as of year-end 2020. The stress tests examined the resilience of CLOs under three different scenarios and mirrors findings from the year-end 2019 stress test, wherein normal CLO single-A rated tranches experienced losses under the worst-case scenario. In comparison, .......