Complete news archive
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CLO ETF moves down cap stack
Sector developments and company hires
CLO ETF moves down cap stack
Market Moves 30 September 2021
Janus Henderson Group has filed a preliminary registration statement with the US SEC for the Janus Henderson B-BBB CLO ETF (JBBB) for US investors. The exchange-traded fund - which is expected to be the first ETF focused on providing exposure to single-B to triple-B rated CLO tranches - will be managed by portfolio managers .......
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New heights
European CLO Market remains bullish with a strong pipeline
European CLO issuance volumes are accelerating to new levels and are already some way past last year’s €22.1bn new issue total. However, the market is showing no signs of slowing down and predictions are for new issuance to hit around €30bn.
“2021 has been a very strong year for CLOs both in terms of new issuance and refinancings. .......
News 30 September 2021
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CRTs in the air
Another two warehouse loan banks said circling the market
Two unnamed US regional banks are currently in the throes of putting together new capital relief trades and issuance is tentatively expected in Q1 or maybe Q2 2022, say well-placed market sources.
The issuers are looking to securitize warehouse loans, as did debutant Texas Capital Bank (TCBI) in March and then Western Alliance Bancorporation (WAL) at the end of June.
Both .......
News 29 September 2021
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Synthetic Libor settings confirmed
Sector developments and company hires
Synthetic Libor settings confirmed
Market Moves 29 September 2021
The UK FCA has confirmed that to avoid disruption to legacy contracts that reference the one-, three- and six-month sterling and Japanese yen Libor settings, it will require ICE Benchmark Administration to publish these settings under a 'synthetic' methodology, based on term risk-free rates, for the duration of 2022. However, these six Libor settings will be .......
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Freddie prints again
The seventh STACR of 2021 and third HQA prices
Freddie Mac has priced its latest STACR deal, designated 2021-HQA3 and worth $1.07bn, via Morgan Stanley and Citi. This is its seventh STACR of the year and, is common, will likely be accompanied by an ACIS transaction.
The trade is the last STACR of Q3, and is the third HQA deal – which signify higher LTVs – of the year.The GSE .......
News 28 September 2021
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Mobilising capital
Call for risk transfer adoption in development finance
Aid agencies, development finance institutions (DFIs) and multilateral development banks (MDBs) must make development finance work harder to achieve impact, according to a new OECD policy briefing. Entitled ‘Making blended finance work for sustainable development: the role of risk transfer mechanisms’, the report calls for the adoption of portfolio approaches that connect large-scale commercial finance supply with small-scale borrower .......
News 28 September 2021
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SCI Start the Week - 27 September
A review of SCI's latest content
Last week's news and analysis
BPCE up
Debut French green RMBS prepped
CLOs and beyond
CBAM Partners answers SCI's questions
Downward pricing
Deutsche Bank completes CRT
Excellent shape
European ABS/MBS market update
Fannie is back
New capital rules bring Fannie Mae in from the cold
New frontiers?
Prospects for further NPL ABS guarantee schemes weighed
Not so new kids
CLO manager readying for launch
Replacement issues
SOFR challenges exploredFor .......
News 27 September 2021
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Fraud charges for Honor Finance pair
Sector developments and company hires
Fraud charges for Honor Finance pair
Market Moves 24 September 2021
The US SEC has announced fraud charges against James Collins and Robert DiMeo, the former principals of Honor Finance, for misleading investors about the subprime automobile loans that backed its US$100m offering. The SEC's complaint, filed in US District Court for the Northern District of Illinois, alleges that the pair were responsible for false .......
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Call for 'risk-sensitive' prudential approach
Sector developments and company hires
Call for ‘risk-sensitive’ prudential approach
Market Moves 23 September 2021
The ECB has published its comments in connection with the European Commission’s targeted consultation on the functioning of the EU securitisation framework. In particular, the ECB says that the experience it has gained - as an investor in the ABS market through its asset purchase programmes, a collateral taker in its credit operations and as .......
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Excellent shape
European ABS/MBS market update
September is living up to its reputation as a busy month for the European ABS/MBS primary market. Even though four deals are due to price today and tomorrow and three printed yesterday spreads remain tight and demand is still strong.
“It’s pleasing to see that the primary ABS market is in excellent shape,” notes one trader. “Although there is an .......
News 23 September 2021
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New frontiers?
Prospects for further NPL ABS guarantee schemes weighed
Given the success of both GACS and HAPS in facilitating the development of a market for non-performing loans, and consequently bank deleveraging, could similar government-backed measures emerge in other European jurisdictions? This Premium Content article examines the prospects for the introduction of further national guarantee schemes.
Italy and Greece appear to have embraced the most efficient model for de-risking ......
News Analysis 23 September 2021Premium Content
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US CLOs, Trups CDOs under observation
Sector developments and company hires
US CLOs, Trups CDOs under observation
Market Moves 22 September 2021
Fitch has placed 102 tranches issued by 43 US CLOs and 13 tranches issued by seven Trups CDOs under criteria observation (UCO), following the publication of its CLO and corporate CDO rating criteria last week (SCI 17 September). The agency intends to resolve the UCO status by applying the updated criteria to each .......
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Not so new kids
CLO manager readying for launch
Not yet a year old, Sycamore Tree Capital Partners is aiming high. The firm intends to become a significant player in CLO management, with the belief that the experience and character of its team are more important than its age.
“Mark Okada, Jack Yang and I launched Sycamore Tree officially in November 2020, as a boutique private and .......
News Analysis 22 September 2021
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Pandemic 'feedback loop' highlighted
Sector developments and company hires
Pandemic ‘feedback loop’ highlighted
Market Moves 21 September 2021
Secular changes affecting the recovery of in-person office occupancy in New York City is consequential not only for property-level cashflow, but may also have ripple effects on other sectors, Fitch suggests. The city is the largest US office market and the rating agency says it provides a good case study of the potential feedback loop of .......
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Replacement issues
SOFR challenges explored
Term SOFR is expected to be the main replacement for US Libor. This premium content article explores the challenges the new benchmark presents to US CLO equity investors.
The US Federal Reserve’s Alternative Reference Rates Committee (ARRC) has firmly backed Term SOFR to replace Libor (SCI 2 August). The new benchmark provides US CLO equity investors with some challenges ......
News Analysis 21 September 2021Premium Content
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Fannie is back
New capital rules bring Fannie Mae in from the cold
Fannie Mae is back in the market only five days after the Federal Housing Finance Authority (FHFA) released a proposal to significantly alter the capital treatment of CRT debt
The GSE has announced that it will recommence issuance of CAS bonds next month after an absence of 19 months.
CAS issuance will be accompanied by credit insurance risk transfer (CIRT) deals and .......
News 20 September 2021
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Pagaya goes public via SPAC
Sector developments and company hires
Pagaya goes public via SPAC
Fintech securitisation issuer Pagaya Technologies and EJF Acquisition Corp (EJFA), a publicly traded SPAC, have entered into a definitive business combination agreement. As a result of the transaction, which values the combined company at an estimated enterprise value of approximately US$8.5bn at closing, Pagaya will become a publicly listed entity.Founded in 2016 by .......
Market Moves 20 September 2021
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BPCE up
Debut French green RMBS prepped
BPCE is in the market with its inaugural green French prime RMBS via BPCE Home Loans FCT 2021 Green UOP (see SCI’s Euro ABS/MBS Deal Tracker). The STS-compliant transaction comprises tranches A and B, tentatively sized at 92.6% (with a 3.3-year WAL) and 7.4% respectively of the overall deal size.
The provisional pool has a total outstanding .......
News 20 September 2021
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CLOs and beyond
Don Young, partner and co-founder of CBAM Partners, answers SCI's questions
Q: How and when did you become involved in the CLO market?
My partner Mike Damaso and I have been managing CLOs since 2001. I first became involved in the space when I joined Octagon Credit investors. After this, I went on to manage the Performing Credit business at Och-Ziff, which included US$7.5bn of CLOs. Mike has over 20 years of .......
The Structured Credit Interview 20 September 2021
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SCI Start the Week - 20 September
A review of SCI's latest content
Last week's news and analysis
News 20 September 2021
CRT love
FHFA promotes CRT usage and tempts Fannie back into the mix
Digital lender debuts
German consumer collateral on offer
Legal concerns
Consumer protection uncertainties highlighted
On the up
Growth in private real estate deals continues
Pick-up continues
European ABS/MBS market update
Servicing expansion
SitusAMC discusses opportunities in the European direct lending market
Spanish SRT finalised
Another STS synthetic executed
SRT debut
First .......