Complete news archive
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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 .......
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CRT love
FHFA promotes CRT usage and tempts Fannie back into the mix
The Federal Housing Finance Agency (FHFA) hopes to both lure Fannie Mae back to the CRT market and increase access to affordable housing with its proposed amendments to the Enterprise Regulatory Capital Framework (ECRF) unveiled two days ago, suggest sources.
By replacing the fixed leverage buffer with a dynamic leverage buffer, it becomes more likely that risk-based capital will become the binding constraint .......
News Analysis 17 September 2021
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Securitisation execs promoted in PGIM reorg
Sector developments and company hires
Securitisation execs promoted in PGIM reorg
PGIM Fixed Income has reorganised its senior management team, with the appointments effective from 1 January 2022. Under the reorganisation, md John Vibert has been promoted to the newly created role of president.Vibert joined PGIM Fixed Income in 2014 as the head of securitised products and serves in that role currently. Prior .......
Market Moves 17 September 2021
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Tight pricing
Santander sets post-Covid record
Santander has completed a €580.8m 14-year full-stack significant risk transfer transaction that references a portfolio of Spanish auto loans. Dubbed SC Spain Auto 2021, the transaction’s first loss tranche achieved the tightest print at that level for a full-stack SRT following the onset of the coronavirus crisis, as pre-pandemic dynamics return to the ABS market (SCI 15 September).
News 17 September 2021
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Traffic jam
Bumper two days in auto ABS underlines strength of fundamentals
No less than eight US auto loan-backed ABS deals have been priced in the last two days, making the last 48 hours the busiest two day period in the sector in recent memory as borrowing costs continue to be alluring and investor appetite vigorous.
This follows $9.6bn of issuance in August, in the form of 12 prime, non-prime and leasing deals. In .......
News Analysis 16 September 2021
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NPR issued on GSE capital framework
Sector developments and company hires
NPR issued on GSE capital framework
Market Moves 16 September 2021
The FHFA is seeking comment on a notice of proposed rulemaking that would amend the Enterprise Regulatory Capital Framework (ERCF) for Fannie Mae and Freddie Mac. The proposed amendments would refine the prescribed leverage buffer amount (PLBA) and the capital treatment of credit risk transfers (CRT) to better reflect the risks inherent in the .......
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On the up
Growth in private real estate deals continues
The UK real estate sector is seeing strong growth in private transactions, with loan-on-loan financings emerging as a popular method of funding for debt funds and challenger lenders. At the same time, forward flow transaction volume is gathering pace (SCI 26 April).
“This longer-term arrangement is proving to be quite popular and there has been a lot .......
News 16 September 2021
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SRT debut
First Nordic green synthetic executed
Nordea and the EIF have finalised a significant risk transfer transaction that references a €1.8bn portfolio of corporate and SME loans (SCI 23 July). The deal will free up capital for green lending to Swedish and Finnish firms, rendering it the first such deal from a Nordic bank.
The transaction features tranches that amortise on a pro-rata .......
News 16 September 2021
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Strong opportunities
European NPL investment trends discussed
Emerging non-performing loan opportunities across a number of jurisdictions in Europe are boosting sentiment in the market, with particularly strong demand seen in Italy. However, challenges are anticipated in this jurisdiction for transactions that are more complex in nature, according to participants at SCI’s 3rd Annual NPL Securitisation Seminar.
“The Italian NPL market is currently very active, with .......
News 15 September 2021
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Specialist lender stake acquired
Sector developments and company hires
Specialist lender stake acquired
Market Moves 15 September 2021
BNP Paribas Asset Management (BNPP AM) is set to acquire a majority stake in Dynamic Credit Group, the Amsterdam-based asset manager and specialist lender with €9bn of assets under management. The deal will allow BNPP AM’s private debt and real assets (PDRA) investment division - which currently managed €11bn of client commitments - to significantly grow .......
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Pick-up continues
European ABS/MBS market update
Following on from last week’s pick-up, the European ABS/MBS market is set for another busy week. The pre-summer dynamic has returned, with activity in both primary and secondary.
“It appears as though this week will be particularly busy on the auto ABS front, with four deals currently in the market,” notes one trader. “It is a similar story .......
News 15 September 2021
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Digital lender debuts
German consumer collateral on offer
Digital lending platform auxmoney Investments is in the market with its inaugural public securitisation – Fortuna Consumer Loan ABS 2021. The transaction, which will be certified as STS by SVI, is backed by a €227.75m portfolio of near-prime consumer loans granted to private individuals in Germany.
The portfolio is concentrated in North Rhine-Westphalia (accounting for 21% of the .......
News 15 September 2021
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Tender pick-up
Buyback value depends on specifics of each bondholder
Freddie Mac broke new ground with its tender offer last week, but there is some doubt about how many investors will be interested in surrendering their by now valuable paper, say market experts.
The average coupon of the eight tranches on offer is 3.85%, and the range is between 2.43% and 4.88%. This, in a low rate environment, is relatively attractive.
Moreover, .......
News 14 September 2021
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Servicing expansion
SitusAMC executive md and head of Europe Lisa Williams and d...
Q: Alfonso, tell us a bit about your new role at SitusAMC?
Provider Profile 14 September 2021
AP: I joined SitusAMC this past July to lead the expansion of the firm’s servicing business beyond commercial real estate to include corporate direct debt, infrastructure and social housing loans (SCI 13 August). I’ve spent the last 15 years of my career servicing debt at some of .......
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400CM tap NPL ABS market
Sector developments and company hires
400CM tap NPL ABS market
400 Capital Management has closed two securitisations backed by US$780.2m of residential non-performing loans. The firm entered into the securitisations to obtain term financing, remove mark-to-market risk, reduce cost and create scalable fixed-rate financing.Given the size of the loan pool, 400CM decided to offer two transactions with similar characteristics. 510 Asset Backed (FTAB) .......
Market Moves 13 September 2021
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Legal concerns
Consumer protection uncertainties highlighted
A recent European Court of Justice (ECJ) ruling on consumer rights in German loan agreements amplifies legal uncertainty regarding information that needs to be included in contracts, Fitch suggests. The implications for Fitch-rated German auto ABS have been limited so far, but the rating agency says it remains important to monitor the impact on borrower behaviour and how far .......
News 13 September 2021
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SCI Start the Week - 13 September
A review of SCI's latest content
NPL ABS seminar tomorrow
News 13 September 2021
SCI’s 3rd Annual NPL Securitisation Seminar is taking place virtually tomorrow 14 September. The event will explore the impact of the coronavirus fallout on performance and issuance, as well as on pricing assumptions, servicing and workout trends across the European non-performing loan ABS market. Together with recent regulatory developments in the space, it will also examine the .......
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Love me tender
STACR tender shows validity of CRT and salience of capital efficiency
The significance of Freddie Mac’s STACR tender offer, announced earlier this week, should not be underestimated, say market insiders.
The tender shows, on the one hand, that the GSE is acutely conscious of the demands of greater capital efficiency, they say.
But it also demonstrates that it places continued faith in the CRT mechanism.
“By this tender offer, Freddie shows that there is .......
News Analysis 10 September 2021
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RFI issued on sustainable housing
Sector developments and company hires
RFI issued on sustainable housing
Market Moves 10 September 2021
The FHFA is requiring Fannie Mae and Freddie Mac to submit Equitable Housing Finance Plans by end-2021, with the plans to be updated annually. The plans will identify and address barriers to sustainable housing opportunities, including the GSEs’ goals and action plans to advance equity in housing finance for the next three years. The FHFA .......