Complete news archive
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Ready to launch
Norway readies SRT take off
The Norwegian banking market is getting ready for a pick-up in significant risk transfer (SRT) issuance next year following the pending incorporation into law of the new Securitisation Regulation, say market experts.
Nevertheless, the first deals are expected to be relatively simple vanilla structures, given the scepticism of local supervisors.
The Norwegian market has been slow to adopt the SRT mechanism for .......
News Analysis 3 September 2021
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Low delinquencies - for now
Delinquencies give few alarms but asset quality slump pending
While aggregate delinquency data currently looks benign, asset quality is expected to deteriorate as support programmes come to an end.
Up to date aggregate delinquency data, while masking some divergence, holds no terrors, notes Scope Ratings. The NPL ratio for EU-headquartered banks fell to just 2.5% at the end of 1Q21, according to ECB numbers, while gross euro area NPLs more than .......
News 2 September 2021
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Forward strides
Middle East Islamic finance market looks good into 2022
The Islamic finance Middle Eastern market has achieved notable progress over the last four or five years and sentiment remains very positive, say analysts.
"It's been a strong year so far - we have seen five years of growht in the sukuk markets. On the Islamic banking side, growth has continued to surpass conventional banks. We have seen the industry grow significantly, .......
News Analysis 2 September 2021
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Risk transfer round up - 31 August
CRT sector developments and deal news
Alpha bank confirmed in last week’s 1H21 statements further details of a significant risk transfer trade that the Greek lender intends to execute in 4Q21 (SCI 5 March).
Dubbed Aurora, the transaction references a €2bn corporate and SME portfolio, and is expected to release €1bn of RWAs. Piraeus Bank opened the Greek SRT market in March (SCI 18 March) and .......
News 31 August 2021
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Student housing sponsor accused of 'Ponzi-like' scheme
Sector developments and company hires
Student housing sponsor accused of ‘Ponzi-like’ scheme
The US$36m SkyLoft Austin loan - securitised in the UBSCM 2019-C16 CMBS - is over 30 days delinquent in payment, as of the August 2021 remittance period. The loan is sponsored by Patrick Nelson, who is reportedly being sued by dozens of minority investors involved in the acquisition of the property.Nelson .......
Market Moves 27 August 2021
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Tight deadline
PRA NPE ABS consultation to 'provide momentum'
The UK PRA’s consultation - which ended earlier this month – regarding the implementation of Basel standards in connection with non-performing loan securitisations has been welcomed by the industry. The authority is seeking to introduce a framework for non-performing exposure ABS, following the implementation last year of a revised securitisation capital framework via the CRR and the publication of .......
News 27 August 2021
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Angel MBS
Angel Oak Mortgage completes first sole MBS at new low coupons
Angel Oak Mortgage REIT, the sister company of Angel Oak Capital, has closed a $316m RMBS offering, designated AOMT 2021-4, which represents the first sole securitization by the firm.
It placed notes with a face value of $306.4m at a weighted average cost of funding of 1.12%. This represents a sharp narrowing of pricing compared to recent deals, pointed out chief .......
News 26 August 2021
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CLO control equity fund closed
Sector developments and company hires
CLO control equity fund closed
Market Moves 26 August 2021
Lakemore Partners has successfully closed Aquatine IV at US$400m, due to strong investor demand. Aquatine IV is Lakemore’s fourth CLO fund within the Aquatine platform, which invests in control equity positions in US CLOs. Investors in the fund comprise a diverse group of institutional investors, representing private banks, fund of funds, insurance companies, family offices .......
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Driving decarbonisation
EUA securitisation platform poised for growth
Tramontana Asset Management recently breached US$5bn in assets through its innovative carbon ABS platform. The programme is poised for further growth, as the rise in EU Allowance (EUA) prices is increasing the need for carbon credit hedging and financing solutions among corporates.
Established in 2019, the Tramontana carbon ABS programme securitises EUAs - each EUA representing an entitlement .......
News 24 August 2021
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Solar LDA partnership inked
Sector developments and company hires
Solar LDA partnership inked
dv01 has partnered with GoodLeap with the aim of further promoting data transparency and accountability within the solar ABS market. Through this partnership, dv01 will serve as loan data agent (LDA) for Carbon Level Mitigation Trust (CLMTE) pass-through certificates.The shelf currently comprises CLMTE 2021-1 and CLMTE 2021-2, with an aggregate notional value of US$53.6m .......
Market Moves 23 August 2021
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SCI Start the Week - 23 August
A review of SCI's latest content
Last week's news and analysis
News 23 August 2021
Bullish sentiment
CLO, loan opportunity set to continue outperforming
Chowa finalised
NatWest executes leveraged loan SRT
Financing boost
EGF extended to synthetics
Pretium steps out
New hires signal new products and added depth to old ones
Robust recovery
Bumper "summer" for Aussie securitisation
The puzzling case of the disappearance of Fannie Mae
FNMA's absence from CRT investigated
There's gold in them thar .......
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Pretium steps out
New hires signal new products and added depth to old ones
The three key hires that specialist mortgage and real estate investment manager Pretium announced earlier this month signal its intention to widen its footprint in the US residential mortgage space by adding depth in existing product ranges but also adding new instruments to the roster.
Sarah Kong joins the resi credit trading team as head of mortgage whole loan trading from .......
Provider Profile 20 August 2021
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APAC ILS issuance on the rise
Sector developments and company hires
APAC ILS issuance on the rise
Continued efforts from Asia Pacific reinsurers to source alternative capital through the ILS market is anticipated, following on the heels of the seven catastrophe bonds that were issued using Singapore-domiciled vehicles through July. Indeed, the first Hong Kong-domiciled catastrophe bond is being prepped.The Singapore cat bonds issued in 2021 comprise: Security First .......
Market Moves 20 August 2021
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Double bind
New SRT tests pose complexities
The European Commission’s new consultation on the Securitisation Regulation (SCI 26 July) for the first time officially offers banks the opportunity to raise questions on the workability of the new significant risk transfer tests included in the EBA’s final report on SRT (SCI 27 November 2020). The tests pose several complexities for banks, due to the design .......
News Analysis 20 August 2021
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Robust recovery
Bumper "summer" for Aussie securitisation
The Australian securitisation market has experienced a deluge of activity in the last few weeks. With a total of A$8bn placed in July, the sector experienced its busiest month since 2007.
Australia's effective management of the coronavirus and macro-policy response generally facilitated a robust economic recovery throughout 2020. “The securitisation market has obviously shown a dramatic recovery since .......
News Analysis 20 August 2021
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There's gold in them thar malls
Retail CMBS notes have bucked the recovery, but rewards are there
The currently much-spurned retail CMBS market contains pockets of great value, according to Karlis Ulmanis, portfolio manager at DuPont Capital.
In general, CMBS spreads have bounced back to pre-pandemic levels. CMBS based on the hotel sector have made great strides lately, for example. This week Fitch removed 14 single borrower hotel deals from negative ratings watch.
But CMBS deals exposed to retail .......
News 19 August 2021
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Corporate, PF businesses bolstered
Sector developments and company hires
Corporate, PF businesses bolstered
KBRA has enhanced its corporate and project finance businesses by forming new sector teams to focus on the intersection of infrastructure, energy, renewables and middle market lending. The aim of the sector-focused teams is to meet demand for KBRA’s thought leadership across these segments.Andrew Giudici, senior md and global head of corporate, project and .......
Market Moves 18 August 2021
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Financing boost
EGF extended to synthetics
The European Commission has approved the extension of the EIB’s European Guarantee Fund’s support to synthetic securitisations, following an assessment of EU state aid rules. The extension to significant risk transfer deals applies under certain conditions pertaining to SME origination levels and the deployment of released capital.
The envisaged €1.4bn budget is expected to mobilise at least .......
News 18 August 2021
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The puzzling case of the disappearance of Fannie Mae
FNMA's absence from CRT investigated
Fannie Mae has not issued a CRT deal since 1Q20. This SCI CRT Premium Content article investigates the circumstances behind the GSE’s disappearance from the market and what might make it come back.
Fannie Mae, one of the co-founders of the ground-breaking GSE credit risk transfer market, has not issued a CAS or CIRT transaction since 1Q20. There is ......
News Analysis 18 August 2021Premium Content
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Bullish sentiment
CLO, loan opportunity set to continue outperforming
The global CLO market is now pushing US$1trn in outstandings. Against this backdrop, both CLOs and the underlying loans are expected to outperform, as investors continue seeking higher risk-adjusted returns.
Mohamed Seif, co-founder and md of Lakemore Partners, notes that growth and demand in the US CLO market is being driven by a number of factors. First, CLOs .......
News Analysis 17 August 2021
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