Complete news archive
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Unanswered questions
Mixed outlook for the UK RMBS market
The outlook for the UK RMBS market is mixed for the rest of the year. Indeed, questions remain over issuance volumes and performance once the furlough scheme ends on 30 September.
UK collateral has constituted 67% of total European RMBS issuance so far this year. At €12.3bn, UK non-conforming RMBS issuance year-to-date has already crossed Deutsche Bank’s full-year .......
News 16 August 2021
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SCI Start the Week - 16 August
A review of SCI's latest content
Last week's news and analysis
Amortization antics
Vehicle inventory shortage forces ABS issuers to forestall amortization
CMBS fillip
Hotel sector leads recovery in US CMBS but retail still depressed
Downward trend
Corporate defaults continue to drop
Equity ownership
Lakemore Partners discuss plans to strengthen its US presence
Simulation analysis
Covid-19 boosts capital ratios
Sponsor momentum
Record-setting quarter for the ILS market
'Synergistic' CMBS prepped
Hollywood creative campus refinancedFor .......
News 16 August 2021
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DSW CMBS exposure gauged
Sector developments and company hires
DSW CMBS exposure gauged
Market Moves 13 August 2021
KBRA Credit Profile (KCP) has published a special report on CMBS exposure to footwear retailer Designer Brands, owner of the Designer Shoe Warehouse (DSW) store chain. The company reported EBITDA of negative US$316m in its fiscal year 2020, as sales plummeted in the wake of the Covid-19 pandemic. The company returned to profitability in 1Q21 after .......
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Simulation analysis
Covid-19 boosts capital ratios
UK and EU bank capital ratios have increased over the past year, despite the effect of the pandemic on profits. Nevertheless, the Covid crisis has exacerbated many of the difficulties related to generating returns, so analysts expect the environment to remain challenging for the European banking sector.
According to KPMG, UK banks saw a 150bp improvement in common .......
News 13 August 2021
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'Synergistic' CMBS prepped
Hollywood creative campus refinanced
Barclays is in the market with BXHPP 2021-FILM, secured by what is described as a “high barrier-to-entry” real estate portfolio that serves as a hub for the growing digital content industry. The US$1.1bn CMBS securitises a two-year floating-rate loan collateralised by five Class A office buildings (totalling 967,194 square-feet) and three film studio lots (1.26 million square-feet) in Hollywood, .......
News 13 August 2021
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Amortization antics
Vehicle inventory shortage forces ABS issuers to forestall amortization
Ford Motor Credit last week amended the terms of its excess funding account (EFA) to prevent early amortization of ABS notes issued by its master floorplan trust following a similar move by Nissan and market experts say other captive finance vehicles are examining similar options.
Ford upped the percentage of the adjusted investment account that can be deposited into the EFA before .......
News Analysis 12 August 2021
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Downward trend
Corporate defaults continue to drop
Corporate default rates continue to fall across the globe, according to the latest data. However, the declining pace will likely slow by end-December and then stabilise in January to July 2022.
According to the latest Moody’s data, the number of corporate defaults globally remains low this year, reflecting the strong economic recovery and abundant liquidity in capital markets. .......
News 12 August 2021
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Equity ownership
Dan Norman, md at Lakemore Partners, discusses his plans to...
Q: Tell us about your new role at Lakemore Partners (SCI 4 August)?
The Structured Credit Interview 12 August 2021
A: I joined the team in March this year and I am very happy to be part of Lakemore’s global expansion. We are in the process of building a US business and the primary steps are to build a US and global product distribution system for .......
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CMBS fillip
Hotel sector leads recovery in US CMBS but retail still depressed
Delinquency rates in US CMBS have fallen appreciably in July, led by a robust performance in the hotel sector, reports Fitch Ratings.
But the retail sector, and particularly regional malls, remains a problem area where delinquency rates and volatility are expected to remain elevated.
The overall CMBS delinquency rate fell 22bp from 3.81% in June to 3.59% in July due to a combination .......
News 11 August 2021
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Sponsor momentum
Record-setting quarter for the ILS market
The second quarter of 2021 was record-setting for the ILS market on numerous fronts. With around US$5.6bn across 20 catastrophe bonds issued in Q2 – bringing total issuance to US$8.5bn so far this year - volume already surpasses by US$181 the previous record set in 1H17.
Of the 35 classes of notes issued in Q2, 70% were both upsized .......
News 11 August 2021
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FTB RMBS hits the market
Sector developments and company hires
FTB RMBS hits the market
An unusual UK prime RMBS has hit the market. Blitzen Securities No.1 is backed by a pool of owner-occupied mortgages extended to first-time buyers (FTBs) with original LTVs between 85% and 95%, originated by Santander between 2014 and 2020.An undisclosed investor acquired the pool from Santander through a bidding process and will sell .......
Market Moves 10 August 2021
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Insurer appetite for CLO mezz on the rise
Sector developments and company hires
Insurer appetite for CLO mezz on the rise
Market Moves 9 August 2021
A new New York Fed Staff Report documents an increasing preference among insurance companies for CLO investments vis-a-vis corporate bond investments, based on data regarding their asset holdings during 2003-2019. The report shows that the preference is particularly strong for investment grade rated mezzanine tranches, which it suggests is driven by a .......
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SCI Start the Week - 9 August
A review of SCI's latest content
Last week's news and analysis
News 9 August 2021
ABS-lite appetite
Insured trade receivables notes in vogue
Issuance boost
STS synthetic securitisations taking off
Positive results
Stress tests raise SRT prospects
Record Freddie
Freddie Mac churns out STACR and ACIS at highest yet seen volumes
Revival of the fittest
Euro CMBS continues to gain traction
Robust performance
Freddie Mac K-Series defaults, losses tracked
Scalabis strikes
Algebra brings Portuguese NPL ABS
SME SRT .......
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Debt servicing spin-off inked
Sector developments and company hires
Debt servicing spin-off inked
Credito Fondiario Banking Group has demerged its debt purchasing and servicing activities in favour of the newly established Gardant Group. As part of this reorganisation, it has redefined the bank's mission as a challenger bank, specialising in financing solutions for SMEs and corporates. The two companies will operate independently going forward.Panfilo Tarantelli has been .......
Market Moves 6 August 2021
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Positive prospects
Risk sharing remains promising, despite due diligence burden
Risk-sharing deals involving the EIF and private investors are yet to gain ground. This CRT Premium Content article surveys the likelihood of such collaborations going forward.
Significant risk transfer transactions between banks on the one hand and insurers and hedge funds on the other have grown substantially over the last two years in deal count terms. However, risk-sharing deals ......
News Analysis 6 August 2021Premium Content
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Scalabis strikes
Algebra brings Portuguese NPL ABS
Algebra Capital is in the market with an unusual Portuguese non-performing loan ABS. Dubbed Scalabis STC (compartment Panda), the securitisation is backed by a €1.47bn portfolio that was acquired through two investment vehicles – LX Investment Partners II and III – from Banco BPI, Banco Comercial Português, Caixa Geral de Depósitos, Caixa Leasing e Factoring and Novo Banco between .......
News 6 August 2021
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Summer reflections
Euro ABS/MBS new issuance pricing trends
From now on, SCI will publish regular case studies and reports on the European ABS/MBS market in addition to our usual news stories on the sector and the first can be found here for free.
This time, we examine the demand and consequent pricing dynamics seen across European and UK ABS, CMBS and RMBS new issuance in .......
News 6 August 2021
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Record Freddie
Freddie Mac churns out STACR and ACIS at highest yet seen volumes
Freddie Mac today (August 5) announced that its CRT programme, including both STACR and ACIS, achieved record H1 issuance of $9.9bn, protecting $418.9bn of unpaid principal balance of mortgage loans.
This was comprised of $6.4bn of issuance in Q1 - a new quarterly record - and $3.5bn in Q2. There were five STACR deals and seven ACIS transactions in H1. So far .......
News 5 August 2021
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Risk assessment platform bolstered
Sector developments and company hires
Risk assessment platform bolstered
Market Moves 5 August 2021
Moody's is set to acquire climate and natural disaster risk modeling and analytics firm RMS from Daily Mail and General Trust for approximately US$2bn. The acquisition will immediately increase Moody’s insurance data and analytics business to nearly US$500m in revenue and accelerate the development of the company’s global integrated risk capabilities to address the next generation of .......