Complete news archive
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Issuance boost
BNP Paribas leads the pack
BNP Paribas has completed a full-stack significant risk transfer transaction backed by French unsecured consumer loans. Dubbed Noria 2021, the securitisation is the first capital relief trade from the programme to be backed by personal, debt consolidation and sales finance loans. The transaction renders the bank the most active SRT originator this year to date.
According to .......
News 9 July 2021
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Softly softly
US banks reluctant to swallow issuance costs of corporate CRTs
The imminent issue of another CRT trade from JP Morgan Chase, its fourth in a year, appears to support the often widely disseminated view that the US market is at lift-off point.
This view also gained ballast with the inaugural US regional bank deal from Texas Capital Bank in March.
However, the US CRT sector remains a thing of bits and pieces .......
News Analysis 8 July 2021
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Fourth gear
JP Morgan takes to the road again for fourth auto CLN in 11 months
JP Morgan Chase is to issue its second auto loan credit linked note (CLN) of the year and its fourth in less than a year as it continues to expand its use of CRT technology.
The eight-tranche offering, designated Chase Auto Credit Linked Notes Series 2021-2, references 189,931 loans for a notional amount of $4.25bn. This is 28,000 more loans than were .......
News 8 July 2021
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Taper talk
Fed tapering could lead to 50bp MBS repricing
If - as many expect - the Federal Reserve commences a taper operation in 2H21 then agency mortgage bonds could reprice wider by 40bp-50bp, suggest MBS analysts.
The Fannie Mae interpolated five year/10 year curve currently yields around 69bp to Treasuries, but if the Fed does execute a taper then the market could see yields back up to plus 110bp-120bp.
Mortgage-backed .......
News 7 July 2021
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International SLABS debuts
Global legal, regulatory complexity addressed
Prodigy Finance is in the market with the first rated securitisation backed by international private student loans. One differentiating factor of the US$303.5m Prodigy Finance CM2021-1 transaction is the originator’s business model, which allows it to lend to borrowers around the world (currently 186 countries and territories).
Headquartered in London, Prodigy is a student loan lender that began .......
News 7 July 2021
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Sustainable finance strategy unveiled
Sector developments and company hires
Sustainable finance strategy unveiled
The European Commission has adopted a number of measures in connection with sustainable finance. First, a new Sustainable Finance Strategy sets out several initiatives to tackle climate change, as well as increase investment in the EU's transition towards a sustainable economy.The strategy includes six sets of actions: extend the sustainable finance toolbox to facilitate .......
Market Moves 7 July 2021
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NPL facility inked
Sector developments and company hires
NPL facility inked
Market Moves 6 July 2021
Together Financial Services has launched a new £96.2m securitisation vehicle called Brooks Asset Backed Securitisation 1 (BABS), which matures in 2026. The facility consists of a varied pool of residential and commercial purpose non-performing loans, previously funded within the senior borrower group. Consistent with its wider securitisation programme, Together will continue to service and manage the loans .......
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SCI Start the Week - 5 July
A review of SCI's latest content
Last week's news and analysis
News 5 July 2021
Advantageous returns
Australian RMBS market update
Crazy collateral
ABS yields sink as collateral surges, driving investors to look elsewhere
Finish line
ESMA designates securitisation repositories
Innovative NPL ABS inked
CF opts for ReoCo rather than GACS
Litmus test
European CMBS momentum set to last
Pick a card, any card
Covid credit card usage soared, but ABS issuance is strangled
Strong technical
WFH lifestyle .......
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Crazy collateral
ABS yields sink as collateral surges, driving investors to look elsewhere
The bounce-back from the pandemic has been overwhelmingly positive for collateral in US ABS deals, according to a new report from Moody’s.
Indeed, such is the strength of the recovery that investors have been forced to look for attractive opportunities outside the usual avenues.
“We do see across all securitizations, not just consumer ABS, that investors are looking widely to see where there .......
News Analysis 2 July 2021
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Advantageous returns
Australian RMBS market update
With deals paying juicy yields, investors are turning to the Australian RMBS market for advantageous returns. Meanwhile, Bluestone is testing market appetite for a potential debut prime transaction.
“A clear trend is yield chasing,” says one trader. “New prime triple-A RMBS bonds currently price at around 60bp, even into the high 50s. Non-conforming and non-resident RMBS paper is .......
News 2 July 2021
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Tight summer
European ABS/MBS market update
Following a busy quarter that saw every new deal being met with heavy investor demand, there is no sign of the appetite for paper diminishing. Secondary has picked up too over the last week and is showing a similar trend.
Even with the summer holidays quickly approaching, primary spreads still appear to be tightening, matching levels not seen .......
News 2 July 2021
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RMBS issuer sues Hussain
Sector developments and company hires
RMBS issuer sues Hussain
Market Moves 1 July 2021
Clavis Securities has begun High Court proceedings against Rizwan Hussain, who issued letters in April - purportedly for and on behalf of the issuer - which described the purported termination of the appointments of HSBC as trustee and Bluestone Mortgages as treasurer and special servicer, in relation to the note programme. The issuer considers the purported .......
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Pick a card, any card
Covid credit card usage soared, but ABS issuance is strangled
US credit card usage increased dramatically due to the pandemic, but, as yet, this is not expected to result in elevated credit card-backed ABS issuance, agree analysts.
Credit card balances have declined significantly in the last year while the major banks all enjoy richer reserves of capital than has been the case for some time.
‘’The big credit card banks simply don’t have .......
News Analysis 30 June 2021
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Italian SME ABS first finalised
Sector developments and company hires
Italian SME ABS first finalised
Market Moves 30 June 2021
Banca Carige and Banca del Monte di Lucca have completed Lanterna Finance 2021, the first Italian SME ABS backed by loans fully guaranteed by the Italian government. The up to €30,000 unsecured loans have been originated based on the ‘Liquidity decree’, converted into law on 5 June 2020, and are fully guaranteed by the Central .......
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Litmus test
European CMBS momentum set to last
Nine European CMBS have been issued so far this year and two are currently marketing, pointing to growing confidence in the sector amid a post-coronavirus recovery. Indeed, current momentum in the market - exemplified by the volume of activity and investor interest in a variety of assets and jurisdictions - appears set to last.
“2021 was unsurprisingly looking .......
News Analysis 30 June 2021
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Innovative NPL ABS inked
CF opts for ReoCo rather than GACS
Credito Fondiario has finalised an unusual Italian non-performing loan securitisation that falls outside the GACS scheme. Dubbed Palatino SPV, the transaction features a ReoCo with much larger firepower compared to previous non-GACS deals.
According to Monica Curti, vp and senior credit officer at Moody’s: ‘’It’s an unusual transaction, given that it’s a non-GACS deal - although these sorts .......
News Analysis 30 June 2021
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Energy-efficiency tax credit ABS debuts
Sector developments and company hires
Energy-efficiency tax credit ABS debuts
UniCredit has executed the first securitisation of tax credits arising from the Italian ‘Eco-Sisma-SuperEcosisma Bonus’ scheme. Under one of Italy's Covid-recovery laws (the Decreto Rilancio), tax credits accrued in the context of energy-efficiency and/or seismic risk reduction works are allows to be transferred to other entities, such as banks and other financial intermediaries.The .......
Market Moves 29 June 2021
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Finish line
ESMA designates securitisation repositories
ESMA has announced the European DataWarehouse (EDW) and SecRep as the EU’s official securitisation repositories. The decision addresses an important element of the disclosure framework under the Securitisation Regulation that was long left open. More saliently, originators of synthetic securitisations will now have to submit data to the repositories as part of the new ESMA rules, albeit there is .......
News Analysis 29 June 2021
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UK to review Securitisation Regulation
Sector developments and company hires
UK to review Securitisation Regulation
The UK government has issued a call for evidence in connection with the Securitisation Regulation. Under the consultation, the government is seeking views on updating the regulation to ensure that it “best delivers” for the UK’s financial sector and real economy.Responses to this call for evidence will inform the government’s review of the Securitisation Regulation, .......
Market Moves 28 June 2021