Complete news archive
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Landmark SRTs finalised
Cash collateralised insurer deals debut
Credit Risk Transfer Solutions (CRTS) has executed three synthetic securitisations that have broken new ground in the market. Indeed, the firm has structured the first cash collateralised capital relief trades that involve insurer counterparties.
According to Andy Garston, director at CRTS: ‘’Most SRT deals require cash investors, which is problematic for insurers. But we now have a structure .......
News Analysis 27 May 2021
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Missed opportunity
ESA report disappoints on securitisation treatment
The recent European Supervisory Authorities (ESA) report on the implementation and functioning of the EU Securitisation Regulation (SCI 17 May) disappointed many in the industry, since it avoided tackling long-standing issues in the treatment of securitisations. In particular, the lack of a level playing field in terms of disclosure and due diligence remains a concern.
The ESA .......
News Analysis 27 May 2021
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Focal point
Arb rather than NAV in focus
European CLO equity performance has held strong despite the unprecedented Covid shock and significant shifts in loan market pricing in the last 12 months, supporting the view that a diversified portfolio of CLO equity can deliver strong and consistent returns through the credit cycle and attract new investors. To build on that, CLO managers now need to shift their focus, .......
News 25 May 2021
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Actuarial approach
Alphidem co-founder Ken Sutter outlines how the quantitative...
In light of the current regulatory and interest rate environment, it could be assumed that capital relief trades enjoy great popularity, even outside of the dedicated investor community. However, despite growth and positive market trends, the asset class still leads a niche existence and sticks to its esoteric label. This is even more astonishing considering that many alternative credit managers .......
Talking Point 25 May 2021
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CLO conflicts of interest eyed
Sector developments and company hires
CLO conflicts of interest eyed
Market Moves 24 May 2021
IOSCO has issued four questionnaires for industry participants on conduct risks in leveraged loans (LLs) and CLOs targeting bank lenders, CLO investors, CLO managers and LL sponsors. Through its Committee 3 on Regulation of Market Intermediaries and its Committee 5 on Investment Management, IOSCO is conducting work to understand the potential conflicts of interest and .......
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Climate risks disclosed
EBA publishes landmark banking study
The EBA has published the first EU-wide pilot exercise on climate risk for the banking sector. The exercise shows that over half of banks’ exposures are allocated to sectors that might be sensitive to climate transition risk. However, the study qualifies that limited data availability and reliability can affect results in terms of comparability.
The revised CRR/CRD .......
News 24 May 2021
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SCI Start the Week - 24 May
A review of securitisation activity over the past seven days
Last week's stories
Gaining momentum
European solar ABS issuance tipped to emerge
Revving up
Strong demand continues for CRE CLOs
SRT boost
Barclays expands Colonnade platformOther deal-related news
- OneMain has become the first US securitisation issuer to offer a SOFR-linked floating-rate tranche (SCI 17 May).
- US CMBS loan refinancings are likely to remain under pressure over the next 18 months, given continued business interruption at ....... News 24 May 2021
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RFC issued on benchmark regulation powers
Sector developments and company hires
RFC issued on benchmark regulation powers
Market Moves 21 May 2021
The UK FCA has published a consultation on its proposed policy framework for exercising two of its new powers under the Benchmarks Regulation (BMR), which will be introduced by the Financial Services Act 2021. These powers aim to facilitate an orderly wind-down of critical benchmarks like Libor and help users that cannot transition to .......
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Strategic credit commitment inked
Sector developments and company hires
Strategic credit commitment inked
Market Moves 20 May 2021
The Investment Management Corporation of Ontario (IMCO) has closed a US$500m commitment with a new strategic partner, Ares Management Corporation. IMCO has allocated US$400m of the commitment to a fund of one structure and US$100m to Ares Pathfinder Fund, a flagship global alternative credit fund. Pathfinder pursues a differentiated strategy of providing tailored financial solutions for .......
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Revving up
Strong demand continues for CRE CLOs
Sentiment in the US CRE CLO market remains relatively positive (SCI 10 May), with the multifamily sector in particular seeing robust demand. The outlook for the office sector is mixed, however.
“The CRE CLO market is hitting all cylinders. There is strong investor demand for new issuance and issuers have a strong origination pipeline,” says John Amman, .......
News Analysis 20 May 2021
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Data centre leverage 'inconsistent' with ratings
Sector developments and company hires
Data centre leverage ‘inconsistent’ with ratings
Market Moves 19 May 2021
A number of wholesale data centre securitisations issued in recent years carry elevated leverage that is inconsistent with the single-A rating category, Fitch suggests. The rating agency states that these transactions have weaker credit characteristics and substantially higher leverage multiples than other comparable digital real estate securitisations, such as wireless tower transactions, and higher .......
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Blue investable markets study underway
Sector developments and company hires
Blue investable markets study underway
The European Commission and the EIB Group have increased their cooperation to implement a new EU Sustainable Blue Economy policy. Under the agreement, both institutions will work jointly with EU Member States to meet financing needs to reduce pollution in European seas and support investment for blue innovation and blue bioeconomy.As such, the .......
Market Moves 18 May 2021
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Gaining momentum
European solar ABS issuance tipped to emerge
The development of a European solar ABS market is gaining momentum, with the first few securitisations potentially anticipated to emerge over the next 12-18 months. The first structures to market are expected to have many of the features observed on US solar transactions.
“We could envisage a situation where we would see the inaugural public transaction in the .......
News Analysis 18 May 2021
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OMFIT debuts SOFR-linked notes
Sector developments and company hires
OMFIT debuts SOFR-linked notes
Market Moves 17 May 2021
OneMain has become the first US securitisation issuer to offer a SOFR-linked floating-rate tranche. The US$500m OneMain Financial Issuance Trust 2021-1 includes triple-A rated class A2 notes - that will be sized to demand – linked to a rate that will be set in advance using 30-day compounded SOFR, although the deal documentation has provision to switch .......
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SCI Start the Week - 17 May
A review of securitisation activity over the past seven days
Last week's stories
News 17 May 2021
Biden bonanza
Vast infrastructure package to energise project finance CLOs
CRE CLO surge
Record issuance expected
Demand drivers
Fundamentals and technicals support US CLOs for now
Geographical divergence
CSEE moratoria more likely to underperform
Lone Star rising
A soup to nuts profile of TCBI's inaugural CRT (Premium content)
Mortgage-backed SRT priced
Credit Suisse executes Elvetia refinancing
Virtuous circle?
Bullish sentiment underpins securitisation opportunity
Bad weather .......
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Biden bonanza
Vast infrastructure package to energise project finance CLOs
The project finance CLO market, somnolent for a decade, will receive a shot in the arm from the Biden administration’s ambitious infrastructure spending programme, say market-watchers.
Around $600bn of the planned $2trn package is earmarked for improvement of transport networks, and another $200bn or more will go on housing. The details of how and in what form this money will be distributed .......
News 14 May 2021
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ESG incorporation challenges highlighted
Sector developments and company hires
ESG incorporation challenges highlighted
Market Moves 14 May 2021
The Principles for Responsible Investment (PRI) has published a report that examines the challenges associated with incorporating ESG in securitised products. The report notes that investors are grappling with two issues: building a rigorous framework for assessing ESG factors in mainstream securitisations and enhancing credit risk assessment beyond traditional fundamental analysis; and promoting standards within the .......
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Virtuous circle?
Bullish sentiment underpins securitisation opportunity
A strong rebound in global growth appears to be underpinning the opportunity in securitised credit, notwithstanding the ongoing impact of the coronavirus pandemic. As economic activity picks up and more collateral is available to be securitised, further supply should hit the market and generate increased interest from investors.
Sentiment in the securitisation market remains bullish, according to Mark .......
News 14 May 2021
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Lone Star rising
A soup to nuts profile of TCBI's inaugural CRT
It took Texas Capital Bank nine months to finalise its landmark capital relief trade, becoming the first US regional bank to tap the risk transfer market (SCI passim). This CRT Premium Content article tracks the deal’s progress from inception to launch.
When Texas Capital Bank began to contemplate issuing a capital relief trade in late spring of ......
News Analysis 13 May 2021Premium Content
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Asset managers partner on pensions initiative
Sector developments and company hires
Asset managers partner on pensions initiative
DWS has launched the DWS Secured Income Fund, aimed at small to medium-sized defined benefit pension plans seeking stable, long-term returns. The fund provides a diversified portfolio of secured income assets, including ABS and CLO bonds.Over half of UK defined benefit pension plans are in deficit, with insufficient assets to meet their .......
Market Moves 13 May 2021