CLOs
-
Libor announcements to 'accelerate' transition
Sector developments and company hires
Libor announcements to ‘accelerate’ transition
Market Moves 5 March 2021
The UK FCA has confirmed that all Libor settings will either cease to be provided by any administrator or no longer be representative immediately after 31 December 2021 - in the case of all sterling, euro, Swiss franc and Japanese yen settings, as well as the one-week and two-month US dollar settings – and immediately .......
-
General QM delay proposed
Sector developments and company hires
General QM delay proposed
Market Moves 4 March 2021
The CFPB has released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from 1 July 2021 to 1 October 2022 (SCI 24 February). The CFPB is proposing to extend the compliance date to ensure homeowners struggling with the financial impacts of the Covid-19 .......
-
Benchmark legislation
Congress to rescue Libor-based contracts, but questions remain
Federal Reserve chairman Powell’s endorsement last week of federal legislation to ease the transition to non-dollar Libor benchmarks has been hailed as a positive step for the structured finance industry. Powell was speaking in front of the House of Representatives Financial Services Committee and predicted that there will be a “hard tail” to the exit from Libor, to which .......
News Analysis 3 March 2021
-
Ever-changing moves
Euro CLOs remain fluid
The European CLO market is in a far more fluid state than the headline refi/reset boom suggests. As such, investor vigilance over potential market changes is as important as ever.
“We’ve got upwards of 50 cleansing notices at the moment and with that kind of supply, you’ve got to consider what the demand is and whether we are going to .......
News Analysis 1 March 2021
-
UKAR pair preplaced
Sector developments and company hires
UKAR pair preplaced
Market Moves 26 February 2021
Citi has preplaced a pair of UK non-conforming RMBS backed by a portfolio it acquired from UKAR. The transactions – the £2.898bn Jupiter Mortgage No. 1 and the £1.559bn Stratton Mortgage Funding 2021-2 - securitise a pool of first-lien owner-occupied and buy-to-let loans originated by NRAM, GMAC-RFC, Mortgage Express, Kensington, Keystone Property Finance, Bradford & Bingley, Legal .......
-
Injunction sought over Blue Owl combination
Sector developments and company hires
Injunction sought over Blue Owl combination
Market Moves 25 February 2021
Golub Capital Partners, one of 17 partner managers in the Dyal Capital Partners IV fund, has brought a lawsuit against the fund, Neuberger Berman Group (NBG) and NB Alternatives Advisers, seeking an injunction against the Blue Owl transaction (SCI 4 December 2020). Sixth Street previously filed a lawsuit against the Dyal Capital Partners .......
-
US CLOs stay strong
Resets active as participants also address other issues
Reset activity continues apace in the US CLO primary market. At the same time, other aspects of the market are regaining focus.
Yesterday saw another US reset price – Dryden 75, with its triple-As coming in at 104bp over three-month Libor – alongside one new issue and a partial refinancing. This brings the total number of primary deals .......
News Analysis 23 February 2021
-
Irish NPE portfolio offloaded
Sector developments and company hires
Irish NPE portfolio offloaded
AIB Group is set to sell a non-performing loan portfolio in long-term default to Mars Capital Finance Ireland as part of a consortium arrangement with Mars and affiliates of Apollo Global Management. At completion, AIB will receive a cash consideration of approximately €400m.As at September 2020, the loan portfolio had a gross NPE value .......
Market Moves 22 February 2021
-
Small balance UK CMBS prepped
Sector developments and company hires
Small balance UK CMBS prepped
Together Commercial Financial Services is marketing an unusual securitisation backed by small balance commercial assets. Dubbed Together Asset Backed Securitisation 2021-CRE1 (TABS 2021-CRE1), the £328.8m transaction is backed by 1,482 loans provided to 1,399 borrowers.The average outstanding principal balance per borrower is £235,020 and approximately 41.9% of the underlying properties are either fully .......
Market Moves 19 February 2021
-
'Unique' CLN deal readied
Sector developments and company hires
‘Unique’ CLN deal readied
Market Moves 17 February 2021
JPMorgan Chase Bank (JPMCB) is prepping the debut CLN issuance from the JPMorgan Wealth Management Mortgage (JPMWM) platform to transfer credit risk to noteholders through a hypothetical tranched CDS on a reference pool of mortgages. Dubbed JP Morgan Wealth Management Reference Notes Series 2021-CL1, principal payments on the notes are based on the performance of a US$2.36bn .......
-
Refi surge
Spread compression drives wave of CLO refinancings
European CLO refinancings and resets have been prominent this year, driven by strong spread compression. While such activity is expected to continue, capacity constraints could leave some deals incomplete.
So far this year, the European market has seen 12 deals refi or reset, compared with seven new issues. Over 40 deals have already released cleansing notices, with the latest three .......
News Analysis 17 February 2021
-
Maritime financing facility agreed
Sector developments and company hires
Maritime financing facility agreed
Market Moves 16 February 2021
Maritime and offshore alternative capital provider Fleetscape Capital has entered into an innovative financing structure with Macquarie that provides a more efficient offer to vessel owners seeking higher leverage situations. The structure utilises securitisation principles and enables Fleetscape to provide sale-and-leaseback or unitranche financing on competitive terms. Coupled with Fleetscape’s transaction execution capabilities and streamlined documentation, the .......
-
MBIA litigation settled
Sector developments and company hires
MBIA litigation settled
MBIA Insurance Corporation has entered into an agreement to settle the litigation it filed in 2009 against Credit Suisse and certain affiliated entities (SCI passim). The settlement follows a post-trial decision by the Court awarding MBIA Corp approximately US$604m in damages and, pursuant to the settlement, Credit Suisse has paid MBIA Corp US$600m.This amount materially .......
Market Moves 15 February 2021
-
UKML tender offers mooted
Sector developments and company hires
UKML tender offers mooted
Market Moves 12 February 2021
Coventry Building Society subsidiary Godiva Mortgages is set to purchase from UK Mortgages Corporate Funding two buy-to-let mortgage portfolios originated by Godiva and currently financed within the Cornhill No. 6 and Malt Hill No. 2 RMBS vehicles. Subject to successful completion, the timing of these sales is expected to coincide with the transactions’ payment dates in .......
-
UK industrial CMBS prepped
Sector developments and company hires
UK industrial CMBS prepped
Bank of America is in the market with a £340.1m CMBS sponsored by Blackstone. Dubbed Taurus 2021-1 UK, the transaction is backed by a two-year floating rate loan (with three one-year extension options) secured by the borrower’s interests in 45 industrial assets across the UK totalling 4.1 million square-foot of floor area.The largest asset .......
Market Moves 10 February 2021
-
Special situations strategy launched
Sector developments and company hires
Special situations strategy launched
Bardin Hill Investment Partners has announced the final close of the Bardin Hill Opportunistic Credit Fund and a parallel side-car vehicle, with total commitments of approximately US$600m. The firm’s flagship closed-end strategy received backing from new institutional investors globally, as well as from existing Bardin Hill clients.The strategy identifies and executes on stressed, distressed, .......
Market Moves 9 February 2021
-
Constructive outlook
Deborah Shire, global head of structured finance at AXA Inve...
Q: What were the drivers behind restructuring the AXA IM business into two key divisions – the Alts unit and the Core unit?
The Structured Credit Interview 9 February 2021
A: The business was restructured in March last year (SCI 11 March 2020), with the objective of developing two strategic businesses and boosting the commercial momentum behind them. The aim was to create a dedicated salesforce .......
-
NPL SRT agreement inked
Sector developments and company hires
NPL SRT agreement inked
Hoist Finance has signed a co-operation agreement with Magnetar Capital that provides for new portfolio investments on a pan-European level and will create a framework for future purchases in the current regulatory environment. The aim is to make securitisation an integral part of a sustainable business model for Hoist and strengthen its purchase capabilities.The .......
Market Moves 8 February 2021
-
True to form
Top tier CLO managers lead the way, but some distinguish themselves further
Leading US CLO managers for the most part continued to retain their position as the most consistent top performers throughout last year in the face of Covid-driven volatility. However, four managers managed to distinguish themselves still further by combining top-tier returns with outstanding risk management.
“The better CLO managers performed throughout the Covid crisis much better than the .......
News Analysis 8 February 2021
-
Iberian NPL ABS performance eyed
Sector developments and company hires
Iberian NPL ABS performance eyed
Market Moves 5 February 2021
The cumulative collection ratio for the DUERO 1 non-performing loan securitisation has consistently breached its trigger level for an interest subordination event – which is set at 90% - since the April 2020 reporting period, according to JPMorgan’s latest Portuguese & Spanish NPL ABS Performance Tracker publication. After dropping to 68.4% in April from 106.1% .......
-
Motor insurer preps ILS strategy
Sector developments and company hires
Motor insurer preps ILS strategy
Market Moves 4 February 2021
UK specialist motor insurer ERS Group is set to launch an integrated ILS offering as part of its plans to progress its commercial expansion. Three complementary investment strategies will be offered: an open-ended mandate with a remit to invest across both public, private and non-life ILS, with semi-annual liquidity; a closed-ended, higher risk and higher .......