CMBS

  • Arnold & Porter hires new partner

    Sector developments and company hires

    Arnold & Porter welcomes a new partner to its corporate and finance practice in New York in a move to bolster its offering to lenders and borrowers. Scott Berson joins the firm from Norton Rose Fulbright, with more than 25 years of experience across both secured and unsecured financings. Berson holds expertise on receivables-based transactions across different industries and products .......

    Market Moves 24 May 2022

  • Complex picture

    European ABS/MBS market update

    With two deals being pulled in the space of a week, the European ABS/MBS markets are facing thorny times. The current complex environment and volatility is set to hinder issuance in the short term.

    Last Friday, HSBC announced it had to pull its UK student accommodation CMBS transaction – HXGN CMBS Finance 2022-1 – due to “exceptional market .......

    News 20 May 2022

  • Principles-based cybersecurity approach urged

    Sector developments and company hires

    The SFA has responded to the US SEC’s proposed new rules to enhance and standardise disclosures made by public companies regarding cybersecurity risk management, strategy, governance and incident reporting. The association believes the proposed rule to be focused almost exclusively on corporate registrants, ignoring the extensive fundamental and technical differences between the potential impact of cybersecurity risks and incidents .......

    Market Moves 17 May 2022

  • Better bid

    REO online auctions gaining traction

    The three most active US CMBS special servicers sold 125 commercial real estate assets via online auctions in 2020 and 2021, with sale proceeds on average achieving 103% of the most recent appraised value and 122% of the minimum reserve price, according to a new Fitch study. The findings show that assets sold in 2021 on average achieved 109% .......

    News 12 May 2022

  • Warehouse woes?

    Turnkey solution offered amid labour shortages

    US mortgage warehouse lenders face an increasing competitive landscape, with labour shortages posing an additional challenge. Against this backdrop, turnkey solutions could help lenders scale their businesses.

    “The mortgage warehouse financing competitive landscape is increasing. The workplace environment is also evolving; many employees are looking for remote or hybrid working arrangements. Our clients have noted that it is .......

    News 5 May 2022

  • More multifamily

    Workforce housing in focus amid affordability crisis

    Increased focus by Fannie Mae and Freddie Mac on targeted affordable housing appears to be yielding powerful results among both borrowers and lenders. Addressing supply issues requires the development of new properties, as well as renovating the existing stock, however.

    A significant issue in the US affordable housing crisis is supply, especially at the lowest income levels. For .......

    News Analysis 4 May 2022

  • 17Capital closes largest debut private credit fund

    Sector developments and company hires

    17Capital has closed its inaugural NAV lending fund with €2.6bn in capital raised, exceeding its €1.5bn target. The 17Capital Credit Fund marks one of the largest debut private credit funds to be raised, and comes as demand for NAV financing continues to rise and is expected to grow from a US$100bn market today to become a US$700bn market by 2030.  .......

    Market Moves 20 April 2022

  • Dual shocks

    Securitisation well positioned to withstand headwinds

    The Covid-19 shock has been replaced by two others - war and worse-than-expected inflation (SCI 7 April). However, the securitisation market appears to be well positioned to withstand these headwinds.

    “We came into the year coming out of one shock – pandemic - only to be hit by two others: worse-than-expected inflation and now war. Those new shocks are .......

    News Analysis 8 April 2022

  • Nuveen closes CLO issuance fund

    Sector developments and company hires

    Nuveen has announced the close of its inaugural CLO equity fund with over US$375m in committed capital. The Nuveen CLO Issuance Fund was supported by global public and private pension plans, family offices, as well as insurance companies, and will provide the opportunity to invest alongside Nuveen’s parent company, TIAA. The firm hopes the fund will offer exposure to the .......

    Market Moves 6 April 2022

  • WhiteStar acquires Carlson Capital's CLO business

    Sector developments and company hires

    WhiteStar Asset Management has announced its acquisition of five reinvesting CLOs of more than US$2bn managed by Carlson CLO Advisers. WhiteStar will take on all collateral management duties of the Cathedral Lake branded CLOs, effective from 31 March 2022. WhiteStar and Carlson were represented in the transaction by Milbank and Mayer Brown, respectively. The acquisition follows WhiteStar’s recent expansion, acquiring .......

    Market Moves 4 April 2022

  • Maturing prospects

    Self-storage loans show highest refi rate

    The 10-year Treasury rate closed the month at 2.33%, following the rate hike in mid-March. With the US Fed indicating that six more rate hikes are likely this year, KBRA analysed the refinancing prospects of US CMBS conduit loans that mature through 2023 and found that approximately 60% can successfully refinance with a first mortgage without the need for .......

    News 4 April 2022

  • Cautious optimism

    European ABS/MBS market update

    Following a clear pick-up in activity last week, the European and UK primary ABS/MBS markets have carried over that dynamism into this week. Optimism is, it seems, back on the cards for now.

    “Well, I think things are much more positive,” states one European ABS/MBS trader. “We have seen a big turnaround in the market, where a lot .......

    News 1 April 2022

  • Quality control

    Call for ESG data improvements

    The lack of clear, unified standards continues to constrain the wider adoption of ESG securitisation in the EU. In order to fulfill investor demand for such product, both the quality and quantity of ESG data needs to improve, according to panelists at SCI’s recent ESG Securitisation Seminar.

    Andrew Lennox, portfolio manager at Federated Hermes, pointed out that pricing .......

    News Analysis 30 March 2022

  • Sixth Street establishes structured products business

    Sector developments and company hires

    Sixth Street has announced the formation of a dedicated structured products business to further enhance its capabilities as a strategic capital partner and solutions provider at scale. Sixth Street structured products builds upon the firm’s existing expertise and will focus on asset and platform investing and origination across finance markets, including commercial and residential mortgages, renewables and energy finance, consumer .......

    Market Moves 29 March 2022

  • Window of opportunity

    European ABS/MBS market update

    This week is seeing clear evidence of a pickup in activity in the European and UK ABS/MBS primary markets. In what feels like an intermediate period of opportunity for issuers, the announcement of a flurry of transactions should test investor appetite and overall market conditions.

    “After a period that saw huge levels of issuance for covered bonds, our .......

    News 23 March 2022

  • Wrapped ratings upgraded

    Sector developments and company hires

    Moody's has upgraded the ratings of 148 classes of US structured finance securities wrapped by Assured Guaranty Municipal (AGM), Assured Guaranty (AGC) and their affiliated insurance operating companies, as well as one class of US securities wrapped by AGM. The securities impacted include certain RMBS and ABS notes. The move follows Moody's upgrade of the insurance financial strength (IFS) .......

    Market Moves 23 March 2022

  • Inequitable frameworks

    Data analyses demonstrate punitive ABS treatment

    AFME has published two independent data analyses, undertaken by Risk Control, in response to the European Commission’s call for advice regarding bank and insurance prudential capital treatment and the liquidity coverage ratio (LCR). Both reports demonstrate that the current European regulatory framework is disproportionately punitive for securitisation.

    One of the Risk Control analyses examines the relative risk of .......

    News Analysis 22 March 2022

  • Equitable Holdings subsidiary to acquire CarVal Investors

    Sector developments and company hires

    Equitable Holdings has announced the acquisition of CarVal Investors by its subsidiary, AllianceBernstein. The agreement to acquire the global private alternative investment manager with US$14.3bn in AUM falls in line with Equitable Holdings’ strategy to further its differentiated business model and increase returns. CarVal focuses on opportunistic and distressed credit, as well as renewable energy infrastructure, speciality finance, and transportation .......

    Market Moves 18 March 2022

  • Barrow Hanley closes inaugural CLO equity fund

    Sector developments and company hires

    Barrow Hanley Global Investors has closed on its inaugural CLO equity fund – the Barrow Hanley CLO Fund I LP. The fund will be managed by the existing alternative credit team and follows the aims of the firm’s strategic partner, Perpetual Limited, to expand the product offering at Barrow Hanley. Perpetual, alongside employees at Barrow Hanley, have invested 35% of .......

    Market Moves 17 March 2022

  • IGLOO SME scheme unveiled

    Sector developments and company hires

    The EIF is supporting the Italian Guaranteed Loan Origination Platform (IGLOO), a new state-backed initiative that aims to provide €170m in opportunities for growth and financing for at least 800 SMEs and mid-caps in Italy. Promoted by Gruppo MutuiOnline and Gruppo NSA, the platform has a particular focus on criteria relating to climate transition and environmental sustainability.

    The EIF will participate via .......

    Market Moves 15 March 2022

  • What makes an efficient CLO manager?

    Phil Raciti, head of performing credit and a portfolio manager at Bardin Hill, explains the key attributes needed to be successful as a CLO manager

    The CLO asset class operates within a sophisticated construct of arbitrage, leverage, and structural protections. Having navigated multiple recessions and the most significant period of issuer downgrade activity on record in 2020, the asset class has .......

    Talking Point 14 March 2022
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