CMBS

  • 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

  • Iberian RMBS investment disclosed

    Sector developments and company hires

    Iberian RMBS investment disclosed
    The EIB has disclosed that it invested €50m in UCI’s latest RMBS, Prado VIII, aimed at promoting the renovation of existing residential buildings in Spain and Portugal, as well as the purchase of new near zero energy housing. The project is expected to contribute to climate change mitigation, delivering energy savings of almost 57GWh a year .......

    Market Moves 12 May 2021

  • STS BTL RMBS prepped

    Sector developments and company hires

    STS BTL RMBS prepped
    Domivest is in the market with the first-ever STS buy-to-let RMBS. Dubbed Domi 2021-1, the €352.2m transaction is backed by a €370.7m provisional pool of Dutch BTL mortgage loans, including €30.61m in prefunding.

    Interest-only loans comprise 93.5% of the pool, according to Moody’s. Loans with initial LTVs above 70% amortise linearly to either the 70% .......

    Market Moves 11 May 2021

  • Hertz reorganisation proposals weighed

    Sector developments and company hires

    Hertz reorganisation proposals weighed
    Hertz has determined that a revised proposal to provide equity capital to fund its exit from Chapter 11 - made by affiliates of Knighthead Capital Management, Certares Opportunities and Apollo Capital Management - constitutes a superior proposal than the one contemplated by its agreement with its existing plan sponsors, affiliates of Centerbridge Capital Partners, Warburg Pincus .......

    Market Moves 10 May 2021

  • CRE CLO surge

    Record issuance expected

    The US CRE CLO market is seeing a surge in new issuance, albeit from the sector’s relatively low levels. The 18 deals priced so far this year have already surpassed last year’s total of 11 and are well on the way to reaching 2019’s all-time record of 29, with total volume expected to surpass the US$15bn achieved then.

    Bank of .......

    News Analysis 10 May 2021

  • Green railcar ABS debuts

    Sector developments and company hires

    Green railcar ABS debuts
    Trinity Industries has priced its inaugural green railcar ABS, following the publication of its green financing framework in January. The US$355m TRP Series 2021-1 transaction is backed by a US$482.68m portfolio comprising 6,350 railcars.

    The notes constitute green bonds based on the generally accepted market principles for such classification published by ICMA. Sustainalytics, acting as an external .......

    Market Moves 7 May 2021

  • Greek investment partnership inked

    Sector developments and company hires

    Greek investment partnership inked
    Mount Street Group has formed a strategic partnership in Greece and Cyprus with Technical Olympic, a Greek real estate, construction and investment group. As part of the partnership and through its subsidiary PFC Premier Finance Corporation (Cyprus), Technical Olympic has entered into a Memorandum of Understanding to acquire a stake in Mount Street’s businesses in Greece .......

    Market Moves 29 April 2021

  • Irish RPL refi prepped

    Sector developments and company hires

    Irish RPL refi prepped
    A refinancing of two Irish reperforming RMBS - European Residential Loan Securitisation 2019-PL1 and Grand Canal Securities 1 - has hit the market. Dubbed Primrose Residential 2021-1, the transaction is backed by a €869.8m portfolio of seasoned first lien performing and reperforming mortgages secured by majority owner occupied (accounting for 57.6% of the pool) and buy-to-let .......

    Market Moves 28 April 2021

  • APAC ESG expansion eyed

    Sector developments and company hires

    APAC ESG expansion eyed
    Moody’s is set to expand its Singapore office with the aim of spearheading ESG, climate and sustainable finance efforts in the Asia Pacific region, as well as fostering the ESG ecosystem in Singapore. Included in the firm’s plans are several initiatives, such as the establishment of an ESG Centre of Excellence for investor outreach, engagement and .......

    Market Moves 27 April 2021

  • Downgrades for 'lower quality' mall CMBS

    Sector developments and company hires

    Downgrades for ‘lower quality’ mall CMBS
    Moody's has downgraded 119 principal and interest, 26 interest-only and 11 exchangeable classes from 36 US CMBS and placed eleven P&I, one exchangeable and three IO classes under review for possible downgrade from a further two CMBS. The rating actions affect approximately US$6.2bn of securities and were prompted primarily by increased loss expectations and .......

    Market Moves 26 April 2021

  • Forbearance SPV availability ends

    Sector developments and company hires

    Forbearance SPV availability ends
    The Australian Office of Financial Management has released an update on its Structured Finance Support Fund (SFSF) activities. As of 31 March 2021, total funds committed by the SFSF were A$3.8bn, including A$1.36bn public market investments and circa A$2.3bn across 45 individual warehouses sponsored by 34 eligible lenders.

    The AOFM notes that public securitisation market .......

    Market Moves 21 April 2021

  • Blockchain mortgage 'ecosystem' prepped

    Sector developments and company hires

    Blockchain mortgage ‘ecosystem’ prepped
    Liquid Mortgage has raised capital from and entered into a strategic partnership with Redwood Trust, marking the culmination of a months-long engagement, in which Redwood Trust tested Liquid Mortgage's technology and developed an actionable strategy to build a future-ready mortgage ecosystem. The partners share a common mission of utilising blockchain technology within the current market infrastructure, .......

    Market Moves 20 April 2021

  • Shifting trends

    Differing ESG impacts on credit quality considered

    ESG considerations pose higher credit risk to certain securitisation asset classes and certain global regions, with evolving regulations and shifting consumer demand exposing transactions to potential declines in asset values or cashflow. Nevertheless, structural features, short loan tenors and asset diversification can help minimise such credit negative effects.

    ESG credit considerations include a broad range of qualitative and .......

    News 15 April 2021

  • Income opportunities

    Clayton Triick, CFA, senior portfolio manager at Angel Oak Capital Advisors, answers SCI's questions

    Q: How and when did you become involved in the securitisation market?
    A: Angel Oak Capital Advisors has a long history within the US securitised markets. Originally as a distressed credit investor during the global financial crisis, Angel Oak was able to invest capital targeting deeply discounted private-label RMBS.

    As markets continued to improve over the subsequent decade, we .......

    The Structured Credit Interview 14 April 2021

  • Green auto feasibility assessments underway

    Sector developments and company hires

    Green auto feasibility assessments underway
    CO2 emissions data reporting by auto loan lenders is likely to be crucial to classifying auto loan securitisations as ‘sustainable’ or ‘green’, in order to tap demand from ESG-oriented investors, Fitch says. However, the rating agency notes that discussions with lenders imply that creating the basis for detailed CO2 emissions reporting is challenging, as the .......

    Market Moves 13 April 2021

  • Non-resident Aussie RMBS debuts

    Sector developments and company hires

    Non-resident Aussie RMBS debuts
    Brighten Home Loan is readying its inaugural RMBS - the A$250m Solaris Trust 2021-1 – which is backed by loans predominantly to non-Australian resident borrowers. S&P notes that the portfolio is not only exposed to macroeconomic events and policies that affect Australia, but also to events and policies that affect the borrowers’ countries of residence. Consequently, .......

    Market Moves 8 April 2021

  • GACS NPL ABS performance eyed

    Sector developments and company hires

    GACS NPL ABS performance eyed
    A sum of eight new GACS non-performing loan securitisations priced in late 2020, with a cumulative balance of €3.4bn (securitising a cumulative original GBV of €13.4bn of NPLs), according to JPMorgan’s latest Italian NPL Performance Tracker report. Including these transactions, Italian NPL ABS issuance has risen to €22.1bn across 38 deals (including three non-GACS transactions), .......

    Market Moves 7 April 2021

  • Pockets of value

    Patient investors can find bargains in depressed CMBS sector

    No area of the US securitization market has been as severely punished by the events of the last year as the CMBS market, and prices for large quantities of bonds incorporating hotel, office space and retail assets have fallen off a cliff. Yet, amid the general maelstrom, there are rich rewards for the discerning investor.

    “Within the CMBS fallout, there are pockets .......

    News Analysis 5 April 2021

  • Structural protections

    Buyer's market limiting Euro CMBS 2.0 defaults?

    Lessons learned from the European CMBS 1.0 market are arguably helping in the post-pandemic environment, with far fewer defaults seen during the current crisis than occurred in the wake of the financial crisis. A buyer’s market has also meant that investors have a greater ability to dictate structural protections.

    “Pre-credit crunch, banks were big CMBS investors, particularly in .......

    News Analysis 30 March 2021

  • Equity return boost touted

    Sector developments and company hires

    Equity return boost touted
    US CLO equity is poised to deliver double-digit returns to investors this year, paring back the underperformance seen over the past four years, according to new research from Bank of America.

    Analysts at the bank base their expectations on the fact that CLO equity market prices continue to lag, despite CLO NAV and interest distributions .......

    Market Moves 29 March 2021

  • CLO pricing service selected

    Sector developments and company hires

    CLO pricing service selected
    SCI Valuations has been selected by Bloomberg’s Enterprise Data business to provide daily CLO debt pricing to integrate with Bloomberg’s Liquidity Assessment (LQA) tool. The integration of this data with LQA will enable Bloomberg customers to more effectively and easily view and manage their portfolios, the companies say.

    SCI Valuations provides automated valuations for US .......

    Market Moves 25 March 2021
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