CMBS

  • 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

  • Securitisation tax consultation underway

    Sector developments and company hires

    Securitisation tax consultation underway
    The UK HMRC has launched a consultation seeking views on the taxation of securitisation companies. The UK government says it has identified - through ongoing dialogue with the industry - areas where it may be beneficial to make changes to such tax regulations and is therefore keen to explore the associated benefits and potential difficulties.

    Market Moves 24 March 2021

  • Red Cross in humanitarian cat bond first

    Sector developments and company hires

    Red Cross in humanitarian cat bond first
    The first-ever humanitarian catastrophe bond covering pure volcanic eruption risk has been completed using a Guernsey ILS structure. Sponsored by the Danish Red Cross, the US$3m issuance was privately placed by Replexus and Howden Capital Markets via Dunant Re IC, an incorporated cell of Replexus ICC (Guernsey), which is managed in Guernsey by .......

    Market Moves 23 March 2021

  • Manager maintenance

    CRE CLO credit quality maintained by manager strategies

    CRE CLOs have performed well through the pandemic, maintaining their OC cushions, largely as a result of their managers' actions. Those actions, including reinvestment loan workouts and credit risk exchanges, have been supported by the evolution to stronger structures in the sector since the financial crisis.

    Deryk Meherik, svp/manager at Moody’s, says: “I have seen how the product, .......

    News Analysis 22 March 2021

  • Chip shortages 'credit positive' for auto ABS

    Sector developments and company hires

    Chip shortages ‘credit positive’ for auto ABS
    Sizable auto production cuts due to semiconductor shortages in the US will provide support for used vehicle values, a credit positive for securitisations and captive auto finance companies, according to Moody’s. The rating agency notes that such shortages – which are expected to last at least into next quarter - could result in North .......

    Market Moves 18 March 2021

  • Performance indicators

    Footfall data, CMBS spread correlation highlighted

    Advan Research Corporation plans to create more sophisticated applications, such as bond calculators, for US CMBS market participants over the next three to six months. The move follows the release of the firm’s CMBS foot traffic counts data product last month (SCI 27 February).

    “Our focus at present is on integrating the data with client modelling processes .......

    News 16 March 2021

  • 'Unprecedented' Moroccan CRT closed

    Sector developments and company hires

    ‘Unprecedented’ Moroccan CRT closed
    Moroccan fertiliser giant OCP Group has subscribed to the notes issued by the first synthetic securitisation in Morocco. The transaction involved the establishment of a collective securitisation vehicle dubbed Fonds Damane Tamayouz, which has been structured to facilitate access to credit for the suppliers that make up OCP's industrial ecosystem.

    Clifford Chance, which advised on the deal, .......

    Market Moves 16 March 2021

  • Bifurcated bother

    Stress for CMBS secured by ground fees, leaseholds

    The popularity of US CMBS backed by loans secured by property leaseholds or ground fees, or both, has waned recently. Indeed, such transactions priced in the heyday of 2014-2017 are coming under increasing stress.

    “These deals were more prevalent three or four years ago. But in the Covid era, we’ve seen less and in the recovery period it’s .......

    News Analysis 15 March 2021

  • Defence Bank debuts Aussie RMBS

    Sector developments and company hires

    Defence Bank debuts Aussie RMBS
    Defence Bank (DBL) is prepping its inaugural public Australian prime RMBS, the A$300m DBL Funding Trust No. 1 Salute Series 2021-1. DBL provides financial products and services to members of the Australian Defence Force (ADF), as well as the broader community.

    DBL is one of three lenders selected to provide home loans to ADF .......

    Market Moves 15 March 2021

  • BDC fair value assessed

    Sector developments and company hires

    BDC fair value assessed
    On the back of tightening BDC spreads and growing investor interest, JPMorgan CLO research analysts have published a report aiming to assess fair value in the sector. In addition, they compare BDCs to their closest relative – middle market CLOs.  

    “Differentiating between BDCs is a challenge; thus, we used attachment points as a reference point .......

    Market Moves 11 March 2021

  • ESG engagement underway

    Sector developments and company hires

    ESG engagement underway
    All EU-based open-ended funds managed by Leadenhall Capital Partners have been categorised as being investment products that promote environmental and social characteristics in accordance with the criteria recently set out in Article 8 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). The firm says it has committed to embed ESG considerations in its investment process for a .......

    Market Moves 10 March 2021

  • Supply fatigue?

    European ABS market update

    Execution for the two UK securitisations priced last week indicated a limited appetite for paper, following the heavy supply seen in previous weeks (SCI 23 February). A weaker tone in European ABS secondary spreads also emerged.

    “The market is a little bit softer, due to a combination of factors - the amount of supply that we have .......

    News 10 March 2021

  • Asset and liability origination tie-up agreed

    Sector developments and company hires

    Asset and liability origination tie-up agreed
    Apollo and Athene have entered into a definitive agreement to merge in an all-stock transaction that implies a total equity value of approximately US$11bn for Athene. Upon closing of the merger, current Apollo shareholders will own approximately 76% of the combined company on a fully diluted basis and Athene shareholders will own approximately 24%.

    Market Moves 9 March 2021

  • Libor announcements to 'accelerate' transition

    Sector developments and company hires

    Libor announcements to ‘accelerate’ transition
    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 .......

    Market Moves 5 March 2021

  • General QM delay proposed

    Sector developments and company hires

    General QM delay proposed
    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 .......

    Market Moves 4 March 2021

  • 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

  • UKAR pair preplaced

    Sector developments and company hires

    UKAR pair preplaced
    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 .......

    Market Moves 26 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
    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 .......

    Market Moves 17 February 2021

  • Maritime financing facility agreed

    Sector developments and company hires

    Maritime financing facility agreed
    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 .......

    Market Moves 16 February 2021

  • 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
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