CMBS

  • SCI Start the Week - 7 January

    A review of securitisation activity over the past seven days

    Transaction of the week

    Santander has launched an unusual synthetic securitisation of auto loans, dubbed Santander Consumer Spain Synthetic Auto 2018-1. The transaction comprises a €60.6m twelve-year CLN that references a €1.01bn portfolio of Spanish auto loans paying Euribor plus 8.90%.

    Synthetic securitisations of granular, consumer portfolios are uncommon, as the structures are typically used for concentrated, non-granular portfolios. This .......

    News 7 January 2019

  • Pair promoted

    Sector developments and company hires

    UK

    TwentyFour Asset Management has appointed two new partners from within its portfolio management team. Felipe Villarroel, a portfolio manager on the multi-sector Bond team, and Douglas Charleston, a portfolio manager for the firm’s asset-backed securities funds, will become partners early in 1Q19. Prior to joining TwentyFour, Charleston was an associate director in asset-backed solutions at Lloyds.

    ......

    Market Moves 4 January 2019

    Premium Content

  • Global finance partner hired

    Sector developments and company hires

    NPL transactions

    IFIS NPL, has purchased an NPL portfolio totalling €1.16bn in gross book value from Monte dei Paschi di Siena. The portfolio acquired includes over 83,000 debtors with 16% comprised of consumer loans. The remaining 84% consists of unsecured small ticket banking NPLs.

    JPMorgan and Mediobanca are co-arrangers on a cash securitisation of Italian NPLs worth approximately €2.541m. Dubbed Belvedere .......

    Market Moves 2 January 2019

  • Inaugural post-crisis CLO prepped

    Sector developments and company hires

    CLO manager comeback

    AIG is marketing its first BSL CLO since the financial crisis, totalling US$503.15m. Dubbed AIG CLO 2018-1, the transaction is provisionally rated by Morningstar as triple-A on the US$296.5m class A notes. It does not have ratings on the rest of the notes.

    Fairhold development

    Fairhold Securitisation Limited has issued a notice that the new respondents, as .......

    Market Moves 21 December 2018

  • Disclosure draft not endorsed

    EC refuses to endorse draft technical standards

    The European Commission has stated that it only intends to endorse the draft technical standards on disclosure requirements, under the EU Securitisation Regulation prepared by ESMA, once certain amendments have been made. Market participants have suggested that this was not unexpected and could in fact buy more time for firms to install the necessary systems required to comply with reporting standards, when .......

    News 20 December 2018

  • Investor indigestion

    US CMBS widening on 2019 anxiety

    A recent CRE CLO transaction brought to the market was sidelined until a later date after spread levels made the offering uneconomical. Widening US CMBS spread levels have exacerbated investor concerns that this trend will extend into 2019.

    “Spreads have moved out across all the different asset categories in the final quarter,” says Rick Jones, finance and real .......

    News 19 December 2018

  • Japanese dependence

    European ABS market update

    European ABS markets have effectively closed for the year. Deals in the pipeline are now expected to price in early 2019.

    Looking ahead to 1Q19, one trader comments: “For UK buy-to-let and non-conforming RMBS, activity will depend 100% on what happens with Brexit. Unless we have more clarity about how Brexit will play out, investors are going to be .......

    Market Reports 19 December 2018

  • ILS ventures launched

    Sector developments and company hires

    ILS

    Rewire Holdings and Vida Capital have announced the formation of Merion Square Capital, a joint venture which combines the two companies. The asset manager has established an open-ended fund structure which will primarily invest in ILS with an emphasis on property and casualty insurance, as well as annuities and mortality-related products. Merion Square will be led and .......

    Market Moves 19 December 2018

  • Wetherby 2 completed

    SONIA-linked synthetic securitisation debuts

    Lloyds has completed a £142.5m 7.25-year financial guarantee referencing a £1.5bn UK commercial real estate portfolio. Dubbed Wetherby 2 Securities 2018, the transaction is the first synthetic securitisation to reference the new SONIA interest rate benchmark and the third structured as a dual tranche trade (SCI 26 January).

    The £82.5m first loss tranche (0%-5.5%) pays SONIA plus ......

    News 17 December 2018

    Premium Content

  • ABSPP plans published

    Sector developments and company hires

    APP reinvestment set

    The ECB has outlined the technical parameters for the reinvestment of the principal payments from maturing securities purchased under its asset purchase programmes after net asset purchases cease at end-December 2018. It expects to reinvest ABSPP redemptions back into the ABS market and CBPP3 redemptions back into the covered bond market. The bank says it will aim .......

    Market Moves 14 December 2018

  • STS guidelines published

    Sector developments and company hires

    P2P head hired

    Dynamic Credit has hired Giles Andrews as chairman of its supervisory board. The board will have three members and serves to strengthen the corporate governance of Dynamic Credit Group (DCG), which comprises of the asset manager and direct lender Dynamic Credit and the investor servicing platform LoanClear. Andrews is co-founder of Zopa and, in addition to his .......

    Market Moves 13 December 2018

  • Star performer

    CDX beats cash bonds but CMBX leads

    Strong returns in CMBX have made it a ‘standout performer’ in the credit derivatives space this year, although timing is ‘crucial’ against the backdrop of retail volatility. Investors have also found CDX can play a key role in managing risk and generating alpha, while single-name CDS trading may surge in coming months, with further corporate defaults expected.

    Tracy Chen, portfolio .......

    News Analysis 13 December 2018

  • Prepayment offer

    European CMBS market update

    European CMBS BWIC activity has swelled after the Taurus 2018-3 DEU deal priced today. Unusually, noteholders have been offered an early prepayment on 14 December as an incentive to price the transaction before the end of the year.

    The market remains soft as conditions refuse to buck the widening spread trend. Several European dealers have decided to .......

    Market Reports 12 December 2018

  • Global leader appointed

    Sector developments and company hires

    Amended complaint filed

    The state of Colorado has filed a Second Amended Complaint relating to state court actions against Avant and Marlette, alleging that the platforms have violated its Uniform Consumer Credit Code (SCI 12 May 2017). According to a Chapman and Cutler client memo, in addition to making the same claims against the platforms, the state is suing .......

    Market Moves 12 December 2018

  • Libor consultation launched

    Sector developments and company hires

    ILS

    Peak Reinsurance Company has launched Asia’s first sidecar transaction via a new Bermuda-domiciled special purpose insurer, Lion Rock, to provide collateralised retrocession for part of Peak Re’s global property reinsurance risk portfolio. The establishment of this special financial structure, referred to as a “reinsurance sidecar”, allows investors to take on the risk and benefit from specific books .......

    Market Moves 11 December 2018

  • UK CMBS markets

    Transaction marks first for rating agency

    A Brookfield Asset Management entity, BSREP International II (A), is the sponsor of a new £367.5m UK single-asset single-borrower (SASB) CMBS, dubbed Salus (European Loan Conduit No.33). The transaction comprises a first-lien interest-only mortgage loan originated by Morgan Stanley and backed by the landmark City of London property, Citypoint.

    The mortgage loan comprises a senior loan which will be securitised .......

    News 11 December 2018

  • Bid scarcity

    European ABS market update

    A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to widen in the CLO and ABS primary markets.

    “We are running a few private processes, which are keeping us busy, and we will hopefully conclude them over the next couple of days,” says a trader.

    The trader comments that .......

    Market Reports 7 December 2018

  • BTL securitisation planned

    Sector developments and company hires

    Europe

    Accunia has promoted Mads Romild as head of Accunia’s CLO platform. Romild will continue as cio and head all Accunia investment strategies. Andres Garcia Bartolome and Rajiv Thaker are also promoted to senior portfolio managers and will be responsible for the portfolio management of the three existing and all new Accunia CLOs. Romild previously held a position as chief portfolio .......

    Market Moves 6 December 2018

  • Enforcement uncertainty

    Set-back for STS-eligible issuance

    The recent statement issued by the Joint Committee of the ESAs (SCI 4 December) is unlikely to be sufficient to assuage securitisation market concerns on its own. Such regulatory uncertainty is expected to further delay the emergence of STS-eligible securitisations in the pipeline.

    “The statement by the Joint Committee of the ESAs acknowledges the concerns about the .......

    News 5 December 2018

  • Activity upsurge

    European ABS market update

    The European primary and secondary ABS markets are seeing a surge in activity, due to uncertainty over the next quarter.

    “After the high volatility last month, I was expecting a slow-down,” says one trader, surprised by the activity.

    He suggests that market ambiguity around the next quarter is driving it. “The consensus is that things will only get choppy from .......

    Market Reports 4 December 2018

  • BDC merger announced

    Sector developments and company hires

    BDC merger

    Golub Capital BDC (GBDC) has merged with Golub Capital Investment Corporation (GCIC), with GBDC as the surviving company, subject to certain stockholder approvals and customary closing conditions. The combined company will remain externally managed by GC Advisors and all current GBDC officers and directors will remain in their current roles. The transaction is expected to close .......

    Market Moves 4 December 2018
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