CMBS
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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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Proportional approach
ESAs tackle delay in transparency requirements
The joint European Supervisory Authorities (ESAs) - which consist of the EBA, ESMA and the European Insurance and Occupational Pensions Authority - have published a letter reiterating market concerns over ESMA’s disclosure requirements (SCI 5 October) and Article 14 (SCI 9 July) of the CRR. The authorities have also called on EU national regulators to apply a ......
News 4 December 2018Premium Content
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ESAs suggest 'proportion'
Sector developments and company hires
Aussie securitisation fund
The Australian government has introduced a A$2bn Australian Business Securitisation Fund, which will provide significant additional funding to smaller banks and non-bank lenders to on-lend to small businesses on more competitive terms. The fund will be administered by the Australian Office of Financial Management (AOFM), consistent with its prior involvement in the RMBS market in .......
Market Moves 3 December 2018
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Funding boost for online lender
Sector developments and company hires
Alesco CDOs transferred
The collateral management agreements for the Alesco Preferred Funding X to XVII Trups CDOs have been assigned to Hildene Collateral Management Company (HCMC), an affiliate of Hildene Capital Management. Under the terms of the assignments, HCMC agrees to assume all the responsibilities, duties and obligations of the current collateral manager (ATP Management) under the agreements and under .......
Market Moves 29 November 2018
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Mezz concessions
US CMBS market update
US CMBS new issues appear to be struggling, following market volatility at the beginning of the week.
One trader says: “It seems like the new issue pipeline is struggling to get off the ground and many dealers are having to give concessions in the mezz area in order to get deals done.”
Meanwhile, in the secondary market, .......
Market Reports 28 November 2018
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Start the week - 26 November
A review of securitisation activity over the past seven days
Market commentary
US CLO equity and double-B bonds were casualties of last week’s drop in the S&P 500 index, with bids softening across the secondary market (SCI 21 November).
“A handful of CLO equity and double-B bonds were out for the bid and did not trade,” said a trader. “There was some clear hesitation in the market compared with a week ago. .......
News 26 November 2018
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UK SLABS slated
Sector developments and company hires
EMEA
Eurocastle Investment has appointed Hammad Khan to its board as a non-executive director, increasing its number of directors to six. Khan is a representative of Eurocastle’s largest shareholder, an affiliate of EJF Capital, where he is a senior md and a senior member of the EJF Investments Manager investment team. He joined EJF in March 2013 and is responsible .......
Market Moves 23 November 2018
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Early warning?
Cov-lite Euro CMBS gaining traction
The influences of the leveraged loan market and non-traditional CMBS investors, along with the competitive pressure that lenders are under, is spurring the emergence of covenant-light loans in European CMBS. However, given the length of CRE loan terms, it will be another couple of years before the performance of cov-lite CMBS can be assessed versus regular CMBS.
Cov-lite .......
News 22 November 2018
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CRT tranche downgraded
Sector developments and company hires
Acquisitions
Spruce Finance has been acquired by HPS Investment Partners. Spruce will be headquartered in Houston and maintain its executive and M&A offices in San Francisco. Christian Fong has joined the company as president and ceo after holding a position as co-chairman of the board of directors since early 2017. The transaction took place through Spruce Holdings, a .......
Market Moves 21 November 2018
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Long goodbye
First non-Libor linked ABS anticipated
Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index average (SONIA) in September. The move has sparked predictions that the first securitisations tied to alternative reference rates will emerge next year.
Libor is set to be phased out from 2021 and it remains unclear what will replace it as a .......
News Analysis 20 November 2018
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Credit clutch
European ABS market update
The European ABS slow-down continues, with prices drifting wider and subdued credit growth across the board. In particular, an aversion to duration risk has emerged this week.
“Credit is headed for the worst year since 2008,” one trader explains. “ABS traders are not used to showing negative figures to their clients. People are reassessing the market.”
In .......
Market Reports 20 November 2018
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Less liquidity
US CMBS secondary market update
Risk aversion continues in the US CMBS market, with flows described as “anaemic” due to the volatility seen over the past few weeks.
“I’m hearing that The Street went into this heavy on paper and they are feeling that quite a bit,” says a trader. “It seems most buyers are aware of it too – anything behind triple-B .......
Market Reports 16 November 2018
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CMBS desk launched
Sector developments and company hires in structured finance
Europe
Simmons & Simmons has hired James Grand to lead its CLO offering. Grand was previously a structured products partner at Freshfields where he spent over 20 years, specialising in advising both the sell-side and the buy-side on CLOs, as well as contentious and non-contentious derivatives work, structured credit, tax structured products, regulatory capital and prime brokerage.
Partnerships
Alexandria Capital .......
Market Moves 15 November 2018
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Trading countdown
US CMBS primary market update
The US CMBS market is facing a heavy primary calendar this week, which is overshadowing secondary market activity and causing risk aversion.
“We have seen healthy issuance volumes over the past few weeks,” says one trader. “As far as the markets are concerned, it does not feel as though there is an appetite for added risk.”
He .......
Market Reports 14 November 2018
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NPL transaction markets
Sector developments and company hires in structured finance
NPL deal markets
Banco Santander Totta is in the market with Hefesto STC (Guincho), a €98m securitisation backed by a €481m portfolio, by gross book value (GBV), of Portuguese non-performing residential, commercial and unsecured loans originated by Banco Santander Totta. DBRS and Scope have assigned provisional ratings, respectively, of triple-B (low)/triple-B minus to the €84m class A notes and triple-C/single-B minus to the €14m ......
Market Moves 13 November 2018Premium Content
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Unpredictable factors
Macro and micro challenges highlighted
European market participants are facing three unpredictable factors in 2019, all of which will drive ABS activity and supply in the new year. ECB monetary policy evolution, Brexit execution and securitisation legislation implementation represent challenges from both macro and micro perspectives.
Among these challenges is the Basel 4 output floor. Alexander Batchvarov, md at BofA Merrill Lynch Global .......
News Analysis 9 November 2018
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CLO investor poached
Company hires and sector developments in structured finance
Acquisitions
LibreMax Capital has entered into an agreement to acquire Trimaran Advisors and certain affiliated companies (Trimaran) from KCAP Financial. Following the close of the transaction, Trimaran’s cio and head of its CLO platform, Dominick Mazzitelli, will continue to lead the business, supported by the existing management team. Trimaran currently manages six CLOs with approximately US$3bn AUM and .......
Market Moves 9 November 2018
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CRE platform acquired
Sector developments and company hires in structured finance
Acquisitions
AXA Investment Managers has expanded its global debt platform through the acquisition of Quadrant Real Estate Advisors. This includes an acquisition of Quadrant’s investment team and management of US$9.4bn of US commercial real estate loan mandates. As part of the transaction, 24 members of Quadrant, including five of the founding members, will join AXA IM - Real Assets. .......
Market Moves 8 November 2018
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Mezzanine muddling
European CLO and CMBS markets update
European traders are focusing on secondary US CLO paper today, with 21 lines on BWICs compared with seven out for the bid in the European market (see SCI’s BWIC calendar). European CLO volumes have been low, yet triple-B bonds have performed steadily, contrary to expectations that they would perform badly this week.
“Clients have been quiet. There is no ......
Market Reports 7 November 2018Premium Content
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Global head hired
Company hires and sector developments in structured finance
Dechert has hired Cameron Mitcham as a partner in London at the firm’s global finance practice, joining from Allen & Overy. Mitcham will work with the CLO team and securitisation practice, acting for managers, arrangers, originators, investors and other deal parties in CLO transactions.
ING has hired Stefan Rolf as global head of securitisation for wholesale bank lending. Based in .......
Market Moves 6 November 2018
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Housing practice pinched
Company hires and sector developments in structured finance
Fund launch
Trium Capital is partnering with Ellington Global Asset Management to launch the Ellington Trium Alternative Credit UCITS, a long/short credit UCITS fund. The fund is set to be launched 4Q18 and will leverage Ellington’s expertise in RMBS, CMBS, CLOs and corporate credit relative value strategies.
ILS
Nephila Climate has hired Ariane West as director .......
Market Moves 5 November 2018