CMBS
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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
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Strong technicals
European RMBS and CMBS primary market update
Technicals remain strong in the European CMBS and RMBS primary markets.
The Dilosk No. 2 deal is in focus in the primary RMBS market. Initial price thoughts of 90-95 have been released for the transaction’s senior notes – which are expected to pay a coupon of three-month Euribor plus 75bp – and it is likely to price on Wednesday (7 .......
Market Reports 5 November 2018
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Market moves update
Company hires and sector developments
ACIS resets due
The Chapter 11 trustee has filed a third amended joint plan for Acis Capital Management and a notice confirming a court order that: conditionally approves its disclosure statement; schedules a combined hearing regarding final approval of the disclosure statement and confirmation of the plan; and sets related deadlines. The plan contains an injunction barring Highland Capital Management .......
Market Moves 2 November 2018
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Market moves update
Company hires and sector developments in structured finance
Acquisitions
Lennar Corporation has agreed to sell its Rialto Investment and Asset Management business to investment funds managed by Stone Point Capital for US$340m. The transaction is scheduled to close on 30 November, subject to consent by the funds managed by Rialto and customary closing conditions. Lennar will retain its Rialto Mortgage Finance business, which it expects to move into .......
Market Moves 31 October 2018
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Retail rifts
UK CMBS impact limited despite store closures
Debenhams is the most recent UK retailer to announce a raft of store closures, further signalling the decline of the traditional retail sector in the country, although online retailers continue to perform well. Despite this, there is not likely to be an impact on UK CMBS backed by retail, with most transactions tied to large destination malls that are more immune to .......
News Analysis 30 October 2018
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Health check
Sears bankruptcy exposure gauged
Morningstar Credit Ratings has identified 28 CMBS loans, representing an allocated property balance of US$2.17bn, with exposure to stores that will close as part of Sears Holding Corp’s Chapter 11 bankruptcy filing. Sears’ departure is expected to be more detrimental to malls in secondary or tertiary locations where performance has already deteriorated, as these locations will be less desirable .......
News 30 October 2018
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Market moves update
Sector developments and company hires in structured finance
Moody's has downgraded the ratings of 123 tranches, placed on review for upgrade two tranches and affirmed 34 tranches in 84 Italian RMBS auto ABS, consumer loan ABS and consumer CDQ ABS deals . The rating actions were prompted by the rating agency's lowering of Italy's local-currency bond ceiling to Aa3 from Aa2. This which follows the downgrade of the ......
Market Moves 26 October 2018Premium Content
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Heightened holding
European ABS market update
Invesco is preparing a new €410m European CLO deal, along with GSO Capital Partners, which is planning a CLO reset. Elsewhere, Och-Ziff’s latest OZLME deal is reported to be sized at €412m (see SCI’s deal pipeline).
Overall European CLO spreads remain unchanged to slightly wider, as only a handful of bonds are out for the bid today. .......
Market Reports 26 October 2018
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Market moves update
Sector developments and company hires in structured finance
China
Fitch Ratings has launched Fitch Bohua Credit Ratings to serve China's onshore bond market and has appointed Danny Chen as Fitch Bohua's ceo. Initially, the company will cover banks, non-bank financial institutions and insurers, as well as the structured finance sector. Chen was previously ceo of Qingdao Conson Financial Holdings. A team of analysts, business development and support staff .......
Market Moves 25 October 2018
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Bridge-loan lifeline
Greystone closes CRE CLO milestone
Greystone Bridge Lending Fund last month completed its second CRE CLO (see SCI’s primary issuance database). Dubbed Greystone CRE 2018-HC1, the US$300m transaction is unique in that it is 100% secured by healthcare properties.
“The Greystone CRE CLO is the first-ever CRE CLO to be backed entirely by CRE loans secured by healthcare properties,” says Clifford Chance capital markets partner .......
News Analysis 24 October 2018
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Hitting the mark
Pan-European logistics CMBS prepped
Blackstone is in the market with a €292.79m pan-European CMBS secured by 89 logistics and industrial assets. Dubbed Arrow CMBS 2018, the transaction is the first European post-financial crisis CMBS with a large French asset exposure.
The deal, which is expected to repay on or before 22 November 2023, securitises a 95% interest of a €308.2m senior commercial .......
News 23 October 2018
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CLOs in demand
Quarterly SCI data update
Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in both primary and secondary markets. Meanwhile, a bias towards Northern European jurisdictions is evident in capital relief trade volumes.
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News Analysis 23 October 2018
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Market moves update
Company hires and sector developments in structured finance
[b]Acquisition[/b]
[b]Miller[/b] is to acquire the independent London market (re)insurance broker[i], Alston Gayler and Co[/i], currently majority owned by Nelson Holdings Limited. The transaction will bolster Miller’s offering to clients and strengthen its position as a leading London wholesale and specialist broking platform. The transaction is subject to regulatory approval and financial terms were not disclosed.
[b]UK[/b]
Market Moves 23 October 2018
Premium Content
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Latest SCI podcast now live
SCI podcast episode two has been released
SCI’s latest podcast is now live. This month the team discuss the African Development Bank’s Room2Run CRT, how fintech is affecting MPL ABS and the changing use of credit derivatives.
The AfDB’s Room2Run deal, scheduled to close imminently, has shaken up the CRT sector, emphatically underlining that issuers do not have to be European and assets do not have to be .......
News 18 October 2018
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Second wave
Synthetic CRE transactions launched
Santander and NatWest have completed two commercial real estate risk transfer transactions and the market is expecting another CRE deal in 4Q18. This marks the second wave of synthetic CRE transactions, following the first wave last year, with the issuance of three transactions by Santander, Lloyds and Barclays (see SCI’s capital relief trades database). The second synthetic CRE .......
News Analysis 15 October 2018
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Market moves update
OFS equity investment
OFS Credit Company has disclosed that it has invested in the equity tranches of 19 CLOs, 17 of which have a reinvestment period ending in 2022 or beyond, for a total cost of US$43.6m (US$53.4m principal amount). The move follows OFS Credit’s IPO, which closed on 10 October and resulted in net proceeds of US$50m. OFS Capital .......
Market Moves 15 October 2018
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Market moves - 12 October
Company hires and sector developments in structured finance
Cliff edge concerns
ISDA has published a paper highlighting widespread concerns in Europe that the UK may withdraw from the EU without a withdrawal agreement under Article 50 of the Treaty on European Union and without any transition, or implementation period, to allow market participants time to adjust. The paper sets out why a ‘no deal’ scenario has the potential .......
Market Moves 12 October 2018
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Market moves - 5 October
New hires and company developments in the structured finance sector
Europe
Apollo Global Management has named Brigitte Posch md, head of emerging markets in London. She was previously global head of emerging markets corporate credit at Barings Asset Management.
Reed Smith has hired Kevin-Paul Deveau as a partner to its financial industry group in London. Deveau joins from Dechert and will focus on advising lenders, general partners, ......
Market Moves 5 October 2018Premium Content
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Market moves - 28 September
The latest hires and company developments in the structured finance market
Canadian pension partnership
Canada Pension Plan Investment Board (CPPIB) announced today that its wholly-owned subsidiary, CPPIB Credit Investments, is broadening its portfolio through new investments in equity tranches of CLOs alongside experienced CLO asset managers. CPPIB Credit’s initial partnership in CLO equity investing will be with Sound Point Capital Management based in New York. CPPIB Credit will invest US$285mn in a .......
Market Moves 28 September 2018
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US CMBS 'not fixed'
Wave of CMBS litigation may arise from systemic sector problems
US CMBS litigation is currently in the spotlight, with one of the largest ever US fraud investigations looking at a potential conspiracy by employees of Morgan Management (SCI 8 June) to fraudulently obtain US$167.5m of loans, some of which back a number of CMBS transactions. Unfortunately, cases such as these may only become more frequent, with a range of .......
News Analysis 26 September 2018
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Market moves - 21 September
All the latest company developments and new hires in the structured finance sector
Acquisitions
HPS Investment Partners has acquired Tålamod Asset Management. HPS will retain Tålamod's investment team and other employees based in Dallas, while Andersen Fisher, founder and managing member of Tålamod, will join HPS as md. Kyle Mapes and Jay Steen will join HPS as executive directors, after joining Tålamod in 2008. All employees of Tålamod will become HPS employees .......
Market Moves 21 September 2018