Capital Relief Trades

  • AXA boosts risk transfer foothold

    AXA IM's structured finance unit raised over €1bn in total commitments for the AXA IM Partner Capital Solutions VII fund at the end of September, following its launch in July 2017. The capital was raised from repeat and new clients and is the largest amount that AXA IM has raised for capital relief trades, reflecting an increased asset management foothold .......

    News Analysis 10 November 2017

  • Risk transfer round-up - 3 November

    Two US public pension funds in Arizona and Pennsylvania are rumoured to have completed a capital relief trade each, although the exact identity of the funds could not be confirmed. According to one industry insider: "The risk transfer market is private, so the details of the transactions are sketchy. However, if I am hearing of these deals, I suspect there .......

    News 3 November 2017

  • Balance sheet optimisation continues

    Rabobank has transferred part of the risk on a €3bn commercial credit portfolio to pension fund Pensioenfonds Zorg en Welzijn (PFZW). The synthetic securitisation forms part of the lender's efforts to optimise its balance sheet and follows the disposal of a €600m mortgage portfolio to La Banque Postale (SCI 27 October).

    Bas Brouwers, Rabobank cfo, confirms: "This transaction is part .......

    News Analysis 3 November 2017

  • Using insurance to lay off risk

    Alan Ball and Fiona Walden, senior underwriters leading the structured risk solutions team at Liberty Specialty Markets, answer SCI's questions

    Q: How did Liberty Specialty Markets become involved in providing capital relief-driven transactions?
    A:     We're one of the leading insurers operating in the London insurance market, providing both specialty insurance and reinsurance. Our structured risk solutions team was set up just .......

    The Structured Credit Interview 2 November 2017

  • Risk transfer round-up - 27 October

    Rabobank has sold a €600m portfolio of 3,600 loans that it originated. The loans all have the benefit of an NHG guarantee, backed by De Stichting Waarborgfonds Eigen Woningen (WEW).

    WEW is a foundation that acts as a home ownership guarantee fund backing the NHG programme. The transaction is Rabobank's first Dutch mortgage portfolio distributed to non-Dutch investors.

    Sources note .......

    News 27 October 2017

  • Proportionality for capital floors?

    The general secretary of the Basel Committee has confirmed that the "finish line is in sight" for the Basel 4 reforms, although his statement fell short of confirming any concrete compromise on capital floors. The statement could be taken as confirmation of a finalisation, given growing momentum at the EU level for more proportionality in regulation.

    William Coen, general secretary .......

    News Analysis 23 October 2017

  • Risk transfer round-up - 20 October

    Rumours abound of new capital relief trades being prepped. One source suggests that ING is readying a bilateral Dutch SME transaction with PGGM as the investor. Another indicates that Credit Suisse is arranging a trade for Austrian lender Raiffeisen.

    Meanwhile, a Barclays significant risk transfer deal has reportedly been delayed until early November. The transaction was due to be completed .......

    News 20 October 2017

  • CRT outlook bullish

    Optimism prevailed at SCI's recent Capital Relief Trades Seminar, where panellists were bullish on the future of the risk transfer market. While capital relief trade activity has slowed this year compared to last, speakers concurred that issuance will grow in 2018, with a greater number of issuers and asset classes emerging.

    Kaikobad Kakalia, cio, Chorus Capital Management, said: "Towards the .......

    Talking Point 16 October 2017

  • Risk transfer round-up - 13 October

    Risk transfer activity continues, with Lloyds reportedly readying a transaction for Q4. Sources also suggest that Mizuho and Lloyds are arranging a transaction for an Irish bank. Meanwhile, Caplantic is said to be prepping a shipping SRT and is targeting a 30 November deadline.

    .......

    News 13 October 2017

  • Specialised financing vehicles introduced

    The latest reform of the French finance sector introduces a new category of financing vehicle that is expected to benefit both classic securitisation and risk transfer structures. The reform - the first phase of which is due to be finalised in January 2018 - also expands the legal tools available to French banks for refinancing their loan exposures.

    The reform .......

    News 11 October 2017

  • Risk transfer round-up - 6 October

    Barclays has completed another DBRS-rated capital relief trade, dubbed Colonnade Global 2017-1 Financial Guarantee (see SCI's capital relief trades database). Similar to the bank's previous Colonnade Global 2017-3, the credit protection covers both principal and accrued interest (SCI 8 September).

    Barclays bought protection under a similar financial guarantee for the first-loss piece, but has not yet executed the .......

    News 6 October 2017

  • Risk transfer round up - 29 September

    The focus of this past week has been the EBA's SRT discussion paper. Regulators and market participants expect it and the resulting guidance to standardise structural features and boost deal flow in the market (SCI 28 September).

    The paper comes at a time of a flurry of transactions in Q4. Among these, sources mention a Banca IMI-arranged transaction for UBI .......

    News 29 September 2017

  • Standardisation to bridge synthetic STS gap?

    The EBA's recent discussion paper on significant risk transfer (SRT) outlines the common structural features of risk transfer transactions in an attempt to harmonise their regulation and supervision (SCI 20 September). The move ultimately may bring the CRR regulation closer to extending the STS label to synthetic securitisations.

    The EBA's proposals are informed by the new European securitisation framework and .......

    News Analysis 28 September 2017

  • Risk transfer round-up - 22 September

    A Barclays significant risk transfer deal planned for mid-September has reportedly been delayed until mid-October. The new transaction follows the issuer's recent third Colonnade Global capital relief trade (SCI 8 September). The bank is also said to be planning corporate and mortgage SRT transactions for 2018.

    .......

    News 22 September 2017

  • EBA releases SRT discussion paper

    The EBA has released its significant risk transfer (SRT) discussion paper, the main elements of which were outlined last month (SCI 18 August), and has launched a public consultation on its contents. The banking watchdog wishes to further harmonise the regulation and supervision of risk transfer through securitisation.

    SRT in securitisations allows originators to achieve regulatory capital relief. The EBA's .......

    News 20 September 2017

  • Third Colonnade global completed

    Barclays has closed its third Colonnade global significant risk transfer trade (SRT), Colonnade Global 2017-3 Financial Guarantee. In unusual fashion for capital relief trades the credit protection covers both principal and accrued interest.

    The SRT transaction is a US$140m CLN that references a US$1.6bn corporate loan portfolio from thirty countries across the globe.

    Rated by DBRS the deal comprises US$1.3bn .......

    News Analysis 8 September 2017

  • Risk transfer round-up - 1 September

    As expected, August was a quiet month for capital relief trade issuances. But market sources continue to expect activity to significantly pick up in Q4.

    Among the transactions anticipated next quarter are two commercial real estate deals in Germany and a significant risk transfer trade between a British bank and Ares Management. Regarding Q4 activity overall, one source states: "It .......

    News 1 September 2017

  • Risk transfer framework outlined

    Outlines of the main elements of the EBA's risk transfer discussion paper - due to be released next month - have been revealed. The recommendations will focus on the main structural features of risk transfer transactions and may at a later stage result in regulatory changes. It remains unclear whether the consultation will result in final technical advice, however.

    The .......

    News 18 August 2017

  • Risk transfer round-up - 4 August

    Capital relief trade players are expecting a quiet August, before the flurry of activity that will define Q4. Nevertheless, rumours are circulating that a regulatory call might be executed on a transaction that HSBC closed last year. This follows the Cooperative Bank's regulatory call of its Calico Finance capital relief trade issued in 2013 (SCI 1 August).

    .......

    News 4 August 2017

  • Regulatory call exercised for Calico

    The Co-operative Bank last week announced a regulatory call of its Calico Finance Number One capital relief trade. The call was executed, after UK PRA approval, as part of the bank's plans to improve its capital position.

    The Co-operative Bank received confirmation from the PRA that the Calico transaction no longer achieves significant risk transfer (SRT) to third parties within .......

    News Analysis 1 August 2017

  • Risk transfer round-up - 28 July

    Delay has been the theme in the capital relief trades market this week.

    Nordea has begun marketing its delayed corporate risk transfer deal, which appears to have had a positive reception from investors. "Given the size of the deal and the way it was welcomed by the market, I wouldn't be surprised if it is completed by year-end or early .......

    News 28 July 2017
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