Capital Relief Trades
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CLO heavyweight to lead combined platform
Sector developments and company hires
CLO heavyweight to lead combined platform
Sound Point Capital Management has appointed Gunther Stein as head and cio of its US performing credit and CLO platform. The move follows Sound Point’s recently announced agreement to acquire Assured Investment Management, the institutional asset management business of Assured Guaranty that was formerly known as BlueMountain Capital Management (SCI 6 April).Market Moves 19 May 2023
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Unfinished business
ESMA review offers opportunity to increase ABS transparency
NPL Markets, the loan trading and analytics platform, has called for increased data transparency in the European private securitisation market, despite resistance from some market participants. The development comes as ESMA conducts its review of mandatory investor disclosure templates in response to a request from the European Commission last year (SCI 15 November 2022).
“Transparency is paramount,” .......
News Analysis 17 May 2023
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Capital squeeze
Greater capital requirements for regionals highlights case for CRT
More stringent regulatory oversight of US banks is likely to make careful capital management even more relevant, consequently highlighting the virtues of the CRT market, suggest sources.
The recent bank crisis, which has seen the collapse of Silicon Valley Bank, Signature Bank and First Republic, has thrown the spotlight on the relatively light touch regulation and easier capital requirements that smaller regionals .......
News 16 May 2023
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AG acquisition creates credit powerhouse
Sector developments and company hires
AG acquisition creates credit powerhouse
Market Moves 16 May 2023
TPG is set to acquire Angelo Gordon in a cash and equity transaction valued at approximately US$2.7bn, based on TPG’s share price as of 12 May, including an estimated US$970m in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG. The transaction also includes an .......
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TD cancels CRT, say sources
Collapse of First Horizon merger cancels planned reg cap trade
The collapse of the merger between First Horizon and Toronto Dominion Bank (TD) has meant a planned CRT trade by the Canadian bank has been shelved, say sources.
TD had intended to execute a synthetic securitization of large corporate loans in June to free up capital as it took the Memphis, Tennessee-based First Horizon under its wing in a $13bn deal, but .......
News 11 May 2023
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Go Go SRT
More supply, and US banks to join the party, say conference speakers
While 2022 was a record year in the global SRT market, with $20bn of issuance and some $140bn of assets referenced, 2023 will be even bigger, said speakers at the IMN Credit Risk Transfer conference in New York this week.
Though the jury is still out on whether the US will join the issuance bonanza, there is increasing optimism .......
News 5 May 2023
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Latest SRTx fixings released
Index values indicate widening spreads but volatility and liquidity outlooks trend towards neutral
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. The most significant changes in the index values since April’s fixings (SCI 5 April) are that – against a backdrop of global bank volatility – spreads have continued to widen across all segments, though volatility and liquidity indexes have trended towards more neutral levels.
News 3 May 2023
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LendInvest expands financing syndicate
Sector developments and company hires
LendInvest expands financing syndicate
Wells Fargo has joined LendInvest’s £200m financing syndicate with NAB to support the continued growth of the lender’s buy-to-let proposition. Wells Fargo joins a growing roster of global financial institutions choosing to support LendInvest's mortgage products, including banks such as Lloyds, JPMorgan, HSBC, Barclays and Citi.Established five years ago, LendInvest was the first fintech .......
Market Moves 28 April 2023
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The iceman cometh?
Signs of a thaw emerging in US CRT
The recent Merchants Bank of Indiana deal could herald a thaw in the US capital relief trades market, as this Premium Content article outlines.
While the European significant risk transfer market has enjoyed two successive record-breaking years of issuance, the US market has been in a new ice age. While there has been the occasional deal from ......
News Analysis 27 April 2023Premium Content
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SES RTS a 'sensible result'
Sector developments and company hires
SES RTS a ‘sensible result’
The EBA has published its final draft RTS specifying the determination by originator institutions of the exposure value of synthetic excess spread (SES). These draft RTS clarify the calculation of the components that should be included in this exposure value, taking into account the relevant losses expected to be covered by SES.The components .......
Market Moves 26 April 2023
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ACC ratings on watch downgrade
Sector developments and company hires
ACC ratings on watch downgrade
Market Moves 24 April 2023
KBRA has revised five ACC watch developing placements to watch downgrade, following notification by Wilmington Trust - the trustee for three American Car Center (ACC) Trust securitisations - that collections for payment to the ABS noteholders were not received on the 20 April payment date from the servicer, Westlake Portfolio Management (WPM). However, on 21 .......
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RFC issued on synthetic STS criteria
Sector developments and company hires
RFC issued on synthetic STS criteria
The EBA has launched a public consultation on its draft guidelines on the criteria related to simplicity, standardisation and transparency and additional specific criteria for on-balance sheet securitisations. The aim is to ensure a harmonised interpretation of STS criteria, in alignment with the EBA guidelines for traditional securitisations.With the introduction of STS .......
Market Moves 21 April 2023
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