Capital Relief Trades
-
-
Regionals roughed up
US tier one banks set for new dawn in SRT market while regionals suffer
As US regional banks have been battered in recent days, the SRT market for larger institutions might be looking up.
Indeed, suggest sources, JP Morgan Chase is poised to issue a smallish SRT trade to test out the waters. Sources add that US regulators are seemingly about to adapt a more beneficent attitude towards the mechanism than has been the case for .......
News Analysis 22 March 2023
-
AlbaCore, FSI strategic partnership inked
Sector developments and company hires
AlbaCore, FSI strategic partnership inked
Australian asset manager First Sentier Investors (FSI) has acquired a majority stake in UK-headquartered private debt firm AlbaCore Capital Group. The move is intended to diversify FSI’s portfolio across new asset classes and geographies. Completion of the strategic partnership is targeted for 3Q23, pending regulatory approvals.The deal is the latest in a trend .......
Market Moves 21 March 2023
-
-
-
-
ACC servicing transferred post default
Sector developments and company hires
ACC servicing transferred post default
Market Moves 16 March 2023
RAC Asset Holdings – the transferor and undivided trust interest beneficiary of the collateral underlying the ACC Trust 2019-2, ACC Trust 2021-1 and ACC Trust 2022-1 auto ABS (SCI 8 March) – has filed for Chapter 7 bankruptcy in the US Bankruptcy Court for the District of Delaware. The servicer for the securitisations, RAC .......
-
-
Regional bank CLNs on watch amid SVB fallout
Sector developments and company hires
Regional bank CLNs on watch amid SVB fallout
Market Moves 15 March 2023
KBRA has placed on watch developing 78 ratings from three CLN transactions issued by Western Alliance Bank (WAB) and one issued by Pacific Western Bank (PWB), following the rating agency’s placement of each institution’s senior unsecured rating on watch developing. The move comes amid a period of stress for WAB and PWB, .......
-
-
ICE merger challenged on 'competitive harm'
Sector developments and company hires
ICE merger challenged on ‘competitive harm’
The US FTC is seeking to block the proposed merger between Intercontinental Exchange (ICE) and its top competitor, Black Knight (SCI 5 May 2022). The regulator claims that the merger would drive up costs, reduce innovation and reduce lenders’ choices for tools necessary to generate and service mortgages.ICE owns the dominant .......
Market Moves 10 March 2023
-
-
-
No good news
Powell's testimony suggests higher cap requirements not ruled out
There was little good news for financial markets during the first of Chairman Powell’s two day testimony before the Senate Finance Committee (March 6 and 7), but US banks will have been particularly perturbed to learn that additional capital requirements may be forthcoming.
Powell did not distance himself from the comments made last December by Vice Chair for Supervision Michael Barr to .......
News 7 March 2023
-
'Conflict of interest' undermines CRT
Lawyers ring alarm bells about possible impact of SEC ruling on CRT market
The US regulatory capital relief trade market appears in grave danger from the controversial “conflict of interest” re-proposal and release made by the Securities and Exchange Commission (SEC) at the end of January, say lawyers.
The language in the proposing release “raises significant concerns” about whether SPE CRT deals are classified as “conflicted transactions” under the rules, says Mayer Brown in .......
News 6 March 2023
-
Banks seek CRT clarity
"Reservation of authority" at heart of regulator distaste for CRT, say sources
A top tier US bank has requested a non-objection letter from the Federal Reserve Bank of New York to clarify its attitude to regulatory capital relief trades and the 60-day period allowed for a reply is due to expire in the next few weeks, say well-placed industry sources.
The identity of the bank is not known but it is thought to be .......
News 4 March 2023
-
SRTx inaugural fixings released
Index values project worsening conditions for CRTs
The inaugural fixings for the SRTx (Significant Risk Transfer Index) have been released. The index values suggest that pricing volatility is rising and credit risk is worsening for US capital relief trades at a higher level than for European CRTs.
Overall, both pricing volatility and SRT execution conditions are shown to be skewing higher for SME transactions in .......
News 3 March 2023
-
Back to STACR
Freddie targets 70/30 bonds versus reinsurance split as supply drops
Freddie Mac expects to issue between $4.5bn and $6.5bn in the CRT space in 2023, and it targets a 70/30 split between the capital markets and the reinsurance market, says a spokesman for the GSE at the SFA conference in Las Vegas today (February 28).
This is around a third of the supply seen in 2022, which was a record year.
A 70/30 .......
News 1 March 2023
-
-
Balance sheet optimization continues
Piraeus Bank discloses synthetic securitisation
News 27 February 2023
-