Capital Relief Trades
-
Custom-built capital relief
Customers Bank perhaps side-steps regulators with true sale deal
The unusual regulatory capital relief trade closed by Customers Bank on September 30 is likely to have achieved de-recognition of the assets, meaning that it did not require approval from the New York Federal Reserve Bank, surmise well-placed sources.
Under the terms of the transaction, Pennsylvania-based Customers Bank sold a $500m portfolio of unsecured customer loans to a large asset manager. .......
News 12 October 2022
-
-
Regional bank CRT pipeline builds
New SCI Global Risk Transfer Report published
A couple more US regional bank capital relief trades are in the pipeline for late 2022 or early 2023, according to SCI’s new Global Risk Transfer Report. In terms of reference pools, a current area of focus is relatively high-quality assets that have a good credit story and are available in some depth.
“I can think of .......
News 12 October 2022
-
-
-
-
-
-
Wide Arch
Pricing wider and more reinsurance in latest Arch MILN
The pricing was wider than Arch anticipated in its recent Bellemeade Re 2022-02, says the borrower.
Levels across CRT capital markets products have been sharply higher since the spring due to a host of economic and geopolitical factors, and this was certainly reflected in this trade - which was Arch’s first in the mortgage insurance-linked note (MILN) sector since January.
The $52.86m .......
News 5 October 2022
-
SCI In Conversation podcast is now live!
We discuss the hottest topics in securitisation today...
In this inaugural episode of the SCI In Conversation podcast, Angela Sharda chats to KBRA European research head Gordon Kerr about a European securitisation investor survey the rating agency undertook in June and the implications of the findings today. We also discuss a couple of new SCI Premium Content articles, one of which tracks the evolution of the STS synthetic .......
News 30 September 2022
-
-
New BMO CRT asset
BMO brings capital call facility CRT
Bank of Montreal (BMO) has added capital call facilities to its broad CRT effort in a new deal which closed yesterday (September 29), say sources close to the issue.
The new trade is dubbed Killarney Series 1, and is worth $100m of party-paid floating rate notes, they add.
It is issued through Manitoulin - BMO’s SPV designed for CRT issuance.
The tranche thickness and .......
News 29 September 2022
-
-
Golden Arch
Arch sells second MILN of 2022 at wide prints
Arch has printed Bellemeade Re 2022-02, worth $201m, its second mortgage insurance-linked note (MILN) of the year.
This is only the fourth deal in this sector in 2022 as wider spreads have deterred issuers. Essent priced Radnor 2022-01 earlier this month, but that was the first MILN seen since April.
Bellemeade 2022-01 is noticeably on the small size - indeed it is .......
News 26 September 2022
-
'Specialist-squared' solution?
Renewable energy SRT challenges addressed
Banks are expected to substantially grow their lending in the renewable energy sector, driven by ambitious net-zero programmes and government efforts to meet climate targets, heightened further by recent geopolitical tensions. Risk-sharing transactions can play an important role in allowing banks to manage both regulatory capital and risk limit constraints as lending books grow, while retaining the assets on .......
News Analysis 26 September 2022
-
Legitimate questions
STS synthetics adoption discussed
The adoption of STS synthetic securitisation has helped legitimise the capital relief trades market. However, this Premium Content article outlines how the EBA’s most recent consultations could prove challenging.
STS synthetic securitisation issuance has soared since the execution of the first transaction in June 2021, adding momentum to this year’s capital relief trade deal flow, further legitimising ......
News Analysis 22 September 2022Premium Content
-
-
-
Singular CRT
One-off entry into CRT from PacWest
Pacific Western Bank (PWB), a $41bn Beverly Hills, California-based lender wholly owned by PacWest Bancorp, has become the third US regional bank to venture into the CRT market.
It is reported to be in the market with a four-tranche CLN designated PWB 2021-01, which securitizes residential mortgage assets and is set to close this week.
The forerunners in the US regional bank CRT market .......
News 20 September 2022
-
-
STACR six priced
Sixth low-LTV STACR of 2022 priced
Freddie Mac priced STACR 2002-DNA6, its sixth low LTV STACR of the year, on Friday (September 16) afternoon. The GSE was reported to be in the market last week.
The bookrunners were Bank of America and Morgan Stanley, while the co-managers were Amherst Pierpoint, Cantor, Citigroup and StoneX.
The offering consists of three investment grade tranches - a $388m M1-A priced to .......
News 19 September 2022