Capital Relief Trades

  • Regulatory boost for risk transfer trades

    Balance sheet synthetic securitisation volume is predicted to rise in the coming years, with greater conformity in deal structure and increased variance in reference assets. A more accommodating regulatory environment should help boost the growth and acceptance of the market.

    In terms of the recent finalisation of the STS framework, Robert Bradbury, md, StormHarbour, welcomes the clarification on risk retention. .......

    News Analysis 20 June 2017

  • Risk transfer round-up - 16 June

    One talking point this week was the EBA's announcement at IMN's Global ABS conference of its intention to publish a paper on risk transfer transactions. "This is a very important step," says one issuer.

    He adds: "Despite a surge in risk transfer issuance, many of our clients still have hesitations over these deals, due to regulatory uncertainty over their defining .......

    News 16 June 2017

  • STS could take a year, but optimism prevails

    The implementation of the STS securitisation framework is unlikely to be completed within a year, according to panelists at the recent IMN Global ABS conference. However, speakers on a regulatory panel emphasised that while it may take time to finalise the finer details, optimism is strong that the long-awaited clarity on STS could provide a much needed boost to the .......

    News Analysis 16 June 2017

  • Spanish EFSI deal debuts

    The EIF has closed its second European Fund for Strategic Investments (EFSI) deal, providing BBVA with a €143bn mezzanine guarantee facility. The transaction references a €3bn portfolio of Spanish SME loans and is the first Spanish synthetic securitisation under the Investment Plan for Europe.

    The Investment Plan allows the EIB Group to fund investment projects that - due to their .......

    News 12 June 2017

  • STS strikes investor and issuer balance

    Further details have emerged over the STS securitisation agreement that was finalised this week (SCI 31 May). Most notably, the authorisation process for third parties that support verification and compliance with STS requirements strikes a balance between issuer and investor considerations.

    According to a European Parliament press release, there will be a "light" authorisation process for third parties that support .......

    News Analysis 2 June 2017

  • Risk transfer round-up - 2 June

    Dynamic Credit is prepping another Dutch RMBS originated under the ELAN Woninghypotheken brand. Dubbed DCDML 2007-1, it is being arranged by Goldman Sachs and is expected to launch by end-Q3. The full capital stack DCDML 2016-1 was completed last October (see SCI's primary issuance database), achieving balance sheet relief for the lender.

    .......

    News 2 June 2017

  • MARF listing breaks new ground

    The Mercado Alternativo de Renta Fija (MARF) has admitted a new synthetic securitisation dubbed FT PYMES Magdalena, set up by Banco Santander's securitisation management company, Sociedad Gestora Santander de Titulización SGFT. The move sets a precedent in terms of synthetics being publicly listed and is seen as a test case for the 2015 amendments to Spain's securitisation law.

    Following the .......

    News 1 June 2017

  • Job swaps round-up - 19 May

    CDO manager transfers

    Dock Street Capital Management has replaced Vertical Capital as portfolio advisor to Summer Street 2005-HG1 and Vertical CDO 2003-1. Moody's confirms that the move will not impact the ratings on the ABS CDOs.

    EMEA

    BlueMountain Capital Management has named Louisa Church ceo for Europe. She will also continue in her role as head of client advisory - .......

    Job Swaps 19 May 2017

  • Risk transfer round-up - 19 May

    Sources expect three true sale significant risk transfer trades to be issued by Italian banks this year, with NPLs as the underlying asset. Banca Popolare di Bari is rumoured to be one of them.

    "Given that the senior tranche will be retained under GACS, I would expect a substantial portion of the mezzanine and the junior to be sold," says .......

    News 19 May 2017

  • STS discussions stumble on hierarchy

    The Strasbourg Trilogue discussions on simple, transparent and standardised (STS) securitisation have been postponed until 30 May, due to disagreements between the European Parliament on the one hand and the European Commission and Council on the other over the hierarchy of CRR approaches. However, the European Parliament has made important concessions over risk retention, increasing the likelihood of a final .......

    News Analysis 19 May 2017

  • Risk transfer round-up - 12 May

    Risk transfer activity has rebounded this week, with the EIF's landmark Spanish portfolio guarantee. More activity is expected from the fund in the near future (SCI 12 May).

    At the same time, sources talk of more to come in June, along with a capital relief trade in September or October for a Portuguese bank. The issuer is rumoured to be .......

    News 12 May 2017

  • Landmark portfolio guarantee inked

    The EIF has agreed to guarantee 50% of a €5.52bn Spanish SME credit portfolio originated by nine Spanish banking groups. Dubbed the SME Initiative Uncapped Guarantee Instruments (SIUGI) for Spain, the deal is a bespoke EU-sponsored risk transfer transaction (see SCI's capital relief trades database).

    Under the agreement, the EIF enters into bilateral financial guarantees with each of .......

    News Analysis 12 May 2017

  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that the EIF is planning to tap the market again in two months.

    The fund completed its first EFSI risk transfer transaction last month (SCI 26 April), as part of a programme to stimulate SME lending in Europe. Not much is known about the forthcoming transaction, other .......

    News 5 May 2017

  • Risk transfer round-up - 28 April

    Deutsche Bank closed its CRAFT CLO 2017-1 this week (see SCI's capital relief trades database). The US$371m seven-year notes reference a US$5.3bn corporate loan portfolio and have a three-year call.

    Sources also suggest that Nordea is prepping another risk transfer transaction. The Nordic issuer's last trade was an €8.4bn transaction with PGGM last year (SCI 25 August 2016).

    At .......

    News 28 April 2017

  • First EFSI risk transfer boosts SME lending

    The EIB Group has provided a mezzanine tranche guarantee of around €90m to Commerzbank in connection with the first deal under the European Fund for Strategic Investments (EFSI). Dubbed CoCo III-1, the risk transfer transaction references a €1.5bn portfolio of European corporate loans (see SCI's capital relief trades database).

    The EFSI is the central pillar of the Investment .......

    News 26 April 2017

  • Basel 4 raises Dutch SRT prospects

    Higher capital requirements mooted under Basel 4 are likely to disproportionately affect Dutch banks, given their large mortgage exposures. This is expected to result in a flurry of Dutch capital relief trades.

    One industry source notes that a 90%-100% LTV currently results in a 43% risk weight for standardised banks, but the Basel 4 proposal contemplates increasing it to 55%. .......

    News Analysis 25 April 2017

  • Risk transfer round-up - 21 April

    The EIF returned to the risk transfer market this week, with a €90m mezzanine guarantee for a €1.5bn portfolio of corporate loans originated by Commerzbank. The guarantee aims to spur lending to mainly German SMEs and midcaps by reducing bank capital requirements.

    Elsewhere, sources in the Dutch market suggest that Dynamic Credit is readying another balance sheet relief RMBS, following .......

    News 21 April 2017

  • Tranched cover trades gaining traction

    Tranched cover synthetic securitisation issuance is picking up in Europe, as regulatory capital requirements bite. The advantages of such non-standard structures include their limited ongoing costs, as well as their flexibility and bilateral nature.

    Unlike standard synthetic securitisations where all elements of the transaction are contractually defined (including the size and conditions of all tranches), the structure of a tranched .......

    News Analysis 18 April 2017

  • Risk transfer round-up - 7 April

    Activity in the capital relief trade space appears to be increasing in line with expectations of more issuance, as the revisions to the CRR kick in next year (SCI 5 April). Indeed, volumes are anticipated to pick up this quarter.

    Most recently, Lloyds closed Salisbury II-A Securities 2017, a tap of the Salisbury deal it issued in December (SCI 14 .......

    News 7 April 2017

  • Synthetics to receive an STS designation?

    Momentum is growing for a simple, standardised and transparent (STS) designation for synthetic securitisations at the EU level, driven by the support of the European Commission and the EBA. Such a designation is expected to increase supply and enhance standardisation in the risk transfer market.

    Synthetic securitisations were not initially included in the scope of either the Basel Committee's simple, .......

    News Analysis 5 April 2017

  • Leverage ratio driving off-balance sheet trend

    A number of European banks - including Rabobank and Credit Foncier - are becoming more active in the true sale securitisation format for risk transfer transactions. The move is being driven by the focus on balance sheet reduction, following the introduction of leverage ratio requirements under Basel 3.

    Rabobank's foray into the true sale format follows its debut off-balance sheet .......

    News Analysis 4 April 2017
×