Capital Relief Trades
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Consumer SRT prints
Santander finalises capital relief trade
Santander has priced Santander Consumo Four, its latest full-stack capital relief trade. Backed by a €1.5bn Spanish consumer loan portfolio, the transaction is significant for its size and can only be matched by a German full-stack deal that the lender completed in October 2020 (SCI 29 January).
Rated by DBRS and Moody’s, the transaction consists of €1.26bn .......
News 15 February 2021
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UK industrial CMBS prepped
Sector developments and company hires
UK industrial CMBS prepped
Bank of America is in the market with a £340.1m CMBS sponsored by Blackstone. Dubbed Taurus 2021-1 UK, the transaction is backed by a two-year floating rate loan (with three one-year extension options) secured by the borrower’s interests in 45 industrial assets across the UK totalling 4.1 million square-foot of floor area.The largest asset .......
Market Moves 10 February 2021
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Special situations strategy launched
Sector developments and company hires
Special situations strategy launched
Bardin Hill Investment Partners has announced the final close of the Bardin Hill Opportunistic Credit Fund and a parallel side-car vehicle, with total commitments of approximately US$600m. The firm’s flagship closed-end strategy received backing from new institutional investors globally, as well as from existing Bardin Hill clients.The strategy identifies and executes on stressed, distressed, .......
Market Moves 9 February 2021
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Constructive outlook
Deborah Shire, global head of structured finance at AXA Inve...
Q: What were the drivers behind restructuring the AXA IM business into two key divisions – the Alts unit and the Core unit?
The Structured Credit Interview 9 February 2021
A: The business was restructured in March last year (SCI 11 March 2020), with the objective of developing two strategic businesses and boosting the commercial momentum behind them. The aim was to create a dedicated salesforce .......
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Muskoka called
BMO exercises call option
Bank of Montreal has decided to call a capital relief trade backed by senior secured and senior unsecured US and Canadian corporate loans. Dubbed Muskoka Series 2017-2, the transaction was finalised in 2017 and was first eligible to be called in September 2020.
Capital relief trades often feature time calls, which allow banks to call their trades following .......
News 9 February 2021
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NPL SRT agreement inked
Sector developments and company hires
NPL SRT agreement inked
Hoist Finance has signed a co-operation agreement with Magnetar Capital that provides for new portfolio investments on a pan-European level and will create a framework for future purchases in the current regulatory environment. The aim is to make securitisation an integral part of a sustainable business model for Hoist and strengthen its purchase capabilities.The .......
Market Moves 8 February 2021
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Credit manager merger
Sector developments and company hires
Credit manager merger
Market Moves 3 February 2021
Cairn Capital Group is set to acquire and merge with Bybrook Capital, a specialist distressed credit manager based in London. The merger will create a diversified alternative credit manager with approximately US$8bn in assets under management across public, private, performing and distressed investment opportunities. Through the transaction, Mediobanca will reaffirm its position as a majority shareholder in .......
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Positive prospects
Secondary CRT market gains traction
The coronavirus crisis has increased the prospects for a more active secondary market for capital relief trades. Nevertheless, relatively small clip sizes and a dearth of syndicated transactions means that it will be some time before activity matches last year’s all-time record.
According to investor data, approximately US$1bn notional in CRT paper was traded last year as the .......
News Analysis 28 January 2021
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2021 STACR debut (update)
Freddie Mac prints first CRT trade of 2021 inside guidance
Freddie Mac yesterday priced STACR 2021-DNA1, its first CRT debt markets transaction of 2021, the GSE has informed SCI. The underwriters were Bank of America and Barclays.
The trade consists of four tranches for a final size of $970m. The 208m M-1, rated BBB/BBB+, printed at SOFR plus 65bp, carries a 2% credit enhancement (CE) and a weighted average life (WAL) of .......
News 27 January 2021
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CLO team finds new home
Sector developments and company hires
CLO team finds new home
Fidelity International has established a new private credit capability with experienced hires from AnaCap-owned MeDirect Bank. Concurrently, the firm has been awarded the delegation of management for the €400m Grand Harbour CLO 2019-1 transaction. Fidelity says it will continue to engage with MeDirect to explore further strategic opportunities.The private credit team will continue .......
Market Moves 20 January 2021
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Euro CLO equity yields dip
Sector developments and company hires
Euro CLO equity yields dip
Market Moves 18 January 2021
Annualised equity dividend yields across European CLOs averaged 12.9% in 2020, down from 15.1% in 2019 and below the 15% yearly average for the 2014-2020 2.0 era, according to research from Bank of America. However, the research suggests that in light of the pandemic disruption, the dip was moderate and mainly driven by a drop .......
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Capital boost
Greek banks eye CRTs to tackle NPLs
SCI publishes regular in-depth analysis of trends and developments across the capital relief trades market, in addition to our usual news output. In this latest CRT Premium Content article, we explore how Greek banks are utilising synthetic securitisation to generate capital to offload their non-performing loans.
To upgrade your subscription to access all CRT premium content for a year, .......
News Analysis 14 January 2021
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Landmark Pan-Asian ILS launched
Sector developments and company hires
Landmark Pan-Asian ILS launched
Market Moves 11 January 2021
MS Amlin Underwriting has launched Phoenix 1 Re, the first locally issued ILS to provide capacity to a local cedant, solely focused on the Pan-Asia region. The special purpose reinsurance vehicle (SPRV) is domiciled in Singapore and provides US$42m of collateralised capacity to support MS Amlin Syndicate 2001’s Asia reinsurance portfolio through its Singapore-based underwriting platform.
Phoenix .......
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Canadian CRT in the wings
Canadian bank said to ready CRT
A Canadian bank, rumoured to be Scotia, is working on a new CRT trade, say well-placed market sources.
Timing is uncertain, and it is also not clear if the bank has gone out to investors yet.The asset base is believed to be SME or large corporate loans, but, again, this is surmise at the moment.
Scotia Bank has declined to comment.
There is a .......
News 6 January 2021