Capital Relief Trades
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Regional clamour
Fed approves Truist, Huntington in the market as regionals seek SRT balm
News 22 March 2024
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Motor finance review sparks RWA optimisation
Market updates and sector developments
Close Brothers has unveiled plans to strengthen its capital position by optimising RWAs, including by reducing RWA growth by approximately £1bn through a combination of selective loan book growth, partnerships and significant risk transfer of assets related to its Motor Finance business through securitisations. The move comes amid the UK FCA’s review of the motor finance industry (SCI 6 .......
Market Moves 20 March 2024
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Tale of two markets
SRT Market Update
The outlook for the US SRT market currently appears to be mixed, with some banks reportedly waiting for the outcome of November’s presidential election before completing trades. Across the pond, meanwhile, Santander’s Portuguese subsidiary Totta is understood to be prepping a transaction for Q2.
Sources tell SCI that the Totta deal is likely to reference a granular portfolio .......
SRT Market Update 15 March 2024
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Job swaps weekly: Newmark launches Paris office with raft of senior hires
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Newmark Group appointing two commercial real estate veterans from JLL and CBRE to head up its new Paris office. Elsewhere, Obra Capital has hired an entire team from Pangea Mortgage Capital as part of its launch of Obra Real Estate, while Barclays has named a new head of principal funding and .......
Market Moves 15 March 2024
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Constructive engagement
What it takes to close a debut SRT trade
Completing an SRT transaction from a first-time issuer takes time and resources, but investors are incentivised to participate in such trades for the diversification benefits. Nevertheless, first-time issuers should be prepared to work constructively with investors to ensure a smooth execution.
Kaikobad Kakalia, cio at Chorus Capital, says his firm takes into account both the primary objective of .......
News Analysis 13 March 2024
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Relaunched CMU prioritises securitisation
Market updates and sector developments
The ECB Governing Council has agreed a new roadmap for advancing the Capital Markets Union (CMU), with the aim of making full use of Europe’s capital markets to mobilise the private investment necessary to fund the green and digital transitions, and to enhance the EU’s productivity and competitiveness in a shifting geopolitical landscape. The statement places the .......
Market Moves 12 March 2024
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Growth expectations
Alastair Pickett, co-portfolio manager of Chenavari's risk sharing strategy, answers SCI's questions
Q: As the team prepares to launch a new fund around its risk sharing strategy within the next few months, can you give us some background to SRT at Chenavari?
The Structured Credit Interview 12 March 2024
A: Our risk sharing business sits alongside and is complementary to our private credit investment strategy, through which we cover both portfolio acquisitions and warehouse financing extended to our non-bank .......
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Job swaps weekly: Cadwalader appoints former FDIC deputy general counsel as partner
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Cadwalader appoint an industry veteran as a New-York-based partner. Elsewhere, Willkie Farr & Gallagher has snapped up a Katten Muchin Rosenman partner for its energy transactions and structured finance team, while Paul Hastings has lured a McDermott Will & Emery partner to its real estate team.
Cadwalader has recruited former .......
Market Moves 8 March 2024
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SCI In Conversation Podcast: Ruhi Patil, Dentons
We discuss the hottest topics in securitisation today...
In this special International Women's Day episode of the SCI In Conversation podcast, SCI deputy editor Kenny Wastell speaks to Ruhi Patil, a counsel in Dentons' London office, about gender diversity and inclusion in the structured finance industry. Patil discusses her personal experiences of attitudes towards diversity and inclusion; the roles that allies can play in tackling the challenges; .......
News Analysis 8 March 2024
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Develop, advance and retain
IWD 2024: Inclusion in structured finance
Diversity is a cornerstone of the practice of securitisation, but the same cannot be said for the make-up of securitisation practices worldwide. To mark 2024’s International Women’s Day, Claudia Lewis highlights the need to acknowledge the often-overlooked intersectional challenges many women face on top of those of gender.
The theme of this year’s International Women’s Day celebration, ‘Inspiring .......
News Analysis 8 March 2024
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Latest SRTx fixings released
Index values indicate expectations of rising volatility and...
The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. There has been some incremental tightening in the spread indexes in the large corporate category compared with February’s fixings (SCI 5 February). Volatility indexes have risen, reflecting more volatile conditions in the broader capital markets.
SRTx Spread Indexes have modestly tightened in the .......
News 6 March 2024
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US SRT: Igniting issuance – video
PIMCO's Mark Kruzel speaks to SCI about the changing landscape in the US SRT market
Mark Kruzel, senior vice president for bank capital markets at PIMCO, speaks to SCI's Simon Boughey about the changing landscape in the US SRT market. Kruzel discusses the opportunities for investors working with banks, why the market is taking off now after a number of false starts, what factors are attracting regional US banks to the SRT space, and .......
News Analysis 6 March 2024
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Barclays to hit up risk transfer
UK lender looks to offload risk from US card business
Barclays Bank is to use “selective risk transfer” to reduce an increase in risk weighted assets (RWA) due to a migration of portfolio to an internal risk-based model (IRB) calculation of capital adequacy, the UK bank said in its Q4 earnings report at the end of last month.
News 6 March 2024
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Ares forms equipment financing shop
Market updates and sector developments
Ares Alternative Credit has launched Ansley Park Capital, a newly-formed lending and specialty finance company that delivers full spectrum, customised financing solutions for essential-use, large-ticket equipment. Ansley Park’s management team and integrated operating platform were acquired from BciCapital, the equipment finance business of City National Bank of Florida.
Ansley Park will offer scaled, flexible equipment-based capital solutions ranging .......
Market Moves 5 March 2024
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SRT buyer
Pension fund reputed to snap up US Bank deal
A pension fund has bought the synthetic securitization of US corporate loans from US Bank which was reported to be in the market last week, according to market rumours.
The transaction has a US$2.5bn reference pool of investment grade corporate loans, add sources.
It was reportedly priced at a spread of 5.75%, which has raised a few eyebrows in the market.
This is at .......
News 4 March 2024
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Greater visibility?
SRT Market Update
As the last month of Q1 begins, a number of banks are expected to close SRT trades imminently. Consequently, more clarity is likely to emerge around where spreads are heading.
“Generally, there is not a lot of new information coming out of the SRT market. However, we are definitely getting to the point where trades are starting to price, .......
SRT Market Update 1 March 2024
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It's a CIRT
First CIRT of 2024 for Fannie
Fannie Mae has completed its first CIRT deal of 2024, the GSE announced today (March 1).
The deal, designated CIRT 2024-L1, transferred US$355.6m of single-family mortgage risk to 24 reinsurance firms.
Market Moves 1 March 2024
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CEE momentum
EIB inks pair of green transition deals
The EIB Group this week executed two synthetic securitisations that support the green transition, one in Austria and the other in Bulgaria. The move comes amid a ramping-up of SRT activity in the Central and Eastern Europe region by the EIF (SCI 10 January).
Cyril du Boispean, investment officer at the EIF, confirms that the fund’s investments .......
News 1 March 2024
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US SRT: Unblocking uncertainty – video
Clifford Chance's Gareth Old speaks to SCI about recent developments in the US SRT market
Gareth Old, derivatives- and structured-finance-focused partner at Clifford Chance, speaks to SCI's Simon Boughey about recent developments in the US SRT market. Old discusses the use of the synthetic securitisation framework in bank-issued credit-linked notes, the time frames required for deal submissions and approvals, whether future developments could remove further hurdles to issuance, and more.
....... News Analysis 29 February 2024
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Barclays inks 'strategic' credit card sale
Market updates and sector developments
Barclays Bank Delaware (BBDE) has entered into an agreement with insurance accounts managed by Blackstone’s asset-based finance group to sell approximately US$1.1bn of currently outstanding credit card receivables in relation to a defined set of Barclays-branded credit card accounts in the US. This is the first in a series of activities Barclays plans to conduct to reduce its RWAs .......
Market Moves 28 February 2024