Capital Relief Trades
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Risk transfer round-up - 7 February
CRT sector developments and deal news
Bank of Scotland (BOS) is in the market with Syon Securities 2020, its second UK mortgage SRT (SCI 25 July 2019). The £550m reference portfolio comprises prime owner-occupied loans with LTV ratios in excess of 90% but less than or equal to 95%, originated between September and December 2019. The rated CLNs are exposed to the first 15% of ......
News 7 February 2020Premium Content
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Syon Securities priced
Bank of Scotland engineers return
Bank of Scotland has priced a seven-year financial guarantee that references a £550m portfolio of UK owner-occupied residential mortgage loans. Dubbed Syon Securities 2020, the risk transfer transaction is the bank’s second from the programme following the inaugural SRT last year (SCI 25 July 2019).
Rated by Fitch and KBRA, the transaction consists of £18.75m A-/A rated .......
News 7 February 2020
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Grasshopper up
Landmark green SRT finalised
RBS has completed a landmark capital relief trade referencing a £1.1bn portfolio of UK project finance loans. Dubbed Project Grasshopper, the approximately £78m financial guarantee is the first risk transfer transaction to be backed entirely by green assets and was carried out for both capital relief and credit risk management purposes. Macquarie Infrastructure Debt Investment Solutions, in conjunction with BAE .......
News Analysis 31 January 2020
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BMO SRT inked
Repeat Manitoulin trade completed
Bank of Montreal has completed a capital relief trade referencing US and Canadian senior secured and senior unsecured corporate loans. Dubbed Manitoulin USD Algonquin 2020-1, the five-year financial guarantee is a repeat transaction of another Manitoulin SRT from the same series that was finalised in July 2019.
Rated by DBRS Morningstar, the transaction consists of a triple-A rated class A .......
News 31 January 2020
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Risk transfer round-up - 28 January
CRT sector developments and deal news
Deutsche Bank has completed a capital relief trade from the CRAFT programme. Dubbed CRAFT 2020-1, the US$150m 9.5-year CLN priced at Libor plus 9.5%. The floater is non-callable and has a weighted average life and expected maturity equal to 7.5 years. Deutsche Bank’s last CRAFT transaction was finalised in March 2019 (see SCI’s capital relief trades database).
...... News 28 January 2020Premium Content
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Risk transfer round-up - 27 January
CRT sector developments and deal news
Banco BPM is rumoured to be readying a capital relief trade for this year. The issuer launched its first risk transfer transaction in June 2019, which was carried out with the EIF (see SCI’s capital relief trades database).
...... News 27 January 2020Premium Content
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Risk transfer round-up - 23 January
CRT sector developments and deal news
Caixabank is rumoured to be prepping a consumer SRT for this year. The lender printed its last transaction in May 2019 (see SCI’s capital relief trades database). Dubbed Gaudi Synthetic 3, the €100m financial guarantee was carried out with the EIF.
...... News 23 January 2020Premium Content
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Risk transfer round-up - 22 January
CRT sector developments and deal news
BBVA is rumoured to be readying a capital relief trade for 1Q20. The transaction would be the lender’s fourth ever risk transfer transaction (see SCI’s capital relief trades database).
Dubbed Vela Corporate 2018-1, BBVA’s last capital relief trade was completed in December 2018 (SCI 11 January 2019). All of the bank’s CRTs were carried out with the EIF.
...... News 22 January 2020Premium Content
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CEE SME guarantee increased
Sector developments and company hires
EMEA
Market Moves 21 January 2020
Alvarez & Marsal has launched a European debt advisory practice with the appointment of Tim Metzgen as a London-based md, with the aim of providing clients with independent advice on accessing and managing their interactions with the international debt markets. The new practice - initially comprising a team of five led by Metzgen - will help companies source, negotiate .......
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'No Data' threshold consultation underway
Sector developments and company hires
C-PACE partnership
Eyzenberg & Company and Greenworks Lending have formed Eyzenberg Green Capital, a partnership dedicated to funding commercial real estate transactions through commercial PACE. Eyzenberg Green Capital is a direct balance sheet provider, with significant lending capacity. The aim is to achieve a low cost of capital for C-PACE financing, supported by permanent capital and multiple funding outlets.Market Moves 17 January 2020
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Consumer boost
Santander completes innovative SRTs
Santander has completed two synthetic securitisations of consumer loans. The transactions are the bank’s final consumer SRTs from 2019 and feature a number of innovations.
One of the transactions is a mezzanine trade consisting of a €66m senior mezzanine tranche (10.5%-16.5%) and an €88m junior mezzanine tranche (2.5%-10.5%). Dubbed SC Germany Consumer Synthetic 2019, the financial guarantee references .......
News 16 January 2020
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Hong Kong ABS recommendations released
Sector developments and company hires
Alternative risk transfer
Arthur J Gallagher has increased its interest in Capsicum Reinsurance Brokers from 33% to 100%. Capsicum Re launched in December 2013 through a strategic partnership with Gallagher. There are no management changes as a result of the deal.Gilles Dellaert, former co-president and cio of Global Atlantic, has been appointed global head of Blackstone Insurance Solutions .......
Market Moves 14 January 2020
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Landmark CLN finalised
Santander completes undrawn RCF trade
Santander has completed a €147m CLN that is backed entirely by undrawn corporate and financial institution revolving credit facilities. Dubbed Vespa 2019-1, the transaction is believed to be the first of its kind in the eurozone capital relief trades market.
Undrawn corporate facilities are a typical product that banks have to provide to corporate and financial institution clients, despite the .......
News 10 January 2020
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Leasing guarantee
EFL completes capital relief trade
The EIF and Europejski Fundusz Leasingowy (EFL) have completed a synthetic securitisation of an unusual PLN2.1bn portfolio of Polish leasing assets. The transaction will unlock PLN3.1bn of additional funds for Polish SMEs.
According to Georgi Stoev, head of Northern Europe & CEE, Securitisation at EIF: “It’s the first leasing company from the Polish market that has completed a synthetic securitisation, so .......
News 9 January 2020
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CQS SRT finalised
Unusual reference pool securitised
An unusual significant risk transfer transaction referencing a €1.78bn static portfolio of Italian payroll-deductible (CQS) loans has closed. The synthetic securitisation – dubbed Amalia SPV – was originated by BNL Finance, which is among the most experienced CQS loan originators in Italy, with a track record of above-average performance for its loan book.
CQS loans are collateralised by the obligor’s .......
News 24 December 2019
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MNHD plans programmatic issuance
Sector developments and company hires
Egyptian securitisation debuts
Market Moves 23 December 2019
Egyptian real estate developer Madinet Nasr Housing and Development (MNHD) has closed its inaugural securitisation, issued by Financial Group for Securitization Company (FGS). The transaction is backed by an EGP370m receivables portfolio originated as part of the company's plan to monetise receivables from delivered units in the Primera, Tag Sultan and Waha projects. The three tranches of the .......
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Nordic SRT inked
Nordea returns with capital relief trade
Nordea has priced a €5.1bn synthetic securitisation of Nordic corporate and SME loans. Dubbed Matador, the funded financial guarantee is the issuer’s first capital relief trade following the bank’s entry into the EU’s banking union in October 2018.
According to Mark Kandborg, head of group treasury and ALM at Nordea: “We priced the transaction and freed up capital at an .......
News 20 December 2019
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SCI's latest podcast is now live!
The editorial team discuss key issues in securitisation today...
In this episode of the SCI podcast, Mark Pelham and Corinne Smith discuss our new research report on standardised banks' capital relief trades and where European securitisation investors are looking to find relative value in the year ahead.
This podcast and previous episodes can be accessed via the SCI site, online here as well as wherever you usually get .......
News 19 December 2019
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Risk participation programme agreed
Sector developments and company hires
CLO vulnerabilities eyed
Market Moves 19 December 2019
The Financial Stability Board has published a report assessing the financial stability implications of developments in the global leveraged loan and CLO markets. Based on a combination of available data and analyses from FSB members, the report concludes that vulnerabilities in the sector have grown since the financial crisis. Specifically, it notes that: borrower leverage has increased; changes .......
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UK auto SRT finalised
Santander completes retained first-loss deal
Santander has completed a synthetic securitisation of UK auto loans. Dubbed Motor Securities 2018-1, the financial guarantee is the lender’s first UK synthetic securitisation that features a retained first-loss tranche.
According to Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and Investment Banking: “The transaction doesn’t feature any excess spread, so the only .......
News 18 December 2019
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Economic efficiency
Standardised bank SRT pros, cons weighed
Various factors should be considered when contemplating whether to execute a significant risk transfer transaction, especially from a standardised bank perspective. The key is to choose the most economically efficient portfolio and the rest is optimisation, according to SCI’s inaugural CRT Research Report.
Steve Gandy, md and head of private debt mobilisation, notes and structuring at Santander Corporate and .......
News Analysis 16 December 2019