NPLs

  • CLOs retain top ranking

    Quarterly SCI data update

    CLOs remained the top asset class in terms of deal count for European and US new issuance in 4Q18, according to SCI data - although the numbers are down on those posted in Q3 (SCI 23 October 2018), reflecting market volatility in the final quarter of the year. In contrast, CLO BWIC volumes rose in both regions.

    .......

    News Analysis 24 January 2019

  • Innovative ILS transaction launched

    Sector developments and company hires

    Auto ILS closed

    AlphaCat Managers has securitised a non-standard passenger auto insurance portfolio. “This innovative transaction creates new ILS market opportunities in securitizing broader classes of insurance risk. We look forward to working with more MGAs and insurers. "The bilateral transaction comprises a private placement of two tranches of notes: a US$6.67m senior note and a US$3.33m junior .......

    Market Moves 18 January 2019

  • Fintech deal completed

    Cerberus and Debitos close NPL transaction

    Cerberus has acquired a €2.1bn portfolio of Italian unsecured non-performing loans via online auction platform Debitos. The move is believed to be the largest NPL transaction undertaken in the fintech sector.

    The purchase price of the portfolio could not be disclosed, although Italian unsecured NPLs typically price at 5%-15% of face value. Ernst & Young Italy executed the .......

    News 17 January 2019

  • SCI Start the Week - 7 January

    A review of securitisation activity over the past seven days

    Transaction of the week

    Santander has launched an unusual synthetic securitisation of auto loans, dubbed Santander Consumer Spain Synthetic Auto 2018-1. The transaction comprises a €60.6m twelve-year CLN that references a €1.01bn portfolio of Spanish auto loans paying Euribor plus 8.90%.

    Synthetic securitisations of granular, consumer portfolios are uncommon, as the structures are typically used for concentrated, non-granular portfolios. This .......

    News 7 January 2019

  • Banca Carige placed into temporary administration

    NPL disposals 'could be accelerated'

    Banca Carige has been placed into temporary administration by the European Central Bank (ECB) following the resignation of the majority of Banca Carige’s board members. The decision is unlikely to negatively impact Banca Carige’s non-performing loan (NPL) securitisation programme and could actually expedite its NPL disposal plans.

    The ECB states that, following the board member resignations, it became necessary to .......

    News Analysis 4 January 2019

  • Restructuring milestone

    Greek NPL transaction arranged

    Pillarstone has arranged a €174m restructuring in Greece for Famar, one of Europe’s largest providers of contract manufacturing and development services to the pharmaceutical and health and beauty industries. The agreement is considered a landmark, given that restructurings are an exceptional occurrence in the Greek non-performing loan market.

    According John Davison, ceo at Pillarstone: “Famar has made substantial .......

    News Analysis 14 December 2018

  • JV trend continues

    Landmark NPL transactions agreed

    Banco BPM announced this week a non-performing loan securitisation with Elliott International and Credito Fondiario for a nominal value of €7bn-€7.8bn, while Intesa Sanpaolo and Intrum completed a similar transaction last week. The agreements involve the sale and co-ownership of servicing platforms, which is part of a broader trend in Italian NPL disposals.

    According to Massimo Famularo, board .......

    News Analysis 14 December 2018

  • Bid scarcity

    European ABS market update

    A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to widen in the CLO and ABS primary markets.

    “We are running a few private processes, which are keeping us busy, and we will hopefully conclude them over the next couple of days,” says a trader.

    The trader comments that .......

    Market Reports 7 December 2018

  • Split-mortgages securitised

    PTSB completes second NPL transaction

    Permanent TSB last week completed its second major transaction to reduce its non-performing loan ratio. The bank disposed of Irish mortgage loans with a €1.31bn GBV (€910m NBV) linked to 6,272 borrowing relationships via the Glenbeigh Securities 2018-1 RMBS.

    The majority of the borrowing relationships are secured by private dwelling home loans, with 133 secured by buy-to-let loans. ......

    News 5 December 2018

  • ESAs suggest 'proportion'

    Sector developments and company hires

    Aussie securitisation fund

    The Australian government has introduced a A$2bn Australian Business Securitisation Fund, which will provide significant additional funding to smaller banks and non-bank lenders to on-lend to small businesses on more competitive terms. The fund will be administered by the Australian Office of Financial Management (AOFM), consistent with its prior involvement in the RMBS market in .......

    Market Moves 3 December 2018

  • Tax credits eyed

    Second Greek NPL ABS proposal unveiled

    The Bank of Greece has unveiled a securitisation scheme backed by its deferred tax credits (DTCs) that aims to reduce the country’s large non-performing loan stockpile. The plan is seen as a positive development, with any move to introduce a government guarantee on the senior tranches expected to raise the prospects of its success.

    The proposed scheme envisages .......

    News Analysis 27 November 2018

  • CRT tranche downgraded

    Sector developments and company hires

    Acquisitions

    Spruce Finance has been acquired by HPS Investment Partners. Spruce will be headquartered in Houston and maintain its executive and M&A offices in San Francisco. Christian Fong has joined the company as president and ceo after holding a position as co-chairman of the board of directors since early 2017. The transaction took place through Spruce Holdings, a .......

    Market Moves 21 November 2018

  • Tougher approach

    KNF stance puts Polish securitisation on hold

    The future of securitisation and closed-end securitisation funds in Poland remains uncertain, following the Polish financial supervisory authority’s (KNF) approximately PLN6.4m (€1.49m) fine against Raiffeisen Polska in September. KNF fined the Austrian bank over its alleged failure in safeguarding securitisation fund assets as a depository bank in securitisation transactions, citing an incomplete register and lack of awareness over the .......

    News Analysis 21 November 2018

  • NPL transaction markets

    Sector developments and company hires in structured finance

    NPL deal markets

    Banco Santander Totta is in the market with Hefesto STC (Guincho), a €98m securitisation backed by a €481m portfolio, by gross book value (GBV), of Portuguese non-performing residential, commercial and unsecured loans originated by Banco Santander Totta. DBRS and Scope have assigned provisional ratings, respectively, of triple-B (low)/triple-B minus to the €84m class A notes and triple-C/single-B minus to the €14m ......

    Market Moves 13 November 2018

    Premium Content

  • Resolution framework

    EBRD expands Greek NPL foothold

    The EBRD is boosting its foothold in the Greek non-performing loan market with co-investments in Piraeus Bank and Alpha Bank. The transactions are the first to be carried out under the bank’s NPL resolution framework.

    The EBRD’s first transaction under its NPL resolution framework was a €25m co-investment in Alpha Bank. The EBRD invested alongside Waterfall Asset Management .......

    News Analysis 8 November 2018

  • CLOs in demand

    Quarterly SCI data update

    Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in both primary and secondary markets. Meanwhile, a bias towards Northern European jurisdictions is evident in capital relief trade volumes.

    .......

    News Analysis 23 October 2018

  • Performance blueprint

    Positive predictions for NPL securitisations

    Northern Italian non-performing loan portfolios are performing better than Southern Italian portfolios, and Irish transactions are also outperforming assumptions. There are 11 transactions currently in the European NPL pipeline, most of which are Italian.

    “At the moment, the majority of the transactions are outperforming DBRS plan assumptions,” says Alessio Pignataro, svp at DBRS. “However, it is early in .......

    Talking Point 19 October 2018

  • Market moves update

    Company hires and sector developments in structured finance

    Alternatives alliance
    DWS Group and Tikehau Capital have entered into an alliance, following Tikehau’s participation in the IPO of DWS in March 2018. Under the agreement, DWS and Tikehau intend to launch a joint product leveraging the two companies’ alternative asset management expertise and platforms, which is expected to launch in 2019. The partners intend to cross-invest in respective funds, with .......

    Market Moves 18 October 2018

  • Greek GACS?

    Greek government considering asset protection scheme

    The Greek government is considering the creation of an asset protection scheme as part of the state’s non-performing loan reduction strategy. The scheme will involve state guarantees on bonds issued by SPVs, rendering it similar to the Italian GACS guarantee.

    Market sources note that the proposed Greek scheme can only work if the guarantee covers both the senior .......

    News Analysis 12 October 2018

  • Market moves - 28 September

    The latest hires and company developments in the structured finance market

    Canadian pension partnership

    Canada Pension Plan Investment Board (CPPIB) announced today that its wholly-owned subsidiary, CPPIB Credit Investments, is broadening its portfolio through new investments in equity tranches of CLOs alongside experienced CLO asset managers. CPPIB Credit’s initial partnership in CLO equity investing will be with Sound Point Capital Management based in New York. CPPIB Credit will invest US$285mn in a .......

    Market Moves 28 September 2018

  • GACS expansion?

    UTP extension questioned

    The recent extension of the GACS guarantee scheme is expected to further fuel Italian non-performing loan securitisation issuance (SCI 5 September). However, the programme is unlikely to be expanded to cover unlikely-to-pay (UTP) loans, due to political constraints.

    Following the European Commission’s approval of the GACS extension, Scope reaffirmed its forecast of a total disposal of Italian .......

    News Analysis 21 September 2018
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