NPLs
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Eviction limitations extended
New law poses risk for Spanish asset quality
Royal Decree-Law 37/2020, introduced last month by the Spanish government, extends the limitations on evictions of vulnerable residential tenants until May 2021. The regulations are expected to negatively impact RMBS and non-performing loan ABS performance by prolonging the time lag until property repossession, as well as reducing the incentive for private-sector investment in Spanish residential real estate and adversely .......
News 19 January 2021
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illimity inks NPL ABS duo
Sector developments and company hires
illimity inks NPL ABS duo
Market Moves 15 January 2021
illimity Bank has finalised two non-performing loan transactions, including the sale to Phinance Partners and SOREC involving a €129m GBV portfolio related to around 4,500 debtors. The portfolio consists of unsecured loans related to granular mainly retail exposures that were acquired by illimity during 2019 as part of an investment transaction in a large portfolio .......
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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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Romanian NPE deal sealed
Sector developments and company hires
Romanian NPE deal sealed
National Bank of Greece (NBG) has entered into an agreement with Bain Capital Credit for the disposal of a Romanian-risk corporate non-performing loan portfolio. Dubbed Project Danube, the transaction has a total GBV of circa €174m (€102m of allocated collateral value).The deal is being implemented in the context of NBG’s NPE deleveraging strategy and .......
Market Moves 22 December 2020
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Call for further improvement
'Unambitious' NPL strategy launched
The European Commission has published a strategy that aims to prevent a build-up of non-performing loans across the EU banking sector, as a result of the coronavirus crisis. The proposals build upon a set of previously implemented measures, but have been criticised for not providing for an improved NPL securitisation framework.
Michael Lever, md, prudential at AFME, describes .......
News 16 December 2020
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Leasing debut
NPL ABS expected to benefit from GACS
UniCredit Leasing has completed the first Italian non-performing loan securitisation backed by lease receivables that is expected to benefit from a GACS guarantee. Dubbed Relais SPV, the transaction is secured by real estate financial lease agreements with a gross claim amount of €1.58bn, as of 31 March 2020.
The issuer acquired the portfolio at the transfer date of .......
News 14 December 2020
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CLO liquidity complexity examined
Sector developments and company hires
CLO liquidity complexity examined
CLO secondary market activity is booming across the board, but the underlying liquidity picture is a complex one, according to a new report by JPMorgan CLO research analysts.CLO BWIC trading volume has already reached an all-time annual high in 2020 at US$48.1bn for the US and €11.7bn for Europe, the JPMorgan report says. However, it adds .......
Market Moves 11 December 2020
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Finish line
Trilogue agreement finalised
Negotiators from the European Parliament’s Economic and Monetary Affairs Committee (ECON) have reached an agreement with the European Council on targeted changes to the securitisation regulation and the CRR, with respect to the creation of an STS synthetics framework and changes pertaining to non-performing loan securitisations. The final text has not yet been disclosed, although official sources have confirmed .......
News 11 December 2020
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NPL momentum
Call for specific securitisation framework
Regulatory support for the non-performing loan securitisation market has coalesced over the last few weeks, with the publication of the Basel Committee’s technical amendment (SCI 27 November) and Wednesday’s announcement that the European Parliament’s Economic and Monetary Affairs Committee and the European Council have reached an agreement regarding the targeted changes to the securitisation rules and the CRR .......
News Analysis 11 December 2020
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Collections conundrum
Italian NPL ABS amortisation eyed
The number of Italian non-performing loan securitisations with lagging collections is set to rise to 17 by 1Q21, Scope predicts. If the slowdown continues, the average time for deals to amortise will exceed 10 years, according to the agency’s NPL Dynamic Coverage Index.
The index is based on the median of the net yearly proceeds by outstanding liabilities .......
News 4 December 2020
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NPL ABS capital treatment amended
Sector developments and company hires
NPL ABS capital treatment amended
The Basel Committee has published a technical amendment in connection with the capital treatment of non-performing loan securitisations. The rule aims to close a gap in the Basel framework by setting out prudent and risk-sensitive capital requirements for NPL ABS.The Committee consulted publicly on the technical amendment during the summer (SCI 24 .......
Market Moves 27 November 2020
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Jumbo BDC merger agreed
Sector developments and company hires
Jumbo BDC merger agreed
Market Moves 26 November 2020
FS/KKR Advisor, a partnership between FS Investments and KKR Credit Advisors (US), has announced that FS KKR Capital Corp and FS KKR Capital Corp II - two publicly traded BDCs advised by FS/KKR - have entered into a definitive merger agreement. The merger will create one of the largest BDCs in the US, with US$14.9bn in .......
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Restructuring boost
Project Galaxy portfolio acquired
Alpha Bank has selected US investment fund Davidson Kempner as its preferred bidder over PIMCO for its Project Galaxy portfolio. The €10.8bn pool includes the disposal of the bank’s servicing unit Cepal and is expected to clear the way for further non-performing loan restructurings (SCI 3 June).
The Greek lender launched the bidding process this year, drawing interest from .......
News 24 November 2020
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Greek synthetics eyed
Alantra targets CRTs, new jurisdictions
Alantra has evolved to become one of the premier players in the non-performing loan markets by utilising a combination of services, including credit portfolio advisory and asset management. However, following the recent hiring of Francesco Dissera (SCI 3 November), the arranger is now eyeing capital relief trades, including in the currently untapped Greek market.
Alantra’s services .......
News Analysis 20 November 2020
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Positive outlook
DoValue signs NPL MoU
DoValue has signed a memorandum of understanding with Bain Capital Credit for the exclusive management of a portfolio of non-performing loans originated in Cyprus for a total claim of approximately €650m. Following this agreement, the total volume of servicing mandates won by doValue in Southern Europe so far this year has reached €9.3bn. The latter is in line with .......
News 20 November 2020
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Shortfalls hitting rated CMBS notes
Sector developments and company hires
Shortfalls hitting rated CMBS notes
KBRA reports that over 85% (225) of the 263 deals in its rated US conduit CMBS universe have been impacted by interest shortfalls to varying degrees. Prior to the coronavirus pandemic, shortfalls occurred in just over 40% (110) of the transactions, as of February 2020.“The increase is not surprising, as interest shortfalls are .......
Market Moves 12 November 2020
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Strategic partnership expanded
Sector developments and company hires
Strategic partnership expanded
Pretium has entered into an expanded strategic partnership with American Equity Investment Life Insurance Company (AEL), building upon AEL's prior investment commitments with the firm and increasing total commitments to US$1bn, with pre-agreed terms for expansion to US$2.25bn. The investments will initially be primarily deployed into attractive residential credit assets sourced and managed by Pretium.In .......
Market Moves 3 November 2020
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Finish line
Galaxy nears completion
Alpha Bank has received two binding offers for its Galaxy project (SCI 6 August). The transaction will involve a non-performing loan securitisation and the sale of the bank’s loan servicing platform Cepal.
Several sources note that that the binding offers come from PIMCO and Davidson Kempner, as momentum in the Greek NPL ABS market continues to gather .......
News 2 November 2020
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Risk transfer boost
US CRT market picks up
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 investigate US banks' attempts to manage coronavirus-related higher capital requirements via capital relief trades.
To upgrade your subscription to access all CRT premium content for a year, .......
News Analysis 29 October 2020
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Best-of-breed network
Zach Lewy, founder and group cio of Arrow Global Group, answers SCI's questions
Q: How and when did Arrow Global Group become involved in the non-performing loan market?
The Structured Credit Interview 27 October 2020
A: Arrow Global was established in 2005 as the European principal investment arm of Sallie Mae and was tasked with investing in distressed assets across the region. It was apparent that there were amazing opportunities for local champions to be successful, given that they remained .......
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AMCO deal completed
Sector developments and company hires
AMCO deal completed
Market Moves 26 October 2020
Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as .......