RMBS

  • CIFC, TRS launch leveraged loan partnership

    Sector developments and company hires

    CIFC, TRS launch leveraged loan partnership
    Teacher Retirement System of Texas (TRS) and CIFC Asset Management have established a new leveraged loan investment fund platform known as Texas Debt Capital (TDC). A CIFC affiliate is the general partner and investment manager of TDC, while TRS is the anchor investor limited partner and has committed significant equity to the fund. The .......

    Market Moves 4 October 2021

  • Synthetic Libor settings confirmed

    Sector developments and company hires

    Synthetic Libor settings confirmed
    The UK FCA has confirmed that to avoid disruption to legacy contracts that reference the one-, three- and six-month sterling and Japanese yen Libor settings, it will require ICE Benchmark Administration to publish these settings under a 'synthetic' methodology, based on term risk-free rates, for the duration of 2022. However, these six Libor settings will be .......

    Market Moves 29 September 2021

  • Fraud charges for Honor Finance pair

    Sector developments and company hires

    Fraud charges for Honor Finance pair
    The US SEC has announced fraud charges against James Collins and Robert DiMeo, the former principals of Honor Finance, for misleading investors about the subprime automobile loans that backed its US$100m offering. The SEC's complaint, filed in US District Court for the Northern District of Illinois, alleges that the pair were responsible for false .......

    Market Moves 24 September 2021

  • Excellent shape

    European ABS/MBS market update

    September is living up to its reputation as a busy month for the European ABS/MBS primary market. Even though four deals are due to price today and tomorrow and three printed yesterday spreads remain tight and demand is still strong.

    “It’s pleasing to see that the primary ABS market is in excellent shape,” notes one trader. “Although there is an .......

    News 23 September 2021

  • US CLOs, Trups CDOs under observation

    Sector developments and company hires

    US CLOs, Trups CDOs under observation
    Fitch has placed 102 tranches issued by 43 US CLOs and 13 tranches issued by seven Trups CDOs under criteria observation (UCO), following the publication of its CLO and corporate CDO rating criteria last week (SCI 17 September). The agency intends to resolve the UCO status by applying the updated criteria to each .......

    Market Moves 22 September 2021

  • Pandemic 'feedback loop' highlighted

    Sector developments and company hires

    Pandemic ‘feedback loop’ highlighted
    Secular changes affecting the recovery of in-person office occupancy in New York City is consequential not only for property-level cashflow, but may also have ripple effects on other sectors, Fitch suggests. The city is the largest US office market and the rating agency says it provides a good case study of the potential feedback loop of .......

    Market Moves 21 September 2021

  • Pagaya goes public via SPAC

    Sector developments and company hires

    Pagaya goes public via SPAC
    Fintech securitisation issuer Pagaya Technologies and EJF Acquisition Corp (EJFA), a publicly traded SPAC, have entered into a definitive business combination agreement. As a result of the transaction, which values the combined company at an estimated enterprise value of approximately US$8.5bn at closing, Pagaya will become a publicly listed entity.

    Founded in 2016 by .......

    Market Moves 20 September 2021

  • BPCE up

    Debut French green RMBS prepped

    BPCE is in the market with its inaugural green French prime RMBS via BPCE Home Loans FCT 2021 Green UOP (see SCI’s Euro ABS/MBS Deal Tracker). The STS-compliant transaction comprises tranches A and B, tentatively sized at 92.6% (with a 3.3-year WAL) and 7.4% respectively of the overall deal size.

    The provisional pool has a total outstanding .......

    News 20 September 2021

  • Securitisation execs promoted in PGIM reorg

    Sector developments and company hires

    Securitisation execs promoted in PGIM reorg
    PGIM Fixed Income has reorganised its senior management team, with the appointments effective from 1 January 2022. Under the reorganisation, md John Vibert has been promoted to the newly created role of president.

    Vibert joined PGIM Fixed Income in 2014 as the head of securitised products and serves in that role currently. Prior .......

    Market Moves 17 September 2021

  • NPR issued on GSE capital framework

    Sector developments and company hires

    NPR issued on GSE capital framework
    The FHFA is seeking comment on a notice of proposed rulemaking that would amend the Enterprise Regulatory Capital Framework (ERCF) for Fannie Mae and Freddie Mac. The proposed amendments would refine the prescribed leverage buffer amount (PLBA) and the capital treatment of credit risk transfers (CRT) to better reflect the risks inherent in the .......

    Market Moves 16 September 2021

  • On the up

    Growth in private real estate deals continues

    The UK real estate sector is seeing strong growth in private transactions, with loan-on-loan financings emerging as a popular method of funding for debt funds and challenger lenders. At the same time, forward flow transaction volume is gathering pace (SCI 26 April).

    “This longer-term arrangement is proving to be quite popular and there has been a lot .......

    News 16 September 2021

  • Specialist lender stake acquired

    Sector developments and company hires

    Specialist lender stake acquired
    BNP Paribas Asset Management (BNPP AM) is set to acquire a majority stake in Dynamic Credit Group, the Amsterdam-based asset manager and specialist lender with €9bn of assets under management. The deal will allow BNPP AM’s private debt and real assets (PDRA) investment division - which currently managed €11bn of client commitments - to significantly grow .......

    Market Moves 15 September 2021

  • Pick-up continues

    European ABS/MBS market update

    Following on from last week’s pick-up, the European ABS/MBS market is set for another busy week. The pre-summer dynamic has returned, with activity in both primary and secondary.

    “It appears as though this week will be particularly busy on the auto ABS front, with four deals currently in the market,” notes one trader. “It is a similar story .......

    News 15 September 2021

  • Love me tender

    STACR tender shows validity of CRT and salience of capital efficiency

    The significance of Freddie Mac’s STACR tender offer, announced earlier this week, should not be underestimated, say market insiders.

    The tender shows, on the one hand, that the GSE is acutely conscious of the demands of greater capital efficiency, they say.

    But it also demonstrates that it places continued faith in the CRT mechanism.

    “By this tender offer, Freddie shows that there is .......

    News Analysis 10 September 2021

  • RFI issued on sustainable housing

    Sector developments and company hires

    RFI issued on sustainable housing
    The FHFA is requiring Fannie Mae and Freddie Mac to submit Equitable Housing Finance Plans by end-2021, with the plans to be updated annually. The plans will identify and address barriers to sustainable housing opportunities, including the GSEs’ goals and action plans to advance equity in housing finance for the next three years. The FHFA .......

    Market Moves 10 September 2021

  • Intrinsically ambiguous

    Social RMBS may convey 'elevated' credit risks

    While demand for ESG assets is gaining traction, social RMBS transactions might convey inherent credit risks, a recent S&P report warns. If green deals have managed to attract a ‘greenium’, defining social bonds appears to be a more subjective task (SCI 1 April).

    Social RMBS follows the assumption that the financial markets have a role to play .......

    News Analysis 10 September 2021

  • Chinese reserves

    Growth boosts domestic securitisation market

    China’s continued economic growth has boosted both securitisation performance and issuance volumes. However, bank asset quality remains at risk because of high economic uncertainties from the lingering pandemic threat and ongoing structural adjustment in the economy. Yet bank asset metrics benefit from continued disposal of bad debts using their substantial loan loss reserves.

    According to the latest Moody’s .......

    News 10 September 2021

  • Back in business

    European ABS/MBS market update

    The European ABS/MBS primary market is up and running again after the summer lull. This afternoon saw the first widely marketed deal to price since the August hiatus, with more set to follow this week and beyond.

    UK non-conforming RMBS Together Asset Backed Securitisation 2021-1ST1 saw its three offered tranches price as follows – £283m class As at .......

    News 8 September 2021

  • Cyberattack scenarios weighed

    Sector developments and company hires

    Cyberattack scenarios weighed
    S&P reports that it has seen more credit-relevant cyber events in the last six months than in the previous six years, including the first structured finance transaction reporting an operational disruption following a ransomware attack on the originator and servicer (SCI 28 May). The rating agency says it has explored several hypothetical scenarios to identify areas .......

    Market Moves 8 September 2021

  • Risk transfer round-up - 8 September

    CRT sector developments and deal news

    News 8 September 2021

  • Cliff edge looms

    400,000 loans face forbearance expiry

    The number of mortgages in active forbearance continued to tick down last week, but this month the market is set to be buffeted by the termination of plans that commenced at the beginning of the pandemic.

    Some 400,000 mortgages hit the expiration date on September, based on the current allowable term lengths which were extended in June.

    It is not clear what proportion .......

    News 3 September 2021
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