RMBS
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CRR compliance for NHG guarantee
Sector developments and company hires
EMEA
Market Moves 1 April 2020
Addleshaw Goddard has hired structured finance partner Rachel Kelly from McDermott Will & Emery. Kelly has three decades of experience at major international law firms, including as a partner at both Clifford Chance and Macfarlanes. Her work has been across the full spectrum of structured finance and debt capital markets transactions, public and private, national and international, advising the full .......
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Advancing assistance programme prepped
Sector developments and company hires
Advancing assistance mooted
Market Moves 31 March 2020
Ginnie Mae is tailoring the existing disaster pass-through assistance programmes to more suitably scale to the needs of mortgage issuers in response to the Covid-19 liquidity squeeze (SCI 30 March). The GSE anticipates implementing within the next two weeks - via an All Participants Memorandum (APM) - a Pass-Through Assistance Program (PTAP), through which issuers with .......
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CECL delayed
EU banks await IFRS 9 relief
The US Fed, the FDIC and the OCC last week approved an extension of the new credit loss accounting standard CECL until 2022. No equivalent action has been taken for IFRS 9 on the EU side, however.
According to the US regulators’ joint statement, banking organisations that are required under US accounting standards to adopt CECL this year .......
News 31 March 2020
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Basel 3 implementation deferred
Sector developments and company hires
APAC fund launch
Market Moves 30 March 2020
Pierfront Capital Fund Management has been awarded its capital market services license for fund management by the Monetary Authority of Singapore. It has also announced the first close of the Keppel-Pierfront Private Credit Fund, which aims to provide debt solutions to corporates or projects predominantly in the real asset sectors of the Asia-Pacific region. Sponsored by Pierfront .......
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Capacity constraints
Covid-19 not yet posing solvency issues
Government and central bank actions have kept both the financial system and the real economy afloat in the short-term, amid the coronavirus disruption. The severity of this crisis for company and household finances will depend on the length of the current outbreak and political will, however.
According to Rabobank credit analysts: “Covid-19 is now an imminent issue for .......
News Analysis 30 March 2020
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Systemic risk?
Servicing capacity concerns for non-bank lenders
Fitch has revised its US RMBS servicer ratings outlooks to negative, due to evolving economic stresses and operating conditions caused by the coronavirus pandemic. Concern around servicing capacity in the US is rising as non-bank mortgage lenders come under increasing pressure, given their limited funding profiles.
“The fallout from the pandemic is likely to elevate loan delinquencies, increase .......
News Analysis 30 March 2020
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PPIP call
CRT and non-agency MBS still in need of purchasing power
Non-agency MBS and CRT deals in particular are still in need of government support, according to securitised product research analysts at JPMorgan. They suggest it could come in the form of a Public Private Investment Programme (PPIP) similar to that introduced in 2009 to support MBS through combining Treasury and private capital to buy legacy assets.
“While the .......
News 27 March 2020
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UK WBS hit expected
Sector developments and company hires
APAC
Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and derivatives research team, based in Melbourne, Australia. Clark was previously senior portfolio manager in QIC’s global multi-asset team and has also worked at Suncorp Investment Management. He has experience in ILS manager and investment research.North Dock debuts
Market Moves 26 March 2020
Barclays Private Bank has closed North Dock No. .......
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Forced selling
REITs struggling to meet margin calls
US MBS rallied yesterday (25 March) in the wake of the announcement that Congress has agreed the terms of a US$2trn stimulus package. However, they remain well down on the week, say dealers.
“The Fed announcement has firmed things up. It has stabilised the market but not taken away all the spread widening,” says one. But the market .......
News Analysis 26 March 2020
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Cloudy outlook
RMBS perseveres amid market volatility
LendInvest last week closed Mortimer BTL 2020-1, a £285m UK buy-to-let RMBS, in the face of unprecedented levels of volatility in credit markets. Virus-related uncertainties are not the only concern for UK RMBS this year, however.
The triple-A rated senior tranche of Mortimer BTL 2020-1 priced at Sonia plus 1.07%, 23bp tighter than LendInvest’s previous deal, Mortimer BTL .......
News Analysis 26 March 2020
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Fed revives the TALF programme
Sector developments and company hires
Return of the TALF
Market Moves 23 March 2020
The US Fed announced a slew of new measures to support the credit markets this morning, including the revival of the Term Asset-Backed Securities Loan Facility (TALF), first seen in the wake of the global financial crisis. Under the TALF, the New York Fed will commit to lend to an SPV on a recourse basis and .......
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CRT deals disclosed
Intesa publishes capital management strategy
Intesa Sanpaolo has released details of its capital management strategy, following the release of its 2019 annual report on Friday (20 March). The lender has revealed the details of four capital relief trades that were completed last year.
Intesa Sanpaolo’s 2018-2021 business plan includes initiatives for credit portfolio management that fall within the remit of the active credit portfolio steering .......
News 23 March 2020
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NPL supervisory flexibility introduced
Sector developments and company hires
Canadian purchase programme
Market Moves 20 March 2020
The Canadian government has launched a revised Insured Mortgage Purchase Program (IMPP), under which it will purchase up to US$50bn of insured mortgage pools through the Canada Mortgage and Housing Corporation. The move aims to provide stable funding to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses. The first purchase .......
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Economically efficient
Study supports reduction of PD estimates
A new study undertaken by Open Source Investor Services (OSIS) suggests that capital relief trades are a good alternative to traditional issuance of new capital in the majority (75%) of cases reviewed and in 40% of cases the instrument works well during a downturn scenario, even if investors are compensated for higher losses. The research investigates whether and when .......
News Analysis 20 March 2020
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Further central bank support unveiled
Sector developments and company hires
Bridging loan deal inked
Market Moves 19 March 2020
UK challenger lender Glenhawk has closed a private revolving securitisation of bridging loans, with senior funding provided by JPMorgan. Glenhawk offers short-term property development and homeowner loans, and has recently been authorised by the FCA. The new capital will support Glenhawk’s growth into the UK homeowner market. The facility represents the first time that JPMorgan has .......
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Risk off
Securitisation markets seize up
Amid a global sell-off, securitised asset classes where liquidity is scarce and asymmetry of positions particularly acute have suffered grievously. The FOMC decision to increase TBA purchases has so far eased only the agency RMBS sector (SCI 17 March).
“I spoke to an executive committee about a month ago and you know what I told them? I .......
News 19 March 2020
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Even playing field?
Reg AB relaxation set to release RMBS
The relaxation of FDIC rules regarding bank compliance with SEC Regulation AB when issuing RMBS (SCI 4 March) evens the playing field between bank and non-bank issuers. The move is expected to clear the way for greater bank-sponsored issuance to emerge.
The FDIC’s decision to drop the requirement for banks to comply with Regulation AB was underpinned .......
News Analysis 18 March 2020
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Fed rolls out CPFF
Sector developments and company hires
CMB purchase programme
Market Moves 17 March 2020
The Bank of Canada has announced that it stands ready, as a proactive measure, to provide support to the Canada Mortgage Bond (CMB) market to ensure that it continues to function well. This would include, as required, purchases of CMBs in the secondary market through a competitive tender process. As a starting point, the bank will target .......
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Liquidity concerns
European ABS pipeline coming to a halt
The European ABS primary market is grinding to a halt amid coronavirus-related volatility, with many transactions postponed. Among the relief measures implemented by the Bank of England and the ECB last week, the new UK Term Funding Scheme for SMEs (TFSME) could inhibit UK RMBS volumes further.
“Spread levels are difficult to predict in the current environment,” says .......
News Analysis 17 March 2020
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Greencoat liquidator appointed
Sector developments and company hires
EMEA
Ocorian has appointed Abigail Holladay as director of transaction management. Based in London, Holladay will manage restructuring transactions across Europe. She has previously held senior positions at Law Debenture and Deutsche Bank. Holladay has experience covering waivers, defaults, delegate/successor trusteeships and complex debt restructurings.Greencoat winding up
Market Moves 16 March 2020
In connection with the BUMF 4, 5, 6 and 7 CMBS, the .......
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SCI Start the Week - 16 March
A review of securitisation activity over the past seven days
SCI NPL Securitisation Awards 2020
News 16 March 2020
As a result of COVID-19, the SCI NPL Securitisation seminar has unfortunately had to be postponed and along with it the inaugural SCI NPL Securitisation Awards ceremony. Nominations remain open and a revised deadline for them will be announced in due course. Further information and details of how to pitch can be found here.
This week's stories
AMC .......