RMBS
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Stronger tone
European ABS spreads tighten but supply muted
There is a stronger tone in the European ABS market overall and there has been spread tightening across the board, from RMBS to CLOs. Supply is still low, however, especially in ABS.
A trader says that a number of issuers in Europe are "ready to go", but they are still holding back as they await clarification around STS. The trader notes, .......
Market Reports 8 March 2019
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CDS reforms proposed
Company hires and sector developments
Australia
Mortgage House has hired Steven Mixter as head of securitisation and structured finance. He was previously head of funding at Latitude Financial Services, responsible for maintaining its securitisation funding programmes.
CDS reform proposal
An ISDA working group has been discussing proposals to amend the 2014 ISDA Credit Derivatives Definitions to address issues relating to narrowly tailored credit events (NTCEs). NTCEs are arrangements with .......
Market Moves 7 March 2019
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Dutch BTL debut in the works
Growth of Dutch BTL sector set to continue
Domivest is preparing the first securitisation backed entirely by Dutch residential buy-to-let mortgages. The transaction is likely to be sized at around €250m and is expected to close around April or May of this year, depending on market conditions.
Domivest was set up by Cervus Capital Partners after seeing an opportunity in the Netherlands for loans to professional .......
News Analysis 5 March 2019
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'Long term solution needed'
Day three from SFIG Vegas
The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism.
One panel looked at UK firms looking to issue transactions into the US market. Brian Wiele, md at Barclays, commented that one of the steps needed at the moment to boost the sector is re-educating US investors on UK securitisations, as awareness of UK .......
News 27 February 2019
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Structured finance 'well positioned' for downturn
Second day at SFIG Vegas sees continued optimism
Day two at SFIG Vegas saw a bountiful turnout of attendees, all looking to hear the latest on structured finance and to meet the main movers and shakers in the industry. A standout panel looked at how structured finance is prepared for a turn in the turn in the credit cycle, while other notable discussions looked at the revival of .......
News 26 February 2019
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Exit complete
Irish RPL RMBS refinanced
Ellington Residential Holdings Ireland is in the market with a €620m Irish re-performing RMBS dubbed Jepson Residential 2019-1. The transaction is a refinancing of European Residential Loan Securitisation 2017-PL1, sponsored by Lone Star.
“The deal is expected to be called next month, although the rationale for the move isn’t clear,” says one portfolio manager. “A lot of the underlying assets .......
News 26 February 2019
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Law firm boosts derivatives capability
Company hires and sector developments
CLO firm promotions
Churchill has announced the promotion of Mat Linett, md, from deputy head of underwriting and portfolio management to head of underwriting and Eric Wieczorek to md, underwriting and portfolio management. Additionally, the firm announced several more promotions across the investment and finance teams, effective 1 March 2019.
Derivatives expansion
Dentons has expanded its derivatives practice with the .......
Market Moves 22 February 2019
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Tough stance
ESMA insists on private securitisation disclosures
On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS) on securitisation disclosures. The initial RTS covers both public and private securitisations and it was rejected by the European Commission, following a market backlash (SCI 5 October 2018).
The amendments take into account the Commission’s criticisms of the original RTS ......
News Analysis 22 February 2019Premium Content
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Stand-out performer
Systematic role for structured credit
Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US structured credit funds tracked by Gapstow Capital Partners, 88% had a positive year, implying that there continues to be a role for structured credit more systematically in diversified credit portfolios.
The Gapstow Credit Index finished 2018 up by 1.5%, with steady .......
News Analysis 21 February 2019
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UK paper on the block
European secondary ABS market update
The European secondary ABS market has rallied since the beginning of the year. However, activity now appears to be on hold until after 28 February, when a large BWIC auction is due at 2pm London time.
“Secondary activity has dampened down in the run-up to the auction,” confirms one trader. “The BWIC has a good chance of ......
Market Reports 21 February 2019Premium Content
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Law firm nabs SF vet
Company hires and sector developments
Europe
Latham & Watkins has recruited Jeremiah Wagner as a partner in its finance department, based in London. Wagner’s practice focuses on advising banks, private equity funds, asset managers, insurance companies and pension funds on a variety of complex structured finance, securitisation and derivatives transactions. He joins the firm from Cadwalader’s London office, where he was a partner.
Market Moves 20 February 2019
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Lacking clarity
Libor transition still fraught with challenges
With only two years to go until Libor is officially phased out in 2021, a number of questions still remain about the ramifications for structured finance transactions. Aside from the lack of concrete replacement, there are also questions about legacy deals, assets and liabilities and swaps complications as well as the possibility for bondholder disputes.
One of the most pressing issues .......
News Analysis 19 February 2019
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CLO firm restructure
Company hires and sector developments
Acis restructuring confirmed
The US bankruptcy court in Dallas has confirmed Acis Capital Management's Chapter 11 restructuring plan, following its conversion from an involuntary bankruptcy case initiated by former head of Highland Capital Management's structured products team and founder/former partner in Acis Joshua Terry (SCI 9 November 2018). Upon emergence from bankruptcy, Acis will be owned and .......
Market Moves 19 February 2019
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Secondary focus
Investors sitting on cash with new European issuance drought
European structured finance traders continue to focus on the secondary market as they wait for regulatory clarification. Nevertheless, there have still been some standout new issues and a European CMBS is rumoured to be in the pipeline.
“In European RMBS we are focussing mainly on secondary paper,” says a trader. “The transactions that appeal at the moment are those with a .......
News 15 February 2019
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Private placement
Unusual tranched securitisation closed
Fintex Capital has completed a structured finance transaction within its UK real estate lending business, Fintex Confluence. The transaction involved the refinancing of a portfolio of property loans - warehoused by Fintex - with senior financing provided by Europa Capital Debt Investment (ECDI) and junior financing by Fintex, with additional monies invested by Europa and Fintex to finance a .......
News 14 February 2019
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Window of opportunity?
Japanese ruling may benefit US CLO market
The introduction of Japanese risk retention rules could provide a boost for US middle market CLOs, while volatility in Europe has opened up RMBS opportunities.
While most US middle market CLOs are risk retention compliant, most BSL CLOs are not, says a trader. They suggest that a risk retention ruling for Japanese investors might therefore “make them more likely to .......
News 13 February 2019
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SCI Start the week - 4 February
A review of securitisation activity over the past seven days
Transaction of the week
Bank of Montreal has printed a US and Canadian leveraged loan capital relief trade dubbed Manitoulin. The US$92.5m 7.3-year financial guarantee pays Libor plus 12.75%.
The transaction has been rated as triple-A on the class A notes, single-A on the class B notes and triple-B on the class C notes. Further features include the presence of .......
News 4 February 2019
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Staying strong
MetLife Investment Management speaks to SCI about the year ahead
Q: What’s your general outlook for the structured finance sector in 2019?
William Moretti, head of structured finance, MetLife Investment Management: “On the whole, I’d say that structured finance is in a much better position to face another potential downturn than it was in 2007, before the last crisis. There have been a number of structural improvements to transactions and .......
The Structured Credit Interview 1 February 2019
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CLO UCITS launched
Company hires and sector developments
CDS publication launched
Jochen Felsenheimer, md at XAIA Investment, Wolfgang Klopfer, chairman of the management board of XAIA Investment and Ulrich von Altenstadt, md of XAIA Investment have co-authored a new publication looking at the evolution, functioning and regulatory environment of CDS. Titled, Credit default swaps: trading strategies, valuation and regulation, it also looks at the modeling and valuation of .......
Market Moves 30 January 2019
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Securitisation swaps book launched
New publication aims to quench knowledge drought
Spotting a gap in the market, a team of structured finance veterans have collaborated on a new publication on an under-explored topic, which bridges the gap between credit derivatives and securitisation. Titled Securitisation Swaps, the book is aimed at all securitisation and derivatives industry participants and is set to be published by Wiley on 18 February, with the e-book available .......
News 30 January 2019
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New ILS unit launched
Sector developments and company hires
ABS outfit launched
US Bancorp has launched a new ABS lending business, providing non-recourse commitments secured by consumer and commercial receivables. Bo Weatherly - who joined the firm in 2016 - will serve as md for the new business, based in Charlotte, North Carolina. He has brought together a team of established industry experts, each with an average .......
Market Moves 25 January 2019