https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85324&article=Smallest SRTs on record defy market myths STORM en Subscription 2026-10-28T00:00:00Z Smallest SRTs on record defy market myths Smaller SRT issuance could become a more established part of the market by 2030, with challenger banks accessing investors through private placements and bilateral structures rather than the large-scale issuance programmes associated with significant banks, according to Robert Bradbury, md and head of structured credit at advisory firm Alvarez & Marsal. Speaking at SCI's World Risk Sharing Summit in London earlier this month, Bradbury said the market should not assume that SRTs need to reference portfolios worth hundreds of m https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85325&article=Forward flow: funding tool and M&A route - video STORM en Subscription 2026-10-28T00:00:00Z Forward flow: funding tool and M&A route - video Stuart Mogg, md and head of financial services debt and capital advisory at Interpath, talks to SCI's Marta Canini about how forward flow partnerships have evolved since the pioneering deals inked after the GFC. He also discusses how forward flow fits in the wider toolkit alongside public ABS and SRTs, and where he expects the market to go next.  Marta Canini https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85321&article=Felicitas invests US$15m in credit fund rated note feeder STORM en Subscription 2026-10-28T00:00:00Z Felicitas invests US$15m in credit fund rated note feeder Felicitas Global Partners, a specialist NAV lender, has invested US$15m in the mezzanine tranche of a rated note feeder for a credit fund, SCI has learned. The investment, which closed last week, sits in the double-B+ rated tranche, just senior to the equity. Felicitas took US$15m of a tranche of US$20m, sources close to the matter told SCI. The overall feeder is understood to be US$300m in size. Felicitas has completed at least five rated note feeders and collateralised fund obligations this year. It invests only in horizontal structures https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85323&article=Sound Point partners with Ninety-One for European ABF arm STORM en Subscription 2026-10-28T00:00:00Z Sound Point partners with Ninety-One for European ABF arm Sound Point Capital Management has partnered with Ninety One to pursue the asset manager’s European fund opportunities and build its own European asset-backed lending business, hiring the three-person team behind the strategy. Sound Point will act as sub-adviser to the fund, with Chris Rust and Lei Lei, who co-led Ninety One’s European secured lending strategy, joining as portfolio managers and co-heads of European secured lending. Lachlan Viney, a director and senior analyst, also moves across. All three are London-base https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85320&article=CLO managers urged to assess loan eligibility before committing capital STORM en Subscription 2026-10-27T00:00:00Z CLO managers urged to assess loan eligibility before committing capital CLO managers need to account for increasingly complex eligibility and compliance requirements before committing capital to new loans, as bespoke facilities and transaction-specific constraints complicate asset-sourcing decisions, according to Siepe. Some recent CLOs require managers to select combinations of rating factors, recovery rates and spreads across almost 50 separate matrix tables, illustrating the complexity of determining whether a prospective loan meets a transaction’s requirements, Don Nilsson chief product officer at S https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85322&article=UK lender prepares a leveraged finance SRT STORM en Subscription 2026-10-27T00:00:00Z UK lender prepares a leveraged finance SRT Lloyds Banking Group is preparing a potential SRT transaction referencing a portfolio of approximately £1bn, SCI has learned, with due diligence ongoing, according to market sources. The transaction is understood to potentially involve leveraged finance exposures, with a tranche reportedly covering the 0-12% loss range. The asset class and precise structure have not been independently confirmed and the timing of the transaction remains unclear. The potential deal would add to Lloyds’ established use of synthetic securiti https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85319&article=Higher rates turn into headwind for European CLOs STORM en Subscription 2026-10-27T00:00:00Z Higher rates turn into headwind for European CLOs European CLO investors are facing growing credit risks as higher interest rates put pressure on leveraged borrowers, raising refinancing concerns and threatening to reverse the spread tightening that supported the market earlier this year. The Bank of England held Bank Rate at 3.75% in September, although three members of the Monetary Policy Committee favoured a 25-basis point increase to 4%. Persistent energy price pressures could keep inflation elevated, adding to uncertainty over the interest-rate outlook. While higher rates initially at https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85318&article=SCI In Focus: EU deal leaves questions over insurer eligibility as UFCP faces uncertain outlook STORM en Subscription 2026-10-27T00:00:00Z SCI In Focus: EU deal leaves questions over insurer eligibility as UFCP faces uncertain outlook The EU’s provisional political agreement to reform its securitisation framework opens the door to more favourable treatment of insurer-provided unfunded credit protection (UFCP), but questions remain over how many insurers will qualify and whether the changes will be sufficient to expand the market. The European Council and European Parliament reached a provisional political agreement on 21 October on a package intended to revitalise the EU securitisation market. The deal aims to lower capital requirements for certain lower https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85316&article=NorthWall gears towards first CLO with AI-driven credit analysis STORM en Subscription 2026-10-27T00:00:00Z NorthWall gears towards first CLO with AI-driven credit analysis NorthWall Capital is building its CLO business around selective credit underwriting, continuous portfolio reassessment and measured growth, as the firm scales its portfolio towards its first CLO issuance and prepares to establish a long-term presence in the market. The strategy will draw on NorthWall’s established expertise in sub-investment grade credit and relationships across the private equity and banking communities, according to Andrew Lawson, head of capital markets and CLO business at NorthWall Capital. Speaking t https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85317&article=October CLO mezzanine widening reverses September's gains STORM en Subscription 2026-10-27T00:00:00Z October CLO mezzanine widening reverses September's gains The analysis covers new-issue EU BSL CLOs priced between 19 January 2026 and 23 October 2026 with a reported discount margin (DM), sourced from SCI data. Deals with reinvestment periods of less than 3.9 years are excluded, as are a selected group of deals that were not competitively priced. Deals are grouped by rating and pricing week (Monday to Friday). For each rating from triple-A to single-B, the weekly print represents the tightest eligible DM. Where a deal has multiple tranches within the same rating category, their DMs are weighted by https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85314&article='Horizontal' rated note feeders set to gain ground in Europe STORM en Subscription 2026-10-26T00:00:00Z 'Horizontal' rated note feeders set to gain ground in Europe European insurers’ growing appetite for private credit is likely to spur a different rated note feeder (RNF) model than the one that has taken off in the US, according to industry experts. Speaking at Opal’s recent European Private Credit & ABF Summit, a panellist said that the US rated feeder market, when it started, aimed to give fund managers access to insurance capital by essentially repacking LP interests into rated instruments. The European market, however, faces a different regulatory lands https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85313&article=European CLO equity cash flows hit six-year low as repricing squeezes margins STORM en Subscription 2026-10-26T00:00:00Z European CLO equity cash flows hit six-year low as repricing squeezes margins European CLO equity cash distributions have fallen to their lowest level since the Covid-19 pandemic as sustained loan repricing activity and deteriorating collateral valuations squeeze returns, prompting investors to demand higher risk premiums. Median cash-on-cash distributions from European CLOs within their reinvestment period fell to 2.6% in October, down from 2.7% in the third quarter, according to Bank of America (BofA) Global Research. That was the weakest reading since Q2 2020, when distributions reached 2.5%. Of https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85312&article=SCI in Focus: Telecoms trouble tests European CLOs STORM en Subscription 2026-10-26T00:00:00Z SCI in Focus: Telecoms trouble tests European CLOs Trouble among the big names in the telecommunications sector has haunted the European loan market over recent weeks, with a number of CLOs exposed to struggling loans and distressed bonds. Debt issued by high-profile firms - including Virgin Media O2, VodafoneZiggo and Altice International - is widely held by European CLOs and has seen significant downward repricing activity this year, contributing to broader softening in the European loan market. Indeed, the loan secondary market has weakened considerably over the last two months, https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27815&SID=85315&article=US SRT market on upward trajectory STORM en Subscription 2026-10-26T00:00:00Z US SRT market on upward trajectory The US significant risk transfer market is on an upward trajectory, with regulatory clarity and new demand from the data centre sector driving growth, panellists said at SCI’s World Risk Sharing Summit in London earlier this month. The data centre market is currently driving the US economy and is “a great avenue for the SRT market”, a panellist explained, as the sector is primarily funded by bank debt. The speaker also added that data centre-linked SRT trades are coming to market in the US. SCI recently reporte https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27814&SID=85311&article=Job swaps weekly: Lloyds reshuffles, Sound Point expands in Europe STORM en Subscription 2026-10-23T00:00:00Z Job swaps weekly: Lloyds reshuffles, Sound Point expands in Europe This week’s roundup of securitisation job swaps sees Lloyds Banking Group making senior appointments across its asset risk transfer and sales teams, while Standard Chartered has appointed a new global head of securities services and digital assets. Elsewhere, Sound Point Capital Management is expanding its European private credit capabilities with a new investment team from Ninety One, while State Street Corporation has added an AXA veteran to its board of directors. Lloyds Banking Group has made two senior appointments, with Nils N https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27814&SID=85310&article=Schonfeld hires BMO veteran Leclerc for Toronto expansion STORM en Subscription 2026-10-23T00:00:00Z Schonfeld hires BMO veteran Leclerc for Toronto expansion Schonfeld Strategic Advisors has hired Jean-Francois Leclerc as a credit portfolio manager, as the New York-based hedge fund opens its first office in Canada, in a move that comes amid renewed SRT activity in the country. Leclerc has yet to start at Schonfeld and the firm has not disclosed his start date. He joins from Polar Asset Management Partners, where he was an associate portfolio manager for three years. His LinkedIn profile indicates that he left Polar in August 2026. Before joining Polar, Leclerc spent 20 years at BMO Capital Marke https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27814&SID=85309&article=SCI In Focus: US middle-market private credit stress exceeds reported defaults STORM en Subscription 2026-10-23T00:00:00Z SCI In Focus: US middle-market private credit stress exceeds reported defaults Moody’s has warned that credit stress among US middle-market borrowers is more widespread than reported defaults suggest, with payment-in-kind (PIK) amendments and maturity extensions lifting its estimated default rate to 5.8% from 4%. The rating agency's US private credit report, published on 14 October, analysed 607 credit estimate (CE) issuers held by 47 Moody’s-rated middle-market CLOs over the 12 months to June 2026. It identified 24 reported defaults, rising to 35 default-equivalent events when six PIK amendments and https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27814&SID=85307&article=Italian consumer finance bank completes fourth cash SRT STORM en Subscription 2026-10-23T00:00:00Z Italian consumer finance bank completes fourth cash SRT Compass has completed a €900m consumer loan securitisation structured to meet significant risk transfer requirements, SCI has learned, marking the Italian lender’s fourth cash SRT transaction. The transaction follows a €950m consumer loan securitisation completed in April, which was Compass’s third cash SRT under its Quarzo securitisation platform. Mediobanca acted as arranger on the latest transaction, with BBVA, Bank of America, Crédit Agricole Corporate and Investment Bank, Soci&a https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27814&SID=85306&article=Frothy AI valuations could come to grief STORM en Subscription 2026-10-23T00:00:00Z Frothy AI valuations could come to grief The AI bubble is set to burst, with potentially seismic consequences for expected liquidity in the structured finance market, says a noted independent research firm. “People are starting to note the liquidity is tightening up, and that to me means that the correction is a question of when, not if,” says David Trainer, ceo of New Constructs, a 20-year old data-driven investment research firm. He calls the imminent IPO of Anthropic, likely to be valued at around US$2trn, “the most ridiculous IPO of 2026,&rdqu https://www.structuredcreditinvestor.com/Article.asp?PUB=254&ISS=27814&SID=85303&article=MDBs in a changing SRT world - video STORM en Subscription 2026-10-22T00:00:00Z MDBs in a changing SRT world - video Flavio Cabas, senior investment manager of the European Investment Fund, talks to SCI's Simon Boughey about why the EIF likes SRT assets. He also discusses the contribution to the growth and development of global SRT an MDB like the EIF can make, and the likely imminent regulatory changes that will shape the market. Simon Boughey