Market Moves

  • Aussie green RMBS bags Nochu support

    Sector developments and company hires

    Aussie green RMBS bags Nochu support
    Firstmac has closed a groundbreaking A$750m green RMBS, backed by the Clean Energy Finance Corporation (CEFC) and Norinchukin. The underlying properties will be among the most energy efficient in Australia, meeting or exceeding a seven-star rating under the Nationwide House Energy Rating Scheme (NatHERS). The seven-star rating materially exceeds the minimum standards of the .......

    Market Moves 25 June 2021

  • RFC issued on NPL treatment

    Sector developments and company hires

    RFC issued on NPL treatment
    The EBA has launched a public consultation on amendments to its regulatory technical standards on credit risk adjustments in the context of the calculation of the risk weight (RW) of defaulted exposures under the standardised approach (SA). The proposed amendments come in the wake of the European Commission’s Action Plan to tackle non-performing loans in .......

    Market Moves 24 June 2021

  • Apollo, illimity form NPE JV

    Sector developments and company hires

    Apollo, illimity form NPE JV
    illimity Bank has entered into a binding heads of terms to form a 50:50 joint venture with certain funds managed by Apollo Global Management aimed at investing up to €500m in single-name distressed credit exposure secured by real estate assets in Italy. The JV - which will have an initial investment period of two years, .......

    Market Moves 23 June 2021

  • Digital investment ABS prepped

    Sector developments and company hires

    Digital investment ABS prepped
    DigitalBridge Group is in the market with its debut securitisation, the US$500m DigitalBridge Issuer Series 2021-1. The unusual transaction is secured by the firm’s digital investment management fees and carried interest, including from future investment vehicles.

    The triple-B rated notes will be issued in two classes: a US$300m class A2 secured fund fee revenue tranche, .......

    Market Moves 22 June 2021

  • Generali debuts green cat bond

    Sector developments and company hires

    Generali debuts green cat bond
    Assicurazioni Generali has priced an innovative catastrophe bond. Dubbed Lion III Re, the €200m ILS has a number of sustainable finance features.

    First, Generali freed up €28.1m in capital as a result of the protection provided by Lion III Re, which will be allocated to eligible projects as defined by Generali’s Green ILS Framework. .......

    Market Moves 21 June 2021

  • SRT upgraded on CE build-up

    Sector developments and company hires

    SRT upgraded on CE build-up
    Scope Ratings has affirmed its single-A rating on the class C credit-linked notes issued by SSPAIN 2019-A and upgraded the class D to F notes to triple-B plus, triple-B minus and double-B plus respectively from triple-B minus, double-B and double-B minus. The transaction is a significant risk transfer deal, which closed on 28 June 2019 .......

    Market Moves 18 June 2021

  • Piraeus preps third NPL ABS

    Sector developments and company hires

    Piraeus preps third NPL ABS
    Piraeus Financial Holdings has reached definitive agreements with Intrum and Serengeti Asset Management in connection with the sale of 49% and 2% respectively of the mezzanine and junior notes of the Sunrise I non-performing exposures portfolio. The portfolio consists of circa 205,000 retail and corporate loans, with a gross book value of €7.2bn, as at .......

    Market Moves 16 June 2021

  • Innovative SME securitisation fund inked

    Sector developments and company hires

    Innovative SME securitisation fund inked
    SGR-CESGAR, the Spanish guarantee society (SGR) association, has launched a pioneering securitisation fund that aims to provide Spanish SMEs with access to the capital markets. Dubbed Aquisgrán, the programme is structured by Intermoney and backed by the Ministry of Industry through CERSA, with initial financing from the EIF, Instituto de Crédito Oficial (ICO) and Banco Caminos.

    Market Moves 15 June 2021

  • Auto turnover dampens DFP issuance

    Sector developments and company hires

    Auto turnover dampens DFP issuance
    Accelerated dealer auto inventory turnover has resulted in insufficient collateral available for US dealer floorplan (DFP) ABS master trusts in 2021, Fitch reports. The agency notes that this is indirectly accounted for by deal structures, for the most part, through the use of excess funding accounts (EFAs). EFAs are meant to protect trusts against inventory .......

    Market Moves 14 June 2021

  • Sustainable infrastructure exposure offered

    Sector developments and company hires

    Sustainable infrastructure exposure offered
    Bayfront Infrastructure Management has priced an infrastructure ABS via Bayfront Infrastructure Capital II (BIC II), a wholly owned and newly incorporated distribution vehicle. The transaction is backed by a US$401.2m portfolio of 27 project and infrastructure loans, diversified across 13 countries and eight industry sub-sectors, with approximately 46% of the portfolio considered eligible sustainable assets.

    The deal .......

    Market Moves 11 June 2021

  • NPL secondary market measures agreed

    Sector developments and company hires

    NPL secondary market measures agreed
    The European Parliament and European Council have agreed on common EU standards regulating the transfer of non-performing loans from banks to secondary buyers while protecting borrowers’ rights. The measures are designed to foster the development of secondary markets for credit agreements originally issued by banks and qualified as non-performing, enabling third parties to purchase such .......

    Market Moves 10 June 2021

  • Euro CLOs could still soften

    Sector developments and company hires

    Euro CLOs could still soften
    European CLO new issue triple-A spreads are now out to 87bp-88bp from their post-Covid tights of 79bp-80bp. While there appears to be considerable support at current levels, technicals could yet push them to the low-90s, according to Bank of America European CLO research analysts.

    Offsetting factors currently at play include broader credit market direction, rates moves .......

    Market Moves 7 June 2021

  • ETL waiver requested following cyberattack

    Sector developments and company hires

    ETL waiver requested following cyberattack
    European truck lease provider Fraikin SAS was subject to a ransomware attack that started on 11 May. S&P notes that the credit quality of its two securitisations - FCT Eurotruck Lease II and FCT Eurotruck Lease III (ETL II and III) - is unlikely to be affected, providing the company can make a swift return .......

    Market Moves 28 May 2021

  • CLO manager ESG policies polled

    Sector developments and company hires

    CLO manager ESG policies polled
    A recent survey conducted by Fitch shows that 84% of the 117 CLO managers it polled have a stated ESG policy, while 60% are part of an organisation that is a signatory to the United Nations Principles for Responsible Investment (UNPRI). Managers reported generally sparse ESG information for leveraged loan issuers, but some responses highlighted .......

    Market Moves 27 May 2021

  • CLO conflicts of interest eyed

    Sector developments and company hires

    CLO conflicts of interest eyed
    IOSCO has issued four questionnaires for industry participants on conduct risks in leveraged loans (LLs) and CLOs targeting bank lenders, CLO investors, CLO managers and LL sponsors. Through its Committee 3 on Regulation of Market Intermediaries and its Committee 5 on Investment Management, IOSCO is conducting work to understand the potential conflicts of interest and .......

    Market Moves 24 May 2021

  • RFC issued on benchmark regulation powers

    Sector developments and company hires

    RFC issued on benchmark regulation powers
    The UK FCA has published a consultation on its proposed policy framework for exercising two of its new powers under the Benchmarks Regulation (BMR), which will be introduced by the Financial Services Act 2021. These powers aim to facilitate an orderly wind-down of critical benchmarks like Libor and help users that cannot transition to .......

    Market Moves 21 May 2021

  • Strategic credit commitment inked

    Sector developments and company hires

    Strategic credit commitment inked
    The Investment Management Corporation of Ontario (IMCO) has closed a US$500m commitment with a new strategic partner, Ares Management Corporation. IMCO has allocated US$400m of the commitment to a fund of one structure and US$100m to Ares Pathfinder Fund, a flagship global alternative credit fund. Pathfinder pursues a differentiated strategy of providing tailored financial solutions for .......

    Market Moves 20 May 2021

  • Data centre leverage 'inconsistent' with ratings

    Sector developments and company hires

    Data centre leverage ‘inconsistent’ with ratings
    A number of wholesale data centre securitisations issued in recent years carry elevated leverage that is inconsistent with the single-A rating category, Fitch suggests. The rating agency states that these transactions have weaker credit characteristics and substantially higher leverage multiples than other comparable digital real estate securitisations, such as wireless tower transactions, and higher .......

    Market Moves 19 May 2021

  • Blue investable markets study underway

    Sector developments and company hires

    Blue investable markets study underway
    The European Commission and the EIB Group have increased their cooperation to implement a new EU Sustainable Blue Economy policy. Under the agreement, both institutions will work jointly with EU Member States to meet financing needs to reduce pollution in European seas and support investment for blue innovation and blue bioeconomy.

    As such, the .......

    Market Moves 18 May 2021

  • OMFIT debuts SOFR-linked notes

    Sector developments and company hires

    OMFIT debuts SOFR-linked notes
    OneMain has become the first US securitisation issuer to offer a SOFR-linked floating-rate tranche. The US$500m OneMain Financial Issuance Trust 2021-1 includes triple-A rated class A2 notes - that will be sized to demand – linked to a rate that will be set in advance using 30-day compounded SOFR, although the deal documentation has provision to switch .......

    Market Moves 17 May 2021

  • ESG incorporation challenges highlighted

    Sector developments and company hires

    ESG incorporation challenges highlighted
    The Principles for Responsible Investment (PRI) has published a report that examines the challenges associated with incorporating ESG in securitised products. The report notes that investors are grappling with two issues: building a rigorous framework for assessing ESG factors in mainstream securitisations and enhancing credit risk assessment beyond traditional fundamental analysis; and promoting standards within the .......

    Market Moves 14 May 2021
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