Market Moves
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ESG incorporation challenges highlighted
Sector developments and company hires
ESG incorporation challenges highlighted
Market Moves 14 May 2021
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 .......
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Asset managers partner on pensions initiative
Sector developments and company hires
Asset managers partner on pensions initiative
DWS has launched the DWS Secured Income Fund, aimed at small to medium-sized defined benefit pension plans seeking stable, long-term returns. The fund provides a diversified portfolio of secured income assets, including ABS and CLO bonds.Over half of UK defined benefit pension plans are in deficit, with insufficient assets to meet their .......
Market Moves 13 May 2021
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Iberian RMBS investment disclosed
Sector developments and company hires
Iberian RMBS investment disclosed
Market Moves 12 May 2021
The EIB has disclosed that it invested €50m in UCI’s latest RMBS, Prado VIII, aimed at promoting the renovation of existing residential buildings in Spain and Portugal, as well as the purchase of new near zero energy housing. The project is expected to contribute to climate change mitigation, delivering energy savings of almost 57GWh a year .......
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STS BTL RMBS prepped
Sector developments and company hires
STS BTL RMBS prepped
Domivest is in the market with the first-ever STS buy-to-let RMBS. Dubbed Domi 2021-1, the €352.2m transaction is backed by a €370.7m provisional pool of Dutch BTL mortgage loans, including €30.61m in prefunding.Interest-only loans comprise 93.5% of the pool, according to Moody’s. Loans with initial LTVs above 70% amortise linearly to either the 70% .......
Market Moves 11 May 2021
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Hertz reorganisation proposals weighed
Sector developments and company hires
Hertz reorganisation proposals weighed
Market Moves 10 May 2021
Hertz has determined that a revised proposal to provide equity capital to fund its exit from Chapter 11 - made by affiliates of Knighthead Capital Management, Certares Opportunities and Apollo Capital Management - constitutes a superior proposal than the one contemplated by its agreement with its existing plan sponsors, affiliates of Centerbridge Capital Partners, Warburg Pincus .......
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Green railcar ABS debuts
Sector developments and company hires
Green railcar ABS debuts
Trinity Industries has priced its inaugural green railcar ABS, following the publication of its green financing framework in January. The US$355m TRP Series 2021-1 transaction is backed by a US$482.68m portfolio comprising 6,350 railcars.The notes constitute green bonds based on the generally accepted market principles for such classification published by ICMA. Sustainalytics, acting as an external .......
Market Moves 7 May 2021
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Landmark Romanian CRT upgraded
Sector developments and company hires
Landmark Romanian CRT upgraded
Market Moves 6 May 2021
Scope Ratings has upgraded to single-A from single-A minus the two tranches issued under the SME Initiative Uncapped Guarantee Instruments (SIUGI) for Romania deal (SCI 5 May 2020), an EIF risk transfer transaction referencing 60% of a €1.369bn portfolio – which is still ramping up – of SME credit rights originated by eight Romanian banks. .......
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US CLOs assessed
Sector developments and company hires
US CLOs assessed
As US CLO primary volumes continue to fall, JPMorgan CLO research has taken stock of the market’s current standing. It finds the US$1trn benchmark is edging within sight, despite a deceleration in the number of new managers, and strong risk/reward credentials keeping the CLO space attractive.JPMorgan reports that global CLO market outstanding notional is currently .......
Market Moves 5 May 2021
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Hong Kong ILS pilot unveiled
Sector developments and company hires
Hong Kong ILS pilot unveiled
Market Moves 4 May 2021
The Hong Kong Insurance Authority has released details of the two-year Pilot Insurance-linked Securities Grant Scheme promulgated in the jurisdiction’s 2021-2022 Budget. The scheme provides an incentive for onshore and offshore issuers and sponsors to issue ILS in Hong Kong, while efforts are being made in parallel to map out a new regulatory regime for .......
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RFC issued on LGD proposal
Sector developments and company hires
RFC issued on LGD proposal
Market Moves 30 April 2021
The EBA has published a consultation paper on draft Regulatory Technical Standards specifying the types of factors to be considered when assessing the appropriateness of risk weights and minimum loss given default (LGD) values for exposures secured by immovable property. Relevant authorities, as designated by a Member State, may set higher risk weights or impose .......
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Greek investment partnership inked
Sector developments and company hires
Greek investment partnership inked
Market Moves 29 April 2021
Mount Street Group has formed a strategic partnership in Greece and Cyprus with Technical Olympic, a Greek real estate, construction and investment group. As part of the partnership and through its subsidiary PFC Premier Finance Corporation (Cyprus), Technical Olympic has entered into a Memorandum of Understanding to acquire a stake in Mount Street’s businesses in Greece .......
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Irish RPL refi prepped
Sector developments and company hires
Irish RPL refi prepped
Market Moves 28 April 2021
A refinancing of two Irish reperforming RMBS - European Residential Loan Securitisation 2019-PL1 and Grand Canal Securities 1 - has hit the market. Dubbed Primrose Residential 2021-1, the transaction is backed by a €869.8m portfolio of seasoned first lien performing and reperforming mortgages secured by majority owner occupied (accounting for 57.6% of the pool) and buy-to-let .......
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APAC ESG expansion eyed
Sector developments and company hires
APAC ESG expansion eyed
Market Moves 27 April 2021
Moody’s is set to expand its Singapore office with the aim of spearheading ESG, climate and sustainable finance efforts in the Asia Pacific region, as well as fostering the ESG ecosystem in Singapore. Included in the firm’s plans are several initiatives, such as the establishment of an ESG Centre of Excellence for investor outreach, engagement and .......
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Downgrades for 'lower quality' mall CMBS
Sector developments and company hires
Downgrades for ‘lower quality’ mall CMBS
Market Moves 26 April 2021
Moody's has downgraded 119 principal and interest, 26 interest-only and 11 exchangeable classes from 36 US CMBS and placed eleven P&I, one exchangeable and three IO classes under review for possible downgrade from a further two CMBS. The rating actions affect approximately US$6.2bn of securities and were prompted primarily by increased loss expectations and .......
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CLO investment firm formed
Sector developments and company hires
CLO investment firm formed
Market Moves 23 April 2021
York Capital Management and Kennedy Lewis Investment Management have formed a strategic partnership and established a new entity called Generate Advisors. Under the agreement, York’s approximately US$4bn CLO business and team - led by Rizwan Akhter - will transition to Generate Advisors and continue to manage York’s current CLO portfolio, as well as any future CLOs .......
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Taxonomy Delegated Act adopted
Sector developments and company hires
Taxonomy Delegated Act adopted
The European Commission has adopted what it describes as an “ambitious and comprehensive” package of measures to help improve the flow of money towards sustainable activities across the EU. The measures – which include the EU Taxonomy Climate Delegated Act - are expected to be instrumental in making Europe climate-neutral by 2050.The EU Taxonomy .......
Market Moves 22 April 2021
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Forbearance SPV availability ends
Sector developments and company hires
Forbearance SPV availability ends
The Australian Office of Financial Management has released an update on its Structured Finance Support Fund (SFSF) activities. As of 31 March 2021, total funds committed by the SFSF were A$3.8bn, including A$1.36bn public market investments and circa A$2.3bn across 45 individual warehouses sponsored by 34 eligible lenders.The AOFM notes that public securitisation market .......
Market Moves 21 April 2021
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Blockchain mortgage 'ecosystem' prepped
Sector developments and company hires
Blockchain mortgage ‘ecosystem’ prepped
Market Moves 20 April 2021
Liquid Mortgage has raised capital from and entered into a strategic partnership with Redwood Trust, marking the culmination of a months-long engagement, in which Redwood Trust tested Liquid Mortgage's technology and developed an actionable strategy to build a future-ready mortgage ecosystem. The partners share a common mission of utilising blockchain technology within the current market infrastructure, .......
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GSE Patch to end
Sector developments and company hires
GSE Patch to end
Market Moves 16 April 2021
Fannie Mae and Freddie Mac have announced that any loans purchased after 1 July must meet the standards set out in the most recent amendments to the Preferred Stock Purchase Agreements, which stipulate that the GSEs will only purchase qualified mortgage loans that meet the new general ATR/QM Rule. The move effectively ends the use of .......
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Federal preemption challenges continue
Sector developments and company hires
Federal preemption challenges continue
Market Moves 15 April 2021
Two US courts have heard actions that are of significance to marketplace lenders and their funding sources so far this month, Chapman and Cutler reports. In Maryland, a state regulatory action purporting to require licensing of a sponsor bank and its fintech service providers has been removed to federal court. Conversely, a California federal court has dismissed .......
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Second IIG exec charged with fraud
Sector developments and company hires
Second IIG exec charged with fraud
Market Moves 14 April 2021
International Investment Group (IIG) managing partner and coo Martin Silver has pled guilty before US District Judge Alvin Hellerstein to investment adviser fraud, securities fraud and wire fraud offenses in connection with an over US$100m scheme to defraud IIG’s investment advisory fund clients and investors (SCI 29 January). In connection with his plea .......