Market Moves

  • Shortfalls hitting rated CMBS notes

    Sector developments and company hires

    Shortfalls hitting rated CMBS notes
    KBRA reports that over 85% (225) of the 263 deals in its rated US conduit CMBS universe have been impacted by interest shortfalls to varying degrees. Prior to the coronavirus pandemic, shortfalls occurred in just over 40% (110) of the transactions, as of February 2020.

    “The increase is not surprising, as interest shortfalls are .......

    Market Moves 12 November 2020

  • Dutch BTL aggregator deal prepped

    Sector developments and company hires

    Dutch BTL aggregator deal prepped
    Citi is in the market with a new Dutch buy-to-let RMBS. Dubbed Jubilee Place 2020-1, the transaction is backed by a €212.9m portfolio comprising 669 loans originated by Dutch Mortgage Services, DNL 1 and Community Hypotheken.

    These three platforms focus on the non-consumer segment of the BTL market – in other words, professional landlords – according .......

    Market Moves 11 November 2020

  • ESG-focused CLO manager formed

    Sector developments and company hires

    ESG-focused CLO manager formed
    A trio of ex-Ares Management partners have formed a new independent alternative credit investment firm that plans to adopt an active ESG screening approach. Founded by Americo Cascella, Daniel Hall and Shane Mengel, Pacific & Plains Capital is based in Dallas, Texas, with a presence also in Los Angeles, California. The firm will invest in loans .......

    Market Moves 10 November 2020

  • Hertz in line with settlement plan

    Sector developments and company hires

    Hertz in line with settlement plan
    Fitch reports that Hertz had disposed of nearly 170,000 non-program vehicles (NPVs) over the past five months, which is in line with its bankruptcy settlement plan. These dispositions amounted to approximately US$3.3bn of proceeds, with a combined net book value (NBV) of US$2.8bn. Per the Hertz Vehicle Financing II liquidation event, these sales proceeds .......

    Market Moves 6 November 2020

  • CLO library launched

    Sector developments and company hires

    CLO library launched
    Semeris has today launched a document library called Semeris Docs for CLOs. The service initially covers European CLO documents and summaries on over 75 transactions, which will continue to grow and see a US CLO library launched in 1Q21.

    Semeris Docs is built on NLP (natural language processing) and the latest AI techniques, combined with human .......

    Market Moves 4 November 2020

  • Strategic partnership expanded

    Sector developments and company hires

    Strategic partnership expanded
    Pretium has entered into an expanded strategic partnership with American Equity Investment Life Insurance Company (AEL), building upon AEL's prior investment commitments with the firm and increasing total commitments to US$1bn, with pre-agreed terms for expansion to US$2.25bn. The investments will initially be primarily deployed into attractive residential credit assets sourced and managed by Pretium.

    In .......

    Market Moves 3 November 2020

  • UKML shareholder consultation continues

    Sector developments and company hires

    UKML shareholder consultation continues
    The board of UK Mortgages (UKML) has completed the strategic review that it commenced following the withdrawal of proposals by M&G Investment Management (MAGIM) (SCI 14 August). The review has identified two potential options that will provide a clear path to the company’s objectives of enhanced liquidity, as well as a narrowing and removal of .......

    Market Moves 30 October 2020

  • Pan-European logistics CMBS prepped

    Sector developments and company hires

    Pan-European logistics CMBS prepped
    Blackstone Real Estate Partners is in the market with a €318.6m single-loan pan-European CMBS. Dubbed Pearl Finance 2020, the transaction is secured by 61 predominantly last-mile logistics assets across Denmark, Finland, France, Germany, Ireland and the Netherlands.

    The assets are valued by Cushman & Wakefield at €576.9m, as of 31 July 2020. Portfolio occupancy currently .......

    Market Moves 28 October 2020

  • AMCO deal completed

    Sector developments and company hires

    AMCO deal completed
    Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as .......

    Market Moves 26 October 2020

  • Environmental risk score rolled out

    Sector developments and company hires

    CMBS environmental risk score rolled out
    Trepp has implemented a new data integration with Risk Management Solutions (RMS) that aims to help evaluate and manage global risk from natural and man-made catastrophes. The solution provides an environmental risk score for properties backing CMBS loans, ranging from one to five, that measure the likelihood of property damage and business interruption from .......

    Market Moves 23 October 2020

  • Aviation leasing platform prepped

    Sector developments and company hires

    Aviation leasing platform prepped
    PIMCO and GE Capital Aviation Services (GECAS) have reached a preliminary agreement to develop an aviation leasing platform to support up to US$3bn in aircraft asset financings, subject to customary closing conditions. This strategic investment platform will enable GECAS and PIMCO-advised accounts to acquire new and young fuel-efficient aircraft.

    The portfolio will initially focus on .......

    Market Moves 21 October 2020

  • Leasing ABS inked

    Sector developments and company hires

    Leasing ABS inked
    The EIB and the EIF have provided Alba Leasing with €490m via an SME securitisation financing operation. Alba Leasing has undertaken to double this, increasing the total amount available to €980m for projects across all economic sectors, with a particular focus on environmental investments (for which 20% of the resources have been reserved).

    The EIB Group has subscribed .......

    Market Moves 20 October 2020

  • CLO structures reviewed

    Sector developments and company hires

    CLO structures reviewed
    Post-Covid crisis US BSL CLO structures differ in a range of ways from their predecessors, beyond shorter reinvestment periods, according to a new report from S&P.

    “We reviewed a sample of almost 40 US BSL CLOs that closed in Q2 and Q3, and compared their portfolio metrics (as of the start of Q4) to the statistics .......

    Market Moves 19 October 2020

  • Collateralised loan overlap

    Sector developments and company hires

    Collateralised loan overlap
    Diversification risk across the US CLO market has increased this year, due to the 18% decline in US leveraged loan net supply over 2019 versus 79 different managers issuing deals in 2020. Consequently, JPMorgan CLO research analysts have published a new report looking at US CLO asset inter-overlap (to other managers), intra-overlap (across portfolios of the same .......

    Market Moves 16 October 2020

  • First EGF guarantee inked

    Sector developments and company hires

    First EGF guarantee inked
    The EIB has approved €5.1bn of new financing to support investment by companies most impacted by Covid-19, alongside backing clean energy, water, sustainable transport and urban development. This includes up to €2.66bn of support – comprising €1bn of EIB-linked risk-sharing products and €1.66bn EIF guarantee and equity products - backed by the new European Guarantee Fund, .......

    Market Moves 14 October 2020

  • MPL platform ends note programme

    Sector developments and company hires

    MPL platform ends note programme
    LendingClub is winding down its retail note programme and has ceased accepting new accounts. The platform says it is no longer ‘economically practical’ to continue offering notes as it moves towards becoming a full-spectrum fintech bank. PeerIQ notes that the move is unsurprising, given that the programme exposed LendingClub to potential conflicts of interest and .......

    Market Moves 12 October 2020

  • US CLO recovery continues

    Sector developments and company hires

    US CLO recovery continues
    US CLO OC cushions are continuing to recover, according to the latest quarterly US manager report from JPMorgan CLO research.

    It says: “In the upcoming final quarterly October payment (majority of CLOs), we estimate as much as circa 92% equity will pay a cashflow compared to circa 89% in July and circa 40% during the GFC. .......

    Market Moves 9 October 2020

  • Litigation finance fund formed

    Sector developments and company hires

    Litigation finance fund formed
    Tetragon and its diversified alternative asset management business TFG Asset Management have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital. The company – which is expected to formally launch on 1 November - is a multi-product global asset management business that will sponsor and manage litigation finance-related investment funds.

    Baer .......

    Market Moves 8 October 2020

  • IP transaction debuts

    Sector developments and company hires

    IP transaction debuts
    Aon has launched an intellectual property (IP) capital market solution with the close of an IP-backed ILS transaction, believed to be the largest such deal ever consummated. The deal involves agriculture technology company Indigo, which is borrowing over US$100m utilising its IP as collateral, with the value of that collateral insured by a group of insurance markets led .......

    Market Moves 7 October 2020

  • 'Quick fix' draft legislation published

    Sector developments and company hires

    ‘Quick fix’ draft legislation published
    The European Parliament has published draft legislative resolutions on amendments to the Securitisation Regulation and CRR in connection with STS synthetics and non-performing exposures.

    Among the proposals is a tightening of the definition of an NPE securitisation and the introduction of stricter language on risk retention, according to Rabobank credit analysts. The regulatory treatment .......

    Market Moves 6 October 2020

  • Range of moratoria take-up 'stark'

    Sector developments and company hires

    Range of moratoria take-up ‘stark’
    With payment holiday concentrations having fallen over the past few remittance periods, the range of payment holiday take-up across UK RMBS is stark, according to JPMorgan’s latest Covid-19 Payment Holiday Tracker. Reflecting data reported primarily through September and August, the report identifies zero percent (in the case of the MORTI 2020-1 deal) and 0.6% (TWIN .......

    Market Moves 5 October 2020
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