Talking Point
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Balancing SRT regulatory safeguards and market innovation - part one
In the first instalment of a two-part primer on the SRT mark...
SRT transactions are a key capital management tool for financial institutions worldwide and their utilisation is set to grow as banks seek to optimise their balance sheets further and mitigate risk. However, the regulatory environment continues to evolve, with the next 12 months likely to play an important role in the interplay between regulatory safeguards and market innovation. In .......
Talking Point 31 March 2026
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International Women's Day: Finding my voice, one deal at a time
Jinisha Patel, partner at Cadwalader, argues that this year'...
When I entered the legal industry and started working in the structured finance space, there were very few women in the rooms where decisions were being made. I observed early on that in order to navigate these environments, I had to do so persistently through excellent performance, thereby building trust and earning credibility one deal at a time. I .......
Talking Point 9 March 2026
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Germany's clarified auction authority: a structural parameter within enforcement architecture
Dagmar Gold, managing partner at Deutsche Pfandverwertung, i...
Germany’s updated Section 383 BGB has now been in force for over a year. Only recently, however, has its operational relevance begun to crystallise in cross-border distressed financings involving German collateral.
The amendment is not doctrinally transformative; its significance is structural. For private credit investors, its relevance lies less in legal nuance than in institutional design: how .......
Talking Point 25 February 2026
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Europe's expanding BNPL market could unlock new ABS issuance opportunity
Rapid e-commerce-driven growth supports long-term ABS potent...
Buy-now-pay-later (BNPL) adoption is growing across Europe setting the stage for future securitisation growth, though credit and regulatory risks remain key considerations, according to Moody’s Ratings.
In its ‘Consumer Loan ABS’ report released earlier this week, the ratings agency notes that the “BNPL sector growth is accelerating with e-commerce expansion,” with BNPL loans accounting for 8% of total .......
Talking Point 13 February 2026
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Loan market bifurcation drives wider CLO portfolio dispersion
CLO market experts join SCI's webinar to discuss how manager...
Bifurcation in the leveraged loan market has become a defining theme for CLO participants over the past two years, presenting managers with growing challenges as they navigate an increasingly K-shaped credit universe across both the US and Europe.
In a webinar hosted by SCI on February 3, experts from KBRA, Pearl Diver Capital, and Palmer Square Capital Management .......
Talking Point 11 February 2026
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Financing the AI revolution moves mainstream
Squire Patton Boggs lawyers Ranajoy Basu and Nathan Menon ar...
The demand for hyperscale data centres over recent years has significantly increased, driven primarily by AI technology requiring such developed digital infrastructure. As a result, asset-backed structures backed by data centre cashflows have moved from niche products into the mainstream, as data centre operators fund large-scale real estate commitments, power upgrades and overall expansions.
Increasing demand and greater ....... Talking Point 26 January 2026
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From capital to capacity
Riz Sheikh, head of portfolio and risk transfer solutions at...
Global trade and investment flows are being shaped by a combination of familiar pressures – geopolitical fragmentation, uneven liquidity and shifting regulatory priorities. Yet the underlying challenge remains the same: how to keep credit flowing in a riskier world.
According to the OECD, the global trade finance gap now stands at roughly US$2.5trn, highlighting how the availability of .......
Talking Point 19 January 2026
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Solvency 2 recalibration reopens door to CLOs but hurdles remain
S&P says capital relief improves senior tranche econ...
Reforms to Solvency 2 could significantly reduce capital charges on senior securitisation tranches, including triple-A CLOs. However, S&P Global Ratings cautions that the changes alone are unlikely to trigger a rapid or broad-based return of European insurers to the CLO market.
Under amendments adopted by the European Commission in October, and due to apply from January 2027, capital charges .......
Talking Point 17 December 2025
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Germany's enforcement shift: bypassing the estate to realise alpha
Dagmar Gold, managing partner at Deutsche Pfandverwertung, a...
Three years post-ruling, the operational reality of the German Federal Court of Justice (BGH) ruling IX ZR 145/21 is finally hitting home. For secured creditors, the delayed recognition of independent enforcement rights is creating a divergence between modeled LGDs and actual realised value.
For structured credit investors modeling exposure to German corporates, the insolvency process has long .......
Talking Point 4 December 2025
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Resets drive record year for European CLOs
Experts at SCI's and Reed Smith's CLO event on 4th November...
It has been another strong year for the European CLO market, which has exhibited continued growth in terms of volume, manager ecosystem, and its investor base. EU CLOs have notched record YTD new issuance at approximately €54bn, with net supply slightly lower at €35bn. But, overall the market has seen substantial growth with around €280bn in outstanding vehicles.
Talking Point 3 December 2025
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SRT sceptics
Market participants refute perception of magical thinking
Talking Point 23 October 2025
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Established asset managers seek scale in European ABF
Collateralised, data-driven origination to drive next phase of private credit growth
With ABF becoming the fastest-growing frontier of private credit, established asset managers are now making moves to stake their claim and secure a share of the market. A new whitepaper from Cardo AI - entitled ‘Emerging ABF strategies for Established Asset Managers’ - argues that the European market is reaching an inflection point, .......
Talking Point 23 October 2025
European ABF Forum 2025: Insurers, partnerships and the push for pragmatism
Insurers emerge as key buyers as Europe's ABF market eyes cl...
SCI’s inaugural European ABF Conference on Monday (13th October) was packed with discussion, centering on the growing role of insurance investors and the potential they bring to the European ABF ecosystem.
At the heart of the debate was a familiar tension: Europe is a market full of opportunity, but also complexity. Panellists were quick to flag ongoing challenges .......
Talking Point 15 October 2025
European CRE CLOs set for growth as transitional real estate financing evolves
Stabilising rates and the rise of non-bank lenders are setting the stage for European CRE CLO boom
European commercial real estate markets are showing tentative signs of recovery as interest rates stabilise, prompting renewed appetite for structured financing.
According to a new ‘Demystifying Credit’ report from Morningstar DBRS, this environment is paving the way for commercial real estate (CRE) CLOs to evolve from a niche product into a viable alternative to traditional CMBS structures.
Talking Point 7 October 2025
SCI In Focus: IFC joins MDB securitisation push with debut emerging market CLO
World Bank's private-sector arm prices $510mn securitisation...
The World Bank Group, through its private sector arm, the International Finance Corporation (IFC) has closed its first securitisation transaction in what it hopes will be a series of emerging market CLOs designed to tap into private investment and free up more space on its balance sheet for further lending.
IFC EM Securitisation 2025-1 priced on .......
Talking Point 2 October 2025
Further spread compression opportunities 'limited'
Fund managers highlight firm technicals and resilient performance
The European ABS/MBS market continued to benefit from strong demand in August, despite a quieter month for issuance, with monthly fund factsheets monitored by SCI highlighting firm technicals and resilient performance. High-quality transactions across the auto, CMBS and RMBS sectors attracted oversubscription, although asset managers cautioned that tighter valuations and macro uncertainty limit room for further spread compression.
TwentyFour .......
Talking Point 26 September 2025
Clean-up call language deters CRT
Restrictions on exercise of calls scares off issuers
Talking Point 3 September 2025
FCA consultation to create tailwind for SRT issuance?
SRT market update
Talking Point 22 August 2025
CLO volatility misunderstood as credit risk, says CIFC
Huang unpacks the real risks in CLOs, the rise of ETFs and h...
When the Covid-driven market chaos hit in March 2020, many investors saw the sharp price moves in CLO tranches and drew the conclusion that CLOs must be a risky asset class. But that conclusion is both widespread and deeply flawed, according to Jay Huang, head of structured products investments/senior portfolio manager at New York-headquartered Talking Point 11 August 2025
Reset vs non-reset: Equity IRR gap highlights performance divide
Reset equity tranches have materially outperformed non-reset...
This study examines a sample of 570 US CLO equity tranches from the 2017–2022 vintages. Trading colour, such as cover levels or best bids, is used where available. In the absence of such data, the lowest price talk is taken as a proxy.
Based on SCI BWIC data, minimum price talks have proven to be a reliable indicator .......
Talking Point 7 August 2025