ABS
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Advisor picked to help end GSE conservatorship
Sector developments and company hires
Acquisition
Market Moves 4 February 2020
Link Group has signed an agreement to acquire Pepper European Servicing from Pepper Group for an upfront consideration of €165m. The meeting of AUM thresholds and growth milestones could trigger an additional consideration of €35m. The acquisition will deliver immediate scale for Link Group’s banking and credit management division in existing and new jurisdictions, and does not impact on .......
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HAPS flurry
Greek NPL ABS pipeline grows
Piraeus Bank is set to securitise €7bn of non-performing loans in 2020. The lender is the latest to announce its intention to take advantage of Greece’s recently approved Hercules asset protection scheme (HAPS).
According to Piraeus: “The Hellenic Asset Protection Scheme ‘Hercules’ is a tool that will provide additional support to Greek banks to speed up our de-risking .......
News 4 February 2020
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Hong Kong landmark
First-of-a-kind deal could herald broader securitisation market return
A landmark ABS deal in Hong Kong is anticipated to be the first of many. At the same time, there is optimism for broader regional growth.
Ocean Funding 2019-1 closed on 5 December 2019, having issued US$200m of senior secured floating rate notes backed by a portfolio of unsecured HK$ consumer loans originated by Hong Kong-based loan firm .......
News Analysis 4 February 2020
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Crestline Denali CLO interests acquired
Sector developments and company hires
Additional CLOs for Ares
Market Moves 3 February 2020
An Ares Management Corporation subsidiary is set to acquire a managing interest in a restructured Crestline Denali Capital that will result in the addition of seven CLOs totalling US$2.6bn of assets under management to the Ares portfolio. Crestline Denali will retain its equity interest in its CLOs. Ares believes that the all-cash transaction will strengthen its .......
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Grasshopper up
Landmark green SRT finalised
RBS has completed a landmark capital relief trade referencing a £1.1bn portfolio of UK project finance loans. Dubbed Project Grasshopper, the approximately £78m financial guarantee is the first risk transfer transaction to be backed entirely by green assets and was carried out for both capital relief and credit risk management purposes. Macquarie Infrastructure Debt Investment Solutions, in conjunction with BAE .......
News Analysis 31 January 2020
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Covered funds provisions set to be revised
Sector developments and company hires
AMR auction debut
The first-ever CLO applicable margin reset executed online – via KopenTech’s auction platform - saw all five tranches of TCW 2019-1 CLO refinanced successfully. The coupon of the US$240m triple-A rated tranche was reset to 107bp, from a spread of 144bp when the transaction initially closed.Receivables ABS prepped
Market Moves 31 January 2020
Gedesco Finance and Toro Finance are in the .......
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Ramping up
BlueBay bolsters structured credit footprint
BlueBay Asset Management is ramping up its debut CLO, with launch planned for next quarter. At the same time, portfolio manager Alex Navin is set to relocate to New York to strengthen the firm’s US credit investment team.
“The move enhances our global coverage and enables us to identify the best relative value opportunities in a broader context,” .......
News 31 January 2020
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BMO SRT inked
Repeat Manitoulin trade completed
Bank of Montreal has completed a capital relief trade referencing US and Canadian senior secured and senior unsecured corporate loans. Dubbed Manitoulin USD Algonquin 2020-1, the five-year financial guarantee is a repeat transaction of another Manitoulin SRT from the same series that was finalised in July 2019.
Rated by DBRS Morningstar, the transaction consists of a triple-A rated class A .......
News 31 January 2020
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Equity increase
Aircraft ABS volumes powering rise in growth of equity notes
Aircraft ABS issuance volumes are expected to rise again this year, even after a bumper 2019. As a result, the nascent market in the related equity notes (E-Notes) should also grow, but investing in that part of the capital structure is not without its challenges.
“Aircraft leasing, as an ‘alternative’ asset class is attracting more institutional investment capital .......
News Analysis 31 January 2020
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Risk transfer round-up - 28 January
CRT sector developments and deal news
Deutsche Bank has completed a capital relief trade from the CRAFT programme. Dubbed CRAFT 2020-1, the US$150m 9.5-year CLN priced at Libor plus 9.5%. The floater is non-callable and has a weighted average life and expected maturity equal to 7.5 years. Deutsche Bank’s last CRAFT transaction was finalised in March 2019 (see SCI’s capital relief trades database).
...... News 28 January 2020Premium Content
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Valuations provider bought by investor consortium
Sector developments and company hires
Acquisitions
Market Moves 28 January 2020
A consortium led by funds managed by Stone Point Capital and Further Global has agreed to acquire Duff & Phelps for US$4.2bn. The equity sellers include the Permira funds, which will continue to hold a significant stake in the company as part of the consortium. As part of the transaction, the Duff & Phelps management team will maintain a .......
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Hedge fund liquidated amid accounting probe
Sector developments and company hires
Hedge fund liquidated amid accounting probe
Market Moves 27 January 2020
TCA Fund Management Group is liquidating its main credit hedge fund, TCA Global Credit Master Fund, after the fund received redemption and withdrawal requests in excess of available cash. The redemptions come amid a US SEC probe into the firm’s accounting practices. According to whistleblowers, the firm has US$300m in assets - not US$500m - .......
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Tail risk debut
Innovative cat bond completed
Goldman Sachs has completed an unusual catastrophe bond that covers the tail risk that State National Insurance Company is exposed to through its insurance agreements with ILS manager Nephila Capital as capacity provider. Principal reduction of the notes under the transaction - dubbed Stratosphere Re Series 2020-1 - can only be triggered after at least two industry insured loss .......
News 27 January 2020
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Risk transfer round-up - 27 January
CRT sector developments and deal news
Banco BPM is rumoured to be readying a capital relief trade for this year. The issuer launched its first risk transfer transaction in June 2019, which was carried out with the EIF (see SCI’s capital relief trades database).
...... News 27 January 2020Premium Content
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NPL ABS settled
Multi-originator trend continues
Twelve Italian popular banks - including Banca Popolare di Puglia e Basilicata and Banca di Credito Popolare - have settled a securitisation backed by an €826.7m GBV portfolio of secured and unsecured non-performing loans. The ABS continues a trend of multi-originator transactions that began over a year ago in the Italian NPL market (SCI 13 July 2018).
News 23 January 2020
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Chinese reference centre upgrade 'credit positive'
Sector developments and company hires
Credit system upgraded
Market Moves 23 January 2020
The People's Bank of China’s Credit Reference Center last week upgraded its credit information system to record and provide more comprehensive credit information on individuals and enterprises. The upgraded system can lead to better measurement and understanding of risk by lenders, which is credit positive for the asset quality of their loan books and any securitisations that .......
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Climate fund launched
Blended finance structure offers four classes of risk
ResponsAbility Investments has announced the first closing of an innovative climate fund, set up as a blended finance structure that offers different classes of risk and has received commitments from a number of public and private investors. The private debt fund addresses the lack of access to clean power globally, with a strong focus on Sub-Saharan Africa, as well .......
News 23 January 2020
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Risk transfer round-up - 23 January
CRT sector developments and deal news
Caixabank is rumoured to be prepping a consumer SRT for this year. The lender printed its last transaction in May 2019 (see SCI’s capital relief trades database). Dubbed Gaudi Synthetic 3, the €100m financial guarantee was carried out with the EIF.
...... News 23 January 2020Premium Content
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Bespoke service
Emma-Jane Fulcher, founder of Grovewood Capital Consultancy, answers SCI's questions
Q: How and when did Grovewood Capital Consultancy become involved in the securitisation market?
Provider Profile 23 January 2020
A: I founded Grovewood Capital Consultancy at the end of last year (SCI 23 December 2019). In my previous role as head of structured finance at ARC Ratings, more and more clients were asking for structuring advice during the ratings process – which, of course, .......
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Parametric cyber risk trade inked
Sector developments and company hires
Acquisition
Market Moves 22 January 2020
Ares Holdings is set to acquire a controlling interest in Asian alternative asset manager SSG Capital Holdings and its subsidiaries. Headquartered in Hong Kong with offices across Asia, SSG manages private credit and special situations funds totaling approximately US$6.2bn in assets under management, as of 30 September 2019. The SSG leadership team, including ceo Edwin Wong, and their colleagues .......
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Risk transfer round-up - 22 January
CRT sector developments and deal news
BBVA is rumoured to be readying a capital relief trade for 1Q20. The transaction would be the lender’s fourth ever risk transfer transaction (see SCI’s capital relief trades database).
Dubbed Vela Corporate 2018-1, BBVA’s last capital relief trade was completed in December 2018 (SCI 11 January 2019). All of the bank’s CRTs were carried out with the EIF.
...... News 22 January 2020Premium Content