Capital Relief Trades
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Accelerating synthetics simplification and standardisation
Mayer Brown lawyers outline the key points and eligibility c...
Following the start of development work on an accelerated procedure for the regulatory recognition of significant risk transfer (SRT) securitisations last year, the ECB last month published guidance addressed to significant institutions1 (SIs or SI) for certain simpler and more standardised traditional and synthetic securitisations. The new SRT Fast-Track process is currently being tested by the ECB .......
Talking Point 17 March 2025
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Deep dive
Basel Committee launches SRT investigation
In a press release published yesterday, the Basil Committee on Banking Supervision (BCBS) announced its intention to launch an investigation assessing the benefits and risks posed by SRTs.
As part of its ongoing work to assess banks' interconnections with non-bank financial intermediation, BCBS agreed to conduct over the coming year a deep-dive investigation on SRTs.
Commenting on .......
News 14 March 2025
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Latest SRTx fixings released
Slight retreat from last month's widening
As the prospect of a barrage of trade tariffs increases significantly, policy rates are very likely to remain restrictive. In fact, such macro-political environment strongly supports the view of policy rates staying higher versus pre-pandemic levels. In this context, the illiquidity premium found and associated with private credit means buy-and-hold SRT investors can potentially find additional return opportunities.
News 13 March 2025
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EIB inks SRT with Czech lender
SRT to support Czech SMEs and mid-caps
The EIB Group has completed a new synthetic securitisation with Czech bank Ceska Sporitelna (CSAS).
Under the transaction, the EIF will provide a €55m unfunded guarantee in a mezzanine tranche with the objective of enabling CSAS to expand to expand lending to SMEs and mid-caps in the Czech Republic. The junior and senior tranches are retained by CSAS. The .......
SRT Market Update 12 March 2025
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SEC-OCRA: simplifying the prudential framework
New approach aims to address supervisory formula distortions
A new paper presents a methodology for simplifying the prudential framework for synthetic securitisations while maintaining the current level of required capital and ensuring a consistent level of non-neutrality, regardless of transaction structure. By proposing the SEC-Overall Capital Requirement Approach (SEC-OCRA), the paper introduces a simplified and risk-sensitive framework tailored for synthetic securitisations.
The authors of the .......
Talking Point 3 March 2025
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Job swaps weekly: Santander rings changes in structured finance division
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Santander making a number of appointments as part of a major reshuffle of its structured finance advisory and lending platform. Elsewhere, DLA Piper has appointed a new co-head of its structured finance practice, while Piper Sandler has snapped up a new md and co-head of its structured finance group.
Santander has reorganised its structured .......
Market Moves 28 February 2025
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EIB inks Spanish resi deal
Green and sustainable mortgages targeted
The EIB Group has signed a new synthetic securitisation operation with Santander to provide financing for energy efficiency investments in the Spanish real estate sector, including the construction of new near zero-emission buildings and the renovation of existing residential properties to meet sustainability standards. The investment is being executed in a single securitisation, optimally structured to provide Santander with .......
News 28 February 2025
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US CRT: Brave new world - video
Cadwalader Wickersham & Taft partner Jed Miller speaks to SCI
....... News Analysis 26 February 2025
SCI in Focus: Broader and deeper
SRT supply and demand dynamics set to stabilise
A recurring theme within the SRT market last year was its characterisation as ‘bank-friendly’, with a deluge of new capital altering supply and demand dynamics. While issuance volumes continue to grow, the sector is also gaining depth due to increasing standardisation.
“The last year has been characterised by new or newer entrants ramping up. Some, particularly US .......
News Analysis 25 February 2025
Job swaps weekly: Reckoner launches with backing from RedBird
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees the launch of Reckoner Capital Management, an alternative credit asset manager led by a former Panagram Structured Asset Management ceo and cio. Elsewhere, a former Goldman Sachs partner and securitisation specialist has joined One William Street Capital Management as deputy cio and partner, while Chorus Capital has snapped up a former senior exec .......
Market Moves 21 February 2025
Latest SRTx fixings released
A breather
While January traditionally sees benchmark deals from established issuers price – reportedly 100+bps tighter year-on-year – this month’s SRTx fixings and projections suggest that spreads are taking a “breather” (Large corporate: EU +8.1% US +10.3%; SME: EU +7.1%, US +0.7%) off tightened levels following worldwide flattening of the credit curve and tightening across all asset classes (even into higher .......
News 20 February 2025
SRT fast-track testing underway
Market updates and sector developments
The ECB is set to begin testing a new fast-track process for the supervisory assessment of SRT, which it has developed in close dialogue with the European Banking Federation. The SRT assessment of an individual securitisation transaction currently takes about three months, but the fast-track process aims to substantially reduce this time for sufficiently simple securitisations meeting certain requirements.
Market Moves 19 February 2025
Job swaps weekly: ARC promotes two and appoints APAC chair
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees ARC Ratings making a number of senior structured-credit-focused appointments spanning Europe and Asia. Elsewhere, Cadwalader has added three fund finance partners in London, while CIFC Asset Management has named a new md overseeing CLO tranche investing in its New York office.
ARC Ratings has promoted two Lisbon-based structured finance executives .......
Market Moves 14 February 2025
Ever closer
Norwegian SRT market gets further boost
Last week, the Norwegian government has submitted its proposal for SecReg implementation to the Parliament for formal approval.[1]
Coincidentally or not, such announcement matches quite closely the Centre Party's exit from the ruling coalition, leaving the Labour Party to rule alone eight months before parliamentary elections. To bring added context to such shift, Norway’s Centre .......
News 14 February 2025