Investors

  • Manager tiering

    Japanese demand driving dispersion?

    The US CLO market continues to be characterised by dispersion (SCI 24 May). In this context, secondary double-B paper appears to be competing well against new issue equity.

    “The biggest headwind CLO managers face is dispersion right now, particularly in the triple-As, because that makes up such a large part of the capital stack. We are seeing .......

    News 9 June 2023

  • Entrepreneurial spirit

    Colin Reddy, md, head of financial institutions and advisory at Howden CAP, answers SCI's questions

    Q: You joined Howden CAP in April from Mizuho, where you executed a number of strategic capital and balance sheet transactions for the firm’s clients (SCI 12 April). What attracted you to move to the insurance side of the risk transfer market?
    A: I began my career in insurance, but I have spent the last 20 years in banking .......

    The Structured Credit Interview 9 June 2023

  • Strategic partnerships 'positive' for CLO managers

    Sector developments and company hires

    Strategic partnerships ‘positive’ for CLO managers
    The number of US broadly syndicated loan CLOs for which managers retained their majority equity stake continues to exceed the number of CLOs where equity was sold to third parties, according to data published in Fitch’s latest CLO Asset Manager Handbook. The percentage of US managers that retained a majority in their CLOs’ equity .......

    Market Moves 8 June 2023

  • Latest SRTx fixings released

    Improved tone implied in June index values

    The latest fixings for the SRTx (Significant Risk Transfer Index) have been released. The index values imply a generally improved tone across all four sub-indexes since May’s fixings (SCI 3 May).

    Indeed, this month’s survey responses suggest that spread estimates have tightened considerably for US large corporate and EU SME SRT transactions - by 48bp (representing .......

    News 2 June 2023

  • Stonepeak eyes structured solutions

    Sector developments and company hires

    Stonepeak eyes structured solutions
    Michael Leitner has joined Stonepeak as a senior md. Based in the firm’s New York office, he will help lead the continued buildout of Stonepeak’s credit investing capabilities. The firm believes there is a clear opportunity to leverage its broader platform and institutional knowledge to support the growth of the infrastructure marketplace through investments in credit .......

    Market Moves 2 June 2023

  • Perfect storm?

    SFR squeeze as costs rise and rents fall

    The US single-family rental (SFR) securitisation market is facing the most challenging conditions since the launch of the first transaction in the sector 10 years ago. The space is experiencing a perfect storm of declining rental rates, house price volatility and high inflation.

    “We've been seeing increasing headwinds towards the sector,” says Akshay Maheshwari, a senior director on .......

    News Analysis 31 May 2023

  • Sun King supported via solar ABS

    Sector developments and company hires

    Sun King supported via solar ABS
    British International Investment (BII), the UK’s development finance institution (DFI), and Stanbic Bank Kenya have unveiled commitments to off-grid solar energy company Sun King via a US$130m-equivalent securitisation and a joint US$20m working capital facility. These commitments will enable the purchase of more inventory - such as solar home systems and solar lanterns - and .......

    Market Moves 31 May 2023

  • Infrastructure CLO debuts

    AIIB anchors emerging market pilot

    Hong Kong Mortgage Corporation (HKMC) has completed the first CLO issuance under its pilot scheme on infrastructure financing securitisation. Dubbed Bauhinia ILBS 1, the transaction is backed by a US$404.8m portfolio of 35 bank-syndicated senior secured project finance and corporate infrastructure loans secured by 25 individual projects across nine sectors and 12 countries in Asia-Pacific, the Middle East and .......

    News 31 May 2023

  • ESG impact disclosure RTS inked

    Sector developments and company hires

    ESG impact disclosure RTS inked
    The three European Supervisory Authorities (ESAs) have jointly submitted to the European Commission draft RTS on ESG impact disclosures for STS securitisations under the Securitisation Regulation (SECR). The amended SECR introduced new optional disclosure provisions related to the principal adverse impacts (PAIs) on sustainability factors of the assets financed by the underlying exposures for both .......

    Market Moves 26 May 2023

  • USAUT noteholders bag successor servicer

    Sector developments and company hires

    USAUT noteholders bag successor servicer
    KBRA reports that it has received an omnibus amendment, assignment, assumption and consent agreement on each outstanding US Auto Funding Trust (USAUT) securitisation specifying that Westlake Portfolio Management (WPM) has been assigned as successor servicer and the servicing fee has increased to 4.10%, from 3.75%. WPM has assumed the duties and obligations of the servicer, .......

    Market Moves 25 May 2023

  • Proactive participation

    CLO manager differentiation eyed

    M&A activity, tiering and the paucity of new collateral are all potential headwinds for CLO managers, especially for smaller players and new entrants. Against this backdrop, proactive CLO management is an increasing differentiator.

    Current CLO market conditions could provide early-mover advantages for active managers, as failure to sell out of problematic credits in a timely manner could result .......

    News Analysis 24 May 2023

  • Democratising higher education

    International student loan expansion targeted

    MPower Financing, a provider of loans for international university students, is pursuing its first securitisation following the closing of a US$150m revolving asset-backed warehouse facility with Goldman Sachs. The business may look to expand its offering to include students attending universities and colleges outside North America, as it aims to corner a relatively underdeveloped niche in the student lending .......

    News Analysis 23 May 2023

  • Holding steady

    CRT structures unscathed amid bank volatility

    Recent banking instability is unlikely to result in contractual changes in synthetic securitisations, but structural divergences are emerging. This Premium Content article investigates further.

    The aftermath of UBS’s acquisition of Credit Suisse and the turmoil in the US regional bank market is unlikely to result in any contractual changes around counterparty credit risk in synthetic securitisations. However, opinion ......

    News Analysis 19 May 2023

    Premium Content

  • CLO heavyweight to lead combined platform

    Sector developments and company hires

    CLO heavyweight to lead combined platform
    Sound Point Capital Management has appointed Gunther Stein as head and cio of its US performing credit and CLO platform. The move follows Sound Point’s recently announced agreement to acquire Assured Investment Management, the institutional asset management business of Assured Guaranty that was formerly known as BlueMountain Capital Management (SCI 6 April).

    Market Moves 19 May 2023

  • Unfinished business

    ESMA review offers opportunity to increase ABS transparency

    NPL Markets, the loan trading and analytics platform, has called for increased data transparency in the European private securitisation market, despite resistance from some market participants. The development comes as ESMA conducts its review of mandatory investor disclosure templates in response to a request from the European Commission last year (SCI 15 November 2022).

    “Transparency is paramount,” .......

    News Analysis 17 May 2023

  • The social struggle

    More data needed to tackle 'socialwashing'

    Concerns around ‘socialwashing’ remain, despite recent advances in defining social securitisations. This Premium Content article investigates why the ‘social’ side of ESG securitisation is more complex than its ‘green’ cousin.

    The European social securitisation sector is lagging behind the green securitisation sector, in terms of both standardisation and the availability of qualitative data. Despite advancements in defining ......

    News Analysis 17 May 2023

    Premium Content

  • AG acquisition creates credit powerhouse

    Sector developments and company hires

    AG acquisition creates credit powerhouse
    TPG is set to acquire Angelo Gordon in a cash and equity transaction valued at approximately US$2.7bn, based on TPG’s share price as of 12 May, including an estimated US$970m in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG. The transaction also includes an .......

    Market Moves 16 May 2023

  • International affair

    Opportunity for foreign investors in Chinese ABS?

    Misunderstanding could mean missed opportunity for investors as China’s unique securitisation market continues to grow and mature. Despite divergence from global norms, there may be room for more foreign investors to capitalise on the robust credit performance seen across the sector.

    "The large and diverse Chinese securitisation market has become a mature funding channel for various types of .......

    News Analysis 15 May 2023

  • Meeting of worlds

    Opportunities for ABS originators as private and syndicated debt markets converge

    Private credit transactions are playing an increasingly prominent role in the structured finance landscape, owing to the continued global growth of the direct lending space. The trend is being reinforced by high-profile entrants into private debt, as banks and asset managers look to diversify into new asset classes.

    “Structured credit has not really played a significant role in .......

    News Analysis 12 May 2023

  • A European ecosystem

    Continental solar ABS primed for growth

    Continental solar ABS is primed for growth as governments and consumers seek energy independence. This Premium Content article investigates.

    Europe could soon see its first public solar securitisation, after renewable energy firm Enpal announced a €356m warehousing facility to finance more than 12,500 photovoltaic (PV) systems in Germany (SCI 30 March). The continent’s solar ABS market has .......

    News Analysis 11 May 2023

  • Rapid rise in defaults for Gedesco TRS

    Sector developments and company hires

    Rapid rise in defaults for Gedesco TRS
    The ratings on €191.8m of notes issued by Gedesco Trade Receivables 2020-1 have been downgraded in light of the significant and rapid increase in defaults observed in March, following the start of the securitisation’s amortisation phase in January. Specifically, Moody's states that most obligors have reportedly stopped paying and recoveries are likely to .......

    Market Moves 9 May 2023
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