Investors
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Call for Och 'feud' to end
Sector developments and company hires
Call for Och ‘feud’ to end
Market Moves 3 November 2022
Sculptor Capital Management’s independent board members and Jimmy Levin, the firm’s current cio and ceo, have issued statements in response to a recent court filing related to a dispute brought by former chairman and ceo Daniel Och. The filing mentions a “personal issue” from Levin’s past, which was thoroughly reviewed at the time and .......
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Euro CLO footprint established
Sector developments and company hires
Euro CLO footprint established
Cross Ocean Partners has completed Bosphorus .......
Market Moves 2 November 2022
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Chinese CMBS 'structural deficiencies' eyed
Sector developments and company hires
Chinese CMBS ‘structural deficiencies’ eyed
Market Moves 31 October 2022
The recent near-default of a Chinese CMBS issued by Yango Group - together with the two previous defaults of PKU TechPark and Hongbo Exhibition Center - expose several structural deficiencies in Chinese CMBS transactions, according to Fitch. Such deficiencies include low DSCR and collateral quality - due to weak underlying cashflow - limited protection through .......
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Apollo, PIMCO set to acquire Credit Suisse SPG
Sector developments and company hires
Apollo, PIMCO set to acquire Credit Suisse SPG
Credit Suisse has unveiled its new strategy and transformation plan, following a strategic review of the bank’s businesses (SCI 28 July). The bank says it is taking “extensive measures” to deliver a more integrated business model, with the goal of creating value for shareholders.Over the next three years, Credit .......
Market Moves 28 October 2022
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Irish reperforming RMBS stress tested
Sector developments and company hires
Irish reperforming RMBS stress tested
Market Moves 26 October 2022
S&P has conducted a scenario analysis of seven of the Irish reperforming RMBS it rates, to investigate the impact of the rising cost of living, since legacy mortgage loans are particularly vulnerable to rate increases as the borrowers in these transactions predominantly (94%) pay variable interest rates. The combination of an expected increase in debt .......
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CMBS hedging agreements eyed
Sector developments and company hires
CMBS hedging agreements eyed
Market Moves 25 October 2022
DBRS Morningstar has raised concerns that the current DSCRs of three European CMBS it rates - Sage AR Funding No 1, Sage AR Funding 2021 and Taurus 2021-4UK - will be insufficient to enable the borrowers to use excess cash to purchase new interest rate cap agreements, without cash injections from the sponsors, as the respective .......
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NPL guidelines released
Sector developments and company hires
NPL guidelines released
Market Moves 24 October 2022
The European Commission last week published voluntary guidelines on best execution processes for non-performing loan sales in the secondary market. The guidelines define practices across the seven stages of an NPL transaction – from portfolio selection through to post-closing obligations – and cover unsecured and secured portfolios. Debitos notes that the objective is to accelerate the development and .......
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Reaching milestones
John Beacham, ceo and founder of Toorak Capital Partners, answers SCI's questions
Q: Toorak recently hit a US$10bn milestone in whole loan funding for housing rehab and construction since its inception in 2016. What does this mean to your company?
The Structured Credit Interview 24 October 2022
A: We’re extremely proud of hitting this milestone and excited for many more to celebrate in the future. When we first started Toorak, we saw an opportunity to provide stable, long-term capital to .......
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Conservative approach
Aeon Investments ceo Oumar Diallo and coo Ben Churchill answer SCI's questions
Q: Aeon recently announced the closing of its first commercial real estate CLO warehouse (SCI 12 October) with Credit Suisse. Could you provide some background to the decision to become a CRE CLO issuer?
OD: We’re active across the real estate spectrum and seek relative value opportunities in the UK and Europe.The European CRE CLO market has .......
The Structured Credit Interview 21 October 2022
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GSE social disclosures readied
Sector developments and company hires
GSE social disclosures readied
Fannie Mae and Freddie Mac are set to begin publishing pool-level Social Index disclosures for their single-family MBS. The move follows the release of Fannie’s proposed methodology for single-family social disclosure that aims to provide investors with insights into socially-oriented lending activities (SCI 18 August).
The attributes are at-issuance measures and will not be updated .......
Market Moves 19 October 2022
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Natural evolution
CLO docs, structures adapting to macroeconomic conditions
Challenging market conditions have dampened European CLO issuance this year, but they have not stalled it completely. Indeed, transaction structures and documentation are expected to continue evolving to meet equity and debt investors' expected returns.
“It has been a good story for CLO 1.0s, which have had less than half a percent of CLO tranches defaulting over the last 20 .......
News Analysis 19 October 2022
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CRE CLOs: time to zig when others zag
When it comes to structured commercial real estate (CRE) credit, the European market is at a pivotal juncture, explains Iain Balkwill, partner at Reed Smith.
Last year proved to be a ground-breaking year for the asset class; we saw a record volume of CMBS issuance and in an industry first, Starz Real Estate brought Europe’s first ever CRE CLO to .......
Talking Point 19 October 2022
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UK CRE CLO programme prepped
Sector developments and company hires
Aeon Investments has closed its first commercial real estate CLO warehouse in the UK, backed by three strategic loan agreements totalling £900m, as it continues to grow its private credit business. Loans will be funded through Aeon's balance sheet and a three-year revolving senior warehouse facility provided by Credit Suisse. Aeon expects to issue three CRE CLOs in Europe over .......
Market Moves 12 October 2022
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Regional bank CRT pipeline builds
New SCI Global Risk Transfer Report published
A couple more US regional bank capital relief trades are in the pipeline for late 2022 or early 2023, according to SCI’s new Global Risk Transfer Report. In terms of reference pools, a current area of focus is relatively high-quality assets that have a good credit story and are available in some depth.
“I can think of .......
News 12 October 2022
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'Too early to tell' for Sec Reg
Sector developments and company hires
‘Too early to tell’ for Sec Reg
The European Commission has released its report on the functioning of the Securitisation Regulation, as mandated under Article 46 of the Securitisation Regulation. The headline takeaway is that since the regulation only came into force in 2019, the Commission believes it is too early to tell whether the regulation is working and so no meaningful .......
Market Moves 11 October 2022
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Keeping it competitive
Greystone's Jenna Unell, senior md in special servicing, and...
Q: Greystone recently purchased its first primary B-piece in a US$1.09bn conduit CMBS. What makes now the right time to enter this market?
The Structured Credit Interview 11 October 2022
RR: We purchased what was C-III Asset Management at the end of 2019, just before the pandemic, and we are working towards growing that business - which was special servicing. The best way to grow that business .......
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Opening access
Demand for CLO ETFs set to rise
The popularity of CLO ETFs is set to increase, given the current rising interest rate environment. This Premium Content article investigates how the product has opened up the CLO asset class to a broader set of investors.
The advent of CLO ETFs opened up the CLO asset class to a broader set of investors. Against the backdrop of rising ......
News Analysis 10 October 2022Premium Content
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Syco Entertainment lands US$125m deal
Sector developments and company hires
A landmark US$125m securitisation of intellectual property has been completed by the Simon Cowell-founded company, Syco Entertainment. The intellectual property is the Got Talent Franchise, including the America’s Got Talent and Britain’s Got Talent formats commissioned in 72 territories across the globe. The complex transaction marks the first instance of leveraging royalty income streams for the securitisation of the intellectual .......
Market Moves 7 October 2022
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CLOs in an age of economic uncertainty
We are currently going through a difficult economic environment – with rising interest rates, a credit squeeze, inflation and currency volatility, explains Rob Reynolds, md and head of CLOs at Pemberton.
After years of cheap money, investors are naturally being more cautious and selective about where they invest their money.
CLOs are one product that has consistently served as a buffer .......
Talking Point 3 October 2022
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M&G finances tech rental firm Grover via ABS deal
Sector developments and company hires
M&G has announced entry into a funding deal with the consumer-tech subscription platform, Grover. Proceeds from the €270m ABS transaction will be used to grow Grover’s product inventory and expand its presence across European markets. Subscribers to Grover’s platform receive access to over 5,000 tech appliances, which are available to rent on a flexible monthly basis. Grover’s services have seen .......
Market Moves 30 September 2022
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SCI In Conversation podcast is now live!
We discuss the hottest topics in securitisation today...
In this inaugural episode of the SCI In Conversation podcast, Angela Sharda chats to KBRA European research head Gordon Kerr about a European securitisation investor survey the rating agency undertook in June and the implications of the findings today. We also discuss a couple of new SCI Premium Content articles, one of which tracks the evolution of the STS synthetic .......
News 30 September 2022