Investors
-
Digital ABS debuts
Fully blockchain-based securitisation completed
German fintech Cadeia has completed the first-ever fully blockchain-based corporate loan securitisation via its Digital Services Platform (DSP). Dubbed GreyPeak 2021-1, the deal was privately placed in the form of digital securities.
“GreyPeak 2021-1 is the first loan securitisation to fully store and execute the complex terms and processes of a securitisation transaction in a blockchain,” explains Rolf .......
News 7 December 2021
-
Covid-19: Lessons for the CMBS market
Iona Misheva, partner at Allen & Overy, explores the lessons that the pandemic provided for the European CMBS market
Issuance has been at consistently high levels this year. This has shown that the asset class recovered quickly from the temporary forces of the pandemic, which resulted in very few deals coming to market in 2020. In contrast, 2021 has seen near record levels of .......
Talking Point 6 December 2021
-
ESG countdown
ECB climate stress tests pending
The ECB’s pending climate stress tests are expected to offer some answers around the data and modelling challenges pertaining to the analysis of climate risks. Indeed, the stress tests could also prove definitive for ESG significant risk transfer issuance, given the presence of the same data challenges.
The two main challenges pertaining to the analysis of climate risks are data .......
News Analysis 3 December 2021
-
Bosphorus CLOs transferred
Sector developments and company hires
Bosphorus CLOs transferred
Cross Ocean Adviser, an affiliate of Cross Ocean Partners Management, has assumed collateral management of the Bosphorus CLO IV, Bosphorus CLO V and Bosphorus CLO VI transactions from Commerzbank. Moody's has confirmed that the move will not impact its current ratings assigned to the affected notes. Under the terms of the associated novation, termination and amendment and .......
Market Moves 2 December 2021
-
SRT chronicle: part three
In the final instalment of a three-part series on bank risk...
We have seen in part one of this series how far the SRT sector has developed in the past 10 years from a niche market with 10-12 transactions issued a year to a much larger and more diversified market. Barring a material downturn in the credit cycle, the SRT market should continue to enjoy strong growth in the next .......
Talking Point 2 December 2021
-
RFC issued on ABS tax policies
Sector developments and company hires
RFC issued on ABS tax policies
Market Moves 1 December 2021
HMRC is seeking feedback on two draft statutory instruments: the Taxation of Securitisation Companies (Amendment) Regulations 2022 and the Securitisation Companies and Qualifying Transformer Vehicles (Exemption from Stamp Duties) Regulations 2022. The UK government consulted on making changes to clarify or reform certain aspects of the taxation of securitisation companies and the stamp duty .......
-
GACS pair print
Mixed NPE pool debuts
A pair of Italian non-performing loan securitisations have closed over the past week that are expected to benefit from the GACS government guarantee (see SCI’s Euro ABS/MBS Deal Tracker). UniCredit has completed OLYMPIA SPV, its third GACS ABS and the fourth for the UniCredit Group, under its non-core portfolio disposal programme. Most recently, Iccrea Banca has finalised the .......
News 30 November 2021
-
BWIC workgroup formed
Sector developments and company hires
Mortgage Industry Standards Maintenance Organization (MISMO) has formed a BWIC data development workgroup, with the aim of standardising the BWIC format to facilitate accuracy, liquidity and rapid pricing for MBS transactions. The initiative focuses on creating a standard format for MBS sellers to present BWIC data to security dealer desks. The workgroup intends to address the growing number of MBS .......
Market Moves 30 November 2021
-
Restructurings eyed
Real estate and hospitality assets targeted
Arrow Global’s new corporate restructuring unit in Portugal is expected to focus on the real estate and hospitality sectors (SCI 25 November). The move comes as moratoria in the country draw to an end amid a scarcity of capital for local corporates.
The new business builds on Arrow Global’s experience and capabilities in Portugal through its Whitestar .......
News Analysis 30 November 2021
-
Meeting opportunity
New trading platform to capitalise on multifamily growth
Sabal’s new US CMBS trading business - SCH Trading (SCI 9 November) - aims to capitalise on a shift in the market relative to incumbent market-makers. The move comes amid rising investor appetite for multifamily product and an increased focus by the Biden administration on affordable housing.
“We saw a lot of opportunities around how we could .......
News Analysis 30 November 2021
-
SCI forum: What are the benefits of forward flow structures for the securitisation market?
Our panel of market practitioners respond to readers' questions
Conor Houlihan, partner at DLA Piper, Ireland
Current dynamics in the banking sector are such that the opportunity for growth in non-bank lending in Europe is significant. In certain segments of the market, fintech lending platforms can be more agile and better-placed to deliver what the market wants.
Platforms with strong origination and underwriting capability can be an attractive partner through .......
Talking Point 26 November 2021
-
Syon upgraded on stable performance
Sector developments and company hires
KBRA has completed a surveillance review of Lloyds’ synthetic RMBS Syon Securities 2020-2. The agency subsequently upgraded the class A and B notes by a notch to single-A minus and double-B plus respectively, in light of the fully ramped-up portfolio’s characteristics and the generally stable collateral performance. Syon 2020-2 is the third SRT transaction issued by Bank of Scotland referencing .......
Market Moves 25 November 2021
-
SRT chronicle: part two
In the second of a three-part series on bank risk transfer t...
The SRT market is predominantly European (representing 86% of transactions since 2010), although US banks are accounting for an increasing percentage since 2019 - with JPMorgan now a regular issuer, one transaction by Goldman Sachs in 2020 and a few regional banks entering the market in 2021. Prior to 2019, only Citi and Bank of Montreal were regular issuers in .......
Talking Point 25 November 2021
-
Advanzia advances
German credit card ABS debuts
European online lender Advanzia has closed its debut ABS transaction of over €475m in senior funding. The deal also represents the first securitisation backed by a German credit card portfolio.
"Advanzia continues to strengthen its position in the capital markets by demonstrating its ability to issue structured debt securities. This is a significant milestone for the bank, as .......
News 25 November 2021
-
US expansion
John Fraser, the new chairman of Tikehau's global structured...
Q: Tikehau Capital launched its first US CLO in August. Could you explain the motivations for doing so?
The Structured Credit Interview 22 November 2021
A: Establishing a presence in the US CLO market is a key part of Tikehau Capital’s growth plans for its credit platform. The firm is already active in Europe with five CLOs outstanding and, with significant plans for future growth, it’s a natural extension .......
-
Lower for longer?
SRTs to benefit from inflation
Significant risk transfer transactions are expected to receive a boost from anticipated interest rate rises, following increasing levels of inflation worldwide. Indeed, SRTs are floaters offering positive real returns, along with diversification and access to core bank lending books. However, investors remain cautious over the impact that significant increases in interest rates could have on growth.
If .......
News Analysis 18 November 2021
-
School's out?
Future of PBSA CMBS sector scrutinised
Conflicting factors such as depressed occupancy levels and excellent collateral properties, or a high dependence of international students and propitious domestic demographics, suggest that purpose-built student accommodation (PBSA) CMBS is a complex asset class. Whether the sector will ever recover from its Covid-induced collapse is a moot question.
A recent TwentyFour Asset Management blog questioned whether there is .......
News Analysis 18 November 2021
-
GSE scorecard released
Sector developments and company hires
GSE scorecard released
The FHFA has released the 2022 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions (CSS). The purpose of the 2022 Scorecard is to hold the GSEs and CSS accountable for fulfilling their core mission requirements by promoting sustainable and equitable access to affordable housing and operating in a safe and sound manner.
The 2022 Scorecard focuses .......
Market Moves 18 November 2021
-
SRT chronicle: part one
In the first of a three-part series on bank risk transfer tr...
The bank balance sheet securitisation market has enjoyed significant growth over the past five years and looks set to continue apace on the back of clearer regulation, an increasing number of banks having acquired the technology and economic incentives for banks to free up risk-weighted assets (RWAs) rather than raising capital. In this series of articles, we will use significant .......
Talking Point 18 November 2021
-
Dutch mortgage alliance expanded
Sector developments and company hires
Dutch mortgage alliance expanded
Market Moves 16 November 2021
Achmea Bank is set to acquire a €500m mortgage portfolio from Dutch insurer a.s.r., which will continue to manage the mortgages for Achmea Bank. The two organisations have expressed the intention to conduct additional transactions of €500m in both 2022 and 2023. In addition, Achmea Bank will acquire roughly €190m of newly originated mortgages from a.s.r. .......
-
Risk mitigation
Euro CLO wraps gaining traction
Assured Guaranty (Europe) SA this week closed a financial guarantee for a further European CLO, following the wraps it recently provided for the North Westerly V CLO and Tymon Park CLO deals (SCI 6 September). Financial guarantees are proving attractive to investors seeking to reduce regulatory capital consumption, both on existing exposures and new investments.
The latest .......
News Analysis 12 November 2021