Investors
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The puzzling case of the disappearance of Fannie Mae
FNMA's absence from CRT investigated
Fannie Mae has not issued a CRT deal since 1Q20. This SCI CRT Premium Content article investigates the circumstances behind the GSE’s disappearance from the market and what might make it come back.
Fannie Mae, one of the co-founders of the ground-breaking GSE credit risk transfer market, has not issued a CAS or CIRT transaction since 1Q20. There is ......
News Analysis 18 August 2021Premium Content
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Bullish sentiment
CLO, loan opportunity set to continue outperforming
The global CLO market is now pushing US$1trn in outstandings. Against this backdrop, both CLOs and the underlying loans are expected to outperform, as investors continue seeking higher risk-adjusted returns.
Mohamed Seif, co-founder and md of Lakemore Partners, notes that growth and demand in the US CLO market is being driven by a number of factors. First, CLOs .......
News Analysis 17 August 2021
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Equity ownership
Dan Norman, md at Lakemore Partners, discusses his plans to...
Q: Tell us about your new role at Lakemore Partners (SCI 4 August)?
The Structured Credit Interview 12 August 2021
A: I joined the team in March this year and I am very happy to be part of Lakemore’s global expansion. We are in the process of building a US business and the primary steps are to build a US and global product distribution system for .......
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Sponsor momentum
Record-setting quarter for the ILS market
The second quarter of 2021 was record-setting for the ILS market on numerous fronts. With around US$5.6bn across 20 catastrophe bonds issued in Q2 – bringing total issuance to US$8.5bn so far this year - volume already surpasses by US$181 the previous record set in 1H17.
Of the 35 classes of notes issued in Q2, 70% were both upsized .......
News 11 August 2021
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Debt servicing spin-off inked
Sector developments and company hires
Debt servicing spin-off inked
Credito Fondiario Banking Group has demerged its debt purchasing and servicing activities in favour of the newly established Gardant Group. As part of this reorganisation, it has redefined the bank's mission as a challenger bank, specialising in financing solutions for SMEs and corporates. The two companies will operate independently going forward.Panfilo Tarantelli has been .......
Market Moves 6 August 2021
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Positive prospects
Risk sharing remains promising, despite due diligence burden
Risk-sharing deals involving the EIF and private investors are yet to gain ground. This CRT Premium Content article surveys the likelihood of such collaborations going forward.
Significant risk transfer transactions between banks on the one hand and insurers and hedge funds on the other have grown substantially over the last two years in deal count terms. However, risk-sharing deals ......
News Analysis 6 August 2021Premium Content
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Risk assessment platform bolstered
Sector developments and company hires
Risk assessment platform bolstered
Market Moves 5 August 2021
Moody's is set to acquire climate and natural disaster risk modeling and analytics firm RMS from Daily Mail and General Trust for approximately US$2bn. The acquisition will immediately increase Moody’s insurance data and analytics business to nearly US$500m in revenue and accelerate the development of the company’s global integrated risk capabilities to address the next generation of .......
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Pretium strengthens resi credit capabilities
Sector developments and company hires
Pretium strengthens resi credit capabilities
Market Moves 4 August 2021
Sarah Kong, Andrew Miller and Peter Morreale have joined Pretium as mds, based in New York. Kong will be responsible for mortgage whole loan trading at Pretium and joins from Goldman Sachs, where she spent 15 years in the firm's mortgage business. Miller was previously at Fortress Investment Group and will be responsible for the .......
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Issuance boost
STS synthetic securitisations taking off
The pipeline of STS synthetic securitisations continues to grow (SCI 5 March), with at least a dozen such transactions expected to price by year-end. Banks that are new to the significant risk transfer market, as well as regular capital relief trade issuers are readying deals, with Santander believed to be first off the blocks (SCI 4 August).
News 4 August 2021
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ABS-lite appetite
Insured trade receivables notes in vogue
Meaningful flows into trade finance ABS are emerging from institutional investors. Such demand is, in turn, spurring structural innovation across the sector.
“In the hunt for yield, traditional institutional investors are shopping around for new asset classes with interesting characteristics that tick the right boxes in terms of risk profile. Providing they can get comfortable with the underlying risk, one .......
News Analysis 2 August 2021
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Revival of the fittest
Euro CMBS continues to gain traction
European CMBS is experiencing a sturdy revival, despite a wave of downgrades by US rating agencies, participants in a recent Scope Ratings webinar agreed. With 10 public European CMBS issued in 1H21 - amounting to €3bn – and another three announced since then, market appetite for these transactions is growing (SCI 30 June).
With 2021 supply already .......
News Analysis 2 August 2021
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Risk on
Lower quality credit outperforms
The first half of 2021 has been universally positive for below-investment grade credit markets and for alternative credit funds. Indeed, stressed and distressed corporate credit generated the highest returns.
“If you fell asleep at the end of 2019 and woke up mid-way through 2021, you would look back and say these performance numbers don’t look too bad. Credit .......
News 28 July 2021
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Social vision
Edward Baker, capital markets director at Prodigy Finance, e...
Q: Prodigy Finance earlier this month issued a first-of-its-kind ABS backed by international private student loans (SCI 7 July). Tell us more about Prodigy Finance CM2021-1?
A: The US$288m issuance is Prodigy’s inaugural ABS and comes under Prodigy’s new social bond framework, marking a double debut in the fixed income market for the lender.The senior tranche of .......
Provider Profile 28 July 2021
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Growing foothold
CRC expands Latin American presence
Christofferson, Robb & Co (CRC) has fully acquired Colombian consumer lender Finsocial. The acquisition will help grow CRC’s foothold in the Latin American consumer market, although the firm will remain opportunistic towards that segment.
CRC has been investing in Latin American consumer finance since 2005, where middle and low-income consumers are underserved by banks. This contrasts with the .......
News 28 July 2021
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Credit engagement
Raj Shourie, from Lockton's political and credit risks divis...
Q: Your role means that you will be responsible for leading the engagement with financial institutions internationally out of London, for both credit mitigation and country risk protection. Tell us more about what that will entail.
Provider Profile 22 July 2021
A: I’ll be responsible for originating business dialogue with banks and funds, targeting new users of credit and political risk insurance and existing users .......
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Jamaica in cat bond first
Sector developments and company hires
Jamaica in cat bond first
Market Moves 20 July 2021
The World Bank/IBRD has priced a catastrophe bond that will provide the government of Jamaica with financial protection of up to US$185m against losses from named storms for three Atlantic tropical cyclone seasons ending in December 2023. The government of Jamaica is the first government in the Caribbean region, and the first of any small island .......
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New CLO committee to tackle 'greenwashing'
Sector developments and company hires
New CLO committee to tackle ‘greenwashing’
Market Moves 15 July 2021
The European Leveraged Finance Association (ELFA) has created a new committee to establish industry best practice and serve investors in the CLO market. The CLO Investor Committee will provide a forum for members to identify CLO investors’ requirements, facilitate discussion on general market progress and key issues, and contribute to the regulatory dialogue on .......
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Back in vogue?
Reverse equity to test market appetite
Another UK RMBS backed predominantly by legacy Northern Rock assets has hit the market. The Towd Point Mortgage Funding 2021-Hastings 1 transaction marks the first public securitisation of UK equity release mortgages since the financial crisis.
Acquired by Cerberus in 2018, the £215.68m portfolio comprises 86.5% Northern Rock loans and 12.9% Legal & General loans, with the remainder .......
News 15 July 2021
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ILS efforts beefed up
Sector developments and company hires
ILS efforts beefed up
Market Moves 14 July 2021
AXIS Capital Holdings has appointed Chris Caponigro as global head of AXIS ILS, as its third-party capital unit has been rebranded. Caponigro will oversee the company’s activities related to third-party capital under management, supporting ILS efforts across its reinsurance and insurance segments. He will report to AXIS Re ceo Steve Arora and be based out of .......