Investors

  • ADI securitisation review underway

    Sector developments and company hires

    ADI securitisation review underway
    The Australian Prudential Regulation Authority is undertaking a review of securitisation practices, having recently identified repurchased residential mortgage loans at some authorised deposit-taking institutions that were subject to repayment deferral from their securitisations. In APRA’s view, this represents implicit support, which is inconsistent with Prudential Standard APS 120 Securitisation. APS 120 requires ADIs to be clearly .......

    Market Moves 8 December 2020

  • CMBS value deficiencies compared

    Sector developments and company hires

    CMBS value deficiencies compared
    DBRS Morningstar has identified US$9.79bn in US CMBS loans transferred to special servicing since March, whose collateral was subsequently reappraised. Although updated appraisals on properties backing these loans suggest an average value decline of 24% since origination, only about 17% have a loan-to-value ratio of 100% or higher, resulting in a value deficiency. The analysis also .......

    Market Moves 7 December 2020

  • Next step

    Call for greater EPC data disclosure

    The European Commission last month launched a consultation on the first two sets of criteria for economic activities to qualify as economically sustainable under the EU's Taxonomy classification system, including for the first time a formal definition of what constitutes an energy efficient building. The move has been welcomed as part of industry efforts to progress green mortgage lending.

    News Analysis 7 December 2020

  • Leveraged finance: stepping into the void

    Contributed thought leadership by Ocorian

    As funds continue to reallocate capital to direct lending strategies, Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlights the crucial role of independent loan service providers in streamlining fund loan portfolios

    In a continuation of the legacy of the 2007-2008 global financial crisis, large commercial banks .......

    Talking Point 7 December 2020

  • High-quality counterparties

    Insurer involvement in SRT on the rise

    SCI publishes regular in-depth analysis of trends and developments across the capital relief trades market, in addition to our usual news output. In this latest CRT Premium Content article, we examine how insurers are gaining traction as high-quality counterparties to significant risk transfer transactions.

    To upgrade your subscription to access all CRT premium content for a year, .......

    News Analysis 4 December 2020

  • Pre-pandemic trends persist for US CLOs

    Sector developments and company hires

    Pre-pandemic trends persist for US CLOs
    Pre-pandemic trends in US leveraged lending - including high leverage, weak covenants and declining recoveries - resumed by 3Q20 and should continue into 2021, absent a renewed downturn, according to Moody’s. Consequently, the agency expects that in 2021 US CLOs will include structural features for maintaining loan workout and trading flexibility to help manage .......

    Market Moves 2 December 2020

  • Test case

    JPMorgan CRT details revealed

    Further details have emerged in connection with a corporate capital relief trade that was completed last month between JPMorgan and PGGM and Alecta (SCI 27 November). The transaction was motivated less by capital needs, given the US lender’s strong capital position, but more from a desire to test the trade from an efficiency standpoint. 

    The cash collateralised deal references .......

    News 1 December 2020

  • NPL ABS capital treatment amended

    Sector developments and company hires

    NPL ABS capital treatment amended
    The Basel Committee has published a technical amendment in connection with the capital treatment of non-performing loan securitisations. The rule aims to close a gap in the Basel framework by setting out prudent and risk-sensitive capital requirements for NPL ABS.

    The Committee consulted publicly on the technical amendment during the summer (SCI 24 .......

    Market Moves 27 November 2020

  • Offshore demand

    Chinese securitisation continues to gain traction

    A growing number of Chinese securitisation issuers are attempting to tap offshore investors, the most recent being China Merchants Bank, with its RMB4.75bn Zhaoyin HeJia 2002-5 RMBS. In the next few quarters, it is expected that offshore investors will have a wider variety of asset types available.  

    Jerry Fang, senior director and analytical manager for North Asia .......

    News Analysis 27 November 2020

  • Jumbo BDC merger agreed

    Sector developments and company hires

    Jumbo BDC merger agreed
    FS/KKR Advisor, a partnership between FS Investments and KKR Credit Advisors (US), has announced that FS KKR Capital Corp and FS KKR Capital Corp II - two publicly traded BDCs advised by FS/KKR - have entered into a definitive merger agreement. The merger will create one of the largest BDCs in the US, with US$14.9bn in .......

    Market Moves 26 November 2020

  • Bridge financing inked

    Hertz set to re-fleet under bankruptcy emergence plan

    Hertz Corporation, in conjunction with affiliates of Apollo Capital Management, has established an interim fleet financing programme to provide up to US$4bn of ABS bridge financing. Dubbed Hertz Vehicle Interim Financing Series 2020-1, the delayed draw note issuance will allow Hertz to ‘re-fleet’ as part of its bankruptcy emergence plan, prior to establishing a longer-term ABS financing programme next .......

    News 26 November 2020

  • Restructuring boost

    Project Galaxy portfolio acquired

    Alpha Bank has selected US investment fund Davidson Kempner as its preferred bidder over PIMCO for its Project Galaxy portfolio. The €10.8bn pool includes the disposal of the bank’s servicing unit Cepal and is expected to clear the way for further non-performing loan restructurings (SCI 3 June).

    The Greek lender launched the bidding process this year, drawing interest from .......

    News 24 November 2020

  • EBA SRT report released

    Sector developments and company hires

    EBA SRT report released
    The EBA has published its long-awaited report on significant risk transfer in securitisations, which includes a set of detailed recommendations to the European Commission on the harmonisation of practices and processes applicable to the SRT assessment. The EBA proposals aim to enhance the efficiency, consistency and predictability of the supervisory SRT assessment within the current securitisation .......

    Market Moves 23 November 2020

  • Generation change?

    Investor, issuer ESG engagement surveyed

    The vast majority (81%) of ABS issuers polled in a recent Structured Finance Association survey currently incorporate ESG in their overall business operations, with 73% doing so in their asset origination and underwriting practices. The survey assesses the extent ESG principles are incorporated at both the enterprise level and at the structured finance business unit level.

    Michael Bright, .......

    News 23 November 2020

  • Highland trio launch new firm

    Sector developments and company hires

    Highland trio launch new firm
    Ex-Highland Capital Management executives Mark Okada, Jack Yang and Trey Parker have launched Sycamore Tree Capital Partners, an asset management firm specialising in private and alternative credit. Okada will serve as ceo, Yang will serve as president and head of business development, and Parker will serve as cio. John Muse and Ken Hersh are strategic .......

    Market Moves 20 November 2020

  • Greek synthetics eyed

    Alantra targets CRTs, new jurisdictions

    Alantra has evolved to become one of the premier players in the non-performing loan markets by utilising a combination of services, including credit portfolio advisory and asset management. However, following the recent hiring of Francesco Dissera (SCI 3 November), the arranger is now eyeing capital relief trades, including in the currently untapped Greek market.     

    Alantra’s services .......

    News Analysis 20 November 2020

  • Positive outlook

    DoValue signs NPL MoU

    DoValue has signed a memorandum of understanding with Bain Capital Credit for the exclusive management of a portfolio of non-performing loans originated in Cyprus for a total claim of approximately €650m. Following this agreement, the total volume of servicing mandates won by doValue in Southern Europe so far this year has reached €9.3bn. The latter is in line with .......

    News 20 November 2020

  • Democrats and CRT

    Banks, GSEs eye Washington for policy clues

    It is, probably, a reasonable assumption that US President-elect Joe Biden has never given a second thought to credit risk transfer mechanisms. But for this market and particularly the GSEs, the new administration represents a sea-change in philosophy and policy.

    The potential extent of any legislative innovation depends, firstly, on whether the Senate will approve or block action .......

    News Analysis 19 November 2020

  • APAC capital advisory formed

    Sector developments and company hires

    APAC capital advisory formed
    Aon has launched an Asia Pacific Capital Advisory unit to deliver a holistic approach to capital optimisation for re/insurers. The initiative follows Aon’s launch of similar units in the UK and US.

    At the same time, actuary Seewon Oh has joined the unit from Smartkarma Innovations, where she was an analyst researching the insurance sector across Asia Pacific. .......

    Market Moves 18 November 2020

  • CRE data initiative launched

    Sector developments and company hires

    CRE data initiative launched
    Moody's Analytics has formed a new partnership with The Business School (formerly Cass) at City, University of London, to build a database of loan-level commercial real estate information covering the UK and Europe. The initiative will extend The Business School's UK CRE lending survey under the Moody’s Analytics Data Alliance framework. By participating in this initiative, lenders .......

    Market Moves 17 November 2020

  • Garrison CLO platform acquired

    Sector developments and company hires

    Garrison CLO platform acquired
    Mount Logan Capital subsidiary Mount Logan Management (ML Management) has acquired from Garrison Investment Management (GIM) and other sellers the rights under certain interests and agreements relating to Garrison Funding 2018-1 and Garrison MML CLO 2019-1, as well as the rights under certain side letter agreements, for a purchase price of US$3m. As of 30 June .......

    Market Moves 13 November 2020
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