Investors
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Garrison CLO platform acquired
Sector developments and company hires
Garrison CLO platform acquired
Market Moves 13 November 2020
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 .......
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Transition revamp?
Legacy language amendments remain challenging
Standard Libor fallback language has been agreed and adopted by some new transactions ahead of the benchmark transition next year (SCI passim). However, language amendments for legacy transactions remains challenging.
“Government agencies have been pretty clear on the fact that Libor will not be extended. For several years now, new transactions have been printed with satisfactory fallback language. .......
News Analysis 13 November 2020
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Shortfalls hitting rated CMBS notes
Sector developments and company hires
Shortfalls hitting rated CMBS notes
KBRA reports that over 85% (225) of the 263 deals in its rated US conduit CMBS universe have been impacted by interest shortfalls to varying degrees. Prior to the coronavirus pandemic, shortfalls occurred in just over 40% (110) of the transactions, as of February 2020.“The increase is not surprising, as interest shortfalls are .......
Market Moves 12 November 2020
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Dutch BTL aggregator deal prepped
Sector developments and company hires
Dutch BTL aggregator deal prepped
Citi is in the market with a new Dutch buy-to-let RMBS. Dubbed Jubilee Place 2020-1, the transaction is backed by a €212.9m portfolio comprising 669 loans originated by Dutch Mortgage Services, DNL 1 and Community Hypotheken.These three platforms focus on the non-consumer segment of the BTL market – in other words, professional landlords – according .......
Market Moves 11 November 2020
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ESG-focused CLO manager formed
Sector developments and company hires
ESG-focused CLO manager formed
Market Moves 10 November 2020
A trio of ex-Ares Management partners have formed a new independent alternative credit investment firm that plans to adopt an active ESG screening approach. Founded by Americo Cascella, Daniel Hall and Shane Mengel, Pacific & Plains Capital is based in Dallas, Texas, with a presence also in Los Angeles, California. The firm will invest in loans .......
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Utility ABS returns
Innovative minibond deal gains wider reception
A consortium of six Italian utility companies has closed its third securitisation backed by minibonds secured by water service assets in the Veneto region of the country. The EIB has acted as anchor investor in all of the programme’s issuances, but the latest transaction saw a broader investor base participate.
The €248m Viveracqua Hydrobond 2020 operation involved the .......
News 10 November 2020
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Hertz in line with settlement plan
Sector developments and company hires
Hertz in line with settlement plan
Market Moves 6 November 2020
Fitch reports that Hertz had disposed of nearly 170,000 non-program vehicles (NPVs) over the past five months, which is in line with its bankruptcy settlement plan. These dispositions amounted to approximately US$3.3bn of proceeds, with a combined net book value (NBV) of US$2.8bn. Per the Hertz Vehicle Financing II liquidation event, these sales proceeds .......
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Synthetic CMBS eyed
Pension funds target CRE CRTs
Pension funds are targeting synthetic securitisations of commercial real estate loans, despite the challenges of the Coronavirus crisis (SCI 9 July). However, going forward, portfolio composition will be key for real money investors.
According to Chris Redmond, head of manager research at Willis Towers Watson: “Since mid-July, the screamingly cheap has gone and so now we are .......
News Analysis 6 November 2020
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CLO library launched
Sector developments and company hires
CLO library launched
Semeris has today launched a document library called Semeris Docs for CLOs. The service initially covers European CLO documents and summaries on over 75 transactions, which will continue to grow and see a US CLO library launched in 1Q21.Semeris Docs is built on NLP (natural language processing) and the latest AI techniques, combined with human .......
Market Moves 4 November 2020
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Strategic partnership expanded
Sector developments and company hires
Strategic partnership expanded
Pretium has entered into an expanded strategic partnership with American Equity Investment Life Insurance Company (AEL), building upon AEL's prior investment commitments with the firm and increasing total commitments to US$1bn, with pre-agreed terms for expansion to US$2.25bn. The investments will initially be primarily deployed into attractive residential credit assets sourced and managed by Pretium.In .......
Market Moves 3 November 2020
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Finish line
Galaxy nears completion
Alpha Bank has received two binding offers for its Galaxy project (SCI 6 August). The transaction will involve a non-performing loan securitisation and the sale of the bank’s loan servicing platform Cepal.
Several sources note that that the binding offers come from PIMCO and Davidson Kempner, as momentum in the Greek NPL ABS market continues to gather .......
News 2 November 2020
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ESG philosophy
Andrew Lennox, senior portfolio manager at the international...
Q: How and when did the international business of Federated Hermes become involved in the securitisation market?
A: The Federated Hermes European structured credit team consists of senior portfolio manager Stephane Michel, me and two analysts covering the universe of ABS and CLOs. I arrived at the firm 2.5 years ago.One of the attractions of moving to work .......
The Structured Credit Interview 2 November 2020
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UKML shareholder consultation continues
Sector developments and company hires
UKML shareholder consultation continues
Market Moves 30 October 2020
The board of UK Mortgages (UKML) has completed the strategic review that it commenced following the withdrawal of proposals by M&G Investment Management (MAGIM) (SCI 14 August). The review has identified two potential options that will provide a clear path to the company’s objectives of enhanced liquidity, as well as a narrowing and removal of .......
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Risk transfer boost
US CRT market picks up
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 investigate US banks' attempts to manage coronavirus-related higher capital requirements via capital relief trades.
To upgrade your subscription to access all CRT premium content for a year, .......
News Analysis 29 October 2020
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Pan-European logistics CMBS prepped
Sector developments and company hires
Pan-European logistics CMBS prepped
Blackstone Real Estate Partners is in the market with a €318.6m single-loan pan-European CMBS. Dubbed Pearl Finance 2020, the transaction is secured by 61 predominantly last-mile logistics assets across Denmark, Finland, France, Germany, Ireland and the Netherlands.The assets are valued by Cushman & Wakefield at €576.9m, as of 31 July 2020. Portfolio occupancy currently .......
Market Moves 28 October 2020
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Best-of-breed network
Zach Lewy, founder and group cio of Arrow Global Group, answers SCI's questions
Q: How and when did Arrow Global Group become involved in the non-performing loan market?
The Structured Credit Interview 27 October 2020
A: Arrow Global was established in 2005 as the European principal investment arm of Sallie Mae and was tasked with investing in distressed assets across the region. It was apparent that there were amazing opportunities for local champions to be successful, given that they remained .......
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AMCO deal completed
Sector developments and company hires
AMCO deal completed
Market Moves 26 October 2020
Monte dei Paschi di Siena has completed an innovative €4bn limited-recourse financing in favour of the Italian Ministry of Economy and Finance’s AMCO vehicle, according to the new regulatory provisions introduced by the ‘Milleproroghe Decree’. Under the securitisation, a portfolio of non-performing and unlikely-to-pay exposures will be transferred to AMCO - via the HydraM SPV - as .......
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Diverse portfolio
Private equity CDO completed
CMFG Life Insurance Company has completed a rare private equity collateralised fund obligation (PE CFO). Dubbed MCA Fund III Holding 2020-1, the transaction is structured as a dual SPV and is backed by a diverse pool of private equity funds, with approximately US$574.7m in net asset value and US$189.7m of unfunded capital commitments.
The predominantly static portfolio comprises .......
News 26 October 2020
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Environmental risk score rolled out
Sector developments and company hires
CMBS environmental risk score rolled out
Market Moves 23 October 2020
Trepp has implemented a new data integration with Risk Management Solutions (RMS) that aims to help evaluate and manage global risk from natural and man-made catastrophes. The solution provides an environmental risk score for properties backing CMBS loans, ranging from one to five, that measure the likelihood of property damage and business interruption from .......
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Aviation leasing platform prepped
Sector developments and company hires
Aviation leasing platform prepped
PIMCO and GE Capital Aviation Services (GECAS) have reached a preliminary agreement to develop an aviation leasing platform to support up to US$3bn in aircraft asset financings, subject to customary closing conditions. This strategic investment platform will enable GECAS and PIMCO-advised accounts to acquire new and young fuel-efficient aircraft.The portfolio will initially focus on .......
Market Moves 21 October 2020
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Leasing ABS inked
Sector developments and company hires
Leasing ABS inked
The EIB and the EIF have provided Alba Leasing with €490m via an SME securitisation financing operation. Alba Leasing has undertaken to double this, increasing the total amount available to €980m for projects across all economic sectors, with a particular focus on environmental investments (for which 20% of the resources have been reserved).The EIB Group has subscribed .......
Market Moves 20 October 2020