Investors
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Surging demand, power challenges to define data centre ABS growth
Investors weighing energy security and AI volatility, among other risks
Data centres emerged as one of the hottest topics at the Structured Finance Association’s SFVegas conference earlier this week, reflecting their rising prominence within digital infrastructure ABS. As AI, cloud computing and enterprise workloads continue to drive demand, power availability remains a critical bottleneck, however.
“Power is the biggest constraining factor in the industry when you are looking .......
News Analysis 28 February 2025
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EIB inks Spanish resi deal
Green and sustainable mortgages targeted
The EIB Group has signed a new synthetic securitisation operation with Santander to provide financing for energy efficiency investments in the Spanish real estate sector, including the construction of new near zero-emission buildings and the renovation of existing residential properties to meet sustainability standards. The investment is being executed in a single securitisation, optimally structured to provide Santander with .......
News 28 February 2025
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Thames Water WBS extended
'Significant' write-downs expected under liquidity extension transaction
The maturities of all class A and class B debt issued by the Thames Water Utilities Finance (TWUF) whole business securitisation have been extended by two years. The move follows the High Court’s approval of the restructuring plan proposed by Thames Water Utilities Holdings in connection with implementing a liquidity extension transaction.
The liquidity extension transaction will .......
News 27 February 2025
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Alcentra secures US$1bn for CLO strategies
New capital will boost Alcentra's European CLO AUM to US$4bn over the next three years
Alcentra recently secured US$1bn in equity capital commitments for its CLO-focused strategies, driven by Inflows from pension funds, endowments, family offices, and SWFs in the US, Asia, and Europe, the firm tells SCI.
The majority of the new capital will be invested in CLO mezz and equity through the firm's third-party CLO tranche investing platform, with a portion .......
News 27 February 2025
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Europe's solar ABS market plays catch-up
Continent's solar ABS market trails the US, though potential Italian deal may spark growth
The European solar ABS market is exploring innovative routes to accelerate issuance, with market insiders anticipating increased activity following last year’s debut public transaction for the continent. Yet, while the European market shares similarities with its glowing US counterpart, key structural differences and macroeconomic volatility continue to cast shade on its emergence.
The solar ABS market is still .......
News Analysis 26 February 2025
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SCI in Focus: Broader and deeper
SRT supply and demand dynamics set to stabilise
A recurring theme within the SRT market last year was its characterisation as ‘bank-friendly’, with a deluge of new capital altering supply and demand dynamics. While issuance volumes continue to grow, the sector is also gaining depth due to increasing standardisation.
“The last year has been characterised by new or newer entrants ramping up. Some, particularly US .......
News Analysis 25 February 2025
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Job swaps weekly: Reckoner launches with backing from RedBird
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees the launch of Reckoner Capital Management, an alternative credit asset manager led by a former Panagram Structured Asset Management ceo and cio. Elsewhere, a former Goldman Sachs partner and securitisation specialist has joined One William Street Capital Management as deputy cio and partner, while Chorus Capital has snapped up a former senior exec .......
Market Moves 21 February 2025
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Wellington Management closes debut CLO fund on US$194m
CLO Partners Fund exceeds US$150m target to invest in BSL CLO equity tranches
Investment management firm Wellington Management has closed its inaugural Wellington CLO Partners Fund I, raising US$194m in capital commitments, including US$27m from affiliates.
The vehicle focuses on majority equity tranches of Wellington-managed US broadly syndicated CLOs and has surpassed its initial target of US$150m.
Alyssa Irving, CLO portfolio manager at Wellington Management, told SCI that the investor .......
News 21 February 2025
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Balance sheet expansion eyed
ABF commoditisation set to boost sector adoption
Regulatory clarity will be a major theme this year as banks adapt to new capital rules under Basel 4. Investors are closely watching whether banks expand their balance sheets or shift assets into the non-bank sector, particularly in the asset-backed finance (ABF) space.
Alongside broader regulatory clarity, the potential lifting of Wells Fargo’s US$1.95trn asset cap - .......
News Analysis 20 February 2025
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Latest SRTx fixings released
A breather
While January traditionally sees benchmark deals from established issuers price – reportedly 100+bps tighter year-on-year – this month’s SRTx fixings and projections suggest that spreads are taking a “breather” (Large corporate: EU +8.1% US +10.3%; SME: EU +7.1%, US +0.7%) off tightened levels following worldwide flattening of the credit curve and tightening across all asset classes (even into higher .......
News 20 February 2025
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Job swaps weekly: ARC promotes two and appoints APAC chair
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees ARC Ratings making a number of senior structured-credit-focused appointments spanning Europe and Asia. Elsewhere, Cadwalader has added three fund finance partners in London, while CIFC Asset Management has named a new md overseeing CLO tranche investing in its New York office.
ARC Ratings has promoted two Lisbon-based structured finance executives .......
Market Moves 14 February 2025
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CLO success factors
Panellists at SCI and Reed Smith CLO event discuss sustainab...
Sustainability considerations, an accelerating influx of new managers and the CLO asset class’s long-term track record were at the core of discussions at a recent SCI CLO event hosted by Reed Smith. SCI spoke to a panel of experts for their views on the future of CLOs with particular reference to sustainability.
CLOs have been a successful financing .......
News Analysis 14 February 2025
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Real Madrid: future of football finance?
Wave of stadium financing deals set to modernise European sports investment
Real Madrid President Florentino Pérez is reportedly considering plans to restructure the football club’s ownership model with one that may resemble the German 50+1 approach, with the club introducing private investment while remaining under fan control. This model – which has boosted profitability and sustainability across Bundesliga clubs – could accelerate a broader trend of financial modernisation in .......
News Analysis 12 February 2025
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SABL 'mutually beneficial' for private credit funds and banks
Cadwalader partner Jeffrey Nagle and special counsel Michael...
The rise of private credit has been one of the biggest stories in finance in the last decade, and some observers forecast that by 2028 the private credit market once again will double in size. This continued growth, as well as other market and regulatory forces affecting bank lenders, has promoted innovation in the space. Increasingly, and perhaps out .......
Talking Point 10 February 2025
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SCI in Focus: ABF key motivator in private credit consolidation
Acquisitions driven by opportunities beyond traditional corporate lending
The alternative credit sector saw a continued drive towards market consolidation in 2024, with asset-backed finance (ABF) emerging as a key motivator for such activity. Last year saw a near-record US$260bn in acquired AUM, according to Gapstow’s annual review of acquisitions among alternative credit managers, with direct lending dominating the space.
Direct lending firms accounted for 70% of .......
News Analysis 7 February 2025
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Job swaps weekly: Haynes Boone poaches asset securitisation team
Securitisation people moves and key promotions
This week’s round-up of securitisation job swaps sees Haynes Boone strengthen its fund finance and asset securitisation practices with the hiring of seven attorneys from Seward & Kissel in New York. Elsewhere, several other law firms have added partners in Australia and Japan, while ARC Ratings has recruited a new Hong Kong-based ceo to spearhead its expansion in the .......
Market Moves 7 February 2025
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MA reforms set to boost UK securitisation
PRA to deliberate on 'Matching Adjustment Investment Accelerator' in 1H25
The UK securitisation sector is poised to see a steady increase in activity, following the implementation of Matching Adjustment (MA) reforms introduced in late 2024. While the reforms offer more flexibility in asset-backed investments – shifting the requirement from a fixed to a highly predictable (HP) cashflow for part of insurers’ portfolios – the market can expect a gradual .......
News Analysis 7 February 2025
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Mid-market CLOs: Blurring the lines with BSL vehicles
Hybrid CLOs on horizon with convergence of MM and BSL CLOs
The CLO market is transforming with growing cross-pollination between middle-market (MM) CLOs and broadly syndicated loan (BSL) CLOs. Driven by investor confidence, tighter spreads, and increasing acceptance of private credit structures as viable alternatives to public markets, this convergence is raising questions about whether hybrid CLOs could be the next evolution of this product.
While terms like private .......
News Analysis 6 February 2025