Investors
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Range of moratoria take-up 'stark'
Sector developments and company hires
Range of moratoria take-up ‘stark’
Market Moves 5 October 2020
With payment holiday concentrations having fallen over the past few remittance periods, the range of payment holiday take-up across UK RMBS is stark, according to JPMorgan’s latest Covid-19 Payment Holiday Tracker. Reflecting data reported primarily through September and August, the report identifies zero percent (in the case of the MORTI 2020-1 deal) and 0.6% (TWIN .......
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Transmitting credit
SRT and the real economy explored
SCI will be publishing a chapter of our Autumn 2020 CRT Research Report each day this week. While today’s instalment - the introduction – is available to all subscribers, the subsequent chapters will be available to premium subscribers only.
To enquire about SCI’s premium content, email jm@structuredcreditinvestor.com (new subscribers) or ta@structuredcreditinvestor.com (existing customers). For further information on the risk transfer and synthetic .......
News 5 October 2020
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SME boost
Commerzbank completes CRT
Commerzbank, the EIF and the EIB have completed a €125m mezzanine guarantee that references a €1.9bn German SME and midcap portfolio. The guarantee will enable Commerzbank to provide new lending of up to €500m to SMEs and mid-caps in Germany as a countermeasure to the ongoing Covid-19 crisis.
The transaction benefits from the support of the European Fund .......
News 2 October 2020
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Repack returns
Optionality, yield a hit with investors
The appeal of repackagings during times of economic stress became apparent during the Covid-related shutdown. Repack issuance is gaining traction among Asian investors in particular, due to the search for yield and the instruments’ customisability.
“The repack product becomes more attractive in times of stress when investors are looking for opportunities more quickly. With the continued low interest .......
News 2 October 2020
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New IMA inked
Sector developments and company hires
New IMA inked
Market Moves 2 October 2020
Pollen Street Secured Lending (PSSL) has appointed Waterfall Asset Management as its investment manager, replacing PSC. An investment management agreement has also been signed with a new AIFM, Mirabella Financial Services. PSSL has agreed to pay PSC a sum representing the approximate balance of the unpaid base management fee, including the unexpired notice period. The PSSL board believes that .......
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'Dual-track' approach touted for SRT
Sector developments and company hires
‘Dual-track’ approach touted for SRT
Market Moves 1 October 2020
The EBA is finalising its report on significant risk transfer and hopes to be able to publish it by year-end, according to Pablo Sinausia, policy expert at the authority. He disclosed during a TSI Congress 2020 panel today that the report builds on the EBA’s recent report on STS synthetics and will address structural features that .......
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SME ABS debut for Italian fintech
Sector developments and company hires
SME ABS debut for Italian fintech
Market Moves 30 September 2020
Banca Valsabbina has supported fintech BorsadelCredito.it as arranger, account bank and subscriber - together with other institutional investors – of ABS notes in a €100m securitisation backed by trade receivables granted to SMEs and guaranteed by the Central Guarantee Fund for SMEs. This is the first unrated securitisation operation listed on Borsa Italiana’s ExtraMOT-PRO .......
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Mezz CLO fund closed
Sector developments and company hires
Mezz CLO fund closed
Market Moves 29 September 2020
Pearl Diver Capital has completed the final closing of its eighth closed-end CLO investment fund, PDC Opportunities VIII, at US$400m. Launched with a target raise of US$300m, the fund hit its hard cap, with LPs represented by public pension systems, corporate pension plans, high net-worth family offices and endowments. The fund is designed to invest opportunistically .......
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Under pressure
CRE uncertainty persists
Commercial real estate companies backed by exposure to retail face difficult months ahead, following renewed downward pressure on rental income and non-prime property values amid the prolonged economic fallout of the Covid-19 crisis. Indeed, as the uncertainty over the sector continues, one question is what sort of approach investors should follow in their attempts to gauge the outlook for .......
News Analysis 28 September 2020
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Revolver exposures on offer
Sector developments and company hires
Revolver exposures on offer
Goldman Sachs is in the market with a balance sheet synthetic securitisation referencing a portfolio of predominantly investment-grade senior unsecured revolving loan facilities. Dubbed Goldman Sachs Bank USA credit-linked notes due 2025, the transaction comprises two classes of S&P-rated CLNs for a total of US$184.8m.The transaction documentation links the ability of Goldman Sachs to .......
Market Moves 25 September 2020
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Spread compression
European securitisation market update
European auto and consumer ABS have seen a strong reception this week, despite renewed virus-related concerns. The first German auto ABS since May printed at tight levels, for example, while a rare UK consumer ABS from Premium Credit has entered the pipeline.
One trader notes: “Over the last session, we had seen a slight pause in the market .......
News 23 September 2020
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Private credit fund formed
Sector developments and company hires
Private credit fund formed
FrontWell Capital Partners has launched with committed seed capital of more than US$350m from a group of international investors. Headquartered in Toronto, the firm aims to provide transitionary senior debt financing - including asset-based and cashflow loans - to middle-market companies in the US and Canada.FrontWell is led by founder and ceo Patrick Dalton, who previously .......
Market Moves 23 September 2020
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Doubling up
Record year anticipated for the EIF
The bulk of European SME capital relief trades in 1H20 were public, with the EIF a particularly active participant, given its mandate to support the sector. Indeed, it is shaping up to be a record year for the organisation in terms of synthetic securitisation, with easily double the volumes than issued under normal circumstances.
“Part of the EIF’s .......
News Analysis 22 September 2020
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Into the light?
European CLOs continue to improve
The European CLO market is seeking to build on its relatively stable foundations of recent months as prices move ever-tighter. Notwithstanding the broader ramifications of a continuing global pandemic, the sector looks set to be leaving the darkest days of March and April behind.
Last Friday saw the tightest post-Covid print yet in the European CLO primary market, .......
News 21 September 2020
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Tech crazy
Securitizations of tech assets finding favour in Covid world
Securitizations of technology assets are proving popular with US investors in the Covid marketplace, according to a new Moody’s report based on interviews with “dozens” of structured finance issuers, arrangers and investors around the world.
In particular, securitizations of data centres, both as a constituent asset of CMBS transactions and corporate ABS deals, have caught the eye of buyers, say .......
News Analysis 18 September 2020
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SYME securitisation underway
Sector developments and company hires
SYME securitisation underway
Market Moves 11 September 2020
Supply@ME Capital (SYME) reports that it has received offers, subject to contract, from a number of large, global institutional investors for a securitisation note issuance via StormHarbour, in order to monetise more than €300m of inventory (SCI 24 April). The company says it is currently analysing whether to syndicate this first securitisation issuance or work on .......
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Volksbank debuts
Delayed Italian SRT inked
Volksbank has completed a financial guarantee with the EIF and the EIB that references a static €700m Italian SME portfolio of roughly 3600 borrowers. The transaction is the Italian bank’s first significant risk transfer transaction.
Martin Schweitzer, cfo and deputy ceo at Banca Popolare dell’Alto Adige, notes: “It’s an important transaction for us in several respects, not least because of .......
News 11 September 2020
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APAC SRTs eyed
Balance sheet optimisation in focus
Asia Pacific banks are eyeing synthetic securitisations to optimise their balance sheets and as Basel 4 is incorporated into local laws. However, portfolios tend to be structured as blind pools, which could potentially limit future investor interest.
APAC SRTs are not a new phenomenon, as the activity of Standard Chartered and Credit Suisse demonstrates. Credit Suisse, for instance, closed three APAC .......
News Analysis 11 September 2020
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Auto opportunities
Euro residual values holding up
The European second-hand car market has been relatively strong since lockdown ended, supporting auto ABS residual values, according to panellists at S&P’s recent European Structured Finance Virtual Conference. Mezzanine tranches in consumer and auto paper were highlighted as areas of opportunity.
Vittoria Ferraris, senior director and sector lead automotive EMEA at S&P, noted that auto ABS residual values .......
News 11 September 2020
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Pent-up demand
European RMBS market update
The European securitisation market reopened post-summer with a blow-out print for ARA Venn’s latest STS Dutch prime RMBS, the €300m Cartesian 5. The books for the class A notes were 5.5x covered, with orders reaching €1.5bn, indicating pent-up demand for paper.
“I was quite surprised by the level of demand,” says one ABS trader. “The main driver is .......
News 10 September 2020
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Multi-level Libor exposure eyed
Sector developments and company hires
Multi-level Libor exposure eyed
Market Moves 9 September 2020
Japanese securitisations with exposure to Libor on multiple levels will face the highest risks in the transition away from the benchmark rate when it is phased out at end-2021, Moody's notes. Around 20% of Japanese structured finance transactions the agency rates have Libor exposure and, in some cases, there is Libor exposure through notes, as well .......