Investors
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First RMBS tied to AONIA marketing
Company hires and sector developments
AONIA debut
Commonwealth Bank of Australia’s new A$1bn Medallion Trust Series 2019-1 is set to become the first Australian RMBS linked to the Australian Overnight Index Average (AONIA) instead of one-month BBSW. The issuer is understood to be marketing classes A1, A2 and B, while classes C to F will not be offered to investors. The collateral backing .......
Market Moves 11 November 2019
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MPL ABS breaches liquidity covenant
Sector developments and company hires
EMEA
Market Moves 8 November 2019
BTIG has established a fixed income credit division in London to service clients across EMEA. The team is led by Michael Carley, md and head of European fixed income credit, who joined BTIG in New York last year. Bobby Dziedziech (director and senior high-yield and distressed trader), Laurent Jastrow (director and senior distressed sales trader and sourcing specialist), Noah .......
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Liquidation challenges
Greek economy precludes enforcement option
An improvement in economic fundamentals and reform efforts has boosted both the deal flow and prospects of the Greek non-performing loan market. However, recovery prospects on Greek NPLs remain low, mainly because debtors are in negative equity. Consequently, investors will likely focus on restructurings rather than collateral liquidations going forward.
According to Antonio Casado, executive director at .......
News Analysis 8 November 2019
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Rollover prepped
NPL CRT to be refinanced
Hoist Finance is readying a rated securitisation backed by Italian unsecured non-performing loans with a gross book value of €5bn, as of end-September. The capital relief trade is the firm’s first public securitisation of NPLs consisting solely of unsecured consumer and SME loans and follows an unrated NPL securitisation that was completed in August (SCI 1 August).
The .......
News Analysis 7 November 2019
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Pursuing illiquidity premia
Corbin Capital ceo Tracy McHale Stuart and cio Craig Bergstrom answer SCI's questions
Q: How and when did Corbin Capital become involved in the securitisation market?
TMS: We’ve been involved in the securitised markets for roughly 13 years.In the early 2000s, the returns in structured credit were so compressed and we didn’t like the leverage profile required to generate our expected return targets, so we kept away. Then in 2007, we .......
The Structured Credit Interview 6 November 2019
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CMBS md recruited
Sector developments and company hires
North America
Incapital has appointed William White as md, CMBS. Based in Boca Raton, he will report to co-heads of fixed income George Holstead and Laura Elliot. White was previously md and head of CMBS trading at Raymond James, and before that worked at Wachovia Capital Markets and Bank of America Securities.Ropes & Gray has promoted 16 attorneys .......
Market Moves 6 November 2019
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SCI Capital Relief Trades Awards 2019
Personal Contribution to the Industry: Mascha Canio, Head of...
Heading up a team responsible for one of the largest investment portfolios in the sector that has driven market growth while setting a benchmark that others follow would perhaps be enough. But Mascha Canio’s personal contribution extends further as one of the most long-standing and visible investors and an advocate for a focus on risk-sharing and transparency to ensure the .......
News 6 November 2019
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NPL ABS inked
Sector developments and company hires
Eminent domain mods introduced
Market Moves 5 November 2019
To address the heightened risk to borrowers and investors of a multifamily property located in King County being taken by eminent domain (SCI 14 October), Fannie Mae has introduced a prospective modification to its multifamily loan and security agreement and its MBS prospectus for new transactions with properties located in the county. These modifications provide .......
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SCI Capital Relief Trades Awards 2019
Credit Insurer of the Year: Arch Capital Group
Arch Capital Group Ltd (ACGL) is SCI’s Credit Insurer of the Year in recognition of its position as global leader in mortgage credit risk transfer and the completion of a first-of-its-kind transaction with ING. With US$300bn of assets under cover already, the firm has significant capacity in place to grow its presence further.
Based in Bermuda, ACGL had .......
News 4 November 2019
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Tactical opportunity?
Downturn could spur CRT secondary activity
Capital relief trade secondary market activity remains minimal. However, a credit downturn could spur trading opportunities if some investors are forced to sell bonds or choose to reallocate to other sectors.
“While some investors see relative value between exposures and have different views on the market, what really seems to be driving secondary CRT activity at the moment .......
News Analysis 4 November 2019
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Tough approach continues
RTS leaves disclosure challenges unresolved
The European Commission’s long-awaited regulatory technical standards on securitisation disclosures (SCI 18 October) fail to address challenges around confidentiality. Further, the ‘no data’ options that were initially posed by ESMA’s RTS on securitisation disclosures (SCI 22 February) have not been clarified.
According to David Saunders, structurer at Santander: “[The Commission’s RTS is] essentially identical to the .......
News Analysis 1 November 2019
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SRT report pending
EBA to propose harmonised excess spread treatment
The EBA is set to propose a harmonised regulatory treatment for excess spread in significant risk transfer transactions in its final SRT report next year. Since the publication of the EBA’s discussion paper on SRT two years ago, different supervisors have tackled the issue in various ways, partly due to gaps in the securitisation framework.
The EBA’s final .......
News Analysis 1 November 2019
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GARC deal expected
Sector developments and company hires
EMEA
Florent Trouiller has joined Norton Rose Fulbright as a partner in its Luxembourg office. Trouiller practises tax law, with a particular focus on cross-border private equity and real estate investments and securitisation transactions. He was previously a partner at Dechert and before that spent 10 years at Allen & Overy in Luxembourg.GARC deal expected
Market Moves 31 October 2019
Intesa Sanpaolo has acquired .......
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SCI Capital Relief Trades Awards 2019
Investor of the Year: European Investment Fund
The European Investment Fund (EIF) provides an unparalleled level of support to the capital relief trades market in Europe, bringing numerous synthetic securitisations across the line. The EIF is not only a key driver of innovation, participating in numerous benchmark transactions across jurisdiction and asset class, but it has also helped open up the risk transfer market to a broader .......
News 31 October 2019
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Anti-NSDA provisions welcomed
Sector developments and company hires
Anti-NSDA provisions welcomed
Market Moves 30 October 2019
The inclusion of anti-net short debt activism (NSDA) provisions in offering documentation has become more common in recent months, with Sirius Computer Solutions, Nexstar Broadcasting and Allied Universal Holdco deals incorporating such language. The purpose is to prevent net-short participants - whose interests are not aligned with those of other investors - from using their debtholder rights .......
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SCI Capital Relief Trades Awards 2019
Innovation of the Year: FCT Jupiter 2019
Societe Generale’s US$3.4bn FCT Jupiter 2019 transaction has won SCI’s Innovation of the Year Award for introducing a number of ground-breaking structural innovations in connection with the redeployment of released RWA. The deal not only frees up a dedicated capital envelope, whereby capital can be reallocated in favour of positive impact finance assets, but also debuts a pricing reduction feature .......
News 30 October 2019
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Abacus case settled
Sector developments and company hires
Abacus case settled
Market Moves 29 October 2019
Judge Jennifer Frisch of the Minnesota District Court has terminated the Abacus 2006-10 case (SCI 2 August), after the parties filed a stipulated proposed order resolving Astra Asset Management’s claim against Goldman Sachs. Astra had alleged an EOD and asked the trustee to employ a trust instruction proceeding to confirm Goldman’s violations and to solicit a .......
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SCI Capital Relief Trades Awards 2019
Impact Deal of the Year: Room2Run
As the first-ever synthetic impact securitisation with a multilateral development bank (MDB), Room2Run helped to free up vital capital for the African Development Bank (AfDB) to fund infrastructure projects across multiple African countries. As well as setting the benchmark for how risk transfer technology can be deployed innovatively and to positive effect, the transaction overcame a number of structural and .......
News 29 October 2019
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Overcoming stigma
Opportunities eyed in land banking
One sector that continues to be underserved by financial institutions post-crisis is land banking. As such, it offers opportunity for investors that can overcome the stigma associated with the space.
“There aren’t many active financing providers in the land banking space,” confirms Craig Bergstrom, cio at Corbin Capital Partners. “Consequently, yields across the sector represent a premium to .......
News 28 October 2019
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CMBS refi inked
Sector developments and company hires
CLO firm names IR head
Pemberton has hired Cary Gibson to the role of director and head of investor relations. Gibson was previously head of business development at Sand Grove Capital Management.
CMBS refi inked
Sabal Capital Partners has closed a US$70m refinancing of 17 low-LTV multifamily assets located in the Bronx borough of New York, 15 of which were originally .......
Market Moves 25 October 2019
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SCI's latest podcast is now live!
The editorial team discuss the hottest topics in securitisation today...
In this month's exciting edition of the SCI podcast, the team talks about standardised banks and the barriers they face when looking to enter the risk transfer market, Santander's latest securitisation of Finnish auto loans, Kimi 8, as well as a company that is looking to help companies in emerging markets tap synthetic securitisation to optimise their balance sheets.
Don't .......
News 25 October 2019