Investors
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ILS deputy head hired
Company hires and sector developments
Blockchain standardisation steps taken
The standardisation of blockchain technology, which the International Organisation for Standardisation (ISO) and others are promoting, will be credit positive for future securitisations that utilise the technology, says Moody’s. Although the technology itself has the potential to provide many benefits to the securitisation market, namely via interoperability and operational efficiencies, the current lack of .......
Market Moves 6 September 2019
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SME initiatives inked
EIF launches further guarantee programmes for businesses across Europe
The EIF has launched two new funding initiatives to support SMEs in Europe, including a first-of-its kind initiative in Finland. The second provides funding support for Lithuanian micro businesses and SMEs.
The Finnish programme comprises a guarantee agreement signed by the EIF and Finnish specialist lender, Finnvera. The guarantee is designed to facilitate around €190m of new lending .......
News 6 September 2019
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Ceo appointed
Sector developments and company hires
Analytics head nabbed
Merion Square Capital has hired Jeff Fraser as head of analytics, based at the firm’s Ardmore, Pennsylvania headquarters. Fraser joins Merion Square from Chubb, where he was an avp of CAT Pricing and Systems, responsible for Chubb’s catastrophe pricing, portfolio optimisation and global risk aggregation platforms.
Ceo appointed
Cairn Capital Group has appointed .......
Market Moves 5 September 2019
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STS success?
Market warms to STS, but threats hover on the horizon
While STS lead to a dampening effect on ABS issuance at the start of the year, it is starting to bring in longer term investors, such as bank treasuries, according to panellists at S&P’s European securitisation seminar today. They added, however, that STS still presents investor and issuer challenges and warned that the stability of the market is threatened .......
News 5 September 2019
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Navigating the new
New European CLO investors must chart a steady course
The remainder of the year looks set to be an active one for European CLOs. To sustain growth, the market needs to find new investors, but they have a challenging course to navigate.
Some potential new CLO investors are understandably hesitant, given widely voiced regulatory concerns and related alarmist mainstream press reports about the next financial crisis being .......
Talking Point 5 September 2019
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Going concern?
Synthetics could help address UTP burden
Synthetic securitisation is being put forward as one way of proactively addressing the unlikely-to-pay loan burden in Italy. However, although risk transfer technology would allow banks to maintain their relationships with borrowers while benefiting from capital relief, the cost of such structures – among other challenges – may be prohibitive for some.
Robert Bradbury, head of structuring and .......
News Analysis 5 September 2019
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Structured credit vets nabbed
Sector developments and company hires
EBA makes STS digital move
The EBA has announced that it has added the STS Regulation to its online Interactive Single Rulebook and Q&A. It allows market participants to access the EBA’s guidelines, and it will also enable them to ask questions on any aspect of the criteria where it is felt require clarification under the EBA’s .......
Market Moves 4 September 2019
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Tesco portfolio disposal sealed
Company developments and sector hires
Auto deal debut
Oodle Financial Services is marketing an inaugural static cash securitisation of auto receivables extended to obligors located in the UK. Dubbed Downson 2019-1, the £353.4m transaction is provisionally rated Aaa on the £229.8m class A notes, A2 on the £75.9m class Bs, Baa3 on the £15.9m class C notes, Ba3 on the £14.1m class Ds .......
Market Moves 3 September 2019
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Boost for Brazilian RMBS?
Number of risks from index-linked mortgages possible
A resolution in Brazil, intended to widen the pool of funds available to finance the purchase of homes in the country, has been passed, removing restrictions on the use of market indices-adjusted interest rates on residential mortgages. It is expected to boost RMBS issuance in the country, but there are certain risks associated with the resolution, particularly tied to inflation .......
News Analysis 2 September 2019
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RAIT sale
Company developments and sector hires
Aussie bank secures warehouse line
Yellow Brick Road (YBR), an Australian non-bank lender, has received final credit approval from an Australian Bank for it to provide an initial A$120m RMBS warehouse facility. The facility will be provided to the intended RMBS programme trust manager, sponsor and servicer, Resi Warehouse Funding (RWF), which is currently a wholly-owned subsidiary of .......
Market Moves 2 September 2019
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Regulatory boost
Italian SRT issuance picks up
Italian capital relief trades are experiencing a strong pick-up in issuance this year as regulatory changes enable more standardised banks to execute risk transfer transactions and open up the market to private investors. However, these banks will need time to adapt their IT and reporting systems, while risk-sharing transactions involving both SSAs and private investors are a more promising .......
News Analysis 30 August 2019
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Portuguese ABS framework updated
Sector developments and company hires
Portuguese ABS framework updated
A new regulation has been introduced in Portugal providing for the execution of regulation 2017/2402 of the European Parliament and of the Council, which lays down a general framework for securitisation. It also creates a specific framework for STS securitisation. Along with modifications to the Portuguese Legal Framework, the new regulation impacts: the definition .......
Market Moves 30 August 2019
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Esoteric opportunities
Structured solutions to address corporate risk transfer needs
The newly-formed CAC Specialty (SCI 21 August) is seeking to capitalise on the convergence of the insurance and capital markets on a broader basis than that represented by the ILS market. Indeed, the firm aims to transfer the more esoteric risks via insurance and place them in a structured format.
“Insurance brokerage and investment banking have a .......
News 30 August 2019
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Structured credit head steps down
Company hires and sector developments
BUMF 6 claim filed
Business Mortgage Finance 6 has issued a claim against Roundstone Technologies (RTL) in the London High Court of Justice stating, among other things, that the purported sale and purchase agreement between the issuer and RTL is void and that RTL has acquired no right to act for or on behalf of the issuer pursuant to a .......
Market Moves 29 August 2019
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Multifamily delinquencies ticking up
Growing student housing vacancies major factor
Delinquencies among multifamily loans in CMBS have recently increased and are expected to grow further. A Morningstar report adds that the increase to 0.40%, from a post-crisis low of 0.30% in June last year, is likely to continue, tempered by a lack of affordable options.
Furthermore, Morningstar suggests that multifamily demand is slowing, with a major reason being .......
News 29 August 2019
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Ceo replaced
Sector developments and company hires
New ceo appointed
Oaktree Specialty Lending has announced that ceo and cio Edgar Lee has resigned from the company for personal reasons, effective 30 September 2019. He is to be replaced by Armen Panossian who will take over both roles. Panossian is currently md and head of Oaktree’s Performing Credit organisation and has spent 12 years at the .......
Market Moves 27 August 2019
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Broker charged over mispricing
Sector developments and company hires
Broker charged over mispricing
The US SEC has charged New York-based broker-dealer AOC Securities and its former ceo Ronaldo Gonzalez with failing to supervise AOC broker Frank Dinucci, who provided inflated price quotes to Premium Point Investments (PPI). The orders find that PPI traders dictated to Dinucci the prices at which he should value certain MBS in PPI .......
Market Moves 23 August 2019
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Warehouse line closed
Company hires and sector developments
CRE appointments
Arbor Realty Trust has appointed Danny van der Reis as evp, structured asset management, reporting to Arbor president and ceo Ivan Kaufman. In this newly developed role, van der Reis will be responsible for managing the structured asset management department and loan restructurings for all of Arbor's balance sheet loans, as well as strategically developing and expanding the .......
Market Moves 22 August 2019
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Private market thriving
Specialty finance firms find multiple benefits in private deals
Private securitisations are thriving, particularly among specialty finance companies, as a flexible and economic funding option. Equally, many insurers are turning to the private market to securitise equity release mortgages, finding it the most cost-effective way to free up capital.
According to Anton Krawchenko, associate partner, capital and debt advisory at EY, says private securitisations largely come in two forms .......
News Analysis 22 August 2019
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Deleveraging boost
Monte dei Paschi completes NPL disposals
Banca Monte dei Paschi di Siena has sold a further four non-performing loan portfolios for approximately €340m (SCI 14 August). The transactions add to the recently finalised deals with Illimity Bank and Cerberus Capital Management, bringing the bank’s total sold NPL exposures since end-July to almost €1.5bn.
The latest deals involve the sale of €137m secured and .......
News 21 August 2019
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Volcker rule amended
Company hires and sector developments
Aviation firm appoints treasurer
Wings Capital Partners has hired Jakob Gallagher as vp, treasurer and capital markets. Prior to joining Wings, Gallagher served as vp on the MUFG aviation team who covered originations for the Americas. Prior to joining MUFG, he worked at Aircastle where he focused on capital markets and joint ventures. Jakob raised secured and unsecured .......
Market Moves 21 August 2019