Investors

  • Performance model revealed

    Innovative approach highlights smaller manager outperformance

    Smaller, less well-known CLO managers often outperform their larger competitors, a new analytical model has revealed. The innovative approach utilises a mutual-fund-like analysis and the S&P LSTA index to assess manager performance and potentially bring greater clarity to performance trends.

    Traditionally, assessing CLO manager performance has involved using certain metrics to look at the underlying pool of loans in a .......

    News Analysis 2 August 2019

  • Dual-tranche deal finalised

    Standard Chartered targets wide distribution

    Standard Chartered has completed a dual-tranche capital relief trade that references an undisclosed US$2bn portfolio of corporate loans from the UK, Dubai, India and Africa. Dubbed Gongga CLO, the transaction is the bank’s second application of the dual-tranche technique (SCI 14 November 2018) and it is set to continue utilising a wide distribution strategy.   

    The transaction is split .......

    News 2 August 2019

  • Landmark SRTs inked

    BP Bari completes capital relief trades

    Banca Popolare di Bari has completed two capital relief trades that reference respectively a €1.1bn Italian SME portfolio and a €1.8bn Italian residential mortgage portfolio. This is the first time that transactions have been carried out between an Italian standardised bank and a private investor.

    The risk transfer trades were arranged by Banca IMI and they are funded .......

    News 2 August 2019

  • Crunching the numbers

    'Anomalous' acquisition of mortgages 'made economic sense'

    Arbuthnot Banking Group recently acquired two mortgage portfolios from the Raphael Mortgages and Magellan Funding 2 RMBS transactions, totalling approximately £266m. As well as being one of the first such transactions for the bank, the acquisition is also unusual in that such portfolios are typically snapped up by private equity firms and hedge funds, with challenger banks like Arbuthnot .......

    News 1 August 2019

  • COSME tapped

    SME risk-sharing agreement signed

    Italian national promotional bank Cassa Depositi e Prestiti (CDP) has tapped the EU's COSME loan guarantee facility that is managed by the EIF and backed by the European Fund for Strategic Investments, which provides first-loss guarantees. The agreement is expected to provide €3.75bn in counter-guarantees for Italy’s Guarantee Fund for SMEs, thereby facilitating up to €5.8bn of loans to .......

    News 1 August 2019

  • NPL SRT inked

    Hoist Finance tackles backstop regulation

    Hoist Finance has sold a €225m portfolio of Italian unsecured non-performing loans via an unrated securitisation to a fund managed by CarVal Investors. The significant risk transfer transaction is mainly carried out for capital relief purposes and will be followed by future NPL ABS deals.

    The SPV will fund 95% of the net purchase price of the receivables .......

    News Analysis 1 August 2019

  • Under pressure?

    UK non-prime RMBS could be tested in the autumn

    Attention in the UK RMBS market is turning to what might happen in September as the summer lull begins in earnest, with the new issue pipeline empty and only patchy secondary trading. In particular, focus is on non-prime sectors and the pressures they may come under.

    The last few days of July saw some secondary activity both on .......

    News 1 August 2019

  • Affordable loan credit insurance risk transfer closed

    Sector developments and company hires

    Affordable CIRT closed

    Fannie Mae has executed a new credit insurance risk transfer (CIRT) transaction that, for the first time, covers a pool of primarily single-family affordable loans. These covered loans are delivered to Fannie Mae with a short-term lender repurchase obligation, provided primarily by state housing finance agencies, which serves as the initial loan credit enhancement. Dubbed CIRT LR .......

    Market Moves 31 July 2019

  • Portuguese boost

    RMBS tightens on call optionality

    Portuguese RMBS outperformed other securitisation asset classes last week, boosted by the surprise call of the Lusitano Mortgages No. 2 transaction (SCI 22 July). The sector is expected to continue to perform strongly at tight levels.  

    JPMorgan international securitisation analysts note that Portuguese RMBS was the clear outperformer last week, with ECB-eligible senior notes tightening by .......

    News 31 July 2019

  • New podcast now live

    The operational steps to setting up a CRT and more...

    In this week's podcast, the team discuss the operational steps taken when putting together a capital relief trade, as well as some of the concerns surrounding disclosure requirements in securitisation and capital relief trades. It then rounds off with an insight into the recent securitisation from impact investor, ResponsAbility, which helps fund small businesses in emerging markets, throughout the globe.

    News 31 July 2019

  • Winding up order issued for Clifden

    Company hires and sector developments

    Clifden wind up

    A winding-up order has been issued by the High Court of Justice of the Isle of Man, Chancery Division in respect of Clifden IOM No.1 and PricewaterhouseCoopers has been appointed official receiver of the firm. The move follows a Part 8 claim issued by Clifden, naming RMAC No. 1 series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 .......

    Market Moves 29 July 2019

  • Mortgage firm completes residuals sale

    Company hires and sector developments

    Residual sale

    Charter Mortgages is set to sell its residual economic interest in the Precise Mortgage Funding 2019-1B RMBS to JPMorgan - which managed the sale process and purchased the RC2 certificates for onward sale - for a cash consideration of £6.2m. The transaction is expected to complete on 31July and will generate a pre-tax gain of £28.8m and a .......

    Market Moves 26 July 2019

  • Ratings efficiency

    NAIC decision to boost CLO of one volumes?

    CLO of one activity is rising, as direct lenders seek to broaden their syndication channels and insurers put money to work in ratings-efficient investments. NAIC’s recent move to no longer accept certain private fund ratings could further boost volumes.

    The ‘CLO of one’ phenomenon is driven by ratings-sensitive investors and direct lenders seeking to package direct lending funds .......

    News Analysis 26 July 2019

  • Funding trade

    Trade finance fund utilises securitisation technology and assets

    Finance securitisation specialist Channel Capital Advisors has launched its first trade finance fund. The fund is structured utilising securitisation technology and also invests in the instruments.

    Paul Wilson, cio at Channel, says: “We have been looking to launch this for a number of years, but now we have a well-established track record in trade finance and customer confidence, the time .......

    News 25 July 2019

  • Making an impact

    Debut impact ABS provides finance to EM microfinance & SME lenders

    ResponsAbility Investments has closed its debut US$175m impact securitisation, backed by loans to 26 microfinance and SME finance firms in emerging markets across the globe.  Arranged by JPMorgan, with initial capital from the Overseas Private Investment Corporation (OPIC), the transaction is set to be the first of many from the firm, with hopes of it also being replicated by .......

    News Analysis 25 July 2019

  • Esoteric ABS head announced

    Sector developments and company hires

    Esoteric ABS head named

    MUFG has hired Keith Allman as md and head of esoteric ABS, effective August 14 and he will be responsible for the coverage of all US esoteric ABS assets. Allman brings 17 years of structured-finance and aviation experience as a banker at Deutsche Bank and Citigroup, and most recently as an investor at Loomis Sayles & .......

    Market Moves 23 July 2019

  • Rights firm hits play on ABS debut

    Unusual securitisation backed by music rights collateral

    SESAC, a music rights firm acquired by Blackstone in 2017, is marketing an inaugural whole-business securitisation. Dubbed SESAC Finance 2019-1, the US$560m transaction is structured by Guggenheim and secured by music affiliate agreements, license agreements and software and intellectual property of the SESAC Group.

    The transaction has been assigned provisional ratings by Morningstar and KBRA of triple-B/triple-B minus on the .......

    News 23 July 2019

  • ABS head named

    Company hires and sector developments

    Euro ABS head appointed

    Santander has hired Francesco Dissera as head of continential Europe, securitisation, based out of Milan. He was previously md and partner, head of structuring and advisory at StormHarbour.

    PM appoitment duoble

    Man GLG has hired Patrick Kenney and Santiago Pardo as portfolio managers to its credit business in London. Prior to this, Pardo worked in credit .......

    Market Moves 22 July 2019

  • Offshore investment in Chinese ABS soars

    Investors find relative value in second largest ABS market

    Foreign investment in the Chinese ABS market is increasing exponentially, as routes to entry have been eased by developments such as the Bond Connect platform and the presence of ratings from international agencies. With issuance volumes in 2018 of around US$300bn, China is now the second largest global ABS market after the US and is seeing a broadening range of deals  which .......

    News Analysis 22 July 2019

  • Co-ceo named

    Sector developments and company hires

    Co-ceo named

    Värde Partners has named Ilfryn Carstairs as co-ceo, alongside co-founder George Hicks, effective from 1 January 2020. Hicks intends to transition to an executive chair role in 2022. Carstairs will retain his role as partner and global cio, overseeing the firm’s global investment strategy and co-chairing its investment committee. Based in Singapore since 2017, he joined Värde Partners .......

    Market Moves 19 July 2019

  • Secondary pick-up?

    Aircraft ABS E-notes proliferate, despite residual value risks

    Equity participation in aircraft ABS is picking up, following the execution of transactions with broadly syndicated E-notes, aimed at creating a liquid secondary market. However, the market may be underestimating residual value risk.  

    Aircraft equity notes have historically been an illiquid investment, with only the senior ABS tranches broadly offered to investors. “Residual value is important for .......

    News Analysis 19 July 2019
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