Marketplace Lending

  • Supreme Court grants CFPB petition

    Sector developments and company hires

    Supreme Court grants CFPB petition
    The US Supreme Court has granted the CFPB’s Petition for a Writ of Certiorari in the case of ‘CFPB v. Community Financial Services Association of America’ and denied the cross-petition filed by Community Financial Services Association of America (CFSAA). The CFPB’s petition asked the court to overturn the 19 October 2022 ruling by the US .......

    Market Moves 3 March 2023

  • Independent considerations

    Daniel Drummer, cfo of German digital lender auxmoney, answers SCI's questions

    Q: auxmoney re-opened the European securitisation market with its third social bond issuance, Fortuna Consumer Loan ABS 2023-1. How does this latest deal compare to auxmoney’s first two ABS transactions?
    A: This is our third and largest securitisation at €350m, which directly follows our first securitisation in September 2021 at €250m and our second in May 2022 at €225m. Overall, .......

    Provider Profile 28 February 2023

  • CS duo snapped up

    Sector developments and company hires

    CS duo snapped up
    Financial services firm Baird has expanded its fixed income offering with the addition of two ex-Credit Suisse professionals focusing on CLOs and securitised products. James Gray and Daniel Bates join the firm’s London office respectively as md, European fixed income sales and director, European fixed income trader.

    Gray was previously executive director, securitised products sales .......

    Market Moves 21 February 2023

  • Backing blockchain

    Credit risk considered as DeFi eyed to fund real world assets

    Further efforts are underway to demystify the credit risk associated with DeFi securitisations as interest in its capability to finance real world assets (RWAs) grows (SCI 2 February). A new S&P report analysing the key credit and legal risk considerations associated with such transactions marks a further step by the rating agency to better understand the digital space, .......

    News 15 February 2023

  • Homogeneity RTS released for STS synthetics

    Sector developments and company hires

    Homogeneity RTS released for STS synthetics
    The EBA has published its final draft regulatory technical standards (RTS) setting out the conditions for the assessment of the homogeneity of underlying exposures in STS on-balance sheet securitisation pools. At the same time, the authority has extended the existing work on the RTS on homogeneity for both ABCP and non-ABCP securitisations to ensure .......

    Market Moves 14 February 2023

  • MK&C acquisition prompts CS carveout

    Sector developments and company hires

    MK&C acquisition prompts CS carveout
    Credit Suisse has progressed the carveout of CS First Boston as a distinct capital markets and advisory-led business (SCI 28 October 2022) through the acquisition of The Klein Group (MK&C), for a purchase price of US$175m. The seller will receive equity in CS First Boston in the form of a convertible note, while Michael .......

    Market Moves 10 February 2023

  • Status quo or status go?

    Law firm designation practices questioned

    Dissatisfaction is growing among private credit funds and direct lenders regarding the common practise of law firm designation, whereby sponsor counsel can choose which counsel advises the lenders. The concern is that such a scenario could force them into less favourable positions in negotiations over securitisation transactions.

    “The problem really is as simple as the private equity funds .......

    News Analysis 10 February 2023

  • SPG spin-out rebranded as ATLAS

    Sector developments and company hires

    SPG spin-out rebranded as ATLAS
    Apollo and Credit Suisse have completed a substantial first close of their previously announced transaction, under which affiliates of the former purchased a significant portion of the latter’s securitised products group (SCI 28 October 2022). A majority of the assets and professionals associated with the transaction are now part of or managed by the .......

    Market Moves 9 February 2023

  • Alternatives combination agreed

    Sector developments and company hires

    Alternatives combination agreed
    FS Investments and Portfolio Advisors have entered into a definitive agreement to combine their firms. The move is set to see a joint growth in excess of their combined US$73bn in assets under management and a significant expansion to their resources - including a permanent capital base and a new distribution platform. As a combined company, the .......

    Market Moves 6 February 2023

  • Time to shine

    Multi-sector structured credit 'top performer'

    Gapstow Capital Partners’ composite credit hedge fund index last year posted its lowest annual return – having declined by 3.9% - since its inception in 2009, with no peer group within the index producing a positive average return. Nevertheless, the multi-sector structured credit peer group - the funds of which invest across CLOs, MBS and ABS - was the .......

    News 2 February 2023

  • Book building

    Peter Polanskyj, senior md and head of structured credit at Obra Capital, answers SCI's questions

    Q: Vida Capital recently rebranded to Obra Capital (SCI 16 December 2022). Could you explain why this signifies an important milestone for the firm?
    A: Rebranding was a natural step for the firm. Vida – which means ‘life’ in Spanish - was historically a life settlements investment firm. However, the firm is now focusing on diversifying its investment mandate, .......

    The Structured Credit Interview 30 January 2023

  • Alternative credit acquisitions hit record AUM

    Sector developments and company hires

    Alternative credit acquisitions hit record AUM
    The AUM of acquired alternative credit managers hit a record US$326bn across 37 transactions in 2022, according to Gapstow Capital Partners figures, with acquisitions of private lending firms accounting for nearly half of this activity (15 acquisitions at US$161bn in target AUM). In comparison, the tally for the prior two years was US$140bn in .......

    Market Moves 23 January 2023

  • Call for additional index granularity

    Sector developments and company hires

    Call for additional index granularity
    SFA has submitted a letter to Fannie Mae and Freddie Mac in response to their Social Index (SCI 19 October 2022) that strongly advocates for additional transparency and granularity in how existing social metrics are reported to investors beyond the index. While the association commends the GSEs for their efforts to improve ESG data .......

    Market Moves 13 January 2023

  • Unemployment eyed

    Labour market key to Euro ABS outlook

    Some deterioration – both in collateral and ratings performance – across the European securitisation market is expected this year, given current global economic pressures. However, S&P suggests in its outlook for the sector that the ultimate impact of economic distress is largely dependent on how the labour market fares.

    At present, eurozone unemployment rates stand at 7% and .......

    News Analysis 13 January 2023

  • Survey suggests improved sentiment

    Sector developments and company hires

    Survey suggests improved sentiment
    KBRA has published the results of its December survey of European structured finance investors, which was conducted to gauge their views and expectations regarding the market. The report reveals a more positive picture than the rating agency’s previous investor survey from June.

    “While many challenges remain for the European securitisation sector, sentiment for the market .......

    Market Moves 9 December 2022

  • Don't panic!

    Vadim Verkhoglyad, vp and head of research publication at dv...

    Concerns of a recessionary impact on US consumer markets, and comparisons to the global financial crisis, are rampant across the media. This fearmongering is not accurate, is harming the market and is not in our best interest.

    Widespread media analysis suggests that we are in a crisis: headlines focus on the increase in subprime auto delinquencies, the downturn .......

    Talking Point 29 November 2022

  • New landscape

    ABS litigation 'rules of engagement' explained

    US subprime RMBS disputes could impact ABS deal structures and related litigation in five pivotal ways. Against this backdrop, it is incumbent on parties to plan accordingly to navigate the new ABS litigation landscape.

    “A lot of the changes over the years and more recently have been in favour of defendants, who have been gaining momentum,” says .......

    News Analysis 8 November 2022

  • Existential challenge

    Activist agency, 'originalist' Court clash

    The US Court of Appeals for the Fifth Circuit last month ruled that the CFPB is unconstitutionally funded. This Premium Content article investigates what this landmark judgment means for the securitisation industry.

    Those in the securitisation industry concerned by the implications of the lawsuit brought by the Consumer Financial Protection Bureau (CFPB) against National Collegiate Master Student ......

    News Analysis 4 November 2022

    Premium Content

  • Call for Och 'feud' to end

    Sector developments and company hires

    Call for Och ‘feud’ to end
    Sculptor Capital Management’s independent board members and Jimmy Levin, the firm’s current cio and ceo, have issued statements in response to a recent court filing related to a dispute brought by former chairman and ceo Daniel Och. The filing mentions a “personal issue” from Levin’s past, which was thoroughly reviewed at the time and .......

    Market Moves 3 November 2022

  • Stress-testing resilience

    Climate-change risk assessment approach debuts

    Scope has introduced a stress-testing methodology to assess climate-change impacts on securitisations. The objective is to help gauge the resilience of a transaction to transition and physical risks.

    “We have introduced a quantitative and scenario-based stress-testing approach to assessing climate change impacts on the credit risk of securitisation transactions. The climate-change scenarios identified offer a range of outcomes for .......

    News 2 November 2022

  • Apollo, PIMCO set to acquire Credit Suisse SPG

    Sector developments and company hires

    Apollo, PIMCO set to acquire Credit Suisse SPG
    Credit Suisse has unveiled its new strategy and transformation plan, following a strategic review of the bank’s businesses (SCI 28 July). The bank says it is taking “extensive measures” to deliver a more integrated business model, with the goal of creating value for shareholders.

    Over the next three years, Credit .......

    Market Moves 28 October 2022
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