Operations
Operations is the processing of structured credit trades from execution to termination or unwind.
It involves all parts of the post-trade process, from trade affirmations or confirmation and legal and documentation issue resolution to settlement, coupon payments, novation, CDS or portfolio compression, tear-up, close-out or unwind. To reduce backlogs, various forms of electronic processing and valuation services have been introduced via DTCC, Swapswire, T-Zero, TriOptima and IHS Markit.
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Job swaps weekly: 400CM promotes five as investment strategy heads
Securitisation people moves and key promotions
This week’s round-up of job swaps sees 400 Capital Management (400CM) beef up its securitisation strategy team with a handful of promotions. Elsewhere, Ares Management Corporation has named a co-head of Europe for alternative credit, while Taylor Wessing has strengthened its banking and finance team.
400 Capital Management has announced five new heads of investment strategy. Portfolio manager Quinn .......
Market Moves 17 April 2025
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ELFA guidelines set to spur CLO transparency
Trustee best practices and improved disclosures recommended
The European Leveraged Finance Association (ELFA) has released new guidance aimed at improving transparency in CLO reporting. Published at the end of March, the document outlines trustee best practices, but may meet some obstacles in its implementation.
Under the recommendations, ELFA suggests that trustee reports implement standardised reporting of trading gains and par flush metrics; detailed tracking .......
News 17 April 2025
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Accelerating synthetics simplification and standardisation
Mayer Brown lawyers outline the key points and eligibility c...
Following the start of development work on an accelerated procedure for the regulatory recognition of significant risk transfer (SRT) securitisations last year, the ECB last month published guidance addressed to significant institutions1 (SIs or SI) for certain simpler and more standardised traditional and synthetic securitisations. The new SRT Fast-Track process is currently being tested by the ECB .......
Talking Point 17 March 2025
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Music ABS: the loudest topic in IP securitisation
SFVegas speakers hailed music as a 'non-correlated asset with infrastructure-like stability'
Discussions around the next frontier of intellectual property (IP) securitisation at the SFVegas conference last week spanned from film and TV financing to drug and pharmaceutical royalties. However, one topic kept stealing the spotlight: music ABS. With its rapid growth since the Bowie bonds era and rising investor confidence, music royalties have solidified their place as a core, .......
News Analysis 4 March 2025
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Surging demand, power challenges to define data centre ABS growth
Investors weighing energy security and AI volatility, among other risks
Data centres emerged as one of the hottest topics at the Structured Finance Association’s SFVegas conference earlier this week, reflecting their rising prominence within digital infrastructure ABS. As AI, cloud computing and enterprise workloads continue to drive demand, power availability remains a critical bottleneck, however.
“Power is the biggest constraining factor in the industry when you are looking .......
News Analysis 28 February 2025
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EIB inks Spanish resi deal
Green and sustainable mortgages targeted
The EIB Group has signed a new synthetic securitisation operation with Santander to provide financing for energy efficiency investments in the Spanish real estate sector, including the construction of new near zero-emission buildings and the renovation of existing residential properties to meet sustainability standards. The investment is being executed in a single securitisation, optimally structured to provide Santander with .......
News 28 February 2025
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Thames Water WBS extended
'Significant' write-downs expected under liquidity extension transaction
The maturities of all class A and class B debt issued by the Thames Water Utilities Finance (TWUF) whole business securitisation have been extended by two years. The move follows the High Court’s approval of the restructuring plan proposed by Thames Water Utilities Holdings in connection with implementing a liquidity extension transaction.
The liquidity extension transaction will .......
News 27 February 2025
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Balance sheet expansion eyed
ABF commoditisation set to boost sector adoption
Regulatory clarity will be a major theme this year as banks adapt to new capital rules under Basel 4. Investors are closely watching whether banks expand their balance sheets or shift assets into the non-bank sector, particularly in the asset-backed finance (ABF) space.
Alongside broader regulatory clarity, the potential lifting of Wells Fargo’s US$1.95trn asset cap - .......
News Analysis 20 February 2025
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SRT fast-track testing underway
Market updates and sector developments
The ECB is set to begin testing a new fast-track process for the supervisory assessment of SRT, which it has developed in close dialogue with the European Banking Federation. The SRT assessment of an individual securitisation transaction currently takes about three months, but the fast-track process aims to substantially reduce this time for sufficiently simple securitisations meeting certain requirements.
Market Moves 19 February 2025
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Scope of ESMA consultation questioned
Private securitisation disclosure proposal 'puzzling'
ESMA last week launched a consultation on revising the disclosure framework for private securitisations under the Securitisation Regulation (SECR), proposing a simplified reporting template designed to improve proportionality in information-sharing processes. However, the timing and restricted scope of this latest consultation is questionable.
“ESMA's proposals could streamline the reporting requirements for certain transactions. However, they also exclude a .......
News 18 February 2025
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Tech to streamline funding solutions
AI meets ABF in new strategic partnership
Encina Lender Finance (ELF) and securitisation fintech Cardo AI have formed a strategic partnership aimed at improving efficiency, transparency and accessibility across the burgeoning ABF market. The two firms hope to “revolutionise” ABF transactions by combining Cardo AI’s expertise in AI analytics with ELF’s expertise in structuring and credit risk management.
The agreement highlights the increasing role .......
Market Moves 12 February 2025
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Real Madrid: future of football finance?
Wave of stadium financing deals set to modernise European sports investment
Real Madrid President Florentino Pérez is reportedly considering plans to restructure the football club’s ownership model with one that may resemble the German 50+1 approach, with the club introducing private investment while remaining under fan control. This model – which has boosted profitability and sustainability across Bundesliga clubs – could accelerate a broader trend of financial modernisation in .......
News Analysis 12 February 2025
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SABL 'mutually beneficial' for private credit funds and banks
Cadwalader partner Jeffrey Nagle and special counsel Michael...
The rise of private credit has been one of the biggest stories in finance in the last decade, and some observers forecast that by 2028 the private credit market once again will double in size. This continued growth, as well as other market and regulatory forces affecting bank lenders, has promoted innovation in the space. Increasingly, and perhaps out .......
Talking Point 10 February 2025
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SCI in Focus: ABF key motivator in private credit consolidation
Acquisitions driven by opportunities beyond traditional corporate lending
The alternative credit sector saw a continued drive towards market consolidation in 2024, with asset-backed finance (ABF) emerging as a key motivator for such activity. Last year saw a near-record US$260bn in acquired AUM, according to Gapstow’s annual review of acquisitions among alternative credit managers, with direct lending dominating the space.
Direct lending firms accounted for 70% of .......
News Analysis 7 February 2025
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Mubadala Capital to acquire minority stake in Silver Rock Financial
Partnership will give Silver Rock Financial access to Mubada...
Mubadala Capital is to acquire a 42% stake in Silver Rock Financial through cash and stock. The acquirer, the alternative asset management subsidiary of Abu Dhabi sovereign wealth fund Mubadala Investment Company, said this stake could increase to 50% over time, with plans to invest over US$1bn in Silver Rock funds as part of the agreement.
The partnership aims to .......
News 6 December 2024
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Italian revival
Private credit in real estate finance gaining traction
AXA IM Alts recently acquired a portfolio of Italian real estate loans from an international bank through a securitisation structure, while Société Générale has syndicated another portfolio of Italian real estate loan exposures to a leading international asset manager’s fund. Both transactions – for which A&O Shearman acted as advisor – signal that partnerships between banks and private credit .......
News 14 November 2024
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NAV in focus
Growing market 'key' to fund finance toolkit
Net asset value (NAV) lending volumes are poised to more than double over the next few years. Indeed, panellists at Invisso’s recent ABS East conference forecast that the market could grow from nearly US$150bn in 2024 to an estimated US$500bn by the end of the decade.
NAV loans are becoming an increasingly relevant tool within the broader US$1.2trn .......
News Analysis 5 November 2024
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C-PACE 'the winner'
Growing institutional interest, new market frontiers and leg...
With R-PACE uptake cooling across the US, industry leaders hailed C-PACE as “the winner” at Invisso’s ABS East conference in Miami last week. Panellists referenced a surge in deal volume, new market applications and a wave of institutional backing seen throughout 2024.
“We're seeing increased traction in larger C-PACE deals ranging above US$100m, where institutional investors use C-PACE .......
Talking Point 30 October 2024
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Private securitisations grow
Latest EBE report highlights market expansion
Over 67% of European private cash securitisations fund sellers in the EU and over 74% directly fund the real economy, according to the latest European Benchmarking Exercise (EBE) report. The latest report provides aggregated transaction-level data on over 500 securitisation positions gathered from 12 banks across six countries during 2H23, covering €79bn of reported financing volumes and an estimated .......
News 30 September 2024
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ABF push
Apollo, BNP Paribas ink strategic collaboration
Apollo last week unveiled a US$5bn strategic financing and capital markets collaboration with BNP Paribas, as it seeks to expand its securitisation and asset-backed finance operations, including ATLAS SP Partners. The deal signals a surge in activity in the private credit market, marked by a growing trend of partnerships between banks and non-bank entities adapting to meet the demand .......
News 27 September 2024