Operations

  • Electronic loan trade completed

    Sector developments and company hires

    Electronic loan trade completed
    Octaura has completed its first entirely electronic syndicated loan trade. The news comes after the official launch of Octaura Holdings last year, which was founded with the intention to improve efficiency, liquidity and transparency in the CLO and syndicated loan trading processes (SCI 14 June 2022).

    At present, the US$1.5trn syndicated loan market functions .......

    Market Moves 2 February 2023

  • The affordability conundrum

    Impact of alternative credit scores explored

    The GSEs are under considerable political pressure to extend credit to the underserved. But what does this mean for CRT investors, issuers and rating agencies? This Premium Content article investigates.

    In October of last year, Sandra Thompson, director of the FHFA, unveiled potentially far-reaching policy changes with the aim of making US homes more affordable. All involve ......

    News Analysis 1 February 2023

    Premium Content

  • Mind the gap

    Euro CRE refinancing risk gauged

    European commercial real estate borrowers currently face a tripartite risk of tightening credit standards, rising debt costs and pressure on property values. Against this backdrop, new AEW research suggests that the debt funding gap (DFG) for the sector grew to €51bn in 4Q22 from €32bn the previous quarter.

    AEW measures the DFG as the shortfall between the original .......

    News 31 January 2023

  • Diversification possibilities

    Pawel Turek, counsel at DLA Piper, outlines how trade receiv...

    In most cases when economic entities need financing, they use traditional methods of obtaining funds. They take out loans, borrowings or issue bonds. But companies that issue invoices and have a very large number of contractors can also consider factoring.

    Factoring allows for the sale of receivables before the maturity date and in exchange for an agreed discount .......

    Talking Point 26 January 2023

  • Panagram CLO ETF debuts

    Sector developments and company hires

    Panagram CLO ETF debuts
    Panagram Structured Asset Management has launched its first ETF - the Panagram BBB-B CLO ETF (CLOZ). The portfolio will primarily comprise triple-B and double-B rated CLO bonds and is expected to pay a monthly dividend.

    The firm says its goal is to provide investors with a liquid alternative to traditional fixed income, with attractive structural .......

    Market Moves 25 January 2023

  • Ramping up?

    Auto ABS early-stage delinquencies 'vary broadly'

    Early-stage delinquency performance across European auto ABS has started to deteriorate as macroeconomic challenges ramp up. However, new research from DBRS Morningstar reveals that while there are deteriorating trends, early-stage delinquencies actually remain higher than historic lows.

    Based on an analysis of loan- and lease-level data from the European DataWarehouse’s exposure templates for EU-domiciled transactions and market data, .......

    News 25 January 2023

  • ECON votes on output floor

    Sector developments and company hires

    ECON votes on output floor
    The European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted to apply the capital requirements output floor at the consolidated EU level under CRR3, in order to engender comparable risk weights and avoid variations in capital levels. Additionally, the Committee has agreed transitional adjustments for low-risk exposures secured by residential mortgages to mitigate .......

    Market Moves 24 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

  • Different speeds

    Legislative advances driving C-PACE momentum

    Momentum across the US property assessed clean energy securitisation market is set to diverge this year, as additional states enact or expand C-PACE-enabling legislation to address climate and resiliency initiatives, while R-PACE origination volume remains constrained by onerous consumer protection measures. Nevertheless, the passage of the Inflation Reduction Act of 2022 could boost the sector, as property owners explore .......

    News Analysis 20 January 2023

  • Seeking stability

    Philip Pirecki, head of business development at Jersey Finan...

    There are few things more disruptive to the investment management industry than instability. Financial institutions are experts in managing risk in their investments. One of the reasons they can achieve this is due to developed processes for anticipating and predicting events – they can rely on their models. Managers expect the same for their operations.  

    Structured finance .......

    Talking Point 19 January 2023

  • Chenavari bolsters continental footprint

    Sector developments and company hires

    Chenavari bolsters continental footprint

    The Chenavari Group has established a French subsidiary – Chenavari Asset Management .......

    Market Moves 17 January 2023

  • Governance impact highlighted

    Asset isolation, payment continuity eyed

    Fitch reports that governance remains the leading cause of elevated ESG Relevance Scores (ESG.RS) across structured finance, reflecting the importance of asset isolation and payment continuity for securitisations. The rating agency notes that governance is a highly relevant ESG factor for 484 transactions it rates (where 412 have an ESG.RS of 4 and 72 have an ESG.RS of 5), .......

    News 16 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

  • Cyber cat bond debuts

    Sector developments and company hires

    Cyber cat bond debuts

    Specialist insurer Beazley has launched what is believed to be the first cyber catastrophe bond. The US$45m private Section 4(2) bond is tradeable under Rule 144A resale and .......

    Market Moves 11 January 2023

  • CAS trade launched

    Sector developments and company hires

    Fannie Mae is in the market with its first CAS trade of 2023, designated CAS 2023-R01, consisting of M-1, M-2 and B-1 notes. The A minus-rated $429.9m M1 has a tranche thickness of 2% and .......

    Market Moves 10 January 2023

  • CMBS ARAs at 'inflection point'

    Sector developments and company hires

    CMBS ARAs at ‘inflection point’
    US conduit CMBS appraisal reduction amounts (ARAs) have reached an inflection point, according to KBRA. A recent analysis undertaken by the rating agency shows that ARAs outstanding totalled US$3.6bn across 322 loans, as of November 2022, .......

    Market Moves 6 January 2023

  • Looking east

    CEE SRT issuance prospects gauged

    Polish SRT issuance boosted synthetic securitisation volumes last year. This Premium Content article assesses the prospects for increased activity across the CEE region.

    Significant risk transfer issuance in Central and Eastern Europe received a boost in 2022, with the opening up of the Polish market. However, activity across the rest of the region will likely continue to ......

    News Analysis 6 January 2023

    Premium Content

  • Scores on the doors

    Affordable housing gets top of the bill in new FHFA scorecard

    The new Federal Housing Finance Agency (FHFA) GSE scorecard, released this week,  gave top billing to the mission to increase “equitable access to affordable and sustainable housing”.

    The GSEs are enjoined to “take significant actions” to make sure all borrowers and renters have access to housing, including “efforts that further energy efficiency, resiliency and cost savings.”

    The dangers of climate risk also crop up .......

    News 6 January 2023

  • SASB CMBS IRC agreements eyed

    Sector developments and company hires

    SASB CMBS IRC agreements eyed

    Nearly 75% of US floating rate single-asset/single-borrower (SASB) CMBS loans in KBRA-rated transactions have current interest rate cap (IRC) agreements with strike rates below their .......

    Market Moves 4 January 2023

  • Raiffeisen inks Romanian trade

    Sector developments and company hires

    Raiffeisen inks Romanian trade
    Raiffeisen Bank has partnered with the EIB Group to strengthen its financing capacity in Romania through a synthetic securitisation. The transaction enables Raiffeisen to provide up to RON523m of new financing to eligible SMEs and MidCaps over the next two years, with a reduced interest rate compared to other similar financing.

    The securitisation references a .......

    Market Moves 3 January 2023
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