Operations

  • Syco Entertainment lands US$125m deal

    Sector developments and company hires

    A landmark US$125m securitisation of intellectual property has been completed by the Simon Cowell-founded company, Syco Entertainment. The intellectual property is the Got Talent Franchise, including the America’s Got Talent and Britain’s Got Talent formats commissioned in 72 territories across the globe. The complex transaction marks the first instance of leveraging royalty income streams for the securitisation of the intellectual .......

    Market Moves 7 October 2022

  • Leibniz Institute and European DataWarehouse win grant

    Sector developments and company hires

    The German Federal Ministry for Education and Research has awarded a grant to the Leibniz Institute for Financial Research SAFE and the European Datawarehouse (EDW). The grant has been awarded under the ministry’s Climate Protection and Finance (KlimFi) funding initiative to undertake a three-year project to promote the green auto ABS market. The project, named ‘Green Auto Securitisation’ (GAS), .......

    Market Moves 4 October 2022

  • CLOs in an age of economic uncertainty

    We are currently going through a difficult economic environment – with rising interest rates, a credit squeeze, inflation and currency volatility, explains Rob Reynolds, md and head of CLOs at Pemberton.

    After years of cheap money, investors are naturally being more cautious and selective about where they invest their money.

    CLOs are one product that has consistently served as a buffer .......

    Talking Point 3 October 2022

  • Bright spots

    IRA set to boost solar ABS origination

    The US solar ABS market is poised for growth, following the passage of the Inflation Reduction Act (IRA) last month. In particular, the extension and expansion of the investment tax credit (ITC) is set to encourage consumer engagement with solar panels.

    “Origination continues to be strong and we will continue to see ABS transactions for the rest of .......

    News Analysis 28 September 2022

  • BlackRock preps CLO ETF

    Sector developments and company hires

    BlackRock preps CLO ETF

    In a recent filing with the US SEC, BlackRock has disclosed that it is prepping a CLO ETF, dubbed BlackRock AAA CLO ETF. The fund seeks to provide capital preservation and current income by investing in a portfolio of predominantly US dollar-denominated triple-A rated CLO securities.

    Under normal circumstances, BlackRock AAA CLO ETF will invest at least .......

    Market Moves 27 September 2022

  • Early redemption for Spanish synthetic

    Sector developments and company hires

    Early redemption for Spanish synthetic

    Clifford Chance has advised Santander Consumer Finance regarding the early redemption of bonds issued by Santander Consumer Spain Synthetic Auto 2018-1 and the settlement process. This transaction included obtaining consent from various institutional investors and represents the first early redemption of a synthetic securitisation fund in Spain.

    The Clifford Chance team was led by global financial markets .......

    Market Moves 23 September 2022

  • Performance triggers finalised

    Sector developments and company hires

    Performance triggers finalised

    The EBA has published its final draft regulatory technical standards (RTS) specifying the minimum performance-related triggers for STS synthetic securitisations that feature non-sequential amortisation. With the purpose of standardisation, the amended Securitisation Regulation sets out that sequential amortisation shall be applied to all tranches of STS on-balance sheet securitisations.

    However, as a derogation, STS on-balance sheet securitisation .......

    Market Moves 21 September 2022

  • Controversial Revlon decision reversed

    Sector developments and company hires

    Controversial Revlon decision reversed
    The US Circuit Court for the Second Circuit last week reversed the controversial decision by the District Court for the Southern District of New York (SDNY) that permitted lenders to retain the mistaken payment made by Citi as administrative agent for a credit agreement with Revlon (SCI 20 August 2020). The SDNY decision upended decades .......

    Market Moves 14 September 2022

  • Setting the tone

    European ABS/MBS market update

    As the much-anticipated September restart begins to materialise, one deal managed to reopen the European and UK ABS/MBS primary markets. With additional deals being announced, investor demand and overall market conditions will be tested.

    Yesterday the European Central Bank raised interest rates sharply, increasing its three key rates by three-quarters of percentage point - the biggest rise since 1999 - .......

    News Analysis 9 September 2022

  • SME funding partnership inked

    Sector developments and company hires

    SME funding partnership inked
    SME Capital and JPMorgan have agreed a new funding partnership dedicated to supporting UK SMEs. The collaboration entails JPMorgan extending a significant line of committed capital for SME cashflow lending over the next three years.

    The partnership forms the second phase in the development of SME Capital’s warehousing programme - the first phase being the .......

    Market Moves 2 September 2022

  • S&P Global bolsters private markets offering

    Sector developments and company hires

    S&P Global has announced the acquisition of the private markets data solutions provider, Private Market Connect (PMC). The acquisition will integrate the platform into the firm’s market intelligence division and will increase the breadth and depth of its data solutions for Limited Partner and General Partner customers. PMC currently tracks over 15,000 unique funds and US$1.2trn in private markets commitments. .......

    Market Moves 31 August 2022

  • Leadership shake-up at Intrum

    Sector developments and company hires

    Intrum says it has reached an agreement with Anders Engdahl, who will step down from his position as president and ceo of the firm and leave with immediate effect. The Intrum board has appointed current board member Andrés Rubio as acting president and ceo, with the recruitment of a permanent solution expected to commence during the autumn.

    Engdahl was internally .......

    Market Moves 26 August 2022

  • Flexible allocation

    Bond buckets on the rise

    High yield bond (HYB) holdings across US CLOs continue to rise, following their reintroduction in October 2020. A new Fitch study indicates that HYB exposure is found mostly in recent vintage transactions, while exposure within CLOs tends to be much lower than indenture-mandated limits.

    Indenture provisions related to HYB exposure vary from outright prohibition to limitations linked to .......

    News Analysis 25 August 2022

  • Reciprocal relationship

    Increased market volatility has raised asset allocator demand for private credit strategies, particularly structured credit. Hildene Capital Management explains how structured credit asset managers and insurers can work together in today’s volatile market.

    Insurance companies are among the investors leading the way in understanding how this unique asset class – known for its enhanced yields and credit protections – can .......

    Talking Point 24 August 2022

  • UCITS cat bond index touted

    Sector developments and company hires

    Plenum Investments has released a catastrophe bond market study and index family, with the aim of providing investors with what the firm describes as an “investment compass”. Plenum believes that the index will enable a fund offering to be matched with the individual risk appetite of an investor, while allowing the performance and risks of funds to be compared with each .......

    Market Moves 23 August 2022

  • Not fit for purpose

    EIOPA conclusions 'conceptually flawed'

    Following its consultation paper in response to the European Commission’s call for advice on the review of the securitisation prudential framework under Solvency 2 (SCI 16 June), EIOPA has affirmed that it “considers that the current framework is fit for purpose.” However, this conclusion has failed to convince the securitisation industry of its validity.

    EIOPA’s broad assessment .......

    News Analysis 22 August 2022

  • ADB co-financing agreement inked

    Sector developments and company hires

    ADB co-financing agreement inked
    The Asian Development Bank (ADB) has signed an agreement with five global insurers that will mobilise up to US$1bn of co-financing capacity to support lending to financial institutions in Asia and the Pacific. The Master Framework Program for Financial Institutions will allow ADB to increase its lending to both commercial banks and non-bank financial institutions in .......

    Market Moves 19 August 2022

  • MBS social index proposed

    Sector developments and company hires

    Fannie Mae has published a proposed methodology for single-family social disclosure, which aims to provide MBS investors with insights into socially-oriented lending while preserving the confidentiality of borrowers. At the core of the methodology are three key outcomes that the GSE is seeking to achieve with its Single-Family Social Index: prioritise borrowers; allow investors to identify pools with high concentrations of .......

    Market Moves 18 August 2022

  • Unexpected update

    Recognition of EU STS securitisations to be extended

    Securitisation regulation in the UK has received a surprise amendment, following the publication last month of the new Financial Services and Markets Bill. The Bill is set to provide investors in the UK with access to a larger pool of STS securitisations with the introduction of a new STS equivalence regime for non-UK transactions.

    More broadly, the Bill .......

    News Analysis 17 August 2022

  • Latvian auto ABS debuts

    Sector developments and company hires

    Signet Bank has launched the first securitisation in Latvia, in cooperation with car leasing company Primero. The bank supported its subsidiary in the issuance of a €9.46m ABS.

    The seven-year transaction consists of a senior tranche and a junior tranche and is secured by a lease and leaseback portfolio of secured auto loans. The issuance is aimed at attracting additional .......

    Market Moves 16 August 2022

  • Symbiotic relationship

    'Recharacterisation' underway for European ABS

    The paucity of European publicly placed securitisations in recent months, against a backdrop of challenging conditions, is seen as a symptom of a market that is overregulated and has too few participants. Against this backdrop, a seemingly symbiotic relationship between the public and private securitisation markets is emerging.

    “The market for publicly issued securitisation bonds is too illiquid .......

    News Analysis 12 August 2022
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