Operations
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Exploiting inefficiencies
Jay Huang, md and head of structured credit investments at CIFC, answers SCI's questions
Q: How has investor perception changed around CLOs, given the resiliency of the asset class in 2021?
The Structured Credit Interview 8 December 2021
A: Three years ago, when I was visiting investors, I would have to bring up the resiliency of the CLO product. However, I have noticed a trend that when I come into investor meetings now, they are bringing up the resilience of the .......
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Digital ABS debuts
Fully blockchain-based securitisation completed
German fintech Cadeia has completed the first-ever fully blockchain-based corporate loan securitisation via its Digital Services Platform (DSP). Dubbed GreyPeak 2021-1, the deal was privately placed in the form of digital securities.
“GreyPeak 2021-1 is the first loan securitisation to fully store and execute the complex terms and processes of a securitisation transaction in a blockchain,” explains Rolf .......
News 7 December 2021
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Enhanced value
Securent president Justin Vedder and SitusAMC ceo Michael Franco answer SCI's questions
Q: Securent is a newly formed SitusAMC entity that provides comprehensive risk management and insurance programmes for MBS and mortgage stakeholders (SCI 18 November). Tell us about your vision for the company.
Provider Profile 3 December 2021
JV: Securent is designed for mortgage lenders, investors, RMBS issuers, warehouse lenders and other market participants. Securent takes a proactive and preventive approach to managing loan risk and .......
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ESG countdown
ECB climate stress tests pending
The ECB’s pending climate stress tests are expected to offer some answers around the data and modelling challenges pertaining to the analysis of climate risks. Indeed, the stress tests could also prove definitive for ESG significant risk transfer issuance, given the presence of the same data challenges.
The two main challenges pertaining to the analysis of climate risks are data .......
News Analysis 3 December 2021
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SRT chronicle: part three
In the final instalment of a three-part series on bank risk...
We have seen in part one of this series how far the SRT sector has developed in the past 10 years from a niche market with 10-12 transactions issued a year to a much larger and more diversified market. Barring a material downturn in the credit cycle, the SRT market should continue to enjoy strong growth in the next .......
Talking Point 2 December 2021
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RFC issued on ABS tax policies
Sector developments and company hires
RFC issued on ABS tax policies
Market Moves 1 December 2021
HMRC is seeking feedback on two draft statutory instruments: the Taxation of Securitisation Companies (Amendment) Regulations 2022 and the Securitisation Companies and Qualifying Transformer Vehicles (Exemption from Stamp Duties) Regulations 2022. The UK government consulted on making changes to clarify or reform certain aspects of the taxation of securitisation companies and the stamp duty .......
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GACS pair print
Mixed NPE pool debuts
A pair of Italian non-performing loan securitisations have closed over the past week that are expected to benefit from the GACS government guarantee (see SCI’s Euro ABS/MBS Deal Tracker). UniCredit has completed OLYMPIA SPV, its third GACS ABS and the fourth for the UniCredit Group, under its non-core portfolio disposal programme. Most recently, Iccrea Banca has finalised the .......
News 30 November 2021
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Restructurings eyed
Real estate and hospitality assets targeted
Arrow Global’s new corporate restructuring unit in Portugal is expected to focus on the real estate and hospitality sectors (SCI 25 November). The move comes as moratoria in the country draw to an end amid a scarcity of capital for local corporates.
The new business builds on Arrow Global’s experience and capabilities in Portugal through its Whitestar .......
News Analysis 30 November 2021
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Meeting opportunity
New trading platform to capitalise on multifamily growth
Sabal’s new US CMBS trading business - SCH Trading (SCI 9 November) - aims to capitalise on a shift in the market relative to incumbent market-makers. The move comes amid rising investor appetite for multifamily product and an increased focus by the Biden administration on affordable housing.
“We saw a lot of opportunities around how we could .......
News Analysis 30 November 2021
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SRT chronicle: part two
In the second of a three-part series on bank risk transfer t...
The SRT market is predominantly European (representing 86% of transactions since 2010), although US banks are accounting for an increasing percentage since 2019 - with JPMorgan now a regular issuer, one transaction by Goldman Sachs in 2020 and a few regional banks entering the market in 2021. Prior to 2019, only Citi and Bank of Montreal were regular issuers in .......
Talking Point 25 November 2021
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Advanzia advances
German credit card ABS debuts
European online lender Advanzia has closed its debut ABS transaction of over €475m in senior funding. The deal also represents the first securitisation backed by a German credit card portfolio.
"Advanzia continues to strengthen its position in the capital markets by demonstrating its ability to issue structured debt securities. This is a significant milestone for the bank, as .......
News 25 November 2021
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School's out?
Future of PBSA CMBS sector scrutinised
Conflicting factors such as depressed occupancy levels and excellent collateral properties, or a high dependence of international students and propitious domestic demographics, suggest that purpose-built student accommodation (PBSA) CMBS is a complex asset class. Whether the sector will ever recover from its Covid-induced collapse is a moot question.
A recent TwentyFour Asset Management blog questioned whether there is .......
News Analysis 18 November 2021
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GSE scorecard released
Sector developments and company hires
GSE scorecard released
The FHFA has released the 2022 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions (CSS). The purpose of the 2022 Scorecard is to hold the GSEs and CSS accountable for fulfilling their core mission requirements by promoting sustainable and equitable access to affordable housing and operating in a safe and sound manner.
The 2022 Scorecard focuses .......
Market Moves 18 November 2021
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Nascent asset class
Non-performing lease ABS tipped for growth
Issuance of ABS backed by Italian non-performing leases is expected to reach €1bn over the next year, partially driven by increased defaults following the expiry of payment holidays. Recent legal developments and GACS-eligibility of the assets should also facilitate securitisation activity.
“The recent market conditions and legal framework developments have facilitated non-performing lease securitisations. The key challenges for .......
News Analysis 18 November 2021
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Dutch mortgage alliance expanded
Sector developments and company hires
Dutch mortgage alliance expanded
Market Moves 16 November 2021
Achmea Bank is set to acquire a €500m mortgage portfolio from Dutch insurer a.s.r., which will continue to manage the mortgages for Achmea Bank. The two organisations have expressed the intention to conduct additional transactions of €500m in both 2022 and 2023. In addition, Achmea Bank will acquire roughly €190m of newly originated mortgages from a.s.r. .......
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Optimisation impact
GSA CMBS exposure gauged
KBRA Credit Profile (KCP) has published a special report on US CMBS exposure to the General Services Administration (GSA), after federal agencies were instructed in June to evaluate new policies for the workplace, including remote-work strategies. The study finds that the leases for 116 properties – representing US$3.2bn in CMBS exposure – are past their termination date, thereby granting .......
News 15 November 2021
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Risk mitigation
Euro CLO wraps gaining traction
Assured Guaranty (Europe) SA this week closed a financial guarantee for a further European CLO, following the wraps it recently provided for the North Westerly V CLO and Tymon Park CLO deals (SCI 6 September). Financial guarantees are proving attractive to investors seeking to reduce regulatory capital consumption, both on existing exposures and new investments.
The latest .......
News Analysis 12 November 2021
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Sri Lanka eyes remittance securitisation
Sector developments and company hires
Sri Lanka eyes remittance securitisation
The government of Sri Lanka (GOSL) is requesting competitive proposals from banks and investors for consideration to be appointed as counterparts or arrangers for its proposed securitised financing arrangement (SFA). The arrangement would be backed by foreign currency receipts of the Central Bank of Sri Lanka (CBSL) under the mandatory sale of 10% of workers' .......
Market Moves 12 November 2021
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Hedges eyed
CPMs target post-pandemic concentration risks
The International Association of Credit Portfolio Managers (IACPM) has completed its 2021 Principles and Practices in CPM Survey. Conducted every other year, the survey focuses on five key areas of concern to its members, including the evolution of risk and credit portfolio management. The latest survey shows that CPM functions are increasingly concerned about concentration risks, following last year’s .......
News 12 November 2021