Whole business securitisations
Unlike a traditional securitisation or where institutions sell pools of their loans to a special-purpose vehicle, or SPV, in a whole business securitisation (or WBS or corporate ABS), there is no sale of assets to the SPV.
Instead of purchasing the pool of assets, the SPV makes a loan to the borrowing company and takes security for that loan over the pool of assets retained by the borrowing company. Further, in a whole business securitisation, the SPV will not be an orphan company but will be a member of the originator’s corporate group.
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Key takeaways from SCI's esoteric ABS seminar
From data centres to IP royalties to aircraft ABS, NYC speak...
News Analysis 19 May 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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Job swaps weekly: BBB elevates two to co-chief banking officer
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees The British Business Bank appointing two co-chief banking officers. Meanwhile, Latham & Watkins has poached an experienced White & Case structured credit executive as partner, while Centralis Group has hired a new Ireland Country head.
The British Business Bank has appointed Richard Bearman and Reinald de Monchy as co-chief banking .......
Market Moves 22 November 2024
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SCI in focus: Hot water
Thames Water, whole business securitisation and the challenge of debt financing
Crisis on the balance sheets of the UK’s largest water utility, Thames Water, is exposing major failures of the political, regulatory and financial systems – not whole business securitisation (WBS).
In late October, a court date was set for 17 December to discuss Thames Water's future. In the meantime, WBS remains centre stage in most conversations linked to .......
News Analysis 29 October 2024
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TGIF terminated as WBS manager
Market updates and sector developments
The control party for TGIF Funding Series 2017-1 has declared a manager termination event, following the failure of the manager - TGI Friday’s (TGIF) - to furnish a report of the independent auditors or back-up manager summarising the findings of certain agreed-upon procedures within a certain time period. The move represents the first instance of a manager termination event for .......
Market Moves 6 September 2024
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WBS: New frontiers - video
Ropes & Gray's Patricia Lynch speaks to SCI about whole business securitisation
....... News Analysis 5 August 2024
Northern green light
Norwegian securitisation to benefit from 'plug-and-play' scenario
The EEA’s long-awaited passage of the EU Securitisation Regulation should finally open the door for Norway’s securitisation market (SCI 14 June). Indeed, the jurisdiction is expected to hit the ground running.
Markus Nilssen, partner at BAHR, explains: “Banks here are exposed to higher capital requirements than elsewhere in Europe; for example, a 4.5% systemic risk buffer on .......
News Analysis 28 June 2024
Job swaps weekly: Guy Carpenter lures Schnieders to lead new division
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Guy Carpenter launching a new capital and advisory group with the hiring of an industry veteran from Teneo Holdings. Elsewhere, Dentons has rehired a structured finance specialist from NuBridge Commercial Lending as partner, while McCarthy Denning has appointed a real-estate-focused structured finance specialist as partner.
Guy Carpenter has hired Alexander .......
Market Moves 14 June 2024
Job swaps weekly: Paul Hastings poaches private credit team
People moves and key promotions in securitisation
This week’s round-up of securitisation job swaps sees Paul Hastings poach a team of restructuring, private credit and special situations lawyers from King & Spalding. Elsewhere, Apollo-allied credit solutions provider Cadma Capital Partners continues to beef up its leadership team, while Kirkland & Ellis has lured a structured private credit lawyer to its debt finance group.
Collectively, the .......
Market Moves 7 June 2024
Five-point plan
EU securitisation reform package mooted
AFME has published a position paper that outlines a five-point plan to revive the securitisation market in the EU. Entitled ‘EU Securitisation back on track’, the paper describes the different ways that securitisation can be used as a tool to support EU growth and strategic objectives, identifies the regulatory hurdles that currently impede its impact and outlines a package .......
News 6 June 2024
Ares forms equipment financing shop
Market updates and sector developments
Ares Alternative Credit has launched Ansley Park Capital, a newly-formed lending and specialty finance company that delivers full spectrum, customised financing solutions for essential-use, large-ticket equipment. Ansley Park’s management team and integrated operating platform were acquired from BciCapital, the equipment finance business of City National Bank of Florida.
Ansley Park will offer scaled, flexible equipment-based capital solutions ranging .......
Market Moves 5 March 2024
Job swaps weekly: Permira Credit promotes pair to lead expansion
People moves and key promotions in securitisation
This week’s round-up of securitisation job swaps sees Permira Credit appoint two new co-heads to lead the firm’s expansion. Elsewhere, Hildene Capital Management has snapped up a Jefferies executive as head of capital markets, while Axonic Capital has promoted its head of credit to the newly created role of co-cio.
David Hirschmann and Ariadna Stefanescu have been appointed .......
Market Moves 19 January 2024
Securitisation exempt from private fund rule
Market updates and sector developments
The US SEC has determined that securitised assets funds, including CLOs, are exempt from its Private Fund Advisers Rule. The new rules aim to protect private fund investors by increasing transparency, competition and efficiency in the private funds market. To enhance transparency, the rules will require private fund advisers registered with the Commission to provide investors with quarterly statements - .......
Market Moves 25 August 2023
Fine-tuning UK securitisation
FCA and PRA take pragmatic approach to post-Brexit regulations
The FCA’s consultation on UK securitisation regulations suggests there will be some welcome changes to retained regulations ‘onshored’ post-Brexit. But the British government is unlikely to secure the bonfire of regulations it set out to achieve.
The FCA published its plans last week (SCI 7 August), two weeks after the PRA released its consultation and less than a .......
News Analysis 15 August 2023
Innovative financing inked for Deutsche Bahn
Market updates and sector developments
The EIB and HypoVereinsbank are providing credit lines totalling up to more than €2bn to Deutsche Bahn for the procurement of 90 new trains for the Munich S-Bahn. Deutsche Bahn will receive financing for the new vehicles from Bayerische Eisenbahngesellschaft (BEG), which plans, finances and controls the regional and S-Bahn traffic in Bavaria on behalf of the Bavarian Ministry .......
Market Moves 3 August 2023
Regulatory push
Retention RTS, draft SI move forward
The last week has ushered in a couple of regulatory updates in the European securitisation market. The European Commission adopted the regulatory technical standards (RTS) on risk retention under the EU Securitisation Regulation on 7 July, while the UK Treasury on 11 July published a draft of the statutory instrument (SI) that is set to replace the EU Securitisation .......
News 13 July 2023
FCA urged to address 'regulatory redundancies'
Sector developments and company hires
FCA urged to address ‘regulatory redundancies’
Market Moves 15 June 2023
The Managed Funds Association (MFA) has submitted a letter to the UK FCA, proposing improvements to the country’s regulatory framework for securitisations that would expand capital investment in the UK and optimise risk management on behalf of UK investors. The letter encourages the FCA to “address regulatory redundancies” and enhance compatibility with the rules .......
Walker steps up to global credit head
Sector developments and company hires
Walker steps up to global credit head
Aon has established a new global credit team structure within its Reinsurance Solutions unit, appointing Ben Walker as head of global credit. The global credit team now combines Reinsurance Solutions’ existing mortgage, trade credit, structured credit and political risk and surety businesses to form one global function.The aim is to facilitate .......
Market Moves 14 June 2023
Compliance issues
'Compelling case' for reform of Article 5
A new AFME report finds that investors are likely to interpret ambiguous provisions under Article 5 of the Securitisation Regulation in the EU and UK conservatively - and, in doing so, will assume disproportionately high costs to the business. The report identifies key challenges relating to compliance with investor due-diligence requirements and suggests potential strategies to overcome them.
News 14 June 2023
ESG impact disclosure RTS inked
Sector developments and company hires
ESG impact disclosure RTS inked
Market Moves 26 May 2023
The three European Supervisory Authorities (ESAs) have jointly submitted to the European Commission draft RTS on ESG impact disclosures for STS securitisations under the Securitisation Regulation (SECR). The amended SECR introduced new optional disclosure provisions related to the principal adverse impacts (PAIs) on sustainability factors of the assets financed by the underlying exposures for both .......
Rapid rise in defaults for Gedesco TRS
Sector developments and company hires
Rapid rise in defaults for Gedesco TRS
Market Moves 9 May 2023
The ratings on €191.8m of notes issued by Gedesco Trade Receivables 2020-1 have been downgraded in light of the significant and rapid increase in defaults observed in March, following the start of the securitisation’s amortisation phase in January. Specifically, Moody's states that most obligors have reportedly stopped paying and recoveries are likely to .......