Weekly Issue Archive »

Issue 529 - 3rd March

  • News Analysis

    • NPLs

      • German NPL sales to accelerate

        Germany's positive economic outlook and the loans' relatively low cost of capital have historically meant that German banks are under less pressure to dispose of non-core assets in any significant volume. However, the introduction of IFRS 9 is expect...

    • Capital Relief Trades

      • Leverage signals maturing CRT market

        The increasing availability of leverage suggests that the risk transfer market is maturing. However, while financing can be applied in a number of ways, the extensive due diligence required means that participation in capital relief trades remains li...

    • CLOs

      • US CLO arbitrage favours refis

        US CLO refinancings began in earnest late last year and have grown apace in 2017, dwarfing new issuance. Extremely tight arbitrage between leveraged loan spreads and CLO liability costs has further constrained primary volumes, suggesting refis will d...

    • RMBS

      • MSR transfers under scrutiny

        The purchase by non-banks of MSR portfolios from large US banks has ramped up in recent months, as the associated capital charges bite. However, such activity has sparked concern about the ability of the buyers to adequately manage the MSRs and the p...

  • News

    • ABS

      • Rare consumer ABS readied

        A rare UK consumer loan ABS has hit the market. Creation Consumer Finance's £535.69m LaSer ABS 2017 is backed by 470,321 unsecured personal and point of sale (POS) loans extended to individual borrowers in England and Wales. The transactio...

      • Court makes Madden usury ruling

        Midland Funding violated New York usury laws by charging interest rates of over 25% to borrowers, the US District Court for the Southern District of New York ruled this week. The decision brings a measure of resolution to the long-running Madden vs M...

    • Structured Finance

      • Proposed retention metric assessed

        Risk retention regulations in Europe and the US are severely flawed with respect to their key intention of imposing a strict loss retention requirement, argues a Sustainable Architecture for Finance in Europe (SAFE) white paper published last month....

      • Crossover opportunities touted

        Although the investor community tends to remain 'monogamous' with regard to CLO and CMBS exposures, the asset classes can offer returns and opportunities for crossover investors. A new JPMorgan study suggests that while US CLOs are cheap at the top o...

      • Trading expansion underlines optimism

        INTL FCStone's broker-dealer rates group has expanded its trading remit into US agency CMBS and a wider spectrum of ABS, following the formation of a new securitised products group. Alongside its existing involvement in other securitised mortgage pro...

      • Blockchain applications explored

        The Chamber of Digital Commerce and SFIG have formed a strategic partnership focused on advancing the use of blockchain technology in securitisation markets. The two associations will collaborate on research and educational efforts, beginning with a...

      • SCI Start the Week - 27 February

        A look at the major activity in structured finance over the past seven days.

        Pipeline Additions to the pipeline last week were fairly steady compared to the week before, as the industry now decamps to Las Vegas. There were five ABS, two ILS, three RMBS and three CMBS. US$213.137m Arcadia Receivables Trust 2017-1, Driver UK...

    • Capital Relief Trades

      • Risk transfer round-up - 3 March

        Intesa Sanpaolo Group has completed a €2.5bn synthetic SME securitisation through its GARC SPV, marking the programme's fifth issuance. The transaction was arranged by Banca IMI. Sources expect more Italian issuers to tap the risk transfe...

    • CMBS

      • CMBX mall exposures stressed

        A new Morgan Stanley study applies stress scenarios to mall exposures across the IHS Markit CMBX.6 to CMBX.10 indices in order to identify relative value. The results suggest that CMBX.8 is the best index to short, given a broader downturn in commerc...

      • Closures to increase CMBS strain

        The effect of the expected closure of Macy's and Sears stores has already been anticipated by the CMBS market (SCI 6 January), but JC Penney's announcement that it too will close 130-140 stores has added considerably to concerns. A significant number...

      • Horizontal retention CMBS debuts

        JPMorgan is prepping an innovative US$1.1bn conduit CMBS collateralised by 43 commercial mortgage loans secured by 59 properties. Dubbed JPMCC 2017-JP5, the deal is the first conduit CMBS to utilise the horizontal structure to satisfy risk retention...

    • NPLs

      • German shipping loss provisions on the rise

        Loss provisions against non-performing shipping loans by German banks are on the rise, due to the slowdown in the shipping industry. At the same time, a number of large German lenders are seeking to reduce their exposure to the sector. Commerzbank...

      • Carige NPL strategy unveiled

        The Banca Carige board of directors yesterday unanimously approved an updated strategic plan, under which the bank is targeting an ROE of 7.4% and CET1 ratio of 14.1% by 2020. A critical part of the plan is to reduce the share of non-performing loans...

    • RMBS

      • First ratings for AOMT non-prime RMBS

        Angel Oak is in the market with its first rated non-prime RMBS (see SCI's pipeline). As with the issuer's previous unrated deals, the collateral combines loans to borrowers with prior credit events and self-employed borrowers who use bank statements...

  • Job Swaps

    • Structured Finance

      • Job swaps round-up - 3 March

        Europe DBRS has hired Keith Gorman to the newly created position of svp, global business development. Based in London, Gorman will focus on growing DBRS's RMBS business across Europe. He has been at DBRS for seven years and has 17 years of experienc...


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