News Analysis

Capital Relief Trades

• Second wave

  Synthetic CRE transactions launched

  Santander and NatWest have completed two commercial real estate risk transfer transactions and the market is expecting another CRE deal in 4Q18. This marks the second wave of synthetic CRE transactions, following the first wave last year, with the is...

Market Reports

Structured Finance

• Steady subscription

  European ABS primary market update

  European primary ABS activity continues to be robust. In the RMBS sector, the BPCE Home Loans FCT 2018 deal is set to price tomorrow (18 October). “A variety of asset classes are represented in the primary market at the moment, with the F...

• Primary energy

  European ABS primary market update

  The European primary RMBS market has come to life after the BPCE Home Loans FCT 2018 priced today (18 October). The senior tranches printed at between high-20s to low-30s. “With a lot of new issues pricing, investors are putting their ene...

• Technicals eyed

  European ABS market update

  Porsche’s FACT Compartment 2018-1 auto lease ABS has seen no substantial resistance in the European primary market. Indeed, spreads appear rangebound for now. “Because we are in the last few months of the year, people know that...

News

ABS

• Default proxy

  Second income-contingent SLABS prepped

  The UK government is readying a £3.88bn securitisation backed by English plan 1 income-contingent loans granted to students whose repayment date fell between 2007 and 2009, the second public transaction of its type (SCI 14 December 2017). D...

Structured Finance

• Latest SCI podcast now live

  SCI podcast episode two has been released

  SCI’s latest podcast is now live. This month the team discuss the African Development Bank’s Room2Run CRT, how fintech is affecting MPL ABS and the changing use of credit derivatives. The AfDB’s Room2Run deal,...

• SCI Start the Week - 15 October

  A review of securitisation activity over the past seven days

  Market commentary Robust demand was seen in both the European and US CLO markets last week (SCI 9 October). Equity arbitrage reached 16% in the European CLO market, with a zero percent default rate for some portfolios. “This is an equity...

Capital Relief Trades

• Risk transfer round-up - 19 October

  CRT sector developments and deal news

  Credit Suisse is believed to be readying a Swiss corporate deal from its Elvetia programme. The issuer’s last Elvetia transaction was a Sfr300m ticket referencing a Sfr5bn Swiss mortgage portfolio (see SCI capital relief trades database). &...

RMBS

• SMBC debuts

  Structured covered bond programme readied

  Sumitomo Mitsui Banking Corp (SMBC) is prepping a €20bn dual-recourse structured covered bond programme, marking the emergence of a new name and a new jurisdiction to the market. The cover assets comprise triple-A rated Japanese RMBS origina...

• Hurdle cleared

  First post-crisis RMBS for Wells Fargo

  Wells Fargo is in the market with its first post-crisis prime US RMBS. Named Wells Fargo Mortgage Backed Securities 2018-1 Trust, the US$441.25m deal securitises 660 first lien residential mortgage loans. Moody’s has assigned preliminary...

Talking Point

NPLs

• Performance blueprint

  Positive predictions for NPL securitisations

  Northern Italian non-performing loan portfolios are performing better than Southern Italian portfolios, and Irish transactions are also outperforming assumptions. There are 11 transactions currently in the European NPL pipeline, most of which are Ita...

RMBS

• 'Aggressive' underwriting eyed

  UK RMBS remains 'robust' in face of Brexit

  While the UK buy-to-let (BTL) sector has suffered under new regulatory policies and Brexit uncertainty, market participants believe it still has room to expand in terms of new lenders and products. This was according to panellists at a recent Fitch c...

Market moves

Structured Finance

• Market moves update

  OFS equity investment OFS Credit Company has disclosed that it has invested in the equity tranches of 19 CLOs, 17 of which have a reinvestment period ending in 2022 or beyond, for a total cost of US$43.6m (US$53.4m principal amount). The move follo...

• Market moves update

  Company hires and sector developments in structured finance

  CRT poll results The results from SCI’s ‘What’s in a name?’ survey are in. Delegates at SCI’s Capital Relief Trades Seminar yesterday were polled as to what the most appropriate term should be for ca...

• Market moves update

  Company hires and sector developments in structured finance

  Alternatives alliance DWS Group and Tikehau Capital have entered into an alliance, following Tikehau’s participation in the IPO of DWS in March 2018. Under the agreement, DWS and Tikehau intend to launch a joint product leveraging the tw...