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Weekly Issue Archive

News Analysis

CLOs

  • SCI analysis reveals risk differences among triple-A CLO ETFs

    SCI analysis finds portfolio construction, rather than headline ratings, is increasingly driving per...

    CLO exchange-traded funds (ETF's) with the same headline rating are showing materially different risk profiles, with portfolio construction rather than fund labels emerging as a key driver of performance. SCI's analysis of selected triple-A CLO ETF...

  • SCI In Focus: Second trilogue puts UFCP to the test

    Second trilogue shifts securitisation negotiations from positioning to bargaining as UFCP debate tur...

    The second political trilogue on the EU's securitisation reform package has shifted negotiations from procedural positioning to substantive bargaining, with lawmakers beginning to explore concrete compromises while exposing what market participants i...

  • US risk transfer: B3E and beyond - video

    Guy Carpenter's Shemi talks to SCI about B3E impacts on US risk transfer market, remaining regulator...

    Michael Shemi, North America structured credit leader at Guy Carpenter, talks to SCI US editor Simon Boughey about the impact of the reproposed Basel III Endgame (B3E) upon the US risk transfer market, what further regulatory obstacles remain and...

  • SRT and concentration risk

    Comments plead for revision of 2006 rule to give market boost

    Several Basel Three Endgame (B3E) comment letters, submitted last month, urge regulators to revise the 2006 rules on commercial real estate (CRE) concentration, which would give a significant fillip to the US risk transfer market. While the Federal...

  • Avellinia CTO set to depart

    Eric Lepage exits after three years with the European ABF manager

    Avellinia Capital’s chief technology officer is set to depart the firm after three years, SCI has learned. London-based Eric Lepage is exiting the European asset-backed finance manager where he served as cto and head of quantitative analy...

  • Smaller triple-C buckets belie increased risk in EU CLOs

    As older deals struggle to reset, shrinking triple-C buckets can mask a weaker pool of names left be...

    Declining equity NAV among aging European CLOs are making resets increasingly difficult, with those that are able to extend often doing so at the cost of a leaner, but riskier triple-C bucket, according to market participants.  Resets have...

  • Investors weigh in as manager battle of CLO fund heads to shareholder vote

    Shareholders divided over fees, performance and governance ahead of upcoming vote

    Rockford Tower Asset Management could replace Octagon Credit Investors as investment sub-adviser to XAI Floating Rate & Alternative Income Trust (XFLT), setting up a closely watched shareholder vote over the management of the publicly traded...

  • OSFI buffer cut strengthens Canadian SRT case

    OSFI's buffer cut may reinforce Canada's SRT case as capital efficiency becomes increasingly importa...

    OSFI's decision to lower the Domestic Stability Buffer (DSB) is unlikely to weaken the case for significant risk transfer (SRT) transactions in Canada, with the release of capital potentially increasing the value of capital efficiency as banks deploy...

  • Bain default opens door to wider European single-B stress

    Investors grow more selective as more deals show signs of stress

    The European CLO market's first single-B write-down may not be its last, according to market participants, who highlight a broader cohort of deals with uncovered single-B tranches. Man GLG Euro III, seen as the deal most likely to follow Bain 2018-...

  • ABF Deal Digest: Grove opens US$500m warehouse, while Northbase closes RCF

    A weekly roundup of private asset-backed financing activity

    This week’s roundup of private ABF activity sees Grove open a US$500m warehouse lending facility. Meanwhile, Alpine Ridge Funding cuts a US$2m equipment financing deal, while SouthStar Capital closed a new accounts receivables facility. G...

SRT Market Update

Capital Relief Trades

  • Mexico debut marks first non-euro SRT for banking group

    SRT market update

    BBVA Mexico has completed its inaugural synthetic securitisation, SCI has learned, marking the first transaction of its kind executed by the BBVA Group on a non-euro-denominated balance sheet. The International Finance Corporation (IFC) closed the...

  • Digital bank completes second SRT with repeat investor

    SRT market update

    Klarna has completed a US$518m SRT transaction, freeing up capital to support approximately US$12bn of additional lending as the buy now, pay later lender continues to expand its capital optimisation programme. The three-year transaction is Klarna'...

  • Japanese lender executes Latin America and European SRTs

    SRT market update

    Sumitomo Mitsui Banking Corporation (SMBC) has completed two SRT transactions in recent months, SCI has learned, highlighting the growing sophistication of Japanese issuers as they broaden the range of assets brought to the capital relief market. A...

News

Capital Relief Trades

  • On the horizon: Is the SRT secondary market approaching a turning point?

    How a growing stock of seasoned SRT transactions could lay the foundations for a deeper secondary ma...

    The significant risk transfer market has grown rapidly over the past decade, but one feature has remained largely underdeveloped: a functioning secondary market. That may be starting to change. As issuance volumes grow and more SRT transactions b...

  • Awards shortlist announced

    Nominees for excellence in global SRT revealed

    The shortlist of nominees for SCI's 2026 Risk Sharing Awards has been revealed, with the winners in all 15 categories to be announced at the awards gala dinner on 7 October. A committee of industry practitioners compiled the shortlist and will select...

  • EU CLO secondary market resilient amid heavy supply

    Market participants say strong technical demand continues to support secondary spreads despite a cro...

    European securitisation markets continue to benefit from strong investor demand despite a heavy pipeline of new issuance, with market participants telling SCI that strong technical demand, particularly for investment-grade paper, is keeping spreads w...

  • Aegon AM deepens Lakemore partnership to support US CLO issuance as demand shifts to senior debt

    Expanded alliance gives Aegon AM committed CLO equity capital to support a steadier issuance pipelin...

    Aegon Asset Management has expanded its partnership with Lakemore Partners, with the alternative investment firm committing to make material equity investments in Aegon AM's future US CLOs, a move the manager says will support a more consistent issua...

Talking Point

Asset-Backed Finance

  • Valuations are becoming private credit's operating test

    Kanav Kalia, md at Oxane Partners, argues that firms best positioned for the next phase of private c...

    Private credit is entering a new phase, and valuations are where that change is becoming impossible to ignore. For years, the industry operated on quarterly cycles, spreadsheet-driven models and marks that were good enough for a slower, more institut...

Market Moves

Structured Finance


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