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Weekly Issue Archive

News Analysis

CLOs

  • SCI in Focus: Telecoms trouble tests European CLOs

    European telco debt under the spotlight as major names slump towards YTD and distressed lows

    Trouble among the big names in the telecommunications sector has haunted the European loan market over recent weeks, with a number of CLOs exposed to struggling loans and distressed bonds. Debt issued by high-profile firms - including Virg...

  • European CLO equity cash flows hit six-year low as repricing squeezes margins

    European CLO equity distributions fall to their lowest level since 2020, prompting investors to dema...

    European CLO equity cash distributions have fallen to their lowest level since the Covid-19 pandemic as sustained loan repricing activity and deteriorating collateral valuations squeeze returns, prompting investors to demand higher risk prem...

  • 'Horizontal' rated note feeders set to gain ground in Europe

    Solvency II constraints are steering EU insurers towards structures that let investors take separate...

    European insurers’ growing appetite for private credit is likely to spur a different rated note feeder (RNF) model than the one that has taken off in the US, according to industry experts. Speaking at Opal’s recent European Priv...

  • October CLO mezzanine widening reverses September's gains

    Poh-Heng Tan from CLO Research provides insights on primary EU CLOs.

    The analysis covers new-issue EU BSL CLOs priced between 19 January 2026 and 23 October 2026 with a reported discount margin (DM), sourced from SCI data. Deals with reinvestment periods of less than 3.9 years are excluded, as are a selected group of...

  • SCI In Focus: EU deal leaves questions over insurer eligibility as UFCP faces uncertain outlook

    Unchanged eligibility requirements could limit the expansion of insurer-provided credit protection, ...

    The EU’s provisional political agreement to reform its securitisation framework opens the door to more favourable treatment of insurer-provided unfunded credit protection (UFCP), but questions remain over how many insurers will qualify and...

  • CLO managers urged to assess loan eligibility before committing capital

    Siepe warns that bespoke loan facilities and increasingly complex compliance matrices are making it ...

    CLO managers need to account for increasingly complex eligibility and compliance requirements before committing capital to new loans, as bespoke facilities and transaction-specific constraints complicate asset-sourcing decisions, according to Siepe. ...

  • Felicitas invests US$15m in credit fund rated note feeder

    Firm has completed at least five RNFs this year and is working on further NAV and preferred equity d...

    Felicitas Global Partners, a specialist NAV lender, has invested US$15m in the mezzanine tranche of a rated note feeder for a credit fund, SCI has learned. The investment, which closed last week, sits in the double-B+ rated tranche, just senior to...

  • Sound Point partners with Ninety-One for European ABF arm

    US credit manager takes on three-strong team and will sub-advise fund through to completion

    Sound Point Capital Management has partnered with Ninety One to pursue the asset manager’s European fund opportunities and build its own European asset-backed lending business, hiring the three-person team behind the strategy. Sound Point...

  • Smallest SRTs on record defy market myths

    Alvarez & Marsal's experience with smaller SRTs highlights how these deals still deliver meaning...

    Smaller SRT issuance could become a more established part of the market by 2030, with challenger banks accessing investors through private placements and bilateral structures rather than the large-scale issuance programmes associated with significant...

  • Forward flow: funding tool and M&A route - video

    Interpath's Stuart Mogg talks to SCI about the evolution of forward flow partnerships

    Stuart Mogg, md and head of financial services debt and capital advisory at Interpath, talks to SCI's Marta Canini about how forward flow partnerships have evolved since the pioneering deals inked after the GFC. He also discusses how forward flow...

  • Goldman's restructured Irish RMBS prices at steep discount amid ABS market indigestion

    GSMBS 2026-IRPM1 prices below par after failed July launch, as deteriorating European ABS market con...

    Goldman Sachs' Irish prime RMBS deal, GSMBS 2026-IRPM1, saw its €337.3m triple-A-rated class A notes price below par at 60bps over three-month Euribor on Tuesday, equivalent to a 90bps discount margin. The €402.6m transac...

  • EBRD, international investors back latest Turkish DPR securitisation

    Garanti BBVA revives diversified payment rights issuance after seven years as investor base broadens

    Istanbul-based bank Garanti BBVA has raised €400m under its existing diversified payment rights (DPR) programme, returning to the market after seven years with a private securitisation anchored by international investors an...

  • Australian ABS hits turbulence as record supply pushes spreads wider

    Australia's public ABS issuance reached a record A$95bn in 2026, but primary market oversupply is we...

    Australia's public securitisation issuance has broken previous annual records in 2026, hitting about A$95bn so far, according to data collected by Westpac (one of the country's Big Four banks), but primary market oversupply is weighing on investor de...

  • Insurers' dash into fund finance clouds view of AI lending risk, Moody's warns

    Rated note feeders and multicredit vehicles draw insurers deeper into private markets

    Insurers are piling into complex fund-finance structures as AI reshapes private credit and makes risk harder to trace. In its quarterly private credit review, Moody’s said multicredit fund vehicles, rated note feeders (RNFs) and ABF were wi...

  • ABF Deal Digest: Pollen Street inks £250m deal with Lovey, while Felicitas invests US$15m in a rated note feeder

    A weekly roundup of private asset-backed financing activity

    This week’s asset-backed finance roundup sees Lovey secure a £250m facility from Pollen Street Capital to expand its SME lending. Meanwhile, CrowdProperty agrees a £100m forward flow partnership with ColCap Fina...

  • SCI In Focus: Operational pressures in European LMEs

    As LME activity builds, cross-border friction and execution timing are shaping CLO recovery outcomes

    The growth of liability management exercises (LMEs) in Europe has precipitated increased scrutiny on both the strategic and operational aspects of these transactions from borrowers and creditors alike.  The shape and tenor of these transac...

  • New frontiers, old questions: SRT market faces its next test

    Monthly roundup of SRT market activity

    October highlighted the growing breadth of the SRT market, with activity spanning new asset classes, jurisdictions and investor structures. Banks continued to bring transactions to market, while development finance institutions explored ways...

  • Taking the temperature on hybrid CLOs in Europe

    Hybrid CLOs address a number of structural constraints facing European middle market managers, but c...

    Hybrid CLOs are expected to become a prominent feature of the nascent European middle market CLO landscape, although the pioneering managers exploring these structures may have to convince some industry veterans. In the wake of the first &lsquo...

SRT Market Update

Capital Relief Trades

  • UK lender prepares a leveraged finance SRT

    SRT market update

    Lloyds Banking Group is preparing a potential SRT transaction referencing a portfolio of approximately £1bn, SCI has learned, with due diligence ongoing, according to market sources. The transaction is understood to potentially involve le...

News

Capital Relief Trades

  • US SRT market on upward trajectory

    Speakers at SCI's World Risk Sharing Summit said that regulatory clarity and new demand from data ce...

    The US significant risk transfer market is on an upward trajectory, with regulatory clarity and new demand from the data centre sector driving growth, panellists said at SCI’s World Risk Sharing Summit in London earlier this month. The da...

  • NorthWall gears towards first CLO with AI-driven credit analysis

    NorthWall's Lawson highlights disciplined loan selection, strong sponsor and bank relationships, and...

    NorthWall Capital is building its CLO business around selective credit underwriting, continuous portfolio reassessment and measured growth, as the firm scales its portfolio towards its first CLO issuance and prepares to establish a long-term...

Talking Point

CLOs

  • Higher rates turn into headwind for European CLOs

    Rising borrowing costs and falling loan prices heighten refinancing concerns, while market participa...

    European CLO investors are facing growing credit risks as higher interest rates put pressure on leveraged borrowers, raising refinancing concerns and threatening to reverse the spread tightening that supported the market earlier this year. The Bank...

Market Moves

Structured Finance


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