A review of securitisation activity over the past seven days

Transaction of the week
Deutsche Bank is marketing a £114m UK CMBS, dubbed Deco 2019-RAM. The transaction mainly comprises a £150m CRE loan backed by Intu Derby, a regional shopping centre in Derby, England, to The Wilmslow, a newly formed joint venture between the Intu Group and Cale Street Investments
The transaction is provisionally rated by DBRS and S&P as triple-A/triple-A on the £100.8m class A notes and double-A/double-A on the £13.2m class Bs. DBRS notes that Intu Derby is exposed to a weakening UK retail market, with several retailers currently in administration or downsizing.
See SCI 16 September for more...

Stories of the week
Case for STS synthetics outlined
Benefits of STS on synthetics clear, but objections could be raised
Legacy SRT call possibility
Regulatory triggers could lead to SRTs being called next year

Other deal-related news

• The Arab African International Bank (AAIB) is lead advisor and one of the main arrangers on a EG6bn securitisation, issued by the Tameer for Securitization Company for a portfolio of receivables originated by the New Urban Communities Authority. This is one of the biggest securitisations in the region to date (SCI 16 September).
• Croatian micro-enterprises and start-ups looking to purchase small machinery and equipment worth up to €25,000 can benefit from the guarantee extended today by the EIF to UniCredit Leasing Croatia. EIF is providing the largest leasing company in Croatia with a guarantee to grow its leasing portfolio for micro-enterprises with a higher risk profile worth €10m in total (SCI 16 September).
• Moody's comments that Spanish RMBS exposed to IRPH-indexed loans, in the context of the advocate general of CJEU's conclusion that Spain's use of Índice de referencia de préstamos hipotecarios (IRPH), an official mortgage reference index since the early 1990s, falls within the remit of EU directive 93/13/CEE. Such a conclusion, if affirmed by the CJEU, would allow Spanish courts to rule against IRPH's use on the grounds of it not being transparent to borrowers (SCI 16 September).
• Moody's has published a new overview which examines ABS issued in the US since 2013, backed primarily by commercial aircraft and their associated leases. The report details an asset description and its structure as well as asset-related credit risks in securities backed by aircraft and related leases (SCI 19 September).
• Net operating income (NOI) for properties securitised within the Fitch-rated US CMBS multi-borrower universe increased an average of 1.9% in 2018, according to Fitch Ratings. The overall growth rate in NOI, albeit positive, has slowed for the second year in a row. The growth rates were 2.1% in 2017 and 3.4% in 2016 (SCI 19 September).
• Permira Debt Managers has closed its fifth structured credit fund Permira Sigma V. Sigma V will continue the Sigma strategy, investing long-term capital in European CLOs, in both the primary and secondary markets (SCI 19 September).

Data

BWIC volume

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