Monday 9 September 2019 11:44 London/ 06.44 New York/ 19.44 Tokyo

A review of securitisation activity over the past seven days

Transaction of the week
The EIF has launched two new funding initiatives to support SMEs in Europe, including a first-of-its kind initiative in Finland. The second provides funding support for Lithuanian micro businesses and SMEs.

The Finnish programme comprises a guarantee agreement signed by the EIF and Finnish specialist lender, Finnvera. The guarantee is designed to facilitate around €190m of new lending for SMEs that are seeking to grow their businesses.

Additionally, Vilnius Factoring Company, a private lending company in Lithuania, has signed a cooperation agreement with the EIF to issue microloans of up to €25,000. Micro-enterprises and farmers in Lithuania can now benefit from non-banking business funding opportunities under the EU Programme for Employment and Social Innovation (EaSI).

See SCI 6 September for more...


Stories of the week
Going concern?
Synthetics could help address UTP burden
Navigating the new
New European CLO investors must chart a steady course
STS success?
Market warms to STS, but threats hover on the horizon

Other deal-related news

  • A resolution in Brazil, intended to widen the pool of funds available to finance the purchase of homes in the country, has been passed, removing restrictions on the use of market indices-adjusted interest rates on residential mortgages. It is expected to boost RMBS issuance in the country, but there are certain risks associated with the resolution, particularly tied to inflation volatility (SCI 2 September).
  • Yellow Brick Road, an Australian non-bank lender, has received final credit approval from an Australian Bank for it to provide an initial A$120m RMBS warehouse facility. The facility will be provided to the intended RMBS programme trust manager, sponsor and servicer, Resi Warehouse Funding (SCI 2 September).
  • RAIT Financial Trust has entered into an equity and asset purchase agreement to sell substantially all of its assets to an entity owned by a Fortress Investment Group affiliate under Section 363 of the US Bankruptcy Code (SCI 2 September).
  • The PRA has set out some proposed updates to its approach and expectations in relation to the authorisation and supervision of insurance special purpose vehicles (ISPVs). The CP is relevant to parties who wish to apply for, or have obtained authorisation as, an ISPV. It is also relevant to insurers or reinsurers seeking to enter into arrangements with UK ISPVs as a form of risk mitigation (SCI 3 September).
  • Tesco Personal Finance has sold its mortgage portfolio - comprising over 23,000 customers - to Lloyds Banking Group for a cash consideration of circa £3.8bn. The portfolio has a lending balance of circa £3.7bn and generated pre-tax profits of £9.1m in the 2018/2019 financial year (SCI 3 September).
  • The EBA has announced that it has added the STS Regulation to its online Interactive Single Rulebook and Q&A. It allows market participants to access the EBA's guidelines, and it will also enable them to ask questions on any aspect of the criteria where it is felt require clarification under the EBA's continuing power to issue guidelines (SCI 4 September).
  • The Reserve Bank of India's task force on the development of a secondary market for corporate loans (SCI 30 May) has since submitted its report to the governor of the central bank. Among the key recommendations of the task force are: the establishment of a self-regulatory body of participants to finalise detailed modalities for the secondary market, including standardisation of documentation; and a central loan contract registry (SCI 4 September).
  • FastPay has launched a receivables securitisation program with the first tranche of US$80m, and senior funding and trade insurance provided by AIG. This program will offer significant capital to the media and technology sector and allow FastPay to open the door for larger, global media and tech clients to access working capital backed by their trade accounts receivable (SCI 5 September).
  • The US Treasury has released its plan to reform the country's housing finance system. The Treasury Housing Reform Plan (THRP) consists of a series of recommendations that are designed to "protect American taxpayers against future bailouts, preserve the 30-year fixed-rate mortgage and help hardworking Americans fulfil their goal of buying a home." (SCI 6 September)
  • The standardisation of blockchain technology, which the International Organisation for Standardisation (ISO) and others are promoting, will be credit positive for future securitisations that utilise the technology, says Moody's. Although the technology itself has the potential to provide many benefits to the securitisation market, namely via interoperability and operational efficiencies, the current lack of standardisation holds back market adoption (SCI 6 September).
  • The transaction documents for the Permanent Master Issuer 2011-2, 2015-1, 2016-1 and 2018-1 RMBS have been modified to ensure that the programme complies with and is eligible for designation under the STS framework. The documents have also been amended to reflect the potential cessation of Libor (SCI 6 September).
  • The US SEC has charged Live Well Financial and its ceo, Michael Hild, with perpetuating a multi-million dollar bond mismarking scheme against Live Well's short-term lenders. The complaint also charges Live Well's cfo, Eric Rohr, and evp, Darren Stumberger, both of whom consented to partial judgments against them. The US SEC alleges that Live Well, under the direction of Hild, fraudulently inflated the value of its portfolio of complex reverse-mortgage bonds (SCI 6 September).

Data

BWIC volume

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