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Issue 564 - 3rd November

  • News Analysis

    • ABS

      • STS rules welcomed

        The European Parliament last week approved new common rules for securitisation in the EU, while also finalising the simple, transparent and standardised (STS) framework. The long-awaited legislation has been welcomed by the market, although it featur...

      • Legal issues weigh on Earnest acquisition

        Navient's recent acquisition of Earnest is seen as a bold move, given its ongoing legal challenges (SCI 13 October). While the takeover could lead to a surge in refi student loan ABS from the firm, investors in future transactions may need to conside...

    • NPLs

      • Secured exposures eyed

        The ECB's recent proposal regarding higher non-performing loan provisioning is expected to have a modest impact, in particular for unsecured loans. However, the provisioning backstop for secured exposures poses a challenge. According to DBRS, unsec...

    • Structured Finance

      • Secured warehouse use broadens

        Be-Spoke Loan Funding (SCI 3 October), a direct lending warehouse facility set up as a cashflow securitisation, exemplifies one of the ways in which secured warehouse financing continues to evolve. While the sector has already demonstrated adaptabili...

    • Capital Relief Trades

      • Balance sheet optimisation continues

        Rabobank has transferred part of the risk on a €3bn commercial credit portfolio to pension fund Pensioenfonds Zorg en Welzijn (PFZW). The synthetic securitisation forms part of the lender's efforts to optimise its balance sheet and follows...

    • ABS

      • Pre-emptive lawsuits envisaged

        The threat of significant losses has sparked concern that the US subprime auto ABS sector could see pre-emptive legal actions emerging. With spreads continuing to tighten in the face of increasing delinquencies, investors may start to question whethe...

  • SCIWire

    • Secondary markets

      • Euro secondary strengthens

        Levels continue to strengthen across the European securitisation secondary market. October has bee...

      • US CLO stand-off

        The US CLO secondary market is caught in a supply-demand stand-off. "The secondary market has effe...

  • News

    • ABS

      • Protection 'gap' targeted

        Plans to establish Singapore as an Asian insurance-linked securities hub were unveiled today at the Singapore International Reinsurance Conference. Lim Hng Kiang, minister for trade and industry and deputy chairman of the Monetary Authority of Singap...

      • Unique SLABS relaunched with revisions

        The first securitisation of income-contingent repayment (ICR) student loans originated by the UK government (SCI 29 March) has been re-jigged after being postponed due to the UK general election in June. Dubbed Income Contingent Student Loans 1 (2002...

      • ISPV approach published

        The UK PRA has published its final approach and expectations in relation to the authorisation and supervision of insurance SPVs (SCI passim). In light of public consultation, a new safeguard has been introduced that removes the need for multi-arrange...

      • First Aussie personal loan ABS prepped

        The first Australian personal loan ABS is marketing. The A$542.5m Latitude Australia Personal Loans Series 2017-1 transaction (see SCI's deal pipeline) securitises a portfolio of Australian unsecured and partially secured personal loans originated by...

      • Loss coverage ratios scrutinised

        Loss coverage ratios on a number of World Omni Auto Trust class A ABS bonds should have been adequate before the recent introduction of a cash-trapping mechanism, according to a new Wells Fargo study. However, the analysis suggests that loss coverage...

    • Structured Finance

      • SCI Start the Week - 30 October

        A look at the major activity in structured finance over the past seven days.

        Pipeline There were notably fewer pipeline additions last week. The final count consisted of an ABS, five RMBS, four CMBS and a CLO. US$340m Tesla 2017-1 was the ABS. The RMBS were: US$170.2m Bayview Opportunity Master Fund IVb Trust 2017-RT6; US...

    • Capital Relief Trades

      • Risk transfer round-up - 3 November

        Two US public pension funds in Arizona and Pennsylvania are rumoured to have completed a capital relief trade each, although the exact identity of the funds could not be confirmed. According to one industry insider: "The risk transfer market is priva...

    • CMBS

      • Online retail drives CRE growth

        Industrial logistics space outperformed office, retail, apartment and light industrial space in terms of supply, demand, occupancy and rent growth in 1H17, notes Morningstar Credit Ratings. Online retailers such as Amazon have been central to the ind...

  • The Structured Credit Interview

    • Capital Relief Trades

      • Using insurance to lay off risk

        Alan Ball and Fiona Walden, senior underwriters leading the structured risk solutions team at Liberty Specialty Markets, answer SCI's questions Q: How did Liberty Specialty Markets become involved in providing capital relief-driven transactions? A...

  • Job Swaps

    • Structured Finance

      • Job swaps round-up - 3 November

        EMEA The Carlyle Group is set to reorganise its executive leadership, effective from 1 January 2018. Deputy cio Kewsong Lee and president/coo Glenn Youngkin will replace David Rubenstein and William Conway as co-ceos of the firm, while deputy cio P...


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