Weekly Issue Archive »

Issue 686 - 3rd April

  • News Analysis

    • RMBS

      • Systemic risk?

        Servicing capacity concerns for non-bank lenders

        Fitch has revised its US RMBS servicer ratings outlooks to negative, due to evolving economic stresses and operating conditions caused by the coronavirus pandemic. Concern around servicing capacity in the US is rising as non-bank mortgage lenders com...

    • Structured Finance

      • Capacity constraints

        Covid-19 not yet posing solvency issues

        Government and central bank actions have kept both the financial system and the real economy afloat in the short-term, amid the coronavirus disruption. The severity of this crisis for company and household finances will depend on the length of the cu...

    • RMBS

      • MBS market buffeted

        'Unsustainable' hedges called out

        MBS spreads to Treasuries widened again yesterday (1 April), giving those hedging margin calls on TBA shorts a breather. But it is not thought that the US Fed has been frightened off by the MBA’s letter on Sunday admonishing its actions in...

    • Structured Finance

      • Development finance

        Securitisation mooted for SME house builders

        SME house builders struggle to access finance, despite being responsible for around 13% of new builds. Development finance securitisation is therefore being mooted as one way of helping the UK government achieve its target of building 300,000 new hom...

    • Capital Relief Trades

      • ESG catalyst?

        Positive impact SRTs gaining traction

        Significant risk transfer is primarily associated with achieving favourable capital treatment. However, the utility of the instrument as a catalyst for ESG/positive impact financings - by enabling banks to redeploy capital from legacy ‘dirt...

  • Market Reports

    • CLOs

      • Pressure drop

        European CLO market update

        Margin call pressures on European CLO warehouses appear to be subsiding. However, pricing levels remain volatile. The leveraged loan market experienced a sharp repricing in recent weeks, due to coronavirus disruption. As of last week, European loan...

  • News

    • Structured Finance

      • SCI Start the Week - 30 March

        A review of securitisation activity over the past seven days

        Transaction of the week Northern Arc Capital and fintech platform CredAble have closed a trade finance securitisation backed by invoice receivables. The transaction is the first rated and listed invoice receivables-backed ABS from India. Kshama Fer...

      • CECL delayed

        EU banks await IFRS 9 relief

        The US Fed, the FDIC and the OCC last week approved an extension of the new credit loss accounting standard CECL until 2022. No equivalent action has been taken for IFRS 9 on the EU side, however. According to the US regulators’ joint sta...

      • Breathing space?

        EU banks benefit from Basel 3 delay

        The Basel Committee's decision last week to delay implementation of the final Basel 3 rules by a year (SCI 30 March) gives banks and supervisors some breathing space to respond to the coronavirus crisis. However, the delay is expected to be m...

    • CLOs

      • Credit challenges

        CLOs show resilience in stress scenarios

        Central bank and government countermeasures are likely only able to offer short-term liquidity support to businesses during the coronavirus crisis. If the circumstances continue for a lengthy period of time, credit quality could experience significan...

  • The Structured Credit Interview

    • Structured Finance

      • Real asset focus

        Stephane Delatte, ceo and cio of Pierfront Capital, answers SCI's questions

        Q: How and when did Pierfront Capital become involved in investment? A: Pierfront Capital was established in 2016. We have deep experience and expertise in structuring private credit investments in the Asia Pacific, with an investment team with an a...

  • Market Moves

    • Structured Finance

      • Basel 3 implementation deferred

        Sector developments and company hires

        APAC fund launch Pierfront Capital Fund Management has been awarded its capital market services license for fund management by the Monetary Authority of Singapore. It has also announced the first close of the Keppel-Pierfront Private Credit Fund,...

      • Advancing assistance programme prepped

        Sector developments and company hires

        Advancing assistance mooted Ginnie Mae is tailoring the existing disaster pass-through assistance programmes to more suitably scale to the needs of mortgage issuers in response to the Covid-19 liquidity squeeze (SCI 30 March). The GSE anticipates...

      • CRR compliance for NHG guarantee

        Sector developments and company hires

        EMEA Addleshaw Goddard has hired structured finance partner Rachel Kelly from McDermott Will & Emery. Kelly has three decades of experience at major international law firms, including as a partner at both Clifford Chance and Macfarlanes. H...

      • PEFF pay-out anticipated

        Sector developments and company hires

        PEFF set to pay out The calculation agent on the World Bank’s CAR 112 catastrophe bond is expected to report by 9 April, with the A and B tranches likely to pay out in the next two to three weeks (SCI 3 March). Lane Financial estimates tha...


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