Weekly Issue Archive »

Issue 690 - 1st May

  • News Analysis

    • Capital Relief Trades

      • Opportunistic buying

        Covid-19 kicks off secondary SRT market

        Capital relief trade secondary market activity has received a boost from the coronavirus fallout as primary issuance remains largely on hold until the second half of the year. The trend is driven by a variety of factors, including opportunistic buyin...

    • Structured Finance

      • Securitisation support

        AOFM initiatives to boost volumes

        The Australian Office of Financial Management has acted quickly to support the Australian securitisation market amid the coronavirus fallout. Indeed, a boost to both primary and secondary ABS volumes is expected as a result of its A$15bn Structured F...

    • CLOs

      • Manager scrutiny

        CLO manager performance on watch

        CLO manager scrutiny is growing just as market conditions make their job harder. Nevertheless, differentiation is set to accelerate as investors have to adapt the way they assess management performance. Jason Merrill, investment specialist at Penn...

    • Capital Relief Trades

      • Landmark guidance

        Implicit support guidelines published

        The EBA has published landmark implicit support guidelines as part of its post-coronavirus interventions. According to the paper, banks postponing or reducing payments due to payment moratoria wouldn’t automatically be regarded as providing...

    • Structured Finance

      • Targeted action

        Wholesale ratings downgrades questioned

        The raft of negative rating actions currently hitting the securitisation market is perceived to be driven by the stress created by coronavirus containment efforts. To the extent that some credit ratings were heading for a downgrade before the pandemi...

    • Capital Relief Trades

      • CRT vol aims for the stars

        No longer staid and dependable, the CRT market is at record-breaking volatility

        Despite a levelling out in April, volatility in the credit risk transfer market remains extremely elevated, particularly in the context of an asset class that hitherto has demonstrated very little volatility at all. Annualised vol for the CRT secto...

  • News

    • Structured Finance

      • SCI Start the Week - 27 April

        A review of securitisation activity over the past seven days

        Last week's stories Accessing liquidity The role technology plays in securitising trade finance for profit and success Bright spot? European logistics gaining momentum Extension risk Willingness and ability to call weighed Non-agency C...

      • Growth phase

        Asian infrastructure loans eyed

        Singapore-based Clifford Capital has established a holding company structure under Clifford Capital Holdings (CCH) to drive its next phase of growth. The firm plans to expand into new business lines, including the securitisation of infrastructure loa...

      • Income slashed for Fannie and Freddie

        Q1 results at the GSEs reflect Covid 19 carnage

        Fannie Mae today (May 1) reported that profit plunged in Q1 2020 to $461m compared with $4.4bn in Q4 2019. The GSE said that the decrease in net income was due to a shift from credit-related income to credit-related expense resulting from the &...

    • Capital Relief Trades

      • Risk transfer round-up - 1 May

        CRT sector developments and deal news

        Deutsche Bank is rumoured to be readying a large corporate capital relief trade for 2Q20. The bank’s last transaction was completed in January. Dubbed CRAFT 2020-1, the US$150m CLN paid Libor plus 9.5% (see SCI’s capital relief tr...

    • CLOs

      • De-risking deluge?

        US CLO managers' initial crash response assessed

        The current unprecedented trading conditions will only lead to ever-greater CLO manager differentiation. For now, a new report assesses how managers have initially responded to the market and economic volatility seen so far. JPMorgan CLO research a...

      • Cautiousness prevails

        European CLO market update

        The European CLO market has had a solid run in to month-end this week, with the first post-Covid crash new deals and secondary activity deepening. However, cautiousness prevails. While the BWIC market remains patchy and the colour released from it...

    • RMBS

      • Performance pressures

        Irish mortgage loan restructurings anticipated

        Deteriorating collateral values and higher defaults are expected to impair the performance of Irish re-performing RMBS, even if cash reserves are adequate to cover liquidity shortfalls related to Covid-19 payment holidays. Indeed, Scope Ratings expec...

      • Home sales plunge

        Over 20% drop in March homes sales bodes ill for MBS

        The US March pending home sales report plunged 20.8% compared to February and 16.3% lower than a year ago, the National Association of Realtors (NAR) reported today, showing the calamitous effect of Covid 19 upon the housing market. The Pending Home...

  • The Structured Credit Interview

    • Structured Finance

      • Unlocking capital

        Premod Thomas, ceo of Bayfront Infrastructure Management, answers SCI's questions

        Q: Bayfront Infrastructure Management is seeking to help address an infrastructure financing gap in the Asia-Pacific region (SCI 29 April). Can you explain what you mean by this? A: According to the Asian Development Bank, Asia will need approximate...

  • Market Moves

    • Structured Finance

      • European SME ABS struggling

        Sector developments and company hires

        European SME ABS struggling Coronavirus-driven disruption is creating financial difficulties for European SMEs that heavily rely on securitisations for funding. Consequently, the crisis and subsequent recession will challenge the asset quality of...

      • PEFF funds allocated

        Sector developments and company hires

        PEFF funds allocated The steering body of the World Bank’s Pandemic Emergency Financing Facility (PEFF) has allocated US$195.84m to 64 of the world’s poorest countries with reported cases of Covid-19 to fund critical lifesaving m...

      • Prudential flexibility reiterated

        Sector developments and company hires

        Prudential flexibility reiterated The European Commission has adopted a package to help facilitate bank lending to households and businesses throughout the European Union that includes an Interpretative Communication on the EU's accounting a...

      • MBS overvaluation case settled

        Sector developments and company hires

        Overvaluation case settled The US SEC has accepted an offer of settlement from Semper Capital Management in connection with administrative and cease-and-desist proceedings against it. On the basis of the offer, the Commission finds that from July 20...


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