Weekly Issue Archive »

Issue 693 - 22nd May

  • News Analysis

    • ABS

      • Sponsor support

        Credit card ABS fallout to be contained

        Rising unemployment and constrained household expenditure, due to coronavirus stress, is likely to negatively impact UK credit card ABS payment rates. However, sponsor support is expected to protect credit card deals from the fallout. Anthony Parry...

    • Capital Relief Trades

      • SRTs eyed

        Pension funds target risk transfer

        Pension funds are targeting capital relief trade opportunities as the coronavirus crisis renders pricing more attractive and other credit opportunities become scarcer. However, access remains a challenge, with some new pension fund investors using jo...

      • Moratoria mulled

        Payment holidays set to test CRT provisions

        Portfolios referencing loans subject to payment holidays may create a new sub-asset class within the capital relief trades market. Nevertheless, it remains to be seen whether provisions in outstanding synthetic securitisations will prevent lenders fr...

    • Insurance-linked securities

      • Mobilising MILNs

        The MILN market is in deep freeze but thaw might be due

        The mortgage insurance-linked note (MILN) market has been closed for three months as a result of the Covid 19 dislocation, but well-placed sources say the smoke is clearing and that the market shutdown will not be as protracted as was originally fear...

  • News

    • Structured Finance

      • SCI Start the Week - 18 May

        A review of securitisation activity over the past seven days

        Last week's stories Auto ABS boost European ABS market update Drafting issues The potential effect of current market volatility on capital relief trades Forbearance frontiers 4.7m home loans now in forbearance Liquidity support Amendm...

    • Capital Relief Trades

      • Risk transfer round-up - 22 May

        CRT sector developments and deal news

        Santander is rumoured to be readying its fourth SME significant risk transfer deal from the Magdalena programme for the second half of the year. Magdalena Three was finalised in June last year. The €342m ticket referenced Spanish SME loans (...

    • CLOs

      • Equity uptick

        CLO equity back in focus in the US secondary market

        The US CLO secondary market saw a pick-up in equity activity last week. At the same time, focus has shifted to more recent vintage pieces. “Cleaner longer-dated equity pieces are gaining support,” says one trader. “We&...

      • Back on hold

        European MM CLOs stymied by pandemic

        The long hoped for pick up in European middle market (MM) CLO issuance was expected to arrive in 2020. However, thanks to the Covid-19 crisis, plans have had to be put on hold as middle-market firms focus on survival. A new report from DBRS Morning...

    • NPLs

      • Limited effect?

        Performance trigger suspensions eyed

        The Italian government last week passed the Decreto Rilancio, a decree that aims to restart the economy following the country's coronavirus-driven lockdown (SCI 15 May). The decree allows the Ministry of Finance to approve temporary suspensio...

    • Real Estate

      • Forbearances falter

        Forbearance volumes slow, but the next stage is daunting

        The rate of increase of US home loans in forbearance plans has slowed significantly lately, according to data compiled by Black Knight, the mortgage technology and data provider, but the overall picture remains sobering. Only 7,000 new mortgages we...

  • Provider Profile

    • NPLs

      • Leading the way

        A look at the European DataWarehouse's role in the NPL securitisation space

        The all too real impacts of the pandemic-driven crisis are already finding their way in to European DataWarehouse's (ED) loan-level data. While it does not relish that particular leading role, the repository intends to remain at the forefront...

  • Market Moves

    • Structured Finance

      • SME CLO, SRT PD adjustments mooted

        Sector developments and company hires

        SME CLO, SRT PD adjustments mooted DBRS Morningstar is considering additional adjustments to reflect expectations of a higher probability of default (PD) for borrowers underlying SME CLO and significant risk transfer deals operating in economic se...

      • Covid-19 relief initiative launched

        Sector developments and company hires

        Covid-19 relief initiative launched Community Capital Management has launched an initiative to invest US$100m of assets in Covid-19 relief efforts. The aim is to offer organisations that wish to contribute to the long-term US recovery post-pandemi...

      • TALF subscription date announced

        Sector developments and company hires

        TALF subscription date announced The New York Fed has scheduled the first TALF ABS loan subscription date for 17 June, with the first loan closing date to be 25 June. On fixed days each month, borrowers will be able to request one or mor...

      • CLO manager performance assessed

        Sector developments and company hires

        CLO manager performance assessed JPMorgan has issued its latest CLO manager quarterly reports for both the US and Europe. 72% of US CLOs are now failing their S&P triple-C test and 38% are failing their Moody’s Caa1 test, but the...

      • CLO tender offer launched

        Sector developments and company hires

        CLO tender offer The Black Diamond CLO 2015-1 issuer has launched a tender offer to all noteholders of the €176.3m class A1 and the US$67.2m class A2 notes. The purchase price for any bonds tendered under the offer will equal 98.75% of the...


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