Weekly Issue Archive »

Issue 696 - 12th June

  • News Analysis

    • ABS
      • Perfect storm

        Hertz bankruptcy to reshape auto ABS?

        Hertz’s recent bankruptcy is one casualty of a perfect storm caused by a drop in used vehicle prices, increased reliance on its securitisation programme and the effects of the coronavirus crisis on Americans’ mobility (SCI 1 June)...

    • CLOs
      • Changing focus

        US CLO primary garners more attention

        Retracement in the US CLO secondary market has been rapid. Now, bolstered by the belief, misguided or otherwise, in a v-shaped economic recovery, attention is shifting to the primary market. “The CLO debt rally has been strong –...

      • Synergy search

        CLO manager consolidation to stay sporadic?

        There have been a flurry of CLO manager mergers and transfers recently (SCI passim). However, the need for the right synergies and difficult market conditions makes it likely that such deals will remain sporadic. “There are maybe a few co...

    • Capital Relief Trades
      • Risk transfer rebound

        Deutsche Bank completes SRT

        Deutsche Bank has completed a US$325m CLN that references a disclosed US$5bn global portfolio of large corporate revolvers. Dubbed CRAFT 2020-2, the transaction is the lender’s first capital relief trade following the Coronavirus crisis and...

    • RMBS
      • Risky retention

        Haircuts become more severe in Covid 19 world

        Issuers of mortgage-backed bonds are at the moment finding it increasingly difficult to fund the risk retention pieces, say market sources. Lack of liquidity in the MBS repo market is in part to blame, but also rates have soared to uneconomic level...


  • News

    • Structured Finance
      • SCI Start the Week - 8 June

        A review of securitisation activity over the past seven days

        FREE - Capital Relief Trades Virtual Panel - LIVE For a discussion on how the Covid-19 fallout has impacted the capital relief trades market, sign up for SCI's virtual debate at 2pm BST tomorrow, 9 June. Featuring representatives from Allen & O...

      • Spread compression

        European ABS market update

        The rally in broader risk assets and the lack of new supply has boosted demand for paper in the European ABS secondary market. An increasingly acute supply/demand imbalance is expected to be supportive of valuations over the near term, however. &am...

      • LCR eligibility eyed

        Final credit mapping framework awaited

        Prime Collateralised Securities last week withdrew several liquidity coverage ratio assessments on double-A rated STS securitisation bonds. The move was in connection with an EBA Q&A that includes a temporary mapping, in which the credit qual...

      • Addressing inconsistencies

        Performance metrics switched

        Metrics that assess the level of portfolio interest and principal cashflows have become more reliable performance indicators than traditional default and delinquency metrics in the wake of coronavirus-driven moratoria. Moody’s notes that th...

      • Strategic review

        Direct lending JV formed

        Newly established investment manager KKV Investment Management has finalised investment management agreements with two UK secured loan funds – SQN Asset Finance Income Fund and SQN Secured Income Fund - whose NAV is in excess of £...

    • Capital Relief Trades
      • Risk transfer round-up - 10 June

        CRT sector developments and deal news

        Santander has exercised a 10% clean-up call for its Red-1 Finance CLO 2017-1 transaction. The UK commercial real estate capital relief trade was structured in 2017 with a June 2022 maturity (see SCI’s capital relief trades database). &n...

    • NPLs
      • HAPS ABS debuts

        Eurobank finalises Cairo transaction

        Eurobank has finalised the first non-performing loan securitisation under the Hercules Asset Protection Scheme. Dubbed Cairo, the €7.5bn deal was sealed alongside the lender’s Project Europe, the sale of the bulk of its servicing u...

      • Robust pipeline

        Distressed debt fund exceeds target

        Balbec Capital has closed a distressed debt fund dubbed InSolve Global Credit Fund IV. The fund consists of US$1.2bn total commitments, which exceeds Balbec’s US$1bn target and makes it the firm’s largest fund to date. The fund...

    • Real Estate
      • Calabria confidence

        FHFA director was bullish at Senate Banking, but day of reckoning may be at hand

        Mark Calabria, the director of the Federal Housing Finance Authority (FHFA), and Ben Carson, secretary of the Housing and Urban Development (HUD) department, yesterday (June 10) both appeared before the Senate Banking Committee to speak about the imm...


  • Talking Point

    • Structured Finance
      • Resolve and resilience

        Content sponsored by Ocorian

        James Maitland, regional head of Americas, Bermuda & Caribbean, and global head of capital market services at Ocorian, spoke to SCI about how resilience is benefiting the industry and his firm With the traditional office environmen...


  • Market Moves

    • Structured Finance
      • CLO business integrated

        Sector developments and company hires

        CLO business integrated RBC’s US-based CLO management business is being integrated into BlueBay’s CLO management platform. Sid Chhabra, who joined BlueBay – which is owned by RBC - in 2018 to build the firm’s...

      • NCSLT consent judgment denied

        Sector developments and company hires

        NCSLT consent judgment denied Fitch has affirmed 37 notes and maintained its rating watch negative placement on nine notes from 12 National Collegiate Student Loan Trust (NCSLT) securitisations. The move follows Delaware District Judge Maryellen Nor...

      • Euro ABS 'game changer' recommended

        Sector developments and company hires

        Euro ABS ‘game changer’ recommended The European High-Level Forum (HLF) on the capital markets union (CMU) has published its final report, which proposes 17 inter-connected “game changers” – measures...

      • Californian auto loans eyed

        Sector developments and company hires

        Californian auto loans eyed The Westlake Automobile Receivables Trust 2020-2 issuer has disclosed that the state of California is considering new legislation - Assembly Bill No. 2501 (AB 2501) - that could significantly impact auto loan securitisati...



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