Weekly Issue Archive »

Issue 703 - 31st July

  • News Analysis

    • Structured Finance

      • 'Switch' success

        Aussie non-bank issuance on the rise

        The Australian securitisation market has seen a rise in non-bank issuance post-coronavirus. Such activity has benefited from an adjustment to the AOFM’s Structured Finance Support Fund (SFSF) that funnelled secondary sellers into new primar...

    • CLOs

      • Lag lustre

        Slower recovery in CLOs provides advantages and opportunities

        Secondary CLO trading desks either side of the Atlantic are reporting greater re-engagement from the buy-side, which is helping to support prices. However, such support appears to be insufficient to prevent the CLO market lagging the recoveries seen...

    • Structured Finance

      • Blockchain boost

        DLT opportunity for ABS market

        Coronavirus-related concerns are boosting the use of technology within the securitisation market. Blockchain is one area that is benefiting from this trend. John Evans, Vanguard’s head of blockchain strategy, says: “One area we...

    • CMBS

      • The perils of Covid CRE

        While CRE market has proved robust so far, help is still needed.

          The US commercial real estate market, and by extension the CMBS sector, has performed better recently than was thought likely a few months ago, but this does not mean all is well. The expiry of enhanced unemployment benefits today (Jul...

    • Structured Finance

      • Recovery vehicle

        European securitisation 'fixes' on the cards?

        The securitisation-related measures included in the European Commission’s capital markets recovery package have been welcomed for, among other things, removing the uncertainty regarding the EBA’s reluctance to recommend recalibrat...

    • Capital Relief Trades

      • CRT conveyor belt

        The second CRT deal from JPM marks a quickening of pace in the bank market

         JPM’s second CRT deal in the last nine months, priced two weeks ago, is expected to attain the necessary regulatory approval, while other deals and, indeed, other issuers should follow the same path, say analysts. The Chase Mort...

  • News

    • ABS

      • Execution risks?

        Hertz performance metrics improving

        Although Hertz Corporation’s interim settlement with investors holding Hertz Vehicle Financing II ABS notes (SCI 27 July) is “a step in the right direction”, Fitch believes the company still faces notable execution risks...

    • Structured Finance

      • SCI Start the Week - 27 July

        A review of securitisation activity over the past seven days

        Last week's stories Carrots and sticks 'Wide-ranging and ambitious' recommendations welcomed Funding diversity Non-bank lending 'credit neutral' for SME ABS Green shoots US middle market CLOs showing signs of recovery Issuance boost F...

    • Capital Relief Trades

      • SRT boost

        BMO launches capital relief trade

        Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian senior secured and senior unsecured corporate loans. Dubbed Manitoulin Muskoka series 2020-2, the transaction is the bank’s third significa...

      • STACR surge

        Freddie Mac galvanizes CRT re-opening with another STACR transaction

        Freddie Mac has printed its second post-lockdown STACR deal, three weeks after re-opening the CRT debt market, with an upsized four-tranche $835m transaction. The deal was priced at the end of last week, confirmed a Freddie Mac spokesperson. The of...

      • Risk transfer round-up - 31 July

        CRT sector developments and deal news

        Caixabank is rumoured to be readying a capital relief trade backed by consumer loans for 2H20. The lender’s last significant risk transfer trade was finalised in May 2019 and was called Gaudi Synthetic Three (see SCI’s capital rel...

    • CMBS

      • CMBS concerns

        Tailored Brands exposure eyed

        Tailored Brands has revealed that coronavirus-related financial disruption means it is considering undergoing bankruptcy reorganisation, which could be pursued as soon as 2 August. KBRA reports that 217 properties collateralising 208 loans (US$14.44b...

  • Market Moves

    • Structured Finance

      • CLO equity defies predictions

        Sector developments and company hires

        CLO equity defies predictions US CLO equity cashflow performance is defying pessimistic predictions, according to a new report from JPMorgan CLO research analysts. As of 23 July reporting, US CLO equity on average paid 8% cashflow year to date (ba...

      • ILS issuance remains resilient

        Sector developments and company hires

        ILS issuance remains resilient US$2.8bn of property catastrophe bond limit was placed in 2Q20, bringing the total issued year-to-date to US$6.5bn, according to Aon Securities’ latest ILS Update report. In comparison, 2019 saw a total of US...

      • CLO ETF prepped

        Sector developments and company hires

        CLO ETF prepped Janus Henderson Investors has filed a preliminary registration statement with the US SEC in connection with the Janus Henderson AAA CLO ETF (JAAA), which is expected to launch on 22 October and will be offered to US investors. The fu...

      • AGs fight Madden rule

        Sector developments and company hires

        AGs fight Madden rule The attorneys general of California, Illinois and New York have filed a suit against the OCC’s ‘valid when made’ rule (SCI 1 June), which they claim would allow the federal government to pre-empt s...

      • GSE results improve

        Sector developments and company hires

        GSE results improve Both Fannie Mae and Freddie Mac have reported sharply improved Q2 results, despite the ongoing housing market dislocation as a result of Covid-19. Fannie Mae said net comprehensive income was US$2.53bn, compared to US$476m in Q1,...


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