Weekly Issue Archive »

Issue 704 - 7th August

  • News Analysis

      • Asset-backed attenuation

        Stricter underwriting in auto, credit card and home loan markets means fewer ABS deals

        Underwriting standards in auto loans, mortgages and credit cards have tightened significantly in the last quarter, according to the latest Senior Loan Officer Opinion Survey (SLOOS), suggesting that lower asset balances mean lower securitization volu...

  • News

    • ABS

      • CPIH calculation

        Inflation index switch to support ICSL ABS

        The UK government intends to align the RPI with the CPIH index within the next five to 10 years. Scenario analysis conducted by Fitch suggests that the move could improve repayment volumes and reduce asset risk in UK income contingent student loan (I...

    • Structured Finance

      • SCI Start the Week - 3 August

        A review of securitisation activity over the past seven days

        Last week's stories Blockchain boost DLT opportunity for ABS market CMBS concerns Tailored Brands exposure eyed CRT conveyor belt The second CRT deal from JPM marks a quickening of pace in the bank market Execution risks? Hertz perfor...

      • Nuanced approach

        Call for clarity in defining ESG

        A nuanced approach to ESG considerations is emerging within the securitisation market. Nevertheless, the Covid-19 pandemic has put social and governance factors in the spotlight. Anuj Babber, head of ABS research at M&G Investments, says: &...

    • Capital Relief Trades

      • Freddie STACRs them up

        New STACR deal was upsized and printed at the tight end across the capital structure

        Freddie Mac has confirmed that the B1 and B2 tranches of its $835m STACR REMIC 2020-HQA3 deal, printed at the end of the week of July 20-24, were upsized from $150m to $225m and $75m to $100m respectively. Each tranche of the four-tranche offering,...

    • CMBS

      • CMBS perturbation

        Fitch report shows July US delinquency surge, especially in hotels and retail

        Despite the stronger than expected non-farm payroll released today, certain sectors of the US ABS market continue to give grave cause for concern, and top of that list is the CMBS sector, as figures reported by Fitch today (August 7) underline. The...

    • NPLs

      • NPL trade inked

        Bank of Cyprus finalises Helix Two

        Bank of Cyprus has sold a €916m - in gross book value terms - non-performing loan portfolio of retail and SME assets to PIMCO. Dubbed Project Helix Two, the pool is smaller than initially expected due to the Coronavirus fallout – a...

      • Greek momentum

        Alpha applies for HAPS guarantee

        Alpha Bank has applied for a guarantee from the Hercules Asset Protection Scheme (HAPS) for two non-performing loan securitisations from its Project Galaxy programme (SCI 29 May). As such, it has become the second Greek bank to utilise the HAPS guara...

  • Market Moves

    • Structured Finance

      • Euro CLO equity edges ahead

        Sector developments and company hires

        Euro CLO equity edges ahead European CLO equity cashflow returns average 9.3% year-to-date and - as all CLOs in reinvestment are currently paying - the full-year 2020 cashflow return is likely to be low-teens, according to a new report from JPMorgan...

      • MM CLO test failures rise

        Sector developments and company hires

        MM CLO test failures rise The continued deterioration in credit quality of issuers due to the coronavirus pandemic resulted in a large number of US middle market CLOs failing a variety of tests for the first time in 2Q20, according to Fitch&r...

      • Middle market JV agreed

        Sector developments and company hires

        Middle market JV agreed PennantPark Investment Corporation (PNNT) has formed a joint venture with the private credit investment business of Pantheon to create PennantPark Senior Loan Fund I (PSLF). The strategic transaction seeks to enable Pennant...

      • Alternative CLO ETF announced

        Sector developments and company hires

        Alternative CLO ETF announced Alternative Access Funds (AAF) has announced the registration of its new AAF First Priority CLO Bond ETF, which is scheduled to become effective on 14 August and - if all approvals and launch objectives are met - begi...

    • CMBS

      • CMBS DQ rate declined

        Sector developments and company hires

        CMBS DQ rate declined The overall US CMBS delinquency rate dropped to 8.53% last month, while 25.78% of balances previously in grace became delinquent, according to S&P’s monthly tracker. All five sectors – industrial, of...


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