Weekly Issue Archive »

Issue 723 - 18th December

  • News Analysis

    • ABS

      • Improving sentiment

        Opportunities rebound in aircraft ABS market

        Aircraft ABS secondary market activity all but dried up with the onset of Covid-19, until trading began picking up in September and October. At the same time, investors with capital began sourcing higher yielding opportunities in the sector. Some a...

    • Capital Relief Trades

      • Full stack resilience

        Volumes down, but not out

        Full-stack significant risk transfer deal volume declined this year amid the Covid-19 fallout. Nevertheless, transactions have shown resilience in terms of performance. Full-stack SRT transactions have a smaller range in terms of size - of between...

    • ABS

      • On the cards

        2020 credit card spending low, suggesting slim ABS issuance to continue

        US credit card performance has thus far shrugged off the impact of Covid 19 with insouciant ease, in part due to lower consumer spending, but this in turn is likely to mean reduced ABS origination in the first half of 2021, say credit card analysts. ...

    • CLOs

      • Margin call

        CLO equity arbitrage doubts raised

        CLO new issuance is once again flourishing as the arb continues to improve, but the pick-up in volumes could yet prove to be premature. New investment performance data suggests current criteria are underestimated and also reveal a disparity between E...

  • News

    • ABS

      • Delayed defaults

        German auto ABS support weighed

        The assets underlying German auto ABS have remained resilient during the coronavirus pandemic. However, defaults are expected to emerge, once the impact of government support measures wears off. Fitch reports that no German auto ABS tranches are cu...

    • Structured Finance

      • SCI Start the Week - 14 December

        A review of securitisation activity over the past seven days

        Last week's stories Bellemeade bonanza The latest Arch trade covers the same insurance vintage as June's 2020-1 ESN debate Could structures cannibalise true sale ABS? Finish line Trilogue agreement finalised Landmark SR...

    • Capital Relief Trades

      • Agricultural SRT prepped

        Lloyds readies Fontwell II

        Lloyds is marketing Fontwell II Securities 2020, a synthetic securitisation referencing a £1.86bn portfolio of agricultural loans. The transaction differs from the first capital relief trade from the programme due to higher levels of intere...

      • Baltic SRT finalised

        First synthetic under Luxembourg law

        The EIB and the EIF have issued a €440m guarantee to Luminor Bank for new lending to SMEs and midcaps in the Baltic states. The guarantee can support at least €660m of additional loans and leases, and is the first synthetic securiti...

      • Risk transfer round-up - 18 December

        CRT sector developments and deal news

        Standard Chartered is believed to have completed the eleventh transaction from its START programme. The capital relief trade is allegedly backed by emerging market corporate loans. The lender’s last synthetic securitisation from the program...

      • UK corporate SRT inked

        NatWest finalises capital relief trade

        NatWest has completed an eight-year £100m financial guarantee that references an approximately £1.5bn static portfolio of credit facilities to UK large and midsized corporate borrowers. Dubbed Nightingale UK Corp 2020-2, the trans...

      • Leasing, SME SRTs executed

        Unusual capital relief trade completed

        Societe Generale has finalised a synthetic securitisation that references French leasing receivables. The transaction is the lender’s first significant risk transfer trade to reference a portfolio of leasing assets. The leasing deal was e...

      • STACR 2020-DNA6 prints

        All tranches of new STACR print well inside guidance

        Freddie Mac’s STACR 2020-DNA6 has now printed for a final deal size of $790m and comprises four tranches, all of which printed appreciably inside price guidance. The $279m BBB+ M1 tranche pays SOFR plus 90bp compared to price guidance was...

      • Bellemeade 2020-4 comes in at $337m

        3-tranche MILN has higher than usual LTV pool

        Arch Capital has priced Bellemeade Re 2020-4, which entered marketing last week and will close next week, for a final issue size, in bonds, of $321.39m, confirms the borrower. The joint leads are Bank of America and Credit Suisse. The mortgage insu...

    • NPLs

      • Call for further improvement

        'Unambitious' NPL strategy launched

        The European Commission has published a strategy that aims to prevent a build-up of non-performing loans across the EU banking sector, as a result of the coronavirus crisis. The proposals build upon a set of previously implemented measures, but have...

      • Leasing debut

        NPL ABS expected to benefit from GACS

        UniCredit Leasing has completed the first Italian non-performing loan securitisation backed by lease receivables that is expected to benefit from a GACS guarantee. Dubbed Relais SPV, the transaction is secured by real estate financial lease agreement...

  • Talking Point

    • Capital Relief Trades

      • CRT super spreader

        Asset manager ArrowMark, a long-time investor in CRT, sees increased US usage

        Despite the constraints imposed by Covid 19, this has been a banner year for the CRT market in the US, with headline-making deals from JP Morgan and Goldman Sachs while Citigroup, a longstanding user of the mechanism, has been rumbling along below th...

  • Market Moves

    • Structured Finance

      • Brit PCC in 144A cat bond first

        Sector developments and company hires

        Brit PCC in 144A cat bond first Brit has printed its debut catastrophe bond, dubbed Sussex Capital UK PCC (Series 2020-1). The issuance marks the first time a protected cell of a UK domiciled multi-arrangement risk transformation vehicle ha...

      • CLO manager transfers accelerate overlap

        Sector developments and company hires

        CLO manager transfers accelerate overlap When managers acquire CLOs, the underlying portfolios become more like the existing portfolios of the acquiring manager, according to a new report from Fitch. During 2020, Fitch noted four CLO contract chan...

      • Issuance forecasts lowered on TFSME extension

        Sector developments and company hires

        Issuance forecasts lowered on TFSME extension The Bank of England has extended by six months the TFSME, covering both the drawdown period and the reference period of the scheme. The former will now run until 31 October 2021, while the latter will ru...


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