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Issue 727 - 29th January

  • News Analysis

    • RMBS

      • Supply issues

        A tale of two markets for Dutch RMBS?

        Dutch prime RMBS volumes hit a historic low of around €1.9bn in 2020, while the buy-to-let RMBS sector saw record issuance of around €1.4bn. Although activity is expected to pick up this year in both segments, the Dutch RMBS market...

    • CLOs

      • US CLO rally rolls on

        Current focus on mezz looks set to move down the stack

        Strong demand continues to drive secondary spreads tighter across the US CLO capital stack. But – similar to triple-As before them – as mezz tranche prices near par, trading is becoming stickier and the focus is likely to shift do...

    • ABS

      • Mind the gap

        Innovative ILS structures creating Asian capacity

        MS Amlin’s recent Phoenix 1 Re deal marks the tenth catastrophe bond issued in Singapore (SCI 11 January). The transaction is also an example of how innovative ILS structures can help narrow the insurance protection gap in Asia. Asia lead...

    • Capital Relief Trades

      • Positive prospects

        Secondary CRT market gains traction

        The coronavirus crisis has increased the prospects for a more active secondary market for capital relief trades. Nevertheless, relatively small clip sizes and a dearth of syndicated transactions means that it will be some time before activity matches...

    • ABS

      • ABS at the races

        Fundamental and technical factors power US ABS, led by autos

        Fuelled by very healthy technicals and fundamentals, the US ABS market has entered 2021 at a gallop, led by the auto loan sector, agree ABS analysts. Barring an unforeseen and drastic pandemic-related downturn, there is little to derail the market...

  • News

      • SCI Start the Week - 25 January

        A review of securitisation activity over the past seven days

        Last week's stories CMBS sailing Stormy waters ahead and astern, but the US CMBS market has avoided the iceberg Eviction limitations extended New law poses risk for Spanish asset quality Issuer substitutions VAT reversal results in redomi...

    • ABS

      • NPL pipeline builds

        European asset disposals intensify

        The European banking system’s disposal of non-performing loans intensified in 4Q20, particularly in December, closing the year at €38bn in NPLs sold. An additional €40bn of NPLs could be sold on the market in 2021, with ar...

    • Structured Finance

      • Liquidity impact

        Post-Brexit divergence highlighted

        Liquidity is one area of concern following the UK’s withdrawal from the EU, given that UK securitisations are no longer considered eligible collateral at the ECB. Potential divergence over the revised retention regulatory technical standard...

    • Capital Relief Trades

      • Consumer SRT prepped

        Santander readies full-stack ABS

        Santander is marketing a full-stack capital relief trade backed by a €1.9bn portfolio of Spanish consumer loans. Dubbed Santander Consumo Four, the transaction is significant for its size and can only be matched by a German full stack deal t...

      • SME SRT debut

        Montepio inks first synthetic securitisation

        Montepio Bank and the EIF have finalised a synthetic securitisation that references a revolving €395m Portuguese SME portfolio. The transaction is the Portuguese lender’s first significant risk transfer trade.  The EIF h...

      • 2021 STACR debut (update)

        Freddie Mac prints first CRT trade of 2021 inside guidance

        Freddie Mac yesterday priced STACR 2021-DNA1, its first CRT debt markets transaction of 2021, the GSE has informed SCI. The underwriters were Bank of America and Barclays. The trade consists of four tranches for a final size of $970m. The 208m M-1,...

      • Risk transfer round-up - 28 January

        CRT sector developments and deal news

        BNP Paribas is believed to be readying a capital relief trade backed by capital call facilities. The transaction is expected to close this quarter and reportedly follows four other such transactions that were finalised last year. ...

  • Market Moves

    • Structured Finance

      • CLO outlook updated

        Sector developments and company hires

        CLO outlook updated Fitch says it expects to change a significant portion of its CLO outlooks to stable from negative, following the revision of its CLO coronavirus stress scenario to assume half of the corporate exposure on negative outlook is down...

      • Call for aircraft ABS protections

        Sector developments and company hires

        Call for aircraft ABS protections Fitch reports that a material number of aircraft failed to be novated to two aircraft ABS - START III and Lunar 2020-1 – last year, following closing. The failure of aircraft to novate in START III resulte...

      • UK social bond debuts

        Sector developments and company hires

        UK social bond debuts Kensington is prepping its inaugural STS and what is believed to be the UK market’s first ESG RMBS. Dubbed Gemgarto 2021-1, the £472m transaction is labelled as a social bond and is backed by a pool of UK sp...

      • Equity boost for Olympus spin-off

        Sector developments and company hires

        Equity boost for Olympus spin-off Singapore-based direct lender Orion Credit Capital Asia has received an equity investment from OMERS, the pension plan for municipal employees in Ontario, Canada. The move follows last month’s spin-off and...

      • PHEAA investor forum formed

        Sector developments and company hires

        PHEAA investor forum formed PHEAA has launched a series of consent solicitations seeking investor approval to amend the terms of indentures related to its outstanding tax-exempt bonds and notes issued by various PHEAA student loan ABS trusts, for...


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