Weekly Issue Archive »

Issue 736 - 1st April

  • News Analysis

    • Capital Relief Trades
      • Show me the money

        Debut US regional bank CRT yields too thin for traditional buyers

        Traditional capital relief trade buyers would not have been attracted to the recent Texas Capital Bank deal, as the yield was insufficiently alluring, say investors. “Libor plus 400bp is too low; we’re looking at an absolute ret...

    • RMBS
      • Mission possible

        Securitisation critical to UKAR success

        UK Asset Resolution (UKAR) last month completed its final asset sale (SCI 26 February), marking the end of over a decade of state ownership of Bradford & Bingley (B&B) and Northern Rock Asset Management (NRAM) that saw the vast majori...

    • CMBS
      • Structural protections

        Buyer's market limiting Euro CMBS 2.0 defaults?

        Lessons learned from the European CMBS 1.0 market are arguably helping in the post-pandemic environment, with far fewer defaults seen during the current crisis than occurred in the wake of the financial crisis. A buyer’s market has also mea...

    • RMBS
      • ESG endeavours

        Social bonds gaining traction

        Yorkshire Building Society’s recent Brass 10 RMBS marked the second social bond to hit the UK securitisation market, following Kensington’s social RMBS from February (SCI 3 February). While a ‘greenium’ has eme...

  • News

    • ABS
      • Running on fumes

        New auto ABS emissions scoring gives concrete ESG evidence

        KBRA’s pioneering effort to produce vehicle greenhouse gas (GHG) scores for 184 auto-loan securitizations from 22 different issuers reflects the growing demand from investors for more granular ESG data, says the rating agency. It spent fo...

    • Structured Finance
      • SCI Start the Week - 29 March

        A review of securitisation activity over the past seven days

        CLO pricing service selected SCI Valuations has been selected by Bloomberg's Enterprise Data business to provide daily CLO debt pricing to integrate with Bloomberg's Liquidity Assessment (LQA) tool. The integration of this data with LQA will enable...

    • Capital Relief Trades
      • Risk transfer round-up - 1 April

        CRT sector developments and deal news

        Deutsche Bank is believed to be readying a corporate capital relief trade from the CRAFT programme. The transaction is expected to close in 1H21. The lender’s last significant risk transfer trade closed in June 2020 (see SCI’s cap...

    • NPLs
      • Provisioning boost

        Moratoria decline amid stage two rise

        Loans under EBA-eligible moratoria nearly halved in 4Q20. Nevertheless, banks have markedly increased their stage two classifications, particularly for stage two loans under moratoria. The latter might indicate that loans that are still under morator...

  • Talking Point

    • CLOs
      • A turning point for investors

        KopenTech looks at US CLO trading trends in 2020 and their likely future impact

        In a period defined by a pandemic, social turmoil and an election, CLO investors increased their use of electronic trading to engage in a more efficient exchange of securities. With this increase in volume came an increase in data.  We hig...

  • Market Moves

    • Structured Finance
      • Equity return boost touted

        Sector developments and company hires

        Equity return boost touted US CLO equity is poised to deliver double-digit returns to investors this year, paring back the underperformance seen over the past four years, according to new research from Bank of America. Analysts at the bank base...

      • SOFR ABS model presented

        Sector developments and company hires

        SOFR ABS model presented The Alternative Reference Rates Committee (ARRC) has published a white paper that outlines a model for using SOFR in ABS products. The paper describes how new securitisation issuances could use 30-day average SOFR, with a mo...

      • Follow-up funding for Raiffeisen-Leasing

        Sector developments and company hires

        Follow-up funding for Raiffeisen-Leasing The EIB Group has provided €200m funding to Raiffeisen-Leasing Austria via a true sale securitisation dubbed ROOF AT. The transaction’s €462.8m triple-A rated class A notes were pr...

      • Houston CMBS has a problem

        Sector developments and company hires

        Houston CMBS has a problem The Houston hotel sector is facing its greatest disruption ever, according to a new report from DBRS Morningstar. The hotel market in the fourth largest city in the US has gone from a fast expansion to crash as it is faced...

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