Weekly Issue Archive »

Issue 742 - 14th May

  • News Analysis

    • CLOs
      • CRE CLO surge

        Record issuance expected

        The US CRE CLO market is seeing a surge in new issuance, albeit from the sector’s relatively low levels. The 18 deals priced so far this year have already surpassed last year’s total of 11 and are well on the way to reaching 2019&...

    • ABS
      • Geographical divergence

        CSEE moratoria more likely to underperform

        EU banks set aside large provisions in 2020 in anticipation of Covid-induced higher default rates, but most loans that benefited from payment holidays in the region resumed regular payment schedules during 2020 with less than expected difficulty. How...

      • Bad weather bonds

        Utilities to make use of ABS to rebuild after extreme weather

        This year has already seen two utility recovery charge (URC) ABS transactions in the US and, say analysts, more will be priced as extreme weather becomes more common – which some climate modellers predict. “We’ve seen...

    • Capital Relief Trades
      • Lone Star rising

        A soup to nuts profile of TCBI's inaugural CRT

        It took Texas Capital Bank nine months to finalise its landmark capital relief trade, becoming the first US regional bank to tap the risk transfer market (SCI passim). This CRT Premium Content article tracks the deal’s progress from incepti...

    • CLOs
      • Demand drivers

        Fundamentals and technicals support US CLOs for now

        On the back of the exceptionally heavy supply in Q1, US CLO spreads softened, but had reversed back to one-year tights at the end of last week. The move was driven by continuing voracious investor demand, unlikely to be diminished even by expected re...

  • News

    • Structured Finance
      • SCI Start the Week - 10 May

        A review of securitisation activity over the past seven days

        Last week's stories Niche exposure CFE Finance answers SCI's questions NPL rebound? Secured loan sales set for 2022 return Tight pricing Standard Chartered prints CRT Alternative support Infrastructure ABS boosts Italian direct lend...

      • Virtuous circle?

        Bullish sentiment underpins securitisation opportunity

        A strong rebound in global growth appears to be underpinning the opportunity in securitised credit, notwithstanding the ongoing impact of the coronavirus pandemic. As economic activity picks up and more collateral is available to be securitised, furt...

    • Capital Relief Trades
      • Mortgage-backed SRT priced

        Credit Suisse executes Elvetia refinancing

        Credit Suisse has priced a mortgage-backed SRT dubbed J-Elvetia Series 2021-1. The capital relief trade is a refinancing of a 2018 deal, but - unlike the previous one - the new transaction has been sliced into a mezzanine and a junior tranche (SCI 13...

      • Risk transfer round-up - 11 May

        CRT sector developments and deal news

        Bank of Montreal has called Muskoka Series 2020-1. The US$132m financial guarantee was executed in April 2020, becoming the first post-Covid capital relief trade (SCI 15 May 2020). The lender exercised another call option on 9 February for Muskoka Se...

    • CLOs
      • Biden bonanza

        Vast infrastructure package to energise project finance CLOs

        The project finance CLO market, somnolent for a decade, will receive a shot in the arm from the Biden administration’s ambitious infrastructure spending programme, say market-watchers. Around $600bn of the planned $2trn package is earmark...

  • Market Moves

      • Hertz reorganisation proposals weighed

        Sector developments and company hires

        Hertz reorganisation proposals weighed Hertz has determined that a revised proposal to provide equity capital to fund its exit from Chapter 11 - made by affiliates of Knighthead Capital Management, Certares Opportunities and Apollo Capital Managem...

    • Structured Finance
      • STS BTL RMBS prepped

        Sector developments and company hires

        STS BTL RMBS prepped Domivest is in the market with the first-ever STS buy-to-let RMBS. Dubbed Domi 2021-1, the €352.2m transaction is backed by a €370.7m provisional pool of Dutch BTL mortgage loans, including €30.61m in...

      • Iberian RMBS investment disclosed

        Sector developments and company hires

        Iberian RMBS investment disclosed The EIB has disclosed that it invested €50m in UCI’s latest RMBS, Prado VIII, aimed at promoting the renovation of existing residential buildings in Spain and Portugal, as well as the purchase of...

      • Asset managers partner on pensions initiative

        Sector developments and company hires

        Asset managers partner on pensions initiative DWS has launched the DWS Secured Income Fund, aimed at small to medium-sized defined benefit pension plans seeking stable, long-term returns. The fund provides a diversified portfolio of secured income a...

      • ESG incorporation challenges highlighted

        Sector developments and company hires

        ESG incorporation challenges highlighted The Principles for Responsible Investment (PRI) has published a report that examines the challenges associated with incorporating ESG in securitised products. The report notes that investors are grappling wit...

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