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Weekly Issue Archive »

Issue 1009 - 26th June

  • News Analysis

    • ABS

      • Saudi Arabia proposes risk-retention rules in 'major' boost for securitisation market

        Market participants welcome the move toward global best practices but caution that additional compli...

        Saudi Arabia’s proposal to introduce mandatory risk-retention requirements for securitisation transactions could represent one of the most significant developments in the evolution of the Kingdom’s structured finance market, accor...

    • Asset-Backed Finance

      • The NAV opportunity in a distribution drought

        Strategies evolve as a structural shift forms in private markets investing

        For much of the last decade, the investment cycle between GPs and their investors has had a predictable run: capital going in, exits achieved, and cash coming out. Between 2014 and 2017, that averaged around 29% as a share of NAV (net asset value)....

    • CLOs

      • MVOC emerges as key driver of EU CLO single-B pricing

        Poh-Heng Tan from CLO Research provides insights into benchmarking EU CLO single-Bs across MVOC coho...

        The technically strong loan market, with around half or more loans trading above par, has resulted in a relatively active month-to-date secondary market for EU CLO single-B tranches. A total of 27 single-B tranches have traded on BWIC with trading co...

    • Asset-Backed Finance

      • US consumer credit faces scrutiny as investors weigh forward flow risks

        Overcrowded market drives investors to reassess valuations and explore European alternatives

        As demand for forward flow agreements in the US consumer lending market continues to grow, some asset managers are raising questions over valuations and risks to the default cycle, with capital beginning to move elsewhere. Keerthi Raghavan, co-cio...

    • Capital Relief Trades

      • Washington debates capital rules as banks double down on CRT

        US banks are lobbying for lower capital requirements, but CRT markets could be among the biggest ben...

        US banks are pressing regulators for lower capital requirements across trading, derivatives and counterparty exposures, but the industry's latest lobbying effort may ultimately reinforce rather than diminish the role of CRT markets. In a j...

    • CLOs

      • Sona AM sees opportunity in EU CLO equity as volatility creates 'compelling entry point'

        Credit expertise and NAV protection are becoming increasingly important as leveraged loan markets en...

        European CLO equity could be approaching a compelling entry point despite ongoing concerns about higher credit losses and market volatility, according to a new white paper from Sona Asset Management. The report titled 'European CLO Equity: Framing...

    • Asset-Backed Finance

      • PGIM bets on US$40bn land banking opportunity

        Partnered with Domain RE to capitalise on the undersupply of US housing

        PGIM is betting on opportunities in one of asset-backed finance’s newest market evolutions, land banking. The firm is eyeing an estimated US$40bn opportunity in the next five to ten years, looking to capitalise on the shortage of housing...

    • CLOs

      • The risks of paying a premium and the rewards of buying at a discount

        Poh-Heng Tan from CLO Research analyses the realised IRRs of rated EU CLO bonds placed on BWIC over ...

        Purchase price has a significant influence on realised IRRs when EU CLO bonds are called at par. While opportunities to acquire discounted bonds that are subsequently called are relatively scarce, they can generate substantially higher returns throug...

    • Capital Relief Trades

      • Broader US auto CLN market brings greater pricing differentiation

        Expanding issuer participation highlights investors' increasing focus on sponsor quality and tranche...

        US auto credit-linked note issuance has broadened meaningfully since the segment first emerged in 2020-2021, when it consisted of JPMorgan and Santander trades. The latest 10 transactions now include issuance from Ally, Huntington a...

    • CLOs

      • SCI In Conversation Podcast: Derek Dubois, Deerpath Capital

        We discuss the hottest topics in securitisation today...

        In this episode of SCI In Conversation, Derek Dubois, md and treasurer of Deerpath Capital, joins SCI US editor Simon Boughey, to discuss low to middle market CLOs. Private credit manager Deerpath has US$9bn under management, and for almos...

  • SRT Market Update

    • Capital Relief Trades

      • EU funds explore platform structures to scale SRT back leverage

        SRT market update

        Alternative asset managers are exploring platform-style structures that could transform back leverage from a bespoke financing tool into a more scalable part of the significant risk transfer market, SCI has learned. The structures are bein...

      • Spanish lender completes first 2026 SRT

        SRT market update

        Sabadell has completed its first SRT transaction of 2026, transferring risk on a €1.2bn portfolio of SME and corporate loans through a €60m CLN, SCI has learned. According to market participants, the transaction is expected to red...

      • Belgian bank closes follow-up corporate loan SRT

        SRT market update

        KBC Group has completed its second significant risk transfer SRT transaction, using a CLN structure to transfer the first-loss risk on a €1.25bn portfolio of corporate loans to institutional investors, according to a press release issued by...

  • News

    • ABS

      • Tight spreads push ABS investors up the capital stack

        European ABS markets remain well supported by investor demand, but diminishing relative value is pus...

        European securitised credit markets last week remained broadly constructive, with stable primary market spreads and strong investor demand continuing to support the asset class, even as participants monitor a gradual weakening in credit fundamentals....

      • Issuer demand drives Reckoner Capital's push into risk retention financing

        Asset manager launches dedicated platform as securitisation issuers seek alternatives to traditional...

        Reckoner Capital Management sees growing demand from securitisation issuers for financing partners that can offer both capital and broader investment relationships, following its launch of a dedicated risk retention financing business. The new enti...

    • Asset-Backed Finance

      • Trimontium launches evergreen fund with US$1.5bn AUM

        Former Blackstone pro, Vlado Spasov, is targeting a US$10trn financing gap

        Ex-Blackstone executive Vlado Spasov has launched a new capital solutions shop, which has already raised US$1.5bn in AUM. The new London-based asset manager, Trimontium, runs an evergreen strategy rooted in credit and special situations and is one...

      • Former ESR CRE debt co-heads launch new ABF venture

        Paul House and Beatrice Dupont launch Penny Blue Capital in London

        ESR Europe’s former co-heads of commercial real estate debt are launching a new asset-backed finance venture, SCI has learned. Paul House and Beatrice Dupont have established Penny Blue Capital in London, which will focus on European asse...

    • Capital Relief Trades

      • On the horizon: Does cash SRT's growth indicate next phase of risk transfer?

        Cash SRT is evolving fast. We're exploring where it's headed – and we'd like your views

        Synthetic structures still dominate the significant risk transfer market, but cash SRT is increasingly moving from the sidelines to the strategic agenda of European banks. Recent transactions suggest the market is evolving beyond occasional balance...

    • CLOs

      • CLO manager consolidation set to accelerate, says Clearlake

        Following its acquisition of LCM's CLO business, Clearlake says scale and access to equity capital w...

        The global CLO market could be ripe for widespread consolidation, according to private investment firm Clearlake Credit, with the market saturation ratcheting up competition among smaller managers. Speaking to SCI, Philip Braner, md at Cle...

  • Market Moves

    • Structured Finance

      • Job swaps weekly: Aon and Carlyle make key hires

        People moves and key promotions in structured credit

        This week's roundup of structured credit job swaps is led by The Carlyle Group's appointment of James Dunn to head European liquid credit. Elsewhere, Aon, Standard Chartered and several firms across the ratings, legal and servicing sectors have annou...


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