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Weekly Issue Archive »

Issue 1021 - 18th September

  • News Analysis

    • CLOs

      • CLO managers navigate warehousing headwinds

        Par burn and arbitrage compression test CLO warehousing

        With the European loan market increasingly defined by stark bifurcation and extremely tight spreads, the economics and decision-making behind deal formation are becoming trickier. Loan spreads are near the lowest levels post-GFC which, paired with...

    • Asset-Backed Finance

      • The mid-market's liquidity fix

        Private equity's exit drought hits all players, but the mid-market says its response is growth, not ...

        Private equity's exit drought has a straightforward story on paper: distributions have dried up, holding periods have lengthened, and IPOs have all but vanished as a route to cash. But according to HSBC Innovation Banking, the response to that squeez...

    • CLOs

      • Double-Bs lead secondary-market turnover

        Poh-Heng Tan from CLO Research gives a five-year US CLO BWIC review.

        Based on SCI’s BWIC data, US CLO BWIC activity over the past five years has seen meaningful shifts in both trading patterns and liquidity. Double-B tranches stand out for their high secondary-market turnover relative to their share of outst...

    • Capital Relief Trades

      • Collins revisited

        New capital rules imply new look to cornerstone of bank policy

        Buried within the proposed new capital rules released by the Federal Reserve, The Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) on March 27  this year is a suggested shift from the current d...

    • CLOs

      • SCI In Focus: Green shoots emerge for European leveraged loans

        Narrowing valuation gaps could unshackle stifled M&A and LBO activity

        A burst in new money supply is expected to rebalance the European leveraged loan market following a meager summer, according to Sculptor Capital. European leveraged lending has seen a constrained new money pipeline so far this year, which has creat...

    • Asset-Backed Finance

      • Levante eyes year-end close for debut ABF fund

        Fund targets €10m-€30m facilities as larger managers move up-market

        Levante Structured Capital Solutions, a new European structured credit manager, is eyeing a year-end first close for its debut asset-backed finance fund. The Madrid-based firm seeks to provide low-to-mid-market financing to small and mediu...

      • Eastern shifts litigation finance strategy to evergreen

        The firm is eyeing US$500m and is set to target consumer litigation cases

        Eastern Asset Management is targeting around US$500m for a new open-ended fund focused primarily on consumer litigation finance, SCI has learned. Eastern Specialty Finance Fund II is set to launch in Q3 or Q4 and will adopt an evergreen structure,...

    • CLOs

      • Aegon adds triple-B exposure as primary CLO spreads sustain relative value

        Firm shifts to triple-B carry as primary spreads outpace secondary

        Aegon Asset Management is adding triple-B exposure in CLO portfolios while maintaining a defensive allocation to triple-A paper, as primary spreads continue to offer value over secondary and European credit screens more resilient than the US...

      • Fair Oaks prioritises quality as it stays active in CLOs

        Defensiveness over yield as Fair Oaks prioritises structure and collateral quality

        Fair Oaks Capital is maintaining a defensive tilt while continuing to deploy capital, with a focus on stronger structures and higher-quality collateral, Miguel Ramos, partner at the firm tells SCI. In its tranche funds, the manager has remained act...

    • Asset-Backed Finance

      • Former Coller veteran preps new secondaries firm

        Rune Monk and Julia Pilarczyk set to launch Galvanic Group in London

        Former Coller Capital veteran Rune Munk is preparing to launch a new secondaries firm in London, SCI has learned. Galvanic Group is set to open for business in the coming weeks led by Munk, alongside former Triton Partners director Julia Pilarczyk,...

    • Capital Relief Trades

      • SCI In Focus: EU Mortgage SRT could surge as 5% floor expands market

        A lower securitisation floor could expand mortgage SRT, but insurer access will determine whether th...

        A 5% securitisation risk-weight floor could make around €800bn of European residential mortgage exposure potentially viable for significant risk transfer, but the reform will only create a meaningful market if banks can also access insurers...

    • CLOs

      • New issue CLOs lead primary activity as demand remains robust

        Robust demand supports upsizing and tighter spreads as new issuance regains momentum

        New issue CLOs have led primary activity since 1 September, with volumes outpacing liability management exercises, according to SCI data. SCI data shows 20 new deals priced over the period, compared with 16 resets and 15 refinancings, while reissue...

    • Asset-Backed Finance

      • ABF Deal Digest: Avant strikes US$1bn forward-flow deal

        A weekly roundup of private asset-backed financing activity

        This week's roundup of ABF activity sees Avant agree a multi-year forward-flow arrangement with InterVest Capital Partners. Meanwhile, AB CarVal has acquired a US$340m portfolio of ten performing construction loans and Vantage Data Centers has raised...

    • CLOs

      • Inside Scotiabank's CLO ascent

        Strong relationships and market execution drive Scotiabank's successful push into the US CLO busines...

        Canadian lender Scotiabank has emerged in recent years as a rising arranger in the US CLO market, gaining impressive market share and prominence in a fiercely competitive US market. In November 2023, Scotiabank – one of Canada’s...

  • SRT Market Update

    • Capital Relief Trades

      • India's SRT potential hits regulatory wall

        India's large credit market has yet to translate into a domestic SRT market, with regulation and por...

        India has a sizeable and growing banking market, but it remains largely absent from the global SRT market, with regulatory restrictions preventing domestic banks from using synthetic securitisation to transfer credit risk and obtain capital relief. ...

      • African multi-originator SRT platform timeline remains fluid

        SRT market update

        The African Development Bank (AfDB) and Development Bank of Southern Africa (DBSA) are still working on the timeline and asset contributions for their planned US$2bn multi-originator synthetic securitisation, despite Bloomberg reporting a target to i...

      • German lender weighs second CRE SRT

        SRT market update

        SCI has learned that Aareal Bank is understood to be working on a new SRT transaction backed by a portfolio of commercial real estate loans, according to several market sources. The potential transaction is understood to have a target portfolio siz...

      • European MDB eyes repeat €1bn SRT in 2027

        SRT market update

        The European Bank for Reconstruction and Development plans to carry out another significant risk transfer in 2027 after its €1bn debut earlier this year, SCI has learned. CFO Burkhard Kübel-Sorger said in a LinkedIn post...

  • News

    • CLOs

      • Man Group launches US$150m captive CLO equity programme

        New captive equity programme comes as firm shifts focus towards US CLO market following Bardin Hill ...

        Man Group has closed its first captive CLO equity programme, securing up to US$150m of capacity to support the expansion of its US broadly syndicated loan CLO platform. The programme has been established with majority backing from a strategic insti...

      • TwentyFour preps new CLO and insurance-focused ABS strategies

        Asset manager plans triple-A and mezzanine CLO fund launches in November, followed by a senior ABS s...

        TwentyFour Asset Management is launching three new strategies soon, comprising two CLO-related strategies and one ABS-related strategy, SCI has learned. Specifically, the strategies include a triple-A CLO fund, a mezzanine&nbs...

  • The Structured Credit Interview

    • Asset-Backed Finance

      • NAV, GP lines and the new fund finance toolkit

        Balance Strategic Capital's Emily Rose on serving the lower mid-market, the rise of distribution-dri...

        Q: Balance Strategic Capital positions itself as a NAV loan and GP solutions lender. How would you describe the firm's niche within the broader fund finance landscape? A: Balance Strategic Capital was set up to serve an underserved part of the mark...

    • Capital Relief Trades

      • US firm targets SRT arranger role

        Truist Securities, the investment banking and capital markets arm of Truist Bank, is positioning its...

        Q. Truist Secs is positioning itself as an SRT arranger. What have you done? A. As part of our FIG investment banking platform, we have built our banks solutions group to serve as an arranger of SRTs for financial institutions looking to e...

  • Market Moves

    • Structured Finance

      • Job swaps weekly: Barings names head of global CLO issuance

        People moves and key promotions in securitisation

        This week’s roundup of securitisation job swaps sees Barings appointing a head of global CLO issuance and capital markets. Elsewhere, Silver Point Capital has named a former Golub Capital veteran as md, head of credit financing and leverage...


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