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Issue 1027 - 30th October

  • News Analysis

    • CLOs

      • SCI in Focus: Telecoms trouble tests European CLOs

        European telco debt under the spotlight as major names slump towards YTD and distressed lows

        Trouble among the big names in the telecommunications sector has haunted the European loan market over recent weeks, with a number of CLOs exposed to struggling loans and distressed bonds. Debt issued by high-profile firms - including Virg...

      • European CLO equity cash flows hit six-year low as repricing squeezes margins

        European CLO equity distributions fall to their lowest level since 2020, prompting investors to dema...

        European CLO equity cash distributions have fallen to their lowest level since the Covid-19 pandemic as sustained loan repricing activity and deteriorating collateral valuations squeeze returns, prompting investors to demand higher risk prem...

    • Asset-Backed Finance

      • 'Horizontal' rated note feeders set to gain ground in Europe

        Solvency II constraints are steering EU insurers towards structures that let investors take separate...

        European insurers’ growing appetite for private credit is likely to spur a different rated note feeder (RNF) model than the one that has taken off in the US, according to industry experts. Speaking at Opal’s recent European Priv...

    • CLOs

      • October CLO mezzanine widening reverses September's gains

        Poh-Heng Tan from CLO Research provides insights on primary EU CLOs.

        The analysis covers new-issue EU BSL CLOs priced between 19 January 2026 and 23 October 2026 with a reported discount margin (DM), sourced from SCI data. Deals with reinvestment periods of less than 3.9 years are excluded, as are a selected group of...

    • CLOs

      • CLO managers urged to assess loan eligibility before committing capital

        Siepe warns that bespoke loan facilities and increasingly complex compliance matrices are making it ...

        CLO managers need to account for increasingly complex eligibility and compliance requirements before committing capital to new loans, as bespoke facilities and transaction-specific constraints complicate asset-sourcing decisions, according to Siepe. ...

    • Asset-Backed Finance

      • Felicitas invests US$15m in credit fund rated note feeder

        Firm has completed at least five RNFs this year and is working on further NAV and preferred equity d...

        Felicitas Global Partners, a specialist NAV lender, has invested US$15m in the mezzanine tranche of a rated note feeder for a credit fund, SCI has learned. The investment, which closed last week, sits in the double-B+ rated tranche, just senior to...

      • Sound Point partners with Ninety-One for European ABF arm

        US credit manager takes on three-strong team and will sub-advise fund through to completion

        Sound Point Capital Management has partnered with Ninety One to pursue the asset manager’s European fund opportunities and build its own European asset-backed lending business, hiring the three-person team behind the strategy. Sound Point...

    • Capital Relief Trades

      • Smallest SRTs on record defy market myths

        Alvarez & Marsal's experience with smaller SRTs highlights how these deals still deliver meaning...

        Smaller SRT issuance could become a more established part of the market by 2030, with challenger banks accessing investors through private placements and bilateral structures rather than the large-scale issuance programmes associated with significant...

    • Asset-Backed Finance

      • Forward flow: funding tool and M&A route - video

        Interpath's Stuart Mogg talks to SCI about the evolution of forward flow partnerships

        Stuart Mogg, md and head of financial services debt and capital advisory at Interpath, talks to SCI's Marta Canini about how forward flow partnerships have evolved since the pioneering deals inked after the GFC. He also discusses how forward flow...

    • Asset-Backed Finance

      • EBRD, international investors back latest Turkish DPR securitisation

        Garanti BBVA revives diversified payment rights issuance after seven years as investor base broadens

        Istanbul-based bank Garanti BBVA has raised €400m under its existing diversified payment rights (DPR) programme, returning to the market after seven years with a private securitisation anchored by international investors an...

    • ABS

      • Australian ABS hits turbulence as record supply pushes spreads wider

        Australia's public ABS issuance reached a record A$95bn in 2026, but primary market oversupply is we...

        Australia's public securitisation issuance has broken previous annual records in 2026, hitting about A$95bn so far, according to data collected by Westpac (one of the country's Big Four banks), but primary market oversupply is weighing on investor de...

    • Asset-Backed Finance

      • Insurers' dash into fund finance clouds view of AI lending risk, Moody's warns

        Rated note feeders and multicredit vehicles draw insurers deeper into private markets

        Insurers are piling into complex fund-finance structures as AI reshapes private credit and makes risk harder to trace. In its quarterly private credit review, Moody’s said multicredit fund vehicles, rated note feeders (RNFs) and ABF were wi...

    • CLOs

      • SCI In Focus: Operational pressures in European LMEs

        As LME activity builds, cross-border friction and execution timing are shaping CLO recovery outcomes

        The growth of liability management exercises (LMEs) in Europe has precipitated increased scrutiny on both the strategic and operational aspects of these transactions from borrowers and creditors alike.  The shape and tenor of these transac...

    • Capital Relief Trades

      • New frontiers, old questions: SRT market faces its next test

        Monthly roundup of SRT market activity

        October highlighted the growing breadth of the SRT market, with activity spanning new asset classes, jurisdictions and investor structures. Banks continued to bring transactions to market, while development finance institutions explored ways...

    • CLOs

      • Taking the temperature on hybrid CLOs in Europe

        Hybrid CLOs address a number of structural constraints facing European middle market managers, but c...

        Hybrid CLOs are expected to become a prominent feature of the nascent European middle market CLO landscape, although the pioneering managers exploring these structures may have to convince some industry veterans. In the wake of the first &lsquo...

  • SRT Market Update

    • Capital Relief Trades

      • UK lender prepares a leveraged finance SRT

        SRT market update

        Lloyds Banking Group is preparing a potential SRT transaction referencing a portfolio of approximately £1bn, SCI has learned, with due diligence ongoing, according to market sources. The transaction is understood to potentially involve le...

  • News

    • Capital Relief Trades

      • US SRT market on upward trajectory

        Speakers at SCI's World Risk Sharing Summit said that regulatory clarity and new demand from data ce...

        The US significant risk transfer market is on an upward trajectory, with regulatory clarity and new demand from the data centre sector driving growth, panellists said at SCI’s World Risk Sharing Summit in London earlier this month. The da...

    • CLOs

      • NorthWall gears towards first CLO with AI-driven credit analysis

        NorthWall's Lawson highlights disciplined loan selection, strong sponsor and bank relationships, and...

        NorthWall Capital is building its CLO business around selective credit underwriting, continuous portfolio reassessment and measured growth, as the firm scales its portfolio towards its first CLO issuance and prepares to establish a long-term...

  • Talking Point

    • CLOs

      • Higher rates turn into headwind for European CLOs

        Rising borrowing costs and falling loan prices heighten refinancing concerns, while market participa...

        European CLO investors are facing growing credit risks as higher interest rates put pressure on leveraged borrowers, raising refinancing concerns and threatening to reverse the spread tightening that supported the market earlier this year. The Bank...

  • Market Moves

    • Structured Finance

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