News Analysis
CLOs
Liquidity hurdles and secondary market gaps challenge MM CLO growth
Regulatory limits and structural constraints weigh on expansion despite strong investor demand
The alignment of interest between a CLO manager and the vehicle’s performance is key, according to Dan Zwirn, CEO and CIO at Arena Investors. Private credit/middle market (PC/MM) CLOs equity currently offers investors better relative value across the capital structure, he argues.
But Zwirn says surging interest in BSL CLO equity in the last decade, driven by its performance in the immediate aftermath of the GFC, has led to a considerable misalignment in these structures. This, he says, makes buying middle market CLO debt or equity a more attractive relative value trade for investors.
“After the GFC, when allocators saw CLO equity trade down to a dime and come all the way back, the Street used that rear view mirror perspective to sell a ton of people misaligned CLO equity exposure and it did not necessarily take into account the secular change in the quality in the collateral,” he explains.
Zwirn describes this process further as it occurs in the broader private credit arena, noting the negative consequences it can have for BSL CLOs.
“If you look at the broader private credit space, when folks are very focused on getting money out the door they have allowed misalignments of interest to occur, whether that’s in people not having skin in the game, lower covenants, or in the structured finance space in forward flow agreements where an originator issues loans and a loan buying fund agrees to buy them from the originator even though he might have negative skin in the game,” he says.
He stresses there are few things more correlated with success than alignment of interest. “But the pressure for many people is to get a lot of money working and sometimes they sacrifice the quality of the ‘cooking’ they’re willing to ‘eat.’”
Zwirn concludes that PC/MM CLOs remain a more appealing trade for investors relative to BSLs, though he highlights other fixed income products as better opportunities at the moment.
“On a relative value bet trade, I would argue that at all points in the capital structure on the right side of the balance sheet, middle markets are likely to provide a better risk-adjusted return than BSL CLOs, even accounting for the difference in sizes of the underlying companies.”
Liquidity barriers and secondary market potential
Still, several hurdles remain for the PC/MM CLO market. Chief among them is the lack of an established secondary market, says Chris Enas, md and deputy CLO portfolio manager at Monroe Capital: “Secondary markets within private credit has been a big topic. From the perspective of managers trying to access liquidity but also for managers looking for end-of-life solutions for funds with illiquid assets in them.”
Lack of standardisation, a limited buyer pool, and information asymmetry between sellers and buyers all contribute to the illiquidity. Yet Enas notes there is considerable interest in unlocking this demand.
“It’s in its early days right now but you see a lot of capital being raised around the secondary market so it’s certainly going to take off,” he says. “Given the amount of middle market CLOs that have been issued over the last five years, finding an end-of-life solution if you are truly to wind down those funds I think secondaries will be an important aspect of that. It’s still in its early days but I think it has staying power.”
Managers are also reluctant to sell in the current environment, Enas notes, preferring to hold assets rather than realise losses amid unfavourable market conditions.
“What’s interesting too is that we’re in a period where managers are by-and-large trying to hold onto assets right now and not necessarily looking to divest unless they have end-of-life constraints in their particular funds,” he says.
Regulatory constraints introduced after the GFC have further exacerbated the liquidity crunch. “Part of what happened in the GFC is that the regulators precluded the investment banks from maintaining material inventories to facilitate liquidity, which is a major problem, not only for the loans themselves but in the securitisation-related right side of the balance sheet obligations of the CLOs—middle market and BSL,” Zwirn explains.
He warns that economic headwinds could also limit growth: “It’s highly likely there will be some combination of elevated rates and inflation for an extended period of time, given the fiscal indiscipline in the G20 that escalated during COVID and hasn’t really stopped escalating since.”
As a result, Zwirn sees middle market CLO debt as relatively attractive, but notes other products might still offer better returns: “Within structured products we think CMBS and ABS tend to provide more compelling risk-adjusted returns than CLOs right now, all things being equal.”
Click here for part one of the story.
Solomon Klappholz
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News Analysis
ABS
European ABS demand continues through quieter July
Fund managers eye attractive carry and credit discipline in an uncertain macro environment
The European securitisation market remained supported despite a slowdown in new issuance towards the end of the July, with monthly fund factsheets monitored by SCI highlighting tightening spreads and strong fundamentals. Demand for high-quality transactions in the RMBS, auto ABS and consumer ABS sectors continued to underpin performance, though asset managers noted that valuations currently leave limited room for further upside.
TwentyFour Asset Management describes July as another positive month, noting that the “ABS demand technical persisted and spreads continued to tighten, intensified by the lighter primary pipeline.” In particular, there was strength in both RMBS and CMBS, where triple-A spreads at 1.25% over Euribor reflected robust subscription levels.
At the same time, the firm stresses the importance of credit discipline, adding that the team remains “cautious on vulnerable borrowers and newer lenders, where collateral could underperform as economic data weakens.”
The best value was perceived to be in triple-A rated bank-issued ABS and RMBS, with mezzanine tranches outperforming senior bonds. Carry is expected to remain the key driver of returns, providing stability amid market volatility.
Amundi also points to healthy demand, reporting that “four ABS deals were successfully issued, supported by tightening spreads reflecting strong investor appetite.” The firm participated in several primary transactions across European auto and consumer ABS, including an innovative Swiss auto leasing deal that incorporated a euro currency swap, which was described as “an addition enhancing the sector’s diversity.”
Performance remained positive, producing a 0.34% return in July and a yield to maturity of 4.07%. Nonetheless, the firm flags that issuance “gradually declined, culminating in an almost complete pause at the end of the month,” and is maintaining a measured stance moving forward into August.
Aegon describes July as a continuation of strong conditions in ABS, calling it another “risk-on” month. The firm notes that positive sentiment in European ABS markets continued in most European ABS sectors, with spreads compressing further to the tightest levels seen this year.
Volumes were significant, with €6.7bn of ABS bringing the year-to-date issuance to €89bn or 99.7% of the level observed over the same period in 2024. However, Aegon warns that “with valuations tighter… there is limited upside for spreads and risks are to the downside.”
Moving into August, fund managers had similar outlooks. TwentyFour is prioritising established issuers and high-quality collateral, Amundi is maintaining a cautious but opportunistic stance across consumer and auto ABS, while Aegon sees the sector as well-positioned to outperform. ABS continues to offer attractive carry in a more uncertain macro environment, but credit discipline remains paramount.
Aegon European ABS Fund returned +0.59% in July 2025. YTD: 3.97%
Fund size: €281.85m
ABS/MBS allocation: 53.0%
Amundi ABS returned 0.29% in July 2025. YTD: 2.05%
Fund size: €1.07bn
ABS/MBS allocation: 94.65%
Janus Henderson ABS Fund returned +0.39% in July 2025. YTD: 3.14%
Fund size: £513.94m
ABS/MBS allocation: 56.87%
TwentyFour AM Monument Fund returned 0.55% in July 2025. YTD: 3.40%
Fund size: £2.40bn
ABS/MBS allocation: 60.63%
Matthew Manders
News Analysis
ABS
SCI in Focus: Supreme Court ruling lifts cloud over UK auto ABS
Issuance primed for rebound as credit risk seen to be limited
The UK
Supreme Court’s ruling on motor finance commission
arrangements has eased a major overhang for the UK’s auto ABS market. With the direct impact on credit risk expected to be limited, the move paves the way for a potentially significant boost to new issuance.
“The [UK auto ABS] market has been dead now for the entire year so far,” says
Eberhard Hackel, md at Fitch. “We would not underestimate what it could mean for issuance.”
Fitch is already aware of banks preparing public transactions, with some bilateral deals completed privately this year. “Banks are expected to return to the public market once they feel the remaining uncertainty has eased enough to appeal to a broad investor base,” he adds.
Fitch
noted
the judgment is consistent with its long-held view that rated UK auto ABS are “shielded from set-off risks”, given their strong sponsors and significant credit enhancement. “The decision has not much changed in our view of this credit risk for the outstanding deals,” says Hackel.
From a credit standpoint, Fitch’s view remains largely unchanged. “We always said there are three steps for investors to suffer loss: the originator needs to be insolvent; borrowers need to be allowed to set off risk against ABS; and credit enhancement needs to be insufficient. But UK auto ABS have a very high credit enhancement due to their VT and RV portions, which means even if that were all to materialise in the amounts we have calculated in terms of a few hundred pounds, it would not make the senior notes collapse,” Hackel explains.
Previously, Fitch had estimated potential maximum set-off losses of between 4% to 20% of the deals it rates, with most at the lower end, versus typical credit enhancement of around 25% for triple-A rated notes in the UK. The agency’s assumption is based on £700 plus interest in compensation per agreement, broadly in line with the FCA’s projected less than £950 figure. Now, the regulator pegs the total redress bill to sit between £9bn and £18bn – the midpoint of Fitch’s projections.
Morningstar DBRS also
flagged
that the judgment removes “a significant layer of uncertainty” for auto manufacturers and captives - particularly in the non-discretionary commission segment that makes up the bulk of post-2021 origination. The agency notes that the finite term of auto loans means the share of discretionary commission arrangements (DCAs) in ABS pools will be minimal by end-2026, when the FCA aims to agree redress, although some pre-2021 loans will remain.
Redress decision ‘positive’ for issuers
For Fitch’s
Andy Brewer, the decision is “actually positive” for issuers. “The Supreme Court very clearly outlined that the disinterested duty and the fiduciary duty weren’t owed by the dealers,” says the senior director. “That mostly impacts standard commissions - which make up 99% of loans - while manufacturers and more recent loans, post-2021, were just flat commissions. So that was very important.”
“It very clearly demonstrates that a commission is allowable. There are no huge claims coming back to either new lenders who were never part of the discretionary commission approach or existing lenders post-2021,” Brewer adds.
The result, he says, is reduced pricing pressure: “If you’re a big manufacturer, then it’s an easier sell now - you don’t have this hanging over you to the same degree as previously was the case.”
The main impact, he suggests, will be felt on the banking side - particularly in the non-DCA segment. Fitch’s bank ratings team is confident most lenders can absorb potential redress from earnings or provisions.
“From what has been said so far, it reduces the risk for the banks - and that means for us, as a rating agency, that the first line of defence - the bank - will very likely hold,” Hackel adds.
The auto ABS issuance hiatus has also given originators time to review loan agreements. “Originators have probably used the time to look into the different forms of contracts, maybe even splitting up and saying, this is the least risky loans - the newer the better,” says Hackel, suggesting that securitisations could increasingly prioritise newer, cleaner loans where risk is already minimal.
In terms of methodology, Fitch’s standard practice is to run sensitivities when risks are potentially material. “We have done so for the entire outstanding portfolio last year and came to the conclusion it wouldn’t be a big problem,” Hackel says.
Before the ruling, Fitch considered smaller non-prime or auto-focused lenders as more exposed if redress liabilities proved to be large. “The ones that were probably more at risk prior to the Supreme Court ruling were the sort of non-prime lenders – the smaller, newer lenders – that had a potential redress scheme that was going to be big. We think that’s been taken away now,” Brewer says.
Uncertainties remain in implementation phase
Nonetheless, uncertainties remain. Brewer points to the Johnson case element of the Supreme Court judgment, which included claims of excessive commission and misleading documentation – alleging a panel of lenders were used, which they in fact did not.
“The FCA’s implementation phase is a long, drawn-out process running towards the end of next year. Part of it is still open to debate and still very vague,” he says. “Now the FCA has to build a set of rules to apply the redress scheme to and that sounds quite difficult to us.”
The eventual shape of the FCA’s redress scheme - particularly its treatment of non-DCAs and interpretation of the Johnson case - will determine any residual risk to ABS pools. But as Morningstar DBRS puts it, the Supreme Court decision has “materially reduced the likelihood of large-scale claims,” leaving the sector better positioned for a restart in public issuance.
News Analysis
Asset-Backed Finance
Insurers underpin ABF bonanza
Annuity rich insurance companies look to new investments
The boom in ABF products in the US in the last two or three years is driven by reserves of capital insurers currently enjoy on the one hand, and by dissatisfaction with traditional investments on the other, according to alternative investment managers.
Since the end of the pandemic, US insurers have seen an unprecedented surge in demand for annuities, investments which offer a floored exposure to various market indices with guaranteed income. There is currently great competition among insurers to offer the most attractive products.
This in turn is a function of millions of Baby Boomers entering retirement at the same time with often a great deal of disposable income and realizing that, with life expectancy now extending into the 80s and beyond, a guaranteed income appears desirable.
A higher interest rate environment has also allowed the returns offered by annuities to be considerably more eye-catching than was possible in the previous decade.
Insurers might have sold, say, US$1bn of annuities a couple of years ago, but might sell US$8bn this year and hope to sell US$16bn next year.
While insurers are happily awash with capital, the Treasury market and the investment grade (IG) corporate market currently look less appealing. Until recently, IG corporates offered admittedly modest returns but stability, extended duration and a perfect hedge against equity market volatility. Those features no longer apply. It has not been uncommon this year for Treasuries and stocks to sell off at the same time.
“Insurers are receiving record inflows into their annuity and other products and they say ‘We’ve invested in traditional fixed income for 30 years, but this approach has to change.’ Private credit, direct lending, rated securitized instruments, are filling the void,” says Philip Bartow, head of specialty finance and fintech lending at Sound Point Capital, a New York -based alternative investment manager.
Established in 2008, the firm has US$44bn assets under management and focuses on credit strategies. It manages investments for a variety of institutional clients and some high networth individuals.
Lots of lovely yield
ABF strategies also offer appreciable additional yield. For example, senior, rated private ABF products can offer 250bp of additional yield versus Treasuries and 180bp of additional yield versus IG corporates, depending on duration and the attachment points.
Further down the stack, rewards are even better. The B tranches of a syndicated ABF transaction might offer 200bp-250bp to corporates and 400bp-500bp to Treasuries.
“The private ABF sector is the next big frontier, in my opinion. You have an asset with a long history, that’s rated. You take something currently in the securitized products space and see if you can create a private version that works better for an insurance company,” he adds.
A lot of different products live in the ABF bucket. It includes, for example, royalties, equipment leases, aircraft leases, every type of consumer loans. Essentially, everything that is not a real estate asset and is not a corporate asset could be considered for possible inclusion into an ABF deal.
While insurers are in the vanguard, there is also increased interest in private markets from endowments and pension funds. Both have a greater need for regular income and though they might have exposure to CLOs and direct lending they don’t have much ABF exposure.
As everyone in private markets attests, the traditional 144a, syndicated ABS market is still alive and well. Borrowers who need large amounts of debt, such, as say, data centre developers, will more readily turn here. The market offers size, transparency, and a clear idea of demand
However, investors that want exposure to the asset can’t guarantee what size ticket they’ll get. If a market, says Bartow, can offer far more control.
Simon Boughey
SRT Market Update
Capital Relief Trades
Greek issuer targeting Q4
SRT market update
Piraeus Bank (Piraeus) is preparing a new SRT transaction, with a targeting execution for Q4.The deal references a portfolio of Greek SME and corporate loans, with a preliminary reference portfolio size of €2.4bn, though this is subject to change.
The transaction is being structured as a direct-CLN, consistent with the format of the bank's most recent SRT. Piraeus is additionally structuring the deal to meet the criteria STS status.
Regarding the investor base, Piraeus is looking to engage in a competitive process, following high interest in their previous transaction (Ermis VII).
Looking ahead, Piraeus has also indicated plans to return to the market next year with an additional SRT transaction, this time referencing a portfolio of consumer loans.
Piraeus currently has seven active SRTs, though one is scheduled to be called. This creates a need for a new deal to maintain its existing risk transfer position and replenish the backlog.
Vincent Nadeau
News
ABS
Hilton Grand Vacations debuts Japanese timeshare ABS
Deal reflects growing interest in esoteric assets
Hilton Grand Vacations (HGV) last month completed the first publicly rated Japanese timeshare securitisation, the ¥9.52bn Hilton Grand Vacations Japan Trust 2025-1. The sponsor navigated not only foreign exchange considerations, but also local court interpretations and investor education, tapping into a growing appetite for esoteric asset classes in the country.
MUFG served as structuring lead manager and bookrunner on the deal, which features a single tranche of notes, rated triple-A by S&P. The collateral pool consists of well-seasoned, Japanese-originated timeshare loans with strong performance, supported by obligors who have historically had very low default rates, contributing to the transaction’s high rating.
HGV has nearly 75,000 members in Japan and currently operates two world-class properties across the country: The Beach Resort Sesoko, a Hilton Club, which opened in October 2021; and The Bay Forest Odawara, a Hilton Club, which opened in 2018. The company’s latest addition, Tradimo Kyoto Gojo, a Hilton Grand Vacations Club, is anticipated to be completed in 1Q26 and will feature 63 modern one-bedroom timeshare units.
Notably, Hilton Grand Vacations Japan Trust 2025-1 enabled HGV to align local receivables with local funding in Yen to diversify its capital sources and execute at lower cost of funds than would have been possible in the US market. “It also reinforces our broader strategy of financing optimisation to unlock shareholder value,” says Dan Mathewes, president and cfo of HGV.
At pricing, the Japanese tranche carried a coupon of 1.41%, compared to nearly 4.7% on recent US issuance under the HGV programme, offering an advantage of roughly 300bp-350bp. “This creates meaningful value for shareholders and underscores why we view Japan as a long-term source of cost-effective capital,” Mathewes adds.
While timeshare ABS is well-established in the US, the Japanese securitisation market has historically been dominated by RMBS and auto loan transactions. “This was the first-ever timeshare securitisation in Japan, making it both novel and esoteric from a credit perspective,” comments Ben Loper, svp, treasurer and head of financing business at HGV.
The structure was deliberately conservative and simple in order to reduce complexity for a new asset class.
Investor response reflected strong demand, despite the unfamiliar collateral. The deal was fully subscribed and offered Japanese investors a yield relative to domestic alternatives, while pricing inside US funding levels by several hundred basis points. HGV expects to continue building its investor base out over the coming years.
Bringing the deal to market was not without challenges, as Japan’s legal and regulatory framework for timeshares differs significantly from that of the US. “We had to navigate foreign exchange considerations, local court interpretations and investor education,” Loper explains. The deal required extensive on-the-ground coordination across Japan, Hong Kong, Korea and Hawaii to align all stakeholders.
The success of this transaction has broader implications for Japan’s structured finance market, which historically has offered limited options for investors seeking exposure to differentiated collateral. Moving forward, HGV expects a repeat issuance and to potentially scale the programme further, incorporating US collateral if investor appetite develops.
“As the programme matures, we anticipate scaling it further,” Mathewes confirms. For now, the debut deal stands as a rare example of cross-border innovation in a traditionally conservative market.
Matthew Manders
News
Asset-Backed Finance
Thermondo debuts private securitisation for solar, heat pump refi
Inaugural deal could encourage broader adoption of renewable energy ABS in Europe
Berlin-based Thermondo has completed its first securitisation of solar and heat pump receivables in a private transaction that the team at Hogan Lovells, advising on the deal, say introduces structural innovations that could encourage broader adoption of renewable energy-backed securities in Europe.
“This is really the opening of a new asset class in Europe,” says Dietmar Helms, Frankfurt-based partner at Hogan Lovells involved in the transaction alongside counsel Sebastian Oebels.
The financing was carried out through the issuance of German-law registered structured notes to a single investor, with flexibility to upsize or downsize as Thermondo builds its receivables pool.
To achieve this deal, Thermondo changed parts of its business model, shifting from rental contracts to installment purchase agreements, a move that enables a true-sale assignment of receivables under German law and that is, therefore, suitable for securitisation.
“We advised Thermondo to move from rental contracts to installment purchase agreements,” explains Helms. “Unlike rental contracts, which never truly fit the product, installment purchases mirror consumer loans: customers who pay in installments can use subsidies for early repayment and, crucially, they keep ownership. It’s simpler for households and makes the receivables insolvency-proof and thus securitisable.”
Private today, public tomorrow
The notes were placed privately and are not listed or cleared, but Helms and Oebels expect the company to move towards a public securitisation once the portfolio grows to sufficient scale.
“The long-term goal is a public securitisation, which brings cheaper funding, broadening the investor base,” says Oebels. “For now, a private deal made sense: a bespoke structure under German law that can flex in size as Thermondo builds its receivables pool.”
For investors, the asset class promises strong fundamentals. “These are long-tenor contracts with homeowners who’ve already cleared mortgage-level credit checks,” notes Oebels. “And in the case of solar, monthly payments are often offset by reduced electricity bills, so the financing shouldn't increase household burden.”
Helms adds: “This asset class is comparable to auto loan ABS, but with even stronger credit quality, since the receivables come from homeowners investing in long-term energy efficiency.”
Thermondo’s inaugural deal signals growing demand for green ABS in Europe, long established in the US. The deal, along with similar transactions by peers, such as Enpal, points to securitisation becoming a core refinancing tool for household-level energy transition assets.
“The European securitisation market for renewable energy assets has been slow to innovate compared to the US, but upcoming years could hopefully change that,” says Oebels. “There’s significant demand for green investments, and securitisation provides a competitive refinancing tool for companies like Thermondo.”
Thermondo, founded in 2012, is one of Germany’s largest installers of residential heating systems and pivoted from gas and oil boilers to renewable solutions in 2024.
Marta Canini
News
Asset-Backed Finance
Klarna seals US$26bn forward flow deal to drive US expansion
Global fintech teams up with Nelnet to optimise balance sheet and boost liquidity
Klarna has secured one of the largest forward flow agreements in the BNPL sector, striking a multi-year deal worth up to US$26bn with US financial services firm Nelnet. The deal is designed to develop and enhance Klarna's capital structure.
"This is a landmark transaction for Klarna in the US," says Niclas Neglén, the company's cfo. “This is our first forward flow agreement based on BNPL loans in the US, our largest market, and is based on a model we first introduced in the UK in 2024.”
According to him, the transaction will provide Klarna with a funding mechanism that enables asset derecognition and capital release. “This transaction supports Klarna to keep growing at pace and continue to capitalise on the significant market opportunity in the US,” he comments.
Neglén further explains that this type of forward flow transaction will ensure that Klarna continues to have a well-diversified funding toolkit, ranging from deposits to capital markets. “We've long operated with a balance sheet-light model, and this takes it a step further, opening up more room for growth,” he states.
The partnership with Nelnet came after a competitive tender process, with Nelnet chosen based on commercial terms and its expertise in the asset class, as Frank Farrell, the company’s head of treasury, explains.
“For these forward flow transactions, it is important to partner with investors who have strong knowledge of the assets to ensure smooth in-life management of the transaction, and Klarna prioritises this across all of its transactions,” he says.
According to Judd Deppisch, cio of Nelnet Financial Services, the partnership will allow the company to invest in attractive cash-flow assets. "This strategic partnership leverages our expertise and financial strength to invest in attractive cash-flowing assets while supporting Klarna's valuable offering to US consumers, with the support of our lending partners."
BNPL growth in the US
Forward flow agreements have emerged as a cornerstone funding mechanism for the rapidly expanding BNPL sector. Particularly in the US, the usage has surged to 91.5 million customers, with projections reaching 100.8 million by 2027, according to data from DigitalSilk. Klarna maintains its position as the dominant player in the country, available on 40.1% of all US websites.
The structure has gained traction as consumers increasingly prefer the short-term fixed instalment plans offered by BNPL over open-ended, high-interest credit cards. However, this short duration requires expertise on the collaboration between the parties involved, as Frank Farrell explains.
“These BNPL loans are extremely short dated, with an average loan duration of 21 days, which demands close collaboration between the issuer and investor to structure a transaction which works for both parties, and the banks providing the senior leverage,” he says.
Under the programme, Klarna will retain origination and servicing responsibilities for all receivables, ensuring continuity for consumers and merchant partners whilst benefiting from the balance sheet optimisation that positions the company for sustained US market expansion.
Marina Torres
News
RMBS
Saudi Arabia's first RMBS launched following SAMA clearance
More than two years in the waiting, the landmark deal supports Vision 2030 homeownership targets
The Saudi Real Estate Refinance Company (SRC) has completed the Kingdom’s first RMBS issuance, following no-objection clearance from the Saudi Central Bank (SAMA). The debut deal has been long anticipated after Moody’s highlighted in late 2023 SRC as the
most likely candidate
to deliver the country’s first Shari’ah-compliant RMBS.
However, at that time, White & Case partner
Debashis Dey
warned that there may be some wait ahead, suggesting that the key challenge lay not in reconciling securitisation with Islamic principles, but in building sufficient investor demand and regulatory clarity to support issuance.
The deal marks the inaugural transaction under SRC’s domestic securitisation programme, which is intended to deepen the Kingdom’s housing finance market by transforming mortgage portfolios into tradeable securities. According to SRC, the programme is designed to broaden the investor base, diversify funding sources and strengthen sector liquidity.
On the transaction, SAMA has publicly noted that it will contribute to establishing a robust securitisation issuance framework and reinforce the domestic debt market. The central bank added that the initiative is aligned with Saudi Vision 2030, which aims to increase homeownership rates to 70% by the end of the decade, while also enhancing financial market stability and development.
Although the
announcement
does not specify Shari’ah compliance, this is typically a prerequisite for regulatory approval from SAMA. SRC has also previously emphasised its commitment to Islamic finance standards, and market observers have long expected its inaugural RMBS to be aligned accordingly.
The transaction represents a milestone in the development of Saudi Arabia’s securitisation market, laying the groundwork for further issuance - potentially including explicitly Shari’ah-compliant structures - as the Kingdom’s mortgage and consumer finance sectors mature.
Market Moves
Structured Finance
Job swaps weekly: PGGM appoints credit risk sharing leader
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees PGGM announce a new head of credit risk sharing following the departure of Mascha Canio last month. Elsewhere, Proskauer has appointed a New-York-based partner in its US structured credit practice, while S&P Global has hired a London-based md focusing on structured finance.
PGGM has promoted Barend van Drooge to head of credit risk sharing, following the departure of former head of credit and insurance linked investments Mascha Canio, who was announced to be joining CalPERS last month.
Based in Zeist, the Netherlands, van Drooge will oversee a newly formed portfolio management team comprising industry veterans Luca Paonessa as lead portfolio manager and Angélique Pieterse as lead external engagement. Together, the trio bring a combined 40 years’ experience at PGGM.
Van Drooge was previously deputy head of credit and insurance-linked investments, while Pieterse served as senior investment manager and Paonessa as senior portfolio manager on the credit risk sharing transactions team.
Meanwhile, Proskauer has hired Jon Burke as a partner in its US structured credit practice, based in New York. Burke primarily focuses on CLOs but also advises on other structured finance transactions including CFOs and ABF. He leaves his position as partner at Dechert after a combined eight years with the firm across two spells. Burke originally left his role as associate at Dechert in 2018 to take up a position as special counsel at Milbank, before returning around three years later. He also previously worked at Stroock & Stroock & Lavan.
Andrew Scourse has joined S&P Global as md, structured finance - criteria subject matter expert in global analytics and methodologies, based in London. He was previously md at Santander, with wide-ranging securitised product expertise, and worked at RBS and ABN AMRO before that.
Natixis Corporate & Investment Banking director and structured credit specialist Harry Choulilitsas has left the firm and announced his departure from investment banking. Choulilitsas has been with the business for four years, and worked on the sell-side for almost a decade, including spells at Mediobanca and ICBC Standard Bank.
ELFA has named Irem Sukan, Glenn Oliver Anderson and Marios Halloumis as the new co-chairs of its ESG committee, which will steer the association’s future ESG initiatives. Sukan is an executive director on J.P. Morgan Asset Management’s European high-yield team, Anderson is the sustainability lead for private and structured credit at M&G Investments and Halloumis is an ESG investment integration director for public assets within Barings’ sustainability and ESG team.
Hayfin Capital Management has appointed Marco Ferrari as md in its private credit team, based in the Stockholm office. Ferrari joins from Nordea where he was a md focused on the origination and execution of leveraged loan and high-yield financings in the Nordic region. Prior to this, he worked in investment banking at Ermgassen & Co in London. The appointment signifies another milestone for Hayfin’s growing presence in the Nordic region, following the launch of the firm’s Stockholm office and the addition of Christian Peters to the Partner Solutions team in 2022, the firm says.
And finally, Gallagher Re has appointed Alexander Georgetti as executive director in its speciality lines team in the UK. Georgetti will focus on the production and placement of credit, surety and political risk for both domestic and global clients, and joins the firm from Aon where he operated as a credit and financial risks reinsurance broker.
Claudia Lewis, Corinne Smith,
Ramla Soni, Kenny Wastell
structuredcreditinvestor.com
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