Company hires and sector developments

European RMBS transactions mandated

A pair of European RMBS transactions have been mandated, marking the first European securitisations of the year, barring CLOs. The first is a UK RMBS, dubbed Lanark 2019-1, from Clydesdale Bank, which has mandated BAML, BNP Paribas, Citi and Wells Fargo for the transaction, subject to market conditions. The second, from Italian lender Cassa di Risparmio di Bolzano, also known as the Sparkasse Bolzen, is a re-offer of the A1 tranche of their prime RMBS deal Fanes 2018. According to Rabobank, the €507m deal was launched in June last year and was fully retained. €315m is still outstanding for the offered A1 tranche, down from the original outstanding amount of €355.9m. The senior tranche is rated double-A by S&P and Aa3 by Moody’s. Rabobank’s structured finance analysts note that, as the deal dates back to 2018, it likely falls under the old regime of regulations and not the new Securitisation Regulations and STS regime.

Rating agency opens China office

S&P is set to establish and operate a credit rating agency (CRA) in China’s domestic bond markets, following confirmation that its filing with the People’s Bank of China Operations Office (Beijing) has been formally accepted and its registration application with China’s National Association of Financial Market Institutional Investors (NAFMII) has also been approved. These approvals mark the first time that a company wholly owned by an international CRA has been able to rate domestic Chinese bonds. Under the terms of the NAFMII approval, S&P Global (China) Ratings is authorised to rate issuers and issuances from financial institutions and corporates, as well as structured finance bonds and Renminbi-denominated bonds from foreign issuers. Simon Jin, head of S&P Global, Greater China, has been named ceo of the new CRA.