Company hires and sector developments

Co-founder moves on

BlueMountain’s co-founder and co-president Stephen Siderow is set to leave the firm, but he will continue in his current management role through the end of this year to support an orderly transition. The firm was acquired by Assured Guaranty at the start of the month and is making a number of changes to its platform, including the wind down of its Blue Mountain Credit Alternatives Master Fund, which holds roughly US$2.5bn AUM.

The firm says that it plans to launch new strategies aligned with the firm’s focus on collateralised loan obligations (CLOs) and structured finance. Such strategies will include the areas of CLO equity tranches, as well as asset-backed securities focused on private debt investments in specialty finance companies and assets.

UK CMBS downgrade

S&P has lowered its credit rating on Intu Metrocentre Finance fixed-rate secured notes to triple-B plus from single-A. The CMBS closed in November 2013, and is secured by a single loan backed by a UK regional shopping center. The agency says that a combination of declining cash flows from the property, combined with our view of an increasingly challenging environment for retail tenants, has worsened the credit metrics of the notes.

CRT upgrade

Moody's has upgraded from Baa3 to Baa1 the US$375m C tranche of HSBC’s capital relief trade Metrix Portfolio Distribution and affirmed the US$1.46bn (current balance) A and US$450m B tranches at Aaa and Aa1 respectively. The rating actions reflect the significant amortisation of the portfolio from US$3.55bn in October 2018. There have been three reported credit events: two bankruptcies, where final work-out has not yet been achieved; and one restructuring, where the final loss has been determined. Moody’s notes that the current pool remains well-diversified.

Housing finance MOC

Malaysia’s Cagamas and the Japan Housing Finance Agency have agreed a memorandum of cooperation (MOC), with the aim of strengthening the development of housing finance in their respective countries, particularly in the areas of green housing, MBS and other funding instruments. A central feature includes identifying and attracting private and public capital investment.