Sector developments and company hires

Forbearance SPV availability ends
The Australian Office of Financial Management has released an update on its Structured Finance Support Fund (SFSF) activities. As of 31 March 2021, total funds committed by the SFSF were A$3.8bn, including A$1.36bn public market investments and circa A$2.3bn across 45 individual warehouses sponsored by 34 eligible lenders.

The AOFM notes that public securitisation market conditions continued to improve through the first quarter and no requests for support were received in connection with public transactions or private warehouse facilities during the period. Nevertheless, there has been an increase in the number of issuers expressing an interest in replacing the AOFM’s positions with private sector commitments. As of 31 March, the AOFM had been replaced by other investors in two instances.

Meanwhile, the Forbearance SPV (fSPV) availability period ceased at end-Q1. Total draws on the fSPV stand at A$47m, inside the approved limits of A$101.6m. “Drawdowns under the fSPV have been substantially lower than expected, due to the rapid improvement in Covid-19 hardship portfolios through the March quarter. Repayments of support drawn under the fSPV are scheduled to begin [this month], though…some originators in the fSPV programme have already commenced the repayment of principal and interest ahead of their original schedule,” the AOFM observes.

In other news…

Electronic closing solution launched
ICE Mortgage Technology has launched a solution that aims to transform the way mortgage loans are electronically closed in the US. Dubbed Encompass eClose, the solution enables lenders to electronically facilitate every aspect of the mortgage closing workflow, from ordering documents to delivering to loan investors, by leveraging a standardised platform. Later this year, ICE Mortgage Technology will expand eClose support in Encompass by providing eNotes and eVault, MERS eRegistry, witnessed documents, as well as eNotary support.

ESG credit indicators planned
S&P intends to introduce alpha-numerical ESG Credit Indicators to help explain the influence of ESG factors on its credit rating analysis. Over time and not before September, it will begin publishing ESG Credit Indicators for rated entities and, where relevant, at the transaction level. The agency notes that these indicators will not affect its credit ratings because they do not form part of its credit rating methodologies.

North America
Aeolus Capital Management has recruited alternative investments research and portfolio advisory specialist Amit Patel. Patel has been providing investor clients with research and advisory on alternative investments for more than a decade at Aksia. He will be based in Bermuda for the role.