Sector developments and company hires

400CM tap NPL ABS market
400 Capital Management has closed two securitisations backed by US$780.2m of residential non-performing loans. The firm entered into the securitisations to obtain term financing, remove mark-to-market risk, reduce cost and create scalable fixed-rate financing.

Given the size of the loan pool, 400CM decided to offer two transactions with similar characteristics. 510 Asset Backed (FTAB) 2021-NPL1 - which closed on 29 June - was backed by NPLs with an unpaid principal balance of US$397m and achieved an 80% advance rate for the offered notes. The second transaction - FTAB 2021-NPL2 - closed on 11 August and was backed by US$383.2m of NPLs, with an advance rate of UPB of 81%.

The servicers for the transactions are Rushmore Loan Management Services and Columbus Real Estate Management. The program administrator is Truman Capital Advisors.

In other news…

Corporate service provider acquired
CFE Finance has completed a co-investment - alongside founder Massimo Longoni - of an equal stake of LFS Holding, a holding company that controls corporate service provider and transfer agent Luxembourg Fund Services. The firm specialises in regulated and unregulated investment funds, corporate domain, tax and accounting services, central administration and transfer agency. The acquisition strengthens CFE Finance’s corporate and advisory services hub in Luxembourg. 

EMEA
DBRS Morningstar has appointed Mudasar Chaudhry as head of European structured finance and covered bond research. He will report to Christian Aufsatz, head of European structured finance at the rating agency.

Chaudhry has over 15 years of experience in the European structured finance and loans markets and joined DBRS Morningstar in 2011 as a lead analyst on the European structured credit team. He previously worked at PGIM, Bluecrest Capital Management and Fitch.