Sector developments and company hires

CyCAC securitisation closed
Oxalis Holdings has completed a securitisation backed by a portfolio of Cypriot non-performing loans (NPLs) and real estate owned (REO) properties (see SCI’s Euro ABS/MBS Deal Tracker). Dubbed Hestia Financing, the €2.2bn transaction implements a two-tier structure for the management of the portfolio.

The portfolio has a total adjusted pool value of €2.06bn and was originated by Bank of Cyprus. The portfolio was acquired by Themis Portfolio Management Holdings, a Cypriot Credit Acquiring Company (CyCAC), which was in turn acquired by Oxalis Holdings.

The portfolio will be serviced by Themis Portfolio Management Limited. According to the servicer’s business plan, expected lifetime collections - net of asset-level costs - amount to €1.079bn.

The pool mainly comprises senior secured loans (accounting for 79% of the exposures) and the borrowers are mainly individuals (59%). The collateral is a mix of residential real estate assets and land (representing 57% and 25% of appraised property value respectively), with the remainder mainly commercial and industrial real estate. Properties are concentrated in Nicosia and Limassol (35% and 29%).

The transaction’s two-tier structure involves the CyCAC holding the credit rights over the loans and several pre-existing Real Estate Owned Companies (ReoCos), with security rights over the REO assets. The issuer subscribes to senior notes issued by the CyCAC, structured to allow cashflow from the assets - less certain costs and expenses of the CyCAC - to flow into the issuer’s accounts. These are then used as available funds in the issuer level waterfall to repay the issuer’s liabilities.

DBRS Morningstar and Scope rated the €475m class A notes triple-B (low) and triple-B respectively. The €1.725bn class Z notes are unrated.

In other news…

Analytics investment completed
Data and technology firm DealX has completed a Series A capital raise by Morningstar Credit Information & Analytics (MCIA). DealX’s flagship products include DealX Report Stream, a structured products trustee report and data source, and the DealX CMBS and CLO market data feeds.

The investment furthers MCIA’s strategic initiative to increase transparency and offer more data and tools to credit-market decisionmakers. Working with MCIA will enable DealX to execute on its strategy to broaden its distribution of data and scale its information-sharing platform to new customer segments. The capital will be used for key hires in sales and product development.

Direct lender acquired
CIFC has acquired the middle market direct lending platform LBC Credit Partners, as it continues to develop its credit business. LBC has over US$3bn assets under management, and this acquisition will see its investment fund and team become a subsidiary of the CIFC platform – although LBC will continue to trade under the LBC name.

As well, the new subsidiary will retain its offices across the US, and its investment strategy, senior management team, origination, underwriting, research and portfolio management strategies will remain unchanged. CIFC hopes to leverage LBC’s expertise in direct lending to better serve its global institutional investors, having already grown assets by more than US$5bn this year.

North America
Annaly has promoted Ilker Ertas to cio, directing the firm’s investment strategies - including growth initiatives, capital allocation and portfolio operations – as it seeks to expand its mortgage finance business. Ertas, who has worked in the industry for over 20 years and has been with Annaly since 2015, will take on the new role having most recently served as the company’s head of securitised products. He will continue to report to Annaly’s ceo, David Finkelstein, and will remain a serving member of the firm’s operating committee.

Rich Highfield has joined Greystone as the new head of its CMBS lending platform, responsible for the expansion of its proprietary conduit offering into multifamily and commercial assets. Greystone hopes the hire of the industry professional, with over 25 years of experience, will aid the expansion of the firm’s lending platform business and reduce borrower stress.

Highfield joins from Starwood Mortgage Capital, where he led the CMBS/conduit platform as its president. The new position will be based in Charlotte, North Carolina, and he will report directly to Gresytone vp Kevin Williams.

Loomis Sayles has welcomed back Keith Allman to the firm as its new head of research and private credit for the mortgage and structured finance (MSF) team. In the newly created role, Allman will oversee a team of seven analysts and will lead the firm’s work to originate private credit opportunities alongside securitised strategist Michael Meyer.

Allman has previously worked as a senior analyst on the Loomis Sayles MSF team, from 2016 to 2019, where he focused on commercial and esoteric ABS. He will re-join the firm from MUFG, where he served as head of non-flow ABS and led the building of several esoteric structured products.

Loomis Sayles hopes the new hire will strengthen the research capabilities of the MSF team and allow a greater focus on certain asset classes, such as esoteric ABS and asset-backed private credit, that are currently receiving increased interest from investors.