Sector developments and company hires

Policymakers urged to address securitisation ‘strategic loss’ 
A group of nine organisations representing key participants in the European securitisation market have written a public letter to EU policymakers, calling on them to take urgent targeted measures to ensure that securitisation can support the European economy during a testing period marked by macroeconomic uncertainty. The letter highlights how securitisation volumes in Europe have continued to decline in 2022, in sharp contrast to the growth seen in other markets in recent years, and that it is currently a critical moment for European securitisation as key regulatory workstreams are underway that could contribute to the recovery of the market or exacerbate current regulatory imbalances.

For example, targeted measures in the prudential requirements for banks under CRR3 and insurers under Solvency 2, together with a well-designed EU Green Bond Standard would be important steps towards a better functioning securitisation market. The organisations are therefore calling on EU legislators to use these discussions to introduce immediate adjustments to securitisation-related calibrations and concrete mandates for more risk-sensitive revisions to be undertaken as a subsequent step. There are also critical technical standards under preparation that could negatively impact the market if further disproportionate requirements are introduced.

“The absence of a well-functioning securitisation market represents a strategic loss to the European financial system. It is undermining the competitiveness of European financial institutions and limiting their ability to recycle capital to support new financing. It has encouraged institutional investors to shift towards other products that do not offer the same advantages in terms of protection, transparency and liquidity,” the letter states.

It continues: “At the heart of the problem is a disconnect between the Commission’s vision for securitisation in Europe – a tool making a significant contribution to a well-functioning financial system that efficiently finances the real economy – and aspects of the regulatory framework which remain miscalibrated and, in practice, disincentivise issuance and investment in securitisations, thus holding back the tool’s potential to support the economy.”

The group includes AFME, the Dutch Securitisation Association, the European Banking Federation (EBF), the International Association of Credit Portfolio Managers (IACPM), Leaseurope, Eurofinas, Paris EUROPLACE, PCS and True Sale International.

In other news…

Acquisitions
Alantra has taken a further step into the advanced analytics and AI space with the acquisition of a majority stake in Deko Data. The move follows the firm’s earlier acquisition of urbanData Analytics in 2019.

Alantra hopes the new addition to its investment banking and asset management services will further enhance its offering to mid-sized companies seeking to accelerate growth, better efficiency and boost overall value. Led by Pedro Agudo, Deko Data managing partner and ceo, Alantra will work to grow the newly founded firm from its existing 10 senior professionals to a team of 60 professionals by the end of 2023.

CSC has finalised its acquisition of global administration services provider Intertrust Group. The acquisition will see Intertrust Group offering global business administration and compliance solutions to clients across more than 140 jurisdictions.

The combining of the two solutions providers through the acquisition will see the pair working as one company to support clients through the ever-evolving compliance and regulatory environment. The joint organisation will be led by Rod Ward, who has served as president and ceo of CSC for almost 13 years, and he will be supported by the firm’s enterprise leadership team – including Intertrust Group ceo Shankar Iyer.

EMEA
BNP Paribas has named Michael Htun head of CLO trading, Europe, based in London. Htun was previously a senior CLO trader at the bank, which he joined in May 2021. Before that, he worked at Cairn Capital, NatWest, RBC, Fitch and Halcyon Capital Management.

New name
Following the strategic combination between Cairn Capital and Bybrook Capital last year (SCI 3 February 2021), the two firms have rebranded as Polus Capital Management. The new name reflects the coming together of two successful European credit managers to create “a cohesive firm with a shared vision and unified goals”. With teams in London and New York, the firm invests across the capital structure and liquidity spectrum, using a relative value framework grounded in intensive fundamental credit analysis with a strong emphasis on capital preservation.

North America
Octaura has appointed Jason Cohen as its new coo and cfo, as the firm continues to scale up its business in the leveraged finance and structured credit markets. Cohen’s dual role will see him maintain responsibility for the implementation of the electronic trading, data and analytics solutions platform’s operational aspects and determine its financial strategy. He brings almost 30 years of leadership and financial technology knowledge to Octaura, having most recently served as md for product management and market operations at the CME Group.