Sector developments and company hires

Canadian MBS ETF
BMO Asset Management has launched a new stable of ETFs trading on the TSX, including the first MBS ETF in Canada. Dubbed BMO Canadian MBS Index ETF, the offering aims to provide unique exposure to a segment of the MBS market fully guaranteed by the Canada Mortgage and Housing Corporation (CMHC). The pools each have a term to maturity greater than one year and a minimum amount outstanding of C$100m.

C-PACE ABS rated
Petros PACE Finance has completed its seventh privately rated C-PACE securitisation, marking the first time a C-PACE ABS has been rated under DBRS Morningstar’s new methodology. Petros PACE Finance served as its own placement and structuring agent on the transaction, using T-REX software for the structuring and reporting, along with a capital call line from ING.

CRT upgraded on CE increase
Moody's has upgraded four tranches of the credit protection deed between Santander UK and the Red 1 Finance CLO 2017-1 synthetic CMBS, affecting approximately £158m of securities. The risk transfer transaction’s class C, D, E and F notes were respectively upgraded from Aa3, A2, Baa2 and Ba2 to Aaa, Aa2, A2 and Ba1. The class B notes were also affirmed at Aaa. The actions reflect the further substantial increase in credit enhancement for the senior tranches, following the sequential allocation of principal proceeds from loan repayments and the stable loan performance. Moody’s notes that only one loan remains on the servicer's watchlist from three at the previous rating action in August 2019.

EMEA
HIG Bayside Capital has promoted Andrew Scotland to co-head its European special situations debt activities, alongside Bayside md Duncan Priston. Scotland joined the firm in 2013, having previously worked as an md in RBS’s special situations group, focusing on European distressed investments.

Standard Chartered is recruiting for a London-based CLO trader at the director level. The new hire will help deliver the strategic direction and performance of CLO secondary markets at the bank, by working with the asset-backed solutions desk to create a best-in-class global CLO trading offering.

North America
Incapital has strengthened its fixed income platform with the hiring of md David Petrosinelli and svps Thomas Hofacker, Scott McGowan and Larry Meding. Based in New York, Petrosinelli joins Incapital from Brean Capital, where he was md specialising in ABS and non-agency RMBS. Based in Florida, Hofacker joined from D.A. Davidson and will focus on corporates, agency and non-agency RMBS, CMBS and ABS. Based in Oklahoma, McGowan specialises in mortgage-related products and previously worked for Penserra Securities, BB&T, Mountainview Securities, Advest and Coastal Securities. Based in Chicago, Meding joins from Ramirez & Co and has experience working with financial institutions to manage risk and improve performance. The new hires will report to George Holstead and Laura Elliott, co-heads of fixed income at Incapital.