Market Moves

  • Regions boosts CRE capability

    Sector developments and company hires

    Regions boosts CRE capability
    Regions Bank has entered into a definitive agreement to acquire Sabal Capital Partners, one of the top originators of Fannie Mae and Freddie Mac small-balance commercial real estate loans with a growing presence in non-agency CMBS loan origination. Regions plans to incorporate Sabal into its growing real estate capital markets division.

    Based in Irvine, California, .......

    Market Moves 5 October 2021

  • CIFC, TRS launch leveraged loan partnership

    Sector developments and company hires

    CIFC, TRS launch leveraged loan partnership
    Teacher Retirement System of Texas (TRS) and CIFC Asset Management have established a new leveraged loan investment fund platform known as Texas Debt Capital (TDC). A CIFC affiliate is the general partner and investment manager of TDC, while TRS is the anchor investor limited partner and has committed significant equity to the fund. The .......

    Market Moves 4 October 2021

  • SFA paper supports agency CRT

    Sector developments and company hires

    SFA paper supports agency CRT
    The SFA has published a white paper on the economics of credit risk transfer at Fannie Mae and Freddie Mac. The paper responds to an earlier FHFA report that had questioned the economic benefits of CRT (SCI passim) and illustrates how CRT has been - and can continue to be - an effective credit risk .......

    Market Moves 1 October 2021

  • CLO ETF moves down cap stack

    Sector developments and company hires

    CLO ETF moves down cap stack
    Janus Henderson Group has filed a preliminary registration statement with the US SEC for the Janus Henderson B-BBB CLO ETF (JBBB) for US investors. The exchange-traded fund - which is expected to be the first ETF focused on providing exposure to single-B to triple-B rated CLO tranches - will be managed by portfolio managers .......

    Market Moves 30 September 2021

  • Synthetic Libor settings confirmed

    Sector developments and company hires

    Synthetic Libor settings confirmed
    The UK FCA has confirmed that to avoid disruption to legacy contracts that reference the one-, three- and six-month sterling and Japanese yen Libor settings, it will require ICE Benchmark Administration to publish these settings under a 'synthetic' methodology, based on term risk-free rates, for the duration of 2022. However, these six Libor settings will be .......

    Market Moves 29 September 2021

  • Fraud charges for Honor Finance pair

    Sector developments and company hires

    Fraud charges for Honor Finance pair
    The US SEC has announced fraud charges against James Collins and Robert DiMeo, the former principals of Honor Finance, for misleading investors about the subprime automobile loans that backed its US$100m offering. The SEC's complaint, filed in US District Court for the Northern District of Illinois, alleges that the pair were responsible for false .......

    Market Moves 24 September 2021

  • Call for 'risk-sensitive' prudential approach

    Sector developments and company hires

    Call for ‘risk-sensitive’ prudential approach
    The ECB has published its comments in connection with the European Commission’s targeted consultation on the functioning of the EU securitisation framework. In particular, the ECB says that the experience it has gained - as an investor in the ABS market through its asset purchase programmes, a collateral taker in its credit operations and as .......

    Market Moves 23 September 2021

  • US CLOs, Trups CDOs under observation

    Sector developments and company hires

    US CLOs, Trups CDOs under observation
    Fitch has placed 102 tranches issued by 43 US CLOs and 13 tranches issued by seven Trups CDOs under criteria observation (UCO), following the publication of its CLO and corporate CDO rating criteria last week (SCI 17 September). The agency intends to resolve the UCO status by applying the updated criteria to each .......

    Market Moves 22 September 2021

  • Pandemic 'feedback loop' highlighted

    Sector developments and company hires

    Pandemic ‘feedback loop’ highlighted
    Secular changes affecting the recovery of in-person office occupancy in New York City is consequential not only for property-level cashflow, but may also have ripple effects on other sectors, Fitch suggests. The city is the largest US office market and the rating agency says it provides a good case study of the potential feedback loop of .......

    Market Moves 21 September 2021

  • Pagaya goes public via SPAC

    Sector developments and company hires

    Pagaya goes public via SPAC
    Fintech securitisation issuer Pagaya Technologies and EJF Acquisition Corp (EJFA), a publicly traded SPAC, have entered into a definitive business combination agreement. As a result of the transaction, which values the combined company at an estimated enterprise value of approximately US$8.5bn at closing, Pagaya will become a publicly listed entity.

    Founded in 2016 by .......

    Market Moves 20 September 2021

  • Securitisation execs promoted in PGIM reorg

    Sector developments and company hires

    Securitisation execs promoted in PGIM reorg
    PGIM Fixed Income has reorganised its senior management team, with the appointments effective from 1 January 2022. Under the reorganisation, md John Vibert has been promoted to the newly created role of president.

    Vibert joined PGIM Fixed Income in 2014 as the head of securitised products and serves in that role currently. Prior .......

    Market Moves 17 September 2021

  • NPR issued on GSE capital framework

    Sector developments and company hires

    NPR issued on GSE capital framework
    The FHFA is seeking comment on a notice of proposed rulemaking that would amend the Enterprise Regulatory Capital Framework (ERCF) for Fannie Mae and Freddie Mac. The proposed amendments would refine the prescribed leverage buffer amount (PLBA) and the capital treatment of credit risk transfers (CRT) to better reflect the risks inherent in the .......

    Market Moves 16 September 2021

  • Specialist lender stake acquired

    Sector developments and company hires

    Specialist lender stake acquired
    BNP Paribas Asset Management (BNPP AM) is set to acquire a majority stake in Dynamic Credit Group, the Amsterdam-based asset manager and specialist lender with €9bn of assets under management. The deal will allow BNPP AM’s private debt and real assets (PDRA) investment division - which currently managed €11bn of client commitments - to significantly grow .......

    Market Moves 15 September 2021

  • 400CM tap NPL ABS market

    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) .......

    Market Moves 13 September 2021

  • RFI issued on sustainable housing

    Sector developments and company hires

    RFI issued on sustainable housing
    The FHFA is requiring Fannie Mae and Freddie Mac to submit Equitable Housing Finance Plans by end-2021, with the plans to be updated annually. The plans will identify and address barriers to sustainable housing opportunities, including the GSEs’ goals and action plans to advance equity in housing finance for the next three years. The FHFA .......

    Market Moves 10 September 2021

  • CLO equity investment agreement inked

    Sector developments and company hires

    CLO equity investment agreement inked
    CQS has entered into a strategic investment agreement with Jefferies and three investment management firms to support the new issuance of US CLOs on the CQS platform. Under the terms of the agreement, Jefferies and the investment management firms will provide CLO equity capital and warehouse funding to support the new issuance of four to .......

    Market Moves 9 September 2021

  • Cyberattack scenarios weighed

    Sector developments and company hires

    Cyberattack scenarios weighed
    S&P reports that it has seen more credit-relevant cyber events in the last six months than in the previous six years, including the first structured finance transaction reporting an operational disruption following a ransomware attack on the originator and servicer (SCI 28 May). The rating agency says it has explored several hypothetical scenarios to identify areas .......

    Market Moves 8 September 2021

  • SFDR to spur Article 8 CLOs

    Sector developments and company hires

    SFDR to spur Article 8 CLOs
    CLOs may soon be structured as Article 8 funds under the EU Sustainable Finance Disclosure Regulation (SFDR), as part of the rotation of capital towards assets that promote ESG objectives, according to White & Case. The firm notes in a recent client memo that Article 8 funds that invest in CLOs are already emerging and .......

    Market Moves 7 September 2021

  • Assured wraps Euro CLO pair

    Sector developments and company hires

    Assured wraps Euro CLO pair
    Assured Guaranty has over the last month wrapped a portion of debt issued by two European CLOs for European investors. Assured Guaranty (Europe) guaranteed €125m of triple-A rated class A notes issued by NIBC Bank’s North Westerly V CLO, while Assured Guaranty Corp and Assured Guaranty UK co-guaranteed €100m – in aggregate – across the .......

    Market Moves 6 September 2021

  • Student housing sponsor accused of 'Ponzi-like' scheme

    Sector developments and company hires

    Student housing sponsor accused of ‘Ponzi-like’ scheme
    The US$36m SkyLoft Austin loan - securitised in the UBSCM 2019-C16 CMBS - is over 30 days delinquent in payment, as of the August 2021 remittance period. The loan is sponsored by Patrick Nelson, who is reportedly being sued by dozens of minority investors involved in the acquisition of the property.

    Nelson .......

    Market Moves 27 August 2021

  • CLO control equity fund closed

    Sector developments and company hires

    CLO control equity fund closed
    Lakemore Partners has successfully closed Aquatine IV at US$400m, due to strong investor demand. Aquatine IV is Lakemore’s fourth CLO fund within the Aquatine platform, which invests in control equity positions in US CLOs. Investors in the fund comprise a diverse group of institutional investors, representing private banks, fund of funds, insurance companies, family offices .......

    Market Moves 26 August 2021

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