Talking Point

  • Leveraged finance: stepping into the void

    Contributed thought leadership by Ocorian

    As funds continue to reallocate capital to direct lending strategies, Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlights the crucial role of independent loan service providers in streamlining fund loan portfolios

    In a continuation of the legacy of the 2007-2008 global financial crisis, large commercial banks .......

    Talking Point 7 December 2020

  • Transatlantic challenges

    Contributed thought leadership by Mayer Brown

    Complying with EU and US CRT rules simultaneously

    A number of law firms have developed excellent synthetic securitisation practices in Europe, but few firms are at the forefront of developing synthetic securitisation in the US, and even fewer have a practice which can navigate EU and US synthetic securitisation rules at the same time. Mayer Brown stands out as the .......

    Talking Point 8 October 2020

  • Structured finance solutions

    Contributed thought leadership by Ocorian

    Sonal Patel, md, head of sales - Americas, Bermuda and Caribbean, and Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlight how structured finance solutions are coming to the fore across securitisation markets

    Q: How is the securitisation industry responding to the Covid-19 fallout and .......

    Talking Point 7 October 2020

  • View from an investor Part II

    Last week DuPont Capital's Karlis Ulmanis told us where he s...

    Things not to like

    CRT

    Three GSE CRT bonds have been issued since early March, when the lockdown began. These were the most recent $1.088bn (upsized from $1.038bn) STACR DNA4 priced by Freddie on August 18, the $1.1bn STACR 2020-DNA3 printed at the beginning of July which re-opened the market and the $835m STACR 2020-HQA3 printed at the end of .......

    Talking Point 1 September 2020

  • View from an investor

    SCI hears from an US MBS buyer about what he likes in the market... and next week what he doesn't

    Karlis R. Ulmanis, CFA, is a portfolio manager at DuPont Capital. In these waning days of summer, he gave an hour of his time last week to sit down (virtually, of course…) with SCI to discuss where he sees value in the current somewhat fractured and definitely jittery MBS market, agency and non-agency. We publish the first half of .......

    Talking Point 25 August 2020

  • Resolve and resilience

    Content sponsored by Ocorian

    James Maitland, regional head of Americas, Bermuda & Caribbean, and global head of capital market services at Ocorian, spoke to SCI about how resilience is benefiting the industry and his firm

    With the traditional office environment disappearing almost overnight and widespread personal restrictions, we have seen a smooth transition and incredible resilience both within our own firm and across the .......

    Talking Point 10 June 2020

  • Drafting issues

    Assia Damianova, special counsel at Cadwalader, Wickersham &...

    CRTs typically consist of a credit transfer instrument entered into between the credit institution and an SPV, with notes issued by the SPV to investors, the payments in respect of which are linked to payments on the credit transfer instrument. Most CRTs use a financial guarantee (“FG”) as the credit transfer instrument (instead of a CDS that requires daily .......

    Talking Point 11 May 2020

  • Accessing liquidity

    Christoph Gugelmann, co-founder of Tradeteq, highlights the...

    Access to liquidity is becoming more important than ever; many businesses – both large and small – need support in order to maintain exporting obligations. However, even if the global economy was not currently wrestling with the impact of Covid-19, there would still be a US$1.5trn trade finance gap between what banks can loan versus what businesses need.

    Talking Point 22 April 2020

  • Testing times

    MPL platforms addressing coronavirus impact

    As an expansion-era product, marketplace lending securitisation is expected to be tested for the first time by the Covid-19 fallout. Joseph Cioffi, partner and chair of the insolvency, creditors’ rights and financial products practice group at Davis & Gilbert and author of Credit Chronometer, tells SCI how platforms are preparing for a potential recession.

    Q: Why and how .......

    Talking Point 27 March 2020

  • Navigating the new

    New European CLO investors must chart a steady course

    The remainder of the year looks set to be an active one for European CLOs. To sustain growth, the market needs to find new investors, but they have a challenging course to navigate.

    Some potential new CLO investors are understandably hesitant, given widely voiced regulatory concerns and related alarmist mainstream press reports about the next financial crisis being .......

    Talking Point 5 September 2019

  • Mixed outlook

    Risk transfer diversity set to increase

    The outlook for risk transfer issuance volumes is mixed, according to panellists at SCI’s Capital Relief Trades Seminar last week. However, they agreed that the market will continue to increase in diversity, in line with bank origination channels and balance sheet needs.

    The traditional Northern European CRT jurisdictions have seen a lot of activity over the last couple .......

    Talking Point 26 October 2018

  • Performance blueprint

    Positive predictions for NPL securitisations

    Northern Italian non-performing loan portfolios are performing better than Southern Italian portfolios, and Irish transactions are also outperforming assumptions. There are 11 transactions currently in the European NPL pipeline, most of which are Italian.

    “At the moment, the majority of the transactions are outperforming DBRS plan assumptions,” says Alessio Pignataro, svp at DBRS. “However, it is early in .......

    Talking Point 19 October 2018

  • 'Aggressive' underwriting eyed

    UK RMBS remains 'robust' in face of Brexit

    While the UK buy-to-let (BTL) sector has suffered under new regulatory policies and Brexit uncertainty, market participants believe it still has room to expand in terms of new lenders and products. This was according to panellists at a recent Fitch conference that also suggested that more aggressive underwriting practices, such as extended loan terms, could be a concern for the .......

    Talking Point 17 October 2018

  • Fit for purpose?

    Efficacy of STS label questioned

    Once portrayed as the initiative to revitalise European securitisation, the STS label has been variously hailed as a game-changer or lamented as not fit for purpose. The truth, perhaps, may be somewhere in between.

    Regulations (EU) 2017/2402 and 2017/2401 – which provide for the implementation of simple, transparent and standardised (STS) securitisations – will apply from 1 January .......

    Talking Point 18 July 2018

  • PE players driving growth

    Australian ABS and RMBS issuance saw record volumes of over A$8bn and A$37bn respectively in 2017, according to SCI data. The rise of fintech platforms, non-bank financial institutions and private equity-backed lenders in the country - combined with the global hunt for yield - is set to support continued growth of its securitisation market.

    Private equity involvement in the .......

    Talking Point 19 June 2018

  • CRI explained

    Stephen Taylor, head of structured and capital solutions EME...

    Q: What is credit risk insurance?
    A: Credit risk insurance (CRI) is used to transfer credit risk to insurers. One of the benefits of using CRI in securitisation structures is that this credit enhances the asset pool (subject to the legal/accounting treatment) and can make the portfolio more attractive to lenders.

    Q: How does CRI help optimise a credit portfolio?
    A: Our .......

    Talking Point 15 June 2018

  • Risk-based pricing after IFRS 9

    Raymond Zhu, senior manager, and Jan-Hinnerk Fahrenkamp, dir...

    When IFRS 9 came into force in January 2018, many in the credit risk world thought the hard part was over. After all, conventional wisdom suggested the new standard would cause a one-off shift in expected loss provisioning and life would return to normal.

    However, as firms are now rapidly gaining experience with the first generation of models, .......

    Talking Point 24 May 2018

  • Securitisation 'right tool' for NPL disposals

    Participants at a recent SCI seminar on non-performing loan securitisation were optimistic about the role of ABS in facilitating disposals of troubled loans across Europe, with or without government guarantees. Concerns persist, however, that work still needs to be done in several jurisdictions in terms of professionalising servicing capabilities and standardising securitisation procedures.

    Iain Balkwill, partner at Reed Smith, commented: .......

    Talking Point 18 May 2018

  • ECB encourages action on NPLs

    Gifford West, md, international operations and business deve...

    At a recent NPL industry event, a banker credited with completing some of the largest European NPL sales observed: “The Irish and UK banks were distressed sellers. Now their banks are on the path to recovery. The Italian banks refused to be distressed sellers. Now they are mostly distressed banks.”

    The ECB’s guidance published on 15 March 2018 is .......

    Talking Point 26 April 2018

  • Going green

    Current status of green ABS market discussed

    Representatives from Clifford Chance, TMF and Ygrene Energy Fund recently discussed the current status of green ABS during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the established asset classes, those that are developing, and what is next for the sector.

    Q: As the .......

    Talking Point 25 January 2018

  • Scenario analysis

    Elena Rinaldi, portfolio assistant at TwentyFour Asset Manag...

    ABS is an asset class that lends itself well to detailed underwriting, from onsite due diligence through to cashflow and risk modelling. Specifically within the CLO sector, once TwentyFour Asset Management has reviewed the manager and the collateral, we focus on stress testing and sensitivity analysis. The hypothetical question "what if?" plays a fundamental role in assessing the resilience of .......

    Talking Point 12 January 2018

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