Tag Archives: Structured Finance

Can the EBA and Basel Committee proposals help banks clean up their balance sheets using NPL securitisations?

By Tamara Box, Iain Balkwill, Karen Butler, Emily Cartwright and Sophie Davis on Posted in NPL
Read time: 8 minutes At a glance A large number of legacy non-performing loan exposures (NPLs) continue to subsist on the balance sheets of banks. Portfolios of NPLs tie up huge amounts of regulatory capital which, in turn, limits the amount of capital that banks have available to lend to the real economy. The economic … Continue Reading

Shaping a sustainable financial ecosystem: how to integrate ESG factors

By Mehrnaz Afshar, Trish O'Donnell and Ranajoy Basu on Posted in Structured Products and Derivatives
Read time: 3 minutes 30 seconds The appetite for ethical finance shows no sign of slowing. But as the interest in Environmental, Social and Governance (ESG) finances rises, so too do concerns about impact- and green-washing: the practice of making false or misleading claims about apparent ethical credentials. Naturally, as an embryonic sector, many complex … Continue Reading

You Say Loan Participation, I Say Securities, Let’s Call the Whole Thing Off

By Erika Kolb, Adam Solowsky and Trish O'Donnell on Posted in Securitisation
Read time – 2 minutes A federal district court in New York is currently hearing a case to determine if syndicated term loans are securities under US federal and state Blue Sky securities laws. The case (Marc S. Kirschner v. J.P. Morgan Chase Bank, N.A.) came about when borrowers, Millennium Health, LLC and certain of … Continue Reading

Hercules – an astronomical boost for NPL securitisation

By Iain Balkwill on Posted in NPL
Read time: 2 minutes The recent news that the Greek parliament has approved the Greek government guarantee programme Hercules marks an important milestone in the evolution of the European non-performing loan (NPL) securitisation market. If Hercules enjoys the same level of success that we have witnessed the Italian GACS deliver, then this will have widespread, … Continue Reading

Greek’s bad debt exposure – Hercules to the rescue!

By Hayley Davies and Sarah Caldwell on Posted in Securitisation
Read time: 2 minutes In a push to tackle Greek’s bad debt exposure, the Greek Parliament has approved a new asset purchase scheme nicknamed ‘Hercules’. The scheme aims to assist Greek banks deleverage their non-performing loans (NPLs) without the need for the government to step in with subsidies. Under the scheme, banks will sell non-performing … Continue Reading

Indemnities – beware the consequences of “reasonableness”

By James Fisher and Simon Hugo on Posted in Defaults and Restructurings, General, Securitisation
Read time: 4 minutes The provision of indemnities, particularly those provided to corporate trustees and agents, is an important feature of an effectively functioning structured finance market.  It enables the parties involved to allocate the risks of unforeseen expenditure to those parties with the ultimate economic interest in the transaction and allows trustees and agents … Continue Reading

Fairhold Securitisation – can noteholders claim advisers’ fees through the trustee?

By James Fisher and Simon Hugo on Posted in General, Securitisation
Read time: less than 1 minute This week saw the High Court clash between the swap provider, UBS, and the recently appointed replacement note trustee (Glas Trust Corporation) on the embattled Fairhold Securitisation.  The dispute at hand centres on whether or not the ad hoc noteholders group’s fees and expenses (comprising the fees of its … Continue Reading

With-Hold on a second?! New ISE rule leads to automatic de-listing of debt securities at scheduled maturity

By Simon Hugo on Posted in Irish Stock Exchange
Picture this: it’s 1793. In England, George III is on the throne and the Bank of England issues the first ever ‘fiver’.  In the U.S.A, George Washington hosts the first US cabinet meeting as President and the capital moves from Philadelphia to Washington, D.C.  In France, the French Revolution is in full swing with King … Continue Reading

Indian Bond Defaults and Bond Restructurings: More Scheming Ahead?

By Ranajoy Basu on Posted in Capital Markets, Defaults and Restructurings
With yet another foreign convertible bond default hitting our desk, we cannot help but wonder what the future has in store for Asian convertible bonds and debt capital markets restructurings.  This is particularly relevant when you consider that Indian companies and banks issued foreign currency bonds aggregating up to approximately $6.3 billion in the first quarter … Continue Reading

Irish Stock Exchange announcements – Its all change at the Exchange!

By Simon Hugo on Posted in ABS, CMBS, Defaults and Restructurings, RMBS, Securitisation
Those issuers, corporate services providers, collateral managers, servicers and special servicers that regularly submit debt announcements on the Irish Stock Exchange will know how straightforward and quick it is to submit.  For those that don’t, at present this process involves simply sending a copy of the notice or announcement to the email address announcements@ise.ie and the … Continue Reading

What the Fitch??!

By Andrzej Janiszewski and Simon Hugo on Posted in CMBS, Defaults and Restructurings, Rating Agencies
As some of you may have seen, Fitch helpfully issued a press release last week clarifying its position on providing rating agency confirmations (RACs) during the replacement of special servicers on EMEA CMBS transactions. Rather unhelpfully, however, the release stated they would not be providing any such RACs in the future. This policy, of course, … Continue Reading

Basel Committee proposes changes to the Basel II securitisation framework – what does this mean for new issuance?

By Nick Stainthorpe and Theano Manolopoulou on Posted in ABS, Basel Committee on Banking Supervision
A new consultation paper  published earlier this week by the Basel Committee on Banking Supervision will inevitably cause uncertainty and is likely to affect investment decisions long before the new rules take effect. The paper sets out the Committee’s proposal to revise the treatment of securitisation exposures and is largely inspired by the belief that … Continue Reading

May we sell your services please?

By Helena Nathanson on Posted in Capital Markets
There are two points that must be made in order to get you from where this idea started to where it is today and why we believe we are in a great position to put this project into practice.  It is not as though I will know if you skip the next two paragraphs to … Continue Reading

Loan-level data – implications

By Nick Stainthorpe on Posted in ABS, Rating Agencies, Regulation, RMBS
European Central Bank and Bank of England liquidity schemes require that loan-level data be disclosed on a regular basis (no less than quarterly) with respect to asset-backed securities which are to be used as collateral.  On 27 November the ECB announced that it would postpone the introduction of mandatory loan-level data reporting requirements to 3 … Continue Reading

Practical implications of insolvent originators

By Grace Hui on Posted in Capital Markets, Defaults and Restructurings, Effects of Rating Downgrades
Just a few blissful years ago, one would never think of originators getting wound up or sellers being liquidated. In the world of structured finance, the possibilities of that doomsday scenario were remote, unthinkable and above all, no one wanted to discuss its potential occurrence. That changed with the Lehman collapse and with that, a … Continue Reading
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