People & Markets - All Articles

  • BoE ‘turbo charges’ post-Libor transition with plans for index and ramped-up haircuts

    The Bank of England turned up the heat on Libor this week with plans to publish a compounded Sonia index and averages in a move that will drive the transition to the new risk-free rate with a simpler coupon calculation methodology. It will also increase haircuts on Libor-linked collateral which is intended to accelerate the switch out of Libor FRNs maturing after 2021.

    • 27 Feb 2020
  • Destination: Dublin as Dutch VAT ‘earthquake’ sends CLO managers scurrying

    The CLO industry is expected to make an exodus from the Netherlands as managers with deals in the pipeline look to domicile their warehouses in Ireland. This follows a court ruling in the country, where up to a fifth of the market is located, which stings managers for a tax on management fees in a move that could shrink their income and reduce deal volumes. Tom Brown reports

    • 26 Feb 2020
  • Metro launches new strategy, plans to issue more MREL

    Metro Bank is looking to become a more profitable institution after launching a review of its strategy this week, but the lender still faces the challenge of having to raise a further £500m of debt to meet its capital needs.

    • 26 Feb 2020
  • Bank of England lays out plans to publish compounded Sonia averages and index

    The Bank of England has said it intends to publish compounded Sonia averages and a Sonia index using a ‘shift’ calculation method by the end of July, subject to feedback on a series of questions it has asked sterling market participants. This follows the first deal using that method from the European Bank for Reconstruction and Development Bank last week.

    • 26 Feb 2020
  • Tech boutique offers tool to spot greenwash

    Investors who have been longing for the EU Taxonomy of Sustainable Economic Activities to tell them what is green are now realising that its arrival could make life tricky. From the end of next year, they will have to start reporting how sustainable all their portfolios are. It could prove an enormous headache. But a tiny company has developed a tool it claims can cut out a lot of the worries investors face in working out how to comply.

    • 26 Feb 2020
  • Generali launches framework for green insurance-linked securities

    Assicurazioni Generali, the Italian insurance company, has launched a framework to show how insurance-linked securities can be structured to contribute towards investments in green assets.

    • 25 Feb 2020
  • Market still puzzling over Libor as sunset nears

    Some in the market still do not see eye to eye on Libor transition even with the cessation of the benchmark at the end of 2021 fast approaching.

    • 25 Feb 2020
  • With Sanders gaining, wonks look to soothe market’s fears of a progressive president

    Bernie Sanders claimed victory in the Nevada Democratic primary election to emerge as the clear party frontrunner last weekend. Financial policy experts speaking on Monday at the SFVegas conference in Las Vegas addressed a crowd nervous over the prospect of a progressive left US president unsympathetic to Wall Street.

    • 25 Feb 2020
  • SEC ratings watchdog floats reassessing rule 17g-5

    Remarks delivered by the Securities and Exchange Commission’s director of the office of credit ratings at SFVegas on Monday hinted at the possibility that the regulator could re-evaluate the effectiveness of Rule 17g-5, a post-crisis rule intended to address conflicts in the issuer pay model.

    • 25 Feb 2020
  • Post-Brexit law intended to clarify securitization could fragment market

    An amendment to the UK Securitization law is set to come into effect at the end of 2020 when the Brexit transition period ends, clearing up confusion around the definition of sponsor in a move that could see the UK and the EU regimes diverge, said Mayor Brown in a notice released Thursday.

    • 24 Feb 2020
  • ECB is revving the engine but the handbrake is on

    Europe’s capital markets are back in super-demand mode.

    • 20 Feb 2020
  • Sonia gets makeover as EBRD shifts new structure

    The European Bank for Reconstruction and Development this week became the first borrower to deviate from the standardised coupon calculation method for Sonia-linked floating rates. While investors backed the new structure, with the deal receiving a huge order book from a large number of accounts, there are some market participants who believe the disruption was unnecessary, writes Burhan Khadbai.

    • 20 Feb 2020
  • People moves in brief: February 20, 2020

    Natixis finds new investment banking boss — UniCredit replaces Steffens with Pabarcius in UK — Lloyds puts Paterson at risk

    • 20 Feb 2020
  • Lloyds puts credit sales head Paterson at risk

    Lloyds Bank has put credit sales head Bob Paterson at risk, a securitization specialist who had been leading sales on the bank’s risk transfer programmes.

    • 18 Feb 2020
  • First senior NPL ABS of recent years tempts five new investors

    The first fully public syndicated sale of senior ABS backed by Italian non-performing loans in recent years has tempted five new investors to buy into the NPL asset class. Ten buyers were allocated bonds in the landmark deal, Futura 2019.

    • 14 Feb 2020
  • People moves in brief

    HSBC hires Lahham for MENA corporate finance — Lisanti broadens markets role at Citi — Muscatt joins BMO

    • 13 Feb 2020
  • Sinn Féin set to shake up Ireland’s mortgage sector

    While Sinn Féin begins its attempt to form Ireland’s new government, investors and issuers are eyeing a possible overhaul of the country’s housing sector. Securitization is in the headlights, as one of the party’s key manifesto pledges, which promised to throttle the market, is on the negotiating table.

    • 13 Feb 2020
  • Turkish regulator mulls reforms to unlock risk transfer market

    Turkey’s Bank Regulation and Supervision Agency is mulling an overhaul to its rules on risk transfer for banks, which could open a new jurisdiction for the synthetic securitization market, and raise marginal capital for the country’s banks.

    • 13 Feb 2020
  • Thiam quits Credit Suisse on fixed income high

    Credit Suisse has reported a strong end to last year for fixed income sales and trading, in chief executive Tidjane Thiam’s last week in the job.

    • 13 Feb 2020
  • Sustainability: more stick, less carrot

    Sustainable finance players are enthusiastic about regulation, which they expect to bring clarity and order to the market. It may — though when the new EU rules are implemented they are likely to irk participants more than they expect. But what would be really effective are direct actions that bypass finance.

    • 11 Feb 2020
  • Incapital adds four in fixed income with eye on MBS

    Fixed income brokerage firm Incapital has added four industry veterans to its distribution platform, aiming to expand into asset classes that offer clients higher returns in a low yield market. The team is particularly reinforcing its RMBS and CMBS coverage.

    • 10 Feb 2020
  • Standard Chartered plans to boost CLO trading operation

    Standard Chartered is looking to build out its CLO trading capabilities in EMEA, and is in the market for a CLO trader, part of the bank’s broader push into European securitized products.

    • 10 Feb 2020
  • Santander scores solution for costly undrawn revolver exposures

    Santander has bought credit protection on two portfolios of undrawn revolving credit facilities, taking advantage of a regulatory decision last year to sharply boost the efficiency of the protection. The deal points the way for banks to cut the costs of providing revolvers, which are usually extended as a ‘loss leader’ for a broader banking relationship.

    • 10 Feb 2020
  • People moves in brief: February 7, 2020

    HSBC picks regional bosses ahead of expected restructuring — Mizho goes on fixed income hiring spree — Bank of America appoints head of rates trading

    • 06 Feb 2020
  • EBA plans to clear up risk transfer tests

    The European Banking Authority will be consulting on its approach to risk transfer by the end of the second quarter, with the treatment of excess spread likely to be a crucial topic for issuers and investors in the securitization market.

    • 06 Feb 2020
  • Fitch shuffles RMBS, CLO ratings heads

    Fitch Ratings on Wednesday announced that it has appointed veterans Kevin Kendra and Derek Miller as head of US RMBS and head of US structured credit, respectively.

    • 05 Feb 2020
  • ABS research veteran McElravey departs Wells Fargo

    Consumer ABS research analyst John McElravey has left Wells Fargo after 13 years with the bank, according to a company spokesperson. McElravey most recently served as the managing director and the head of consumer ABS research.

    • 04 Feb 2020
  • Mizuho makes swathe of fixed income hires

    Mizuho International has hired nine bankers for roles across emerging markets trading and sales, rates, options, securitised products and credit sales and trading. Among the hires, the bank has found a new head of MTNs and appointed a senior emerging markets trader from BNP Paribas.

    • 04 Feb 2020
  • Sound Point woos Deutsche CLO primary head

    Francis McCullough, former managing director and global head of new issue CLOs at Deutsche Bank, has joined Sound Point Capital Management as the firm's global head of CLO capital markets and structuring.

    • 03 Feb 2020
  • Link buys Pepper’s European servicing business, targets Greece and Spain expansion

    Link Group said it has agreed a €165m deal to acquire Pepper Group’s European loan servicing, asset management and advisory business, which will create a servicing group managing €130bn in assets.

    • 03 Feb 2020