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  • Two Italian banks, Banca Monte dei Paschi di Siena and its subsidiary Banca 121, both launched collateralised debt obligations on December 20 that add to the growing sub-sector of Italian CDOs which have carved out a unique space in the European ABS market. Banca 121, a small but innovative regional bank formerly called Banca del Salento, brought its second CDO with a Eu365m deal via BNP Paribas.
  • Natexis Banques Populaires successfully closed its Eu2bn synthetic collateralised loan obligation on December 18, and became the first bank outside Germany to issue asset backed notes direct from its balance sheet without using an SPV. Natexis arranged the deal, known as Investment Grade Loan-Backed Obligations (IGLOO), and lead managed it jointly with Merrill Lynch.
  • Société Générale and the French insurance company Assurances Générales de France (AGF) are to form a joint venture that will promote weather derivatives and participate in the catastrophe bond market. Meteo Transformer Ltd will essentially be a hedge fund in which the two companies will hold an equal partnership. It will have an initial investment of $95m increasing to $200m in two years.
  • HypoVereinsbank successfully launched the second securitisation of loans to German Mittelstand companies under Kreditanstalt für Wiederaufbau's Promise programme on December 15.
  • Deutsche Bank is expected to bring a rare securitisation of French residential property in the first quarter, to provide part of the financing for its acquisition of some 12,800 homes from Electricité de France. Deutsche's real estate investment banking group (REIB), which includes the former principal finance group headed by Roger Barris, bought SELEC, a property company owned by EdF, in December.
  • Spanish bank Caixa d'Estalvis de Catalunya is preparing to launch a Eu150m securitisation backed by loans originated under state funding agency Instituto de Crédito Oficial's line of credit for small and medium sized enterprises (PYME). Jointly lead managed by JP Morgan and Caixa Catalunya, Pymecat-1 is expected to be launched on January 15.
  • UK finance company Automotive Financial Services Ltd yesterday (Thursday) cancelled its planned £225m securitisation of UK car loans. AFS has sold its entire auto loan book to Capital Bank Motor, a subsidiary of Bank of Scotland.
  • The Fédération Internationale de Football Association (FIFA), soccer's world governing body, announced in late December that it plans to securitise its revenues from selling its brand for marketing purposes. The Zurich based association has mandated Credit Suisse First Boston to lead manage the deal. The bank declined to comment, but observers said the deal is expected to raise around Sfr500m, likely in the second quarter of this year.
  • Findomestic Banca, the largest non-captive consumer lender in Italy, launched the first securitisation of Italian credit card receivables on December 21, with a Eu310.75m deal. Lead managed by BNP Paribas, which is also the main shareholder in the company, the transaction is Findomestic's second securitisation. The finance company became the first Italian lender to securitise consumer loans when it issued a Eu311m deal called Dolfin No 1 Ltd in July 1998.
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