European securitization report 2021

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  • CMBS market looks to life after Covid

    Commercial real estate has been one of the hardest hit sectors during the Covid-19 pandemic. The images of shuttered shops and empty offices are almost as emblematic of the Covid crisis as facemasks and stay-at-home warnings. Although there is hope for a recovery in issuance led by the red-hot growth in logistics sites, the outlook is uncertain given that underlying values of many properties backing existing CMBS remain unknown. Sam Kerr reports.

  • Navigating rising levels of corporate distress

    While the full financial impact of the pandemic has yet to emerge, growing signs of corporate distress are expected to start emerging in the coming months. To get ahead of it, early engagement with lenders and appointing strong advisors can help companies avoid insolvency or costly restructuring, say Ocorian’s Alan Booth, head of capital markets and Nick Bland, head of UK client services.

  • Specialist lenders eye bright future after surviving Covid test

    In mid-May GlobalCapital convened representatives of three RMBS issuers with different business models and approaches for a wide-ranging discussion about the state of the UK mortgage markets, funding strategies, and much more. Kensington is the most frequent issuer in European RMBS, with a track record stretching back to 1995, and more than £10bn of assets under management, including about £6bn of servicing mandates. LendInvest and Habito are fintech lenders, with LendInvest originating bridging loans and buy-to-let, funded through securitizations (LendInvest has completed two public deals so far), retail bonds, funds, and private capital, including a £500m partnership with JP Morgan. Habito mixes technology-enabled mortgage broking with its own buy-to-let originations, funded through Citi’s securitization shelf, and has recently launched the first long-term (up to 40 years) fixed rate mortgage product in the UK, funded through a partnership with CarVal Investors.

  • Vienna Stock Exchange looks to the future

    The Vienna Stock Exchange celebrates its 250th anniversary this year, making it one of the world’s oldest stock exchanges. Its longevity and resilience, through wars, the fall of empires and financial crises, is partly due to a sound reading of, and response to, future market trends. In an interview with GlobalCapital, Matthias Szabo, director of debt listings, highlights three current trends that are shaping the future of the exchange, and the industry.

  • The quest for sustainable CLOs — and standards

    Sustainable securitization is moving into the mainstream, with a growing number of managers adopting ESG language in CLOs — usually through excluding specific industries from investment. What’s next in the green securitization revolution will depend on building a rigorous framework for assessing ESG factors and how to create standards. Paola Aurisicchio reports.

  • Securitization props up SMEs but ‘quick fix’ worries market

    SMEs have been the hardest hit businesses during the pandemic and securitization has played a critical role helping them survive. So far, banks and governments have been making great progress helping them through both synthetic risk transfers and private or public ABS. However, recent amendments to the European securitization framework may make or break the product for SMEs. Jennifer Kang reports.

  • EQ Credit Services seizes market opportunity

    EQ Credit Services has rapidly grown to become one of the leading standby servicers and technology providers of loan management systems in the UK. In an interview with GlobalCapital, Will Ellis, sales director, describes the growth story so far and future ambitions.

  • European ABS market – signs of recovery, growth and evolution

    While strong issuance so far this year has given rise to expectations that the European securitization market’s recovery could accelerate in the second half, 2021 is not just a rebound story. Investor demand and regulatory change are also driving new developments and innovations, say BNY Mellon’s Paul Crossley, senior business development, principal, EMEA, and Michela Sperandio, head of business development, Italy.

  • European Securitization Awards Winners 2021

    European Securitization Awards Winners 2021

    GlobalCapital is delighted to reveal the winners of its 2021 European Securitization Awards, where we seek to recognise the most notable and innovative deals, banks and market participants of 2020.

  • ABS market speaks its mind

    As part of GlobalCapital’s awards survey, we took the chance to ask issuers and other market participants what they wanted in a bank, and how they saw the market outlook. This was an experiment, for us, but some of the results are stark — league table is not all it’s cracked up to be, and neither is pricing — instead, it’s the personal factor that wins out, not the depth of relationship but the strength of the team. It really is quality that counts, and there are few wins to be had by skimping on the bankers but wielding a big cheque book. There were few big calls on spreads, with most participants calling a flat or slightly tighter environment — though NPLs may end up softening more than performing asset classes. Thanks to all who participated, and we’d welcome suggestions on how to improve the survey next year!

  • Private Securitization Deal of the Year — Project Boquerón

    The environmental, social and governance area of finance has been one of the hottest this year, with sustainability branding stuck on every financial product imaginable, from commercial paper to subscription lines, leveraged loans and bank capital.

  • Secondary ABS/RMBS Trading House of the Year — BNP Paribas

    Secondary trading of ABS enjoyed a boom in 2020. For trading desks, that required a need to step up and provide liquidity for clients trying to manage portfolios during difficult markets. BNP Paribas did this demonstrating its commitment to the market as it continued to grow its business to match its leading position in the primary securitized products market. For the second year running BNP Paribas is our Secondary ABS/RMBS Trading House of the Year.

  • CLO Investor of the Year — Junior/Mezz — Ardesia (ISP Group)

    Financial services boutique ISP Group launched its debut European CLO Opportunity Fund during the early spring market turmoil last year. Since then the Ardesia fund has proven its flexibility, recycling risk as the markets moved through panic, recovery and stability modes to deliver a 40%-plus return.

  • ABS Issuer of the Year — Santander Consumer Bank AG, ABS Deal of the Year — SC Germany Consumer 2020-1

    Santander Consumer Bank AG is a relative veteran as an issuer in the securitization market but it is still pushing boundaries. With securitization a central part of its funding – and capital management – plans, a focus on the product across the firm and an experienced team, the bank delivered our ABS Issue of the Year, the largest cash risk transfer deal in the public market, and also wins our ABS Issuer of the Year accolade.

  • Securitization Equity Investor of the Year – M&G

    When a crisis hits, it’s often the equity tranches that feel the brunt but the Covid-19 pandemic in 2020 ultimately created opportunities for some investors in the space. M&G, with its strong reputation among counterparties and ability to invest across the full range of assets, overcame the challenges and is our Securitization Equity Investor of the Year.

  • Securitization Rating Agency of the Year — Moody’s Investors Service

    The Covid-19 pandemic presented a raft of new challenges for rating securitizations, as issuers, investors and servicers struggled to understand not just how underlying asset classes would cope but the short- and longer-term implications on cashflows as well as credit risk. Moody’s used the breadth and depth of its global franchise to provide consistent guidance and found new ways to reach out to the market and is our Securitization Rating Agency of the Year 2021.

  • RMBS Deal of the Year — Harmony French Home Loans 2020-1, CMBS Deal of the Year — River Green Finance 2020

    Two strong themes emerged from an extraordinary year for the securitization market in 2020 and both were recognised by voters in the RMBS and CMBS deal categories.

  • Servicer of the Year (NPLs) — Prelios

    Regulatory pressure has led to over €70bn of non-performing loan transactions from Italian lenders during the last few years, shaking up the servicing business. Prelios has been at the front of the pack from the start and is our Servicer of the Year, after a 2020 in which it began the industrialisation of unlikely-to-pay servicing, built out the first Italian non-performing exposures digital marketplace, and delivered market-leading financial performance.

  • Securitization Trustee of the Year — Citi

    From supporting transactions under stress during treacherous market conditions, to helping clients navigate the data and reconciliation challenges of the simple, transparent and standardised (STS) regime, Citi was able to build on strong foundations to deliver for clients in a critical time for the market, making it our Securitization Trustee of the Year.

  • Overall Deal of the Year — Economic Master Issuer 2020-1

    Looking through the votes for RMBS deal of the year, GlobalCapital saw this deal lagging behind issues from Crédit Immobilier de France Development and LendInvest, both bold executions as the pandemic closed in, and triumphs for the syndicate and treasury teams involved.

  • Outstanding Contribution to Securitization — Rob Ford

    This man’s passion for securitization runs deep — whether it’s calling a tune to the Global ABS conference, evangelism to sceptical regulators, or building a pioneering fixed income boutique out of the ashes of 2008, Rob Ford has remained at the centre of the market since its inception.

Commercial director of events: Daniel Elton

Telephone: +44 (0)20 7779 7305

 

Publisher, special projects: Ashley Hofmann

Telephone: +44 (0)20 7779 8740