A (Measured) Buying Opportunity in Credit
There were sharp declines across global risk assets on Tuesday, led by tech stocks but with barely an asset class left unscathed.
Insights Topic
UK
STS: Feel the Squeeze
Changes in regulations are typically long and drawn out, but their impact can often be felt quite quickly. There is every chance that this could soon be the case in ABS markets.
Another One Bites the Dust
Sadly this is not a review of the new Queen biopic, it’s a eulogy to a bond which was called today that is as well known in the securitisation world as Freddie Mercury is in the real one – Paragon Secured Finance 1 (or PSF 1 as we knew it).
Tesco Bonds: Time to Hit the Checkout?
In January 2015, after years of market share erosion and leverage increases, Tesco bonds were downgraded to junk status by Moody’s and S&P, forcing all of Tesco’s debt stack out of IG corporate bond indices in the process.
How Will Brexit Impact UK ABS?
This year has been a big one for sterling bond supply, especially in the ABS market. With the end of the Bank of England’s Term Funding Scheme and the comeback of traditional bank issuers, UK issuance volume year-to-date has totalled €25bn from 38 deals placed across different asset classes.
Healthy Tightening in UK Credit Conditions
This morning the much anticipated Q3 2018 Credit Conditions Survey was released by the Bank of England.
Doctor Doom and the Doom of Tomorrow
In the early 1990s, Marvel comics introduced a world 100 years in the future with new stories for its popular heroes and villains. Doctor Doom's story was called "The Doom of Tomorrow".
Where there’s a will, there’s a way
Since that first encounter the market has remained a core financing option for banks’ consumer and corporate lending books, but there has always been a degree of innovation around the fringes.
Insurance Hybrids Back in the Spotlight
UK specialist insurer Rothesay Life came to the market yesterday, the latest company to issue in the fledgling RT1 sector introduced by the regulator as Solvency II compliant capital.
Farewell To An Old Friend
Last year, with credit spreads tightening close to historic levels, it seemed appropriate to us to take a more prudent stance and move to a more balanced portfolio.
More AT1 Refinancing
Following on from the release of solid Q2 numbers, and no longer in a closed-period, Barclays were quickly out of the blocks and announced the issue of a new AT1 this morning; a $2bn transaction with initial price talk of 8%.
ABS: 2018 So Far and What To Expect
Now that the summer lull has finally kicked in, it seems an ideal time to review the ABS market so far this year and try to make a prediction for the remainder of 2018.