Nomura’s Post

In 2023, Nomura won over the market by going the extra mile for clients in tough conditions. High rates and widening credit spreads made primary issuance difficult. The firm was quick to identify growth in the single family rental market as access to credit and affordability fell. “We proactively reached out to clients and said: we think this is happening, you need more capital, and we're going to give it to you,” says Sanil Patel, MD, global head of mortgage structured lending & global co-head of real estate finance. “That was one of the most significant ways we added value last year.” Nomura’s combination of problem solving and stepping in to provide liquidity, advice, and expertise to the RMBS market helped the firm win three securitization awards: RMBS Bank of the Year, RMBS Trading Desk of the Year and Securitization Research Team of the Year – showing, once again, their strength in the mortgage market. To read more on Nomura’s trading approach and their unique macro perspective which contributed to their winnings at this year’s GlobalCapital US Securitization Awards, access the free-to-read article: https://lnkd.in/ezk6ZvxQ Sponsored by Nomura #GlobalCapitalAwards #securitization #structuredfinance #capitalmarkets #US

Leveraged loan market ripe for innovation after 2023 revenue bump US dealer revenue hit US$900 million in 2023, representing a 16% increase against 2021 and a 29% bump on 2022. The figures are drawn from a new study conducted by Coalition Greenwich (a division of CRISIL), US Leveraged Loan Investors: Volume Expectations and Dealer Relationships, which tracked dealer leveraged loan trading volumes and analysed buy-side expectations for future activity levels. #leveragedloans #markets #buyside #investors #fixedincome #TheDESK https://hubs.li/Q02qJVvV0

A new issuer of home equity RMBS may be coming. Freddie Mac will securitize closed-end second lien loans if its regulator approves its proposal to buy these mortgages. But the securitization industry is not happy that the housing finance GSE is making this push into an area. Dealmakers have been counting on this part of the market to generate deals as high borrowing costs have dampened overall loan origination. https://bit.ly/3Q7NsGA LSEG (London Stock Exchange Group) LSEG Data & Analytics LSEG Workspace #mortgage #securitization #RMBS #homeequity #bonds #markets #fixedincome #GSEs

Check out this post on leveraged loan liquidity that is based on data from the powerful S&P Global Market Intelligence Parsing platform that I worked on and been devoted to for the past 12 years! Basically became my baby, so hope you find the data useful! #liquidity #leveragedloans #loanpricingdata #parsing #dealerquotes #parsedquotes #dealerdata #loanliquidity

UBS sells $8 billion of Credit Suisse assets to Apollo UBS sells $8 billion of Credit Suisse assets to Apollo Reuters ZURICH (Reuters) - UBS has sealed the sale of Credit Suisse's securitised products business to Apollo Global Management as part of efforts to shed non-core assets after its takeover of the collapsed banking group. Apollo will purchase $8 billion of "senior secured financing facilities", UBS said on Wednesday, adding that it expects to make a net gain of about $300 million from the deal in the first quarter of 2024. The agreement is a renegotiation of the deal Credit Suisse had reached with the U.S. buyout fund in the Swiss banking group's last-ditch attempts at a revamp to avoid collapse. "This mutually beneficial agreement aligns with UBS's strategy of winding down and simplifying its non-core and legacy portfolio," UBS said on Wednesday. UBS Chief Executive Sergio Ermotti said the deal would free up capital from non-core activities and reduce costs and complexity in its business. Credit Suisse had to be rescued in March last year in a government-sponsored operation. Luzerner Kantonalbank analyst Daniel Bosshard said the Apollo deal was a sign that the Credit Suisse integration was going better than expected. "The early praise is now very high, which is reflected in a sharp rise in the share price in recent months," Bosshard said. "This leaves little room for disappointment." UBS shares are up about 8% so far this year. They were down about 0.46% in early trading in Zurich on Wednesday. In 2022, Credit Suisse had already begun the process of winding down its business of securitising products such as mortgages. Under that plan, about $20 billion of remaining assets were to stay on the books of Credit Suisse but be managed by Apollo. UBS will retain what is not being transferred to Apollo, a spokesperson for the bank said. The value of the former assets remaining with UBS was not immediately clear. (Reporting by Oliver Hirt, Noele Illien and Gdansk Newsroom; Writing by Dave Graham; Editing by David Goodman and Jane Merriman)

What can you learn from Goldman Sachs profit surge and success? How can it help you in your job, your career, and/or your company? Goldman Sachs is traiditonally known for making its big profits in investment management and trading. These areas fell or just met expectations . The work horse was asset and wealth management (see article below). How can that help you? -If you rely on commercial loan referrals, continue or start building your referral sources in the wealth management area? -If you rely on mortgage loan referrals, continue or start building your referral sources in the wealth management area? -If you are in the wealth management field are you using your strengths to build your referral network among commercial and mortgage lenders? If you are assessing your bank or credit unions strength, do they have a strong wealth management department? Are you getting internal referrals from private bankers, financial advisors, and others in the wealth and asset management area? Is your bank or credit union growing in the wealth management area? Are you in the right place? Does your company have the right talent to succeed in wealth management? https://lnkd.in/gnV8nsv7 #bankingindustry #banking #bank #creditunions #creditunion #wealthmanagement #assetmanagement #mortgage #mortgagelending #commerciallending #commercialfinance #commercialbanking #businessbanking

Good advice if you can afford to take it. More volatility is ahead..,

The latest Global Association of Risk Professionals (GARP) Risk Intelligence article, “Asset Exchange Connects a Network of Lenders to Customized Advice and Analytics", highlights the PNC Asset Exchange, the nationwide loan transaction platform recently launched by PNC Capital Markets in partnership with Community Capital Technology | CCT. As financial institutions look to more effectively manage their balance sheets, banks and credit unions across the country are joining the Exchange to create new, more diverse channels for accessing liquidity and deal flow - along with real-time market intelligence. Both PNC Capital Markets President & CEO, Charlotte McLaughlin and our CEO, Garrett Smith, share insights on how the solution leverages our proprietary technology to efficiently match loan buyers and sellers, across all asset classes, along with providing direct, experienced advisory support throughout the transaction process. Read more: https://lnkd.in/eBvp9GTj #PNCAssetExchange #capitalmarkets #loanmarket #liquiditymanagement #fintechpartnerships

Well this was certainly an eye-opener. Banks renting space of Blackstone's balance sheet was a possibility I hadn't even considered. I had been keeping track of banks selling portfolios to other companies for the past year, but renting is a completely new topic for me. The debate between renting versus owning has just become more nuanced and complicated. Government regulations have been pushing banks to reduce their exposure to riskier assets for 15+ years. In turn, banks have been very careful to manage their capital requirements and try to make the best use of their balance sheets. Using things like Synthetic Risk Transfers and Forward Flow Arrangements with private firms are pushing the financial system into a worm hole that regulators did not intend it to go through. The government has intentionally pushed banks away from "risky" corporate loans and trading activities. By doing so, they have inadvertently encouraged more exotic relationships and products that are opaque and have less oversight than the regulators envisioned. What could possibly go wrong with that? I don't know about you, but this is starting to feel a lot like 2008 to me. #breakingbonds #bondarenotenough

How might the increasing role of Wall Street banks as intermediaries between smaller companies and private lenders impact the dynamics of the leveraged lending market in the long term, particularly in terms of risk management, fee structures, and overall market competitiveness? By providing advisory services instead of direct lending, banks mitigate risk and capitalize on fee-based revenue streams amid a downturn in new buyout activities. Read more in the article below: https://lnkd.in/eQTdBKZ9 #investmentbanking #privatecredit #privatedebt #leveragedlending