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AI bond demand signal – $12.5 billion deal from Meta and BlackRock sees lower demand
Meta and BlackRock priced a $12.5 billion bond deal – to build a large data center in Texas. Lower demand than for previous deals is a…
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Hundreds of billions of dollars of AI-infrastructure debt might need re-analysis after surprise release of open-weights (free-to-use) model Kimi K3
This top-tier model being made freely available to use changes the “stories” we use about how the future will unfold for AI providers
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Aircraft financing market continues to grow as AIP and Monroe launch a securitization program with a $643 million deal
The deal likely allows AIP and Monroe to book larger profits, free up their own capital to grow scale, and by proving their ability to exit…
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The Iran war is a wildcard – issuers and investors might want to de-risk
It is difficult to predict the outcome of this complex situation. For credit issuers and investors, this outcome is outside their control and their credit underwriting…
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BBVA closes another €2 billion SRT synthetic securitisation – using this tool at scale to free up capital
This is BBVA’s fourth project finance SRT. SRT transactions are growing rapidly in Europe and becoming a highly effective tool for banks to free up regulatory…
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AI credit keeps printing – risks are demand saturation, concentration, and unknown unknowns of a new paradigm
There are questions about concentration and correlation risk. AI-related companies are clearly using the money for something that adds value to the economy – but the…
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Weaker than expected payrolls figures slightly change the rates markets’ expectation
June non-farm payrolls were 57,000, which was lower than expectations. This slightly changes the consensus, which was that the economy was doing very well and inflation…
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Synthetic risk transfer trades spreading – Singapore’s largest bank DBS does first Singapore SRT at US$1 billion.
Synthetic risk transfer (SRT) trades have grown rapidly in Europe and the US. They are now expanding in other regions.
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Credit markets might be too positive – possibly good window for issuers and investors
Credit markets might be too positive with spreads close to 25-year lows. Might be a good opportunity for issuers and investors.
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Watch for strong issuance in June ahead of summer holidays
Many issuers may issue in June – ahead of European and then US summer quiet periods. This effect may be amplified this year.
Markets
Structured credit
MBS, ABS, CLOs, significant risk transfer and esoteric securitization. We cover the structured credit markets across asset classes and geographies. For structured credit investors, originators and bankers.