Structured credit
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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.
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Ultra-high hyperscaler credit issuance could saturate global credit markets
The hyperscalers project around $750 billion of capex for 2026 as AI infrastructure race gathers steam. Other credit issuers should plan for the risk of crowding…
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The Fed might actively raise long term rates instead of raising the Fed funds rate
For credit issuers and investors – evaluate locking in medium/long-term rates now