United Kingdom

Credit TPG agrees to acquire US debt and real estate management firm Angelo Gordon in a $2.7bn deal (FT) 

  • Acquisition of a large private credit investor who specialises in distressed investing shows the buyer’s strategy to diversify into credit investments 
  • The $2.7bn deal will include a $970m cash payment with the remainder being settled in share swaps 
  • TPG expects to benefit from an increase in size (integrating Angelo Gordon’s $73bn AuM), to better position them in attracting larger pools of capital, which tend to work with a limited number of asset managers 
  • Furthermore, TPG estimates to have a 10% increase in fee-based earnings within the first year following completion 

ABS – Lloyds Banking Group prices new UK RMBS (Debtwire) 

  • Permanent Master Issuer Series 2023-1, a UK STS prime RMBS deal backed by a master trust of £9.35bn prime owner-occupied mortgages originated by the Bank of Scotland, priced last week 
  • The triple Aaa/AAA rated (Moody’s/Fitch) £1bn Class A1 senior notes and the retained class £1.2bn A2 notes both priced at par with a coupon of 52bps over Sonia, an advance rate of 90% and a WAL of 4.5/4.9 years, respectively  
  • The master trust backing the deal is comprised of 93,382 mortgages with a yearly prepayment rate of 19.4%, a weighted average LTV of 53.7% and a weighted average remaining term of 21.5 years 

ABS – Key Property Finance, a TwentyFour Asset Management vehicle, prices Hops Hill No.3 (Debtwire) 

  • Hops Hill No. 3, a securitisation of a £329.1m pool comprised of 1,425 UK buy-to-let mortgages with an LTV of 70.7%, an average interest rate of 3.6% and a weighted average remaining term of 22.6 years, priced last Friday, eight months since its previous issuance 
  • The £329.9m, triple-A rated (S&P/Moody’s) senior class A notes priced below par at 99.5 with a discount margin of 115bps over Sonia and WAL of 3.67 years. A liquidity reserve is in place to support the amortisation of the initial balance of the notes 
  • Considering the Issuer’s transaction priced in September, Hops Hill No.2, the senior notes priced significantly lower compared to 144bps over Sonia for the respective class A notes 
  • Class B to D notes (rated AA/Aa3, A+/A3, A-/Baa3) priced with coupons well below par at 97.9, 91.2, 97.8 with margins of 225bps, 325bps and 405bps over Sonia, respectively, and a longer WAL of 4.4 years 
  • The retained Class E and F (rated BB+/Ba3, BB/B2) priced with coupons of 500bps and 600, respectively 


ABS – Alpha Bank sells a €650m portfolio of secured NPEs (Project Hermes) to affiliate entities of Davidson Kempner and Fortress (Alphaholdings) 

  • The portfolio pool comprises loans to Greek corporates and SMEs of a total on-balance sheet GBV of c. €650m. The aggregate consideration of both fixed and earn-out components exceeds 40% of GBV 
  • The pool is further split into two tranches, with Tranche A (c. €240m) going to Fortress and Tranche B (c. €410m) to both Fortress and DK, while Cepal Hellas will undertake the servicing of the perimeter 
  • Alantra acted as the sole financial advisor of Davidson Kempner for the transaction 


Loan sale – UTP ITALIA has been assigned two granular UTP portfolios originated by ICCREA Group accounting for a total GBV of €520m (Debtwire) 

  • The closed-end fund UTP ITALIA is designed to manage NPEs deriving mainly from mortgages and loans granted to SMEs and households. It represents a joint venture established in 4Q2022 between Intrum Italy, Zenith Service and Sagitta Sgr 
  • With this contribution, the fund reached a total AuM of €700m 

Loan sale – AMCO securitised a €430m UTP portfolio originated by BPER Group (BeBeez) 

  • The sale followed the joint venture established between AMCO, Gardant and BPER designed to manage the bank’s NPE 
  • The transaction has been achieved without the recognition of losses at P&L level 
  • The transaction enabled BPER to reduce its pro-forma NPE ratio to 2.6% 


Banking – CGD´s 1Q2023 profit amounts to €285m (+96% YoY) (CGD) 

  • Net interest income rose 129.4% YoY to €611.3m in 1Q2023, reflecting the improvement of average asset yield, while the cost of risk stood at 30bps, up from 1bps recorded in 1Q2022 
  • The loans to customers portfolio stood at €52.7bn at the end of 1Q2023, slightly below 4Q2022. Customer deposits declined 4.6% to €80.1bn 
  • The NPE ratio slightly increased from 2.1% in 4Q2022 to 2.2% in 1Q2023 
  • The CET1 ratio increased 80bps compared to 4Q2022, reaching 19.5% 
  • The bank confirmed a dividend distribution of more than €352m, the largest in CGD’s history 

Banking – BCP´s 1Q2023 profit amounts to €215m (+90% YoY) (BCP) 

  • Net interest income rose 42.9% YoY to €664.6m in 1Q2023, with NIM increasing from 2.19% to 3.25%. Cost of risk stood at 56bps, 6bps below 1Q2022 
  • The cost associated with the foreign exchange mortgage portfolio increased from €127.9m in 1Q2022 to €205.7m in 1Q2023, penalising the performance of the Polish subsidiary 
  • The loans to customers portfolio stood at €57.3bn in 1Q2023, slightly below the €57.7bn in 4Q2022. Customer deposits declined by 1.2% to €75.0bn 
  • The NPE ratio remained at the same level as the previous quarter (3.8%) decreasing 0.8%-points YoY  
  • The CET ratio rose by 1.1%-points to 13.6%, in comparison to the previous quarter 

Banking – BPI´s 1Q2023 profit amounts to €85m (+75% YoY) (BPI) 

  • Net interest income rose 82.5% YoY to €206.4m in 1Q2023, while cost of risk stood at 20bps, increasing 13bps compared to 1Q2022 
  • The activity in Portugal contributed with €73.5m for the net income, corresponding to an increase of 164% in relation to 1Q2022  
  • The loans –to-customers portfolio stood at €29.2bn at the end of 1Q2023, a similar level to 4Q2022. Customer deposits declined 6.3% QoQ to €28.4bn 
  • The NPE ratio stood at 1.6%, maintaining the same level as in 1Q2022 and 4Q2022 
  • The CET1 ratio decreased from 14.8% in 4Q2022 to 14.3% in 1Q2023 


Credit – Bayern Landesbank to focus on Dutch real estate (fd.) 

  • The German bank plans to open a new office in Amsterdam this summer to grow its existing Dutch real estate portfolio, specifically in commercial and residential real estate 
  • To date, BayernLB has invested little in residential properties 
  • However, roughly one-tenth of all the real estate that the bank had in its portfolio worldwide last year was in the Netherlands, worth c.€1.2bn 

Credit – Strong decrease in mortgage refinancings due to higher interest rates (esb) 

  • In recent years, the average mortgage interest rate has fallen to c.1.6%. During that period, the number of refinancings has increased starkly 
  • The peak in the number of refinancings was in the second quarter of 2022, the quarter in which mortgage interest rates started to rise again 
  • Following further rises in mortgage interest rates, the number of refinancings fell sharply in the second half of 2022. At the end of 2022, the number of refinancings returned had fallen to the level of the first quarter of 2019 

ABS – Mogelijk Hypotheken prices its first issuance of the year (Debtwire) 

  • Vecht Residential 2023-1, a BTL RMBS, is the lender’s debut issuance 
  • All notes priced at a discount, of which the triple-A rated €201.5m Class A notes priced at 98.96 with a coupon of 100bps (DM of 130bps) over 3ME with a WAL of c.3.89 years and an advance rate of 86.9% 
  • The deal is backed by a portfolio of €209m comprised of 1,012 Dutch residential (99.4%) BTL mortgage, with a WA interest rate of 3.67%, current LTV of 66.9%, WA seasoning of 10.5 months and a 26.4 year average remaining term 


M&A Goldman Sachs sells stake in Berlin fintech (finanz-szene) 

  • GS invested in Elinvar in 2019, a Berlin based fintech, which provides technology aimed at accelerating the digitalisation of the asset management industry 
  • Elinvar was hoping not just to benefit from the financial investment, but to leverage GS’ brand and network to support them strategically 
  • Golman sold its 12% stake, the majority of which was bought by the fintech’s management 

Credit German credit market revitalises (finanz-szene) 

  • Private credit volumes in March increased by 27% (€15.3bn) compared to the previous month 
  • Despite the month-on-month increase, volumes are still short of the levels recorded a year ago (by 53%) 
  • Finanz-szene reports that increased credit volumes stem from (i) banks lowering their profit margins to protect their origination volumes; (ii) stable front-book rates since autumn last year; and (iii) possibly a seasonal trend as recorded in previous years in March