The Bottom Line.
5 things you need to know about different financing options
A podcast by our German structured finance team
The Bottom Line.
Episode 9: Non-performing loans (NPL)
Speakers: Lucy Sidey, Tom Quoroll, Barbara Lauer, Jördis Heckt-Harbeck, Moritz von Egidy
In Episode 9 our hosts, together with the structured finance experts Lucy Sidey and Tom Quoroll from London and Barbara Lauer from our German structured finance team, delve into the non-performing loans (NPL) market. They explore the history and key drivers of the European NPL market, highlighting the variance in market activity across different regions and the increasing regulatory pressures prompting banks to sell these assets. The discussion further addresses the typical structure of NPL transactions, noting the localization of laws and market-driven strategies, as well as the potential impact of the new European NPL directive on future transactions. The episode also touches upon emerging legal and commercial trends, such as M&A activity and forward flow arrangements, which are expected to shape the NPL market in the future.
Episode 8: ABCP transactions and how to run them most efficiently
Speakers: Guido Goldmann, Timo Menzel, Marc von Scheliha, Jördis Heckt-Harbeck, Kai Erik Ackermann
In episode 8, our hosts discuss asset-backed commercial paper (ABCP) programmes, also known as conduit programmes, with industry experts and securitisation enthusiasts Guido Goldmann from BayernLB as well as Timo Menzel and Marc von Scheliha from BearingPoint. In this episode, you will learn how BayernLB and BearingPoint cooperate on ABCP transactions to make the process more efficient for originators. We discuss the current state of the ABCP market, the advantages of this funding source, and why these programmes are particularly interesting for corporate and leasing companies. Further, we address common reservations about ABCP, the complexity of the data and IT infrastructure requirements for these transactions, and how tools, techniques, automation and digital workflows can significantly simplify transactions and increase efficiency. We also dare taking a look at the future of securitisation, with innovations such as AI and distributed ledger technology (DLT) – will processes change for the better?
Episode 7: Warehousing and public take-out with auxmoney
Speakers: Boudewijn Dierick, Jördis Heckt-Harbeck and Kai Erik Ackermann
In the first episode of 2024, our hosts Jördis and Kai are joined by Boudewijn Dierick, Managing Director at auxmoney, to discuss 5 key facts about warehouse transactions and public take-outs. Hear about auxmoney’s journey from the first warehouse transaction in 2019 to the establishment of its public securitisation platform “Fortuna” but also about Boudewijn’s personal journey from being an investment banker to establishing a securitisation platform for a fintech originator. In this episode, Boudewijn explains why auxmoney chose securitisation as its main financing instrument over other forms of financing and what the best time is for a start-up to go public with a portfolio. He also shares challenges and best practices for first-time issuers.
Episode 6: Mezzanine finance in securitisation transactions
Speakers: Alexander Shopov, Jördis Heckt-Harbeck and Ludovica Turrina
In episode 6, our host Jördis is joined by the structured finance experts Alex Shopov from the UK and Ludovica Turrina from Italy. They delve into the key aspects of mezzanine finance, the current demand for mezzanine finance in securitisation transactions and its benefits for lenders and borrowers. The discussion highlights the differences between mezzanine rights in private and public deals as well as in different markets. They further explore enforcement scenarios and provide examples on how mezzanine rights might impact the credit structure.
Episode 5: STS and Third Party Verification
Speakers: Jördis Heckt-Harbeck, Kai Erik Ackermann and Michael Osswald (STS Verification International)
In this episode our hosts Jördis and Kai discuss STS (Simple, Transparent, and Standardised) securitisation with Michael Osswald, the managing director at STS Verification International. After exploring what STS actually means, they delve into the role of third-party verifiers in assessing a securitisation transaction's compliance with STS criteria laid down in the EU securitisation regulation. They further discuss the benefits for investors and the challenges faced by first-time issuers. They also touch on the topic of the future of STS securitisation for private deals, synthetic transactions, and the provision of environmental performance data for auto loans, residential loans, and leases.
Episode 4: The Bottom Line goes TSI
Speakers: Burkhard Rinne, Jördis Heckt-Harbeck, Nicki Kayser, Adrian Danciu, Sebastian Witte, Annelie Laura Utech
In this episode you will hear from different colleagues from our European structured finance team. We will share our key take-aways from the TSI congress, the German ABS conference, which took place in Berlin at the end of September. Tune in to find out more about the current market interest in regulatory capital relief, refinanceable credit card business models, securitisation legislation in Luxembourg – and what sports and music may have to do with ABS.
Episode 3: Synthetic Securitisation
Speakers: Kai Erik Ackermann, Burkhard Rinne and Falk Weishaupt
Tune in to this new episode about one of the current hot topics in the market: synthetic securitisation. Our host Kai Erik Ackermann is joined by Burkhard Rinne, partner in our German structured finance group, and one of our clients, Falk Weishaupt, head of legal capital markets at Landesbank Baden-Württemberg (LBBW). They discuss the benefits, typical investors, asset classes, common structures of synthetic securitisations and recent developments in the market as well as potential challenges for an originating bank when setting up these transactions.
Episode 2: Green Securitisation
Speakers: Jördis Heckt-Harbeck and Barbara Lauer
In this episode our host Jördis Heckt-Harbeck is joined by our German structured finance partner Barbara Lauer to highlight 5 key things you need to know about green securitisation. They discuss the impact of the upcoming European Green Bond Framework for securitisations, explore market standardisation frameworks, such as the ICMA Green Bond Principles, and analyse emerging new asset classes such as solar panels and heat pumps. Our experts further dive into the involvement of EU institutions in funding sustainable projects.
Episode 1: Securitisation
Speakers: Jördis Heckt-Harbeck and Kai Ackermann
Join us in this episode as we explore the first financing instrument: securitisation. We will discover the basic structure and spotlight certain key features such as using a special purpose vehicle (SPV) and implementing a payment waterfall. We will also discuss potential implications of an insolvency of the receivables seller or the SPV Lastly, we will highlight the advantages of a securitisation for both, investors and sellers.
Intro: Welcome to The Bottom Line.
Speakers: Jördis Heckt-Harbeck and Kai Ackermann
Welcome to "The Bottom Line." A brand-new podcast presented by our hosts Jördis Heckt-Harbeck and Kai Erik Ackermann from our German structured finance group. Embark on a captivating journey through different financing options, market trends and related hot topics for companies in every stage from start-ups to established market participants and their financiers. This debut episode will introduce our hosts and the concept of this podcast series.
