AXA Bank Belgium sells rare synthetic RMBS

摘要

AXA BANK BELGIUM achieved regulatory capital relief on a pool of Belgian residential mortgages when it sold a rare synthetic RMBS last week. The securitisation means ABB, which is in the process of being sold by AXA Group to Crelan Bank, no longer needs to raise capital from its parent company. BMP Paribas and Belfius Bank were joint arrangers and joint leads for ABB's deal, called CASPR-1. It was pre-placed, selling €59.1m of credit-linked notes across four tranches that reference a €730m portfolio. Moody's is predicting an increase in European synthetic deals next year as banks seek regulatory capital preservation in the face of increased loan-loss provisioning following Covid-19. And these structures could become even more attractive for banks if proposed changes to European legislation allow synthetic securitisations to qualify for the EU's Simple, Transparent and Standardised label.