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      Pfandbriefe investors shielded from volatile CRE valuations

      21/5/2024 Research EN

      Pfandbriefe investors shielded from volatile CRE valuations

      With our negative CRE outlook persisting and the collateral values of CRE loans volatile, covenant breaches are also driving up NPLs. Regulators are seeking to address value volatility, but Pfandbriefe are shielded because of cover-pool eligibility caps.

      German covered bonds not imperilled by CRE but office exposure a concern

      13/5/2024 Research EN

      German covered bonds not imperilled by CRE but office exposure a concern

      EU supervisors remain concerned that banks’ real-estate exposure is vulnerable, and US contagion risk is an issue. But while German banks’ CRE portfolios are unlikely to have endangered the safe-haven status of Pfandbriefe, office exposure is a worry.

      Italian CQS ABS: Marzio Finance performance snapshot

      8/5/2024 Research EN

      Italian CQS ABS: Marzio Finance performance snapshot

      Scope Ratings has published the performance overview of notes issued by Marzio Finance, a EUR 10bn securitisation programme backed by ‘cessione del quinto’ and ‘delegazione di pagamento’ (CQS) loans originated by IBL Banca.

      Almost 75% of CRE loans in European CMBS fail to meet bank refinancing requirements

      2/5/2024 Research EN

      Almost 75% of CRE loans in European CMBS fail to meet bank refinancing requirements

      CRE refinancing risk remains high. We still believe that 40% of fully-extended securitised loans present high or very high refinancing risks but based on recent extension requests, moderate refi risk has increased materially from 23% to 41%.

      Covered Bond Quarterly: Have German banks put Pfandbriefe at risk?

      17/4/2024 Research EN

      Covered Bond Quarterly: Have German banks put Pfandbriefe at risk?

      After a strong January, EUR benchmark covered bond issuance slowed in February and March. Some of the reluctance to issue may have been driven by Germany’s specialised commercial mortgage lenders, given rising tensions in commercial real estate.

      Real Estate Insight - April 2024

      12/4/2024 Research EN

      Real Estate Insight - April 2024

      Europe’s real estate companies grapple with negative credit outlook; German banks look resilient despite CRE risks; bond market access is a differentiator for property companies; systemic risks are still high in European housing

      Italian NPL collections: note sales fall to almost zero in February

      8/4/2024 Research EN

      Italian NPL collections: note sales fall to almost zero in February

      February 2024 Italian NPL collections of EUR 114m were 15% up month-on-month but 18% below the February average of the three previous years.

      Italian NPL collections: monthly volumes down by more than half in January

      19/3/2024 Research EN

      Italian NPL collections: monthly volumes down by more than half in January

      January 2024 Italian NPL collections of EUR 99m were 56% down month-on-month and 12% below the January average of the three previous years, continuing the declining trend observed throughout 2023.

      Scope updates its General Structured Finance Rating Methodology

      6/3/2024 Research EN

      Scope updates its General Structured Finance Rating Methodology

      No impact on existing ratings

      Structured Finance Activity Report: negative rating drift continues reversal

      14/2/2024 Research EN

      Structured Finance Activity Report: negative rating drift continues reversal

      Scope’s 12-month trailing negative rating drift in structured finance continued to subside in Q4 2023, moving further off the trough reached in Q2 2023. The downtrend started in Q4 2021 owing to the deteriorating economic environment.