We structure and place mortgage-backed securities that release regulatory capital for banks without disrupting the underlying borrower relationship. From single transactions to repeat issuance programmes.
With Basel IV fully implemented from 2025, output floors and revised risk-weighted asset calculations have materially increased the capital that banks must hold against mortgage exposures — particularly for commercial real estate and higher-LTV residential lending.
Securitisation is the most direct instrument for RWA relief. By transferring mortgage exposures to a bankruptcy-remote SPV and placing the resulting notes with institutional investors, banks free regulatory capital while maintaining the originator relationship with the borrower.
The transfer is true-sale or synthetic depending on the bank's preference and the tax position. Either structure can achieve significant capital reduction when combined with risk retention compliant with Article 6 of the EU Securitisation Regulation.
SH acts as arranger, structurer and placement agent. We do not compete with the bank for the customer relationship — we build the instrument that lets the bank continue to serve it.
Full transfer of mortgage receivables to a bankruptcy-remote Fin-Co. Derecognition under IFRS 9 and Basel capital rules. Suitable for portfolios EUR 50 million and above.
Transfer of credit risk without balance-sheet derecognition. Applicable where tax, legal or relationship considerations make true-sale impractical. STS-compliant structures where eligible.
Structuring to achieve SRT recognition by the bank's national competent authority. ECB and SNB-ready documentation, Article 245 CRR compliance review.
Bridge financing during portfolio build-up before term take-out. Suitable for banks growing specific segments where warehousing capital is scarce.
Ongoing reporting under Article 7 of the EU Securitisation Regulation. Loan-level data, investor reports, significant events — fully outsourced or hybrid models.
Comparative analysis of securitisation versus covered bonds, whole-loan sales and hybrid capital. Independent assessment — we only propose securitisation when it is genuinely the best tool.
We analyse the candidate portfolio against current RWA treatment, assess structural options, and produce an indicative term sheet with expected capital release and all-in funding cost. Two to three weeks, NDA-protected.
Mandate letter, detailed structuring including Fin-Co jurisdiction, tranche design, risk retention model, hedging strategy. Appointment of external counsel, rating agency (if rated), and third-party service providers.
Loan-level data preparation, independent pool audit, transaction documents under LMA and EU Securitisation Regulation standards, prospectus under FinSA Art. 52 if publicly listed. Six to ten weeks.
NDA-gated investor education, pricing call, book-building, pricing and allocation. Senior tranches to pension funds and insurers, junior tranches to specialist funds, equity piece retained by the originator for risk retention compliance.
Monthly investor reports, loan-level data updates, significant event notifications, annual compliance attestation. Either SH handles reporting, or the bank retains the function with SH in a supervisory role.
By securitising mortgage receivables, banks outsource these exposures from their balance sheets, which frees capital for further lending activity and reduces systemic risk.