Single Platform Investment Repackaging Entity (Spire) has plugged in Goldman Sachs International into its multi-dealer programme for issuance of secured notes aimed at institutional investors looking to buy repackaged structured products.

The Spire programme allows for repackaged notes arranged by the platform's dealer-members, to be issued in standardised formats. Investors can gain exposure to the returns of a variety of underlying collateral assets and customisable payoffs. The platform aims to bring transparency liquidity and simplicity to the market for repackaged securities.

Spire notes can be arranged by any of the dealers connected to the platform enhancing their liquidity and providing risk mitigation, as if one issuer defaults, another can jump in as replacement counterparty to honour each asset swap. The Swiss bank has placed five of the 13 repacks issued by Spire. To date, in excess of €700m-equivalent has been issued to major UK, European and Asian institutional investors since the programme was launched in May 2017.

Enrico Ottavian, head of Emea and US interest rate product structuring at Goldman Sachs International said that Spire will enable the bank to offer its clients 'an even broader set of solutions for their investment needs'.

In less than a year of operation, there has been significant take-up from investors for securities issued through the Spire platform, according to Raphael Masgnaux, global head of G10 Rates, and prime services and financing at BNP Paribas. 'This demonstrates that there is high demand for the transparency and liquidity enabled by a standardised vehicle in the repack market,' said Masgnaux. 'Greater choice puts more power into the hands of investors and improves liquidity."

Omar Waly, director, structuring at Credit Suisse, told SRP in a recent interview that repackaging platforms provide investors with the flexibility to combine the pay-off of their choosing, with the underlying debt (i.e. 'issuer risk') that best fits their investment goals, and repackaging platforms have been "designed based on cutting edge legal advice from top tier law firms in order to ensure it met 'SPV 2.0' standards".

"This refers to the revamp of securitisation SPV's, which occurred in the wake of Lehman's default, and the problems that arose with regards to liquidating the vehicle's assets and realising the amounts owed to investors," said Wally. "This necessitates having clear cut early redemption mechanics for the protection of investors for example where the arranging bank defaults."

According to Waly, the landscape is definitely becoming more competitive and today there are more than double the number of providers in the repackaging space that there were in 2014 when the first repackaging platforms were developed.

The Spire platform was established by BNP Paribas, Citigroup, Credit Suisse and JP Morgan in May 2017. Barclays became the fifth dealer on the platform when it joined in February 2018.

Related stories:

Investment banks produce template documentation for repackaging transactions

BNP, Citi, Credit Suisse and JP Morgan collaborate for repack platform