Complete news archive

  • SCI Start the Week - 27 April

    A review of securitisation activity over the past seven days

    Last week's stories
    Accessing liquidity
    The role technology plays in securitising trade finance for profit and success
    Bright spot?
    European logistics gaining momentum
    Extension risk
    Willingness and ability to call weighed
    Non-agency CMBS goes it alone
    The non-agency CMBS market is an orphan of the storm
    NPL ABS eyed
    Greek banks target HAPS, despite virus crisis
    Pressured profitability
    Building societies sensitive to lockdown
    Rating reaction?
    Potential .......

    News 27 April 2020

  • De-risking deluge?

    US CLO managers' initial crash response assessed

    The current unprecedented trading conditions will only lead to ever-greater CLO manager differentiation. For now, a new report assesses how managers have initially responded to the market and economic volatility seen so far.

    JPMorgan CLO research analysts have analysed 173,420 US loan trades for the year-to-date. This adds to their ongoing study of now 2.39 million CLO manager .......

    News 27 April 2020

  • Inventory ABS prepped

    Sector developments and company hires

    Inventory ABS prepped
    Fintech platform Supply@ME Capital (SYME) has entered into an agreement with StormHarbour Securities for the issue, distribution and placing of a series of ABS that are guaranteed against inventories purchased directly by the platform's SPVs (SCI 15 April). Details of the securitisation programme are being finalised, but it is anticipated to cover - within 12 months .......

    Market Moves 24 April 2020

  • NPL ABS eyed

    Greek banks target HAPS, despite virus crisis

    Greek banks are targeting over €30bn of non-performing loan securitisations in 2020 via the Hercules Asset Protection Scheme (HAPS). However, recent measures to curtail the spread of Covid-19 could render this task more difficult (SCI 9 April).

    Among the banks readying NPL ABS deals is Alpha Bank, which intends to frontload the sale of its NPL exposures with a .......

    News Analysis 24 April 2020

  • Stalwart Canadians

    Canadian CMBS better positioned than US

    There is some evidence that the Canadian CMBS market is in a better state to ride out the turbulence of the Covid 19 crisis than the US market, suggest analysts.

    “Taking the base case scenario (that the recovery will begin at the beginning of 2021) the Canadian CMBS market is better positioned. It’s not just a matter of .......

    News 24 April 2020

  • Underperformance underlined

    Italian NPL ABS ratings hit

    Moody’s has downgraded and placed on review for further downgrade the ratings of two notes and placed on review for downgrade the ratings of 12 notes across 11 Italian non-performing loan securitisations. The downgrades reflect underperformance against initial assumptions and the rating reviews reflect the slower and potentially lower anticipated cashflows in the transactions, given the reduced functionality of the .......

    News 24 April 2020

  • Non-agency CMBS goes it alone

    The non-agency CMBS market is an orphan of the storm

    While a raft of measures to aid liquidity and forestall insolvency have been introduced by the US authorities to asset-backed markets in recent weeks, the non-agency CMBS sector remains outside the umbrella, leading to fears it faces huge losses.

    GSE-backed CMBS are considered eligible as collateral under the terms of TALF 2.0, while in the private label sector .......

    News Analysis 24 April 2020

  • Recovery boost

    Weatherford revolvers fully repay amid negative outlook

    A new case study from SCI has revealed that oil and gas firm Weatherford International is referenced in a capital relief trade following the company’s successful emergence from bankruptcy in December 2019. The revolvers that backed the SRT deal have fully recovered after the chapter 11 restructuring, although the factors that led the company into bankruptcy - including low .......

    News Analysis 24 April 2020

  • Grandfathering for Dutch CLO issuers

    Sector developments and company hires

    Grandfathering for Dutch CLO issuers
    The Dutch tax authorities have provided written confirmation to CLO issuers domiciled in the Netherlands that their recently revised position on the VAT exemption (SCI 10 March) will not apply with retroactive effect. Further, the VAT exemption will continue to apply to transactions for a grandfathering period until 1 January 2021. Issuers are continuing a .......

    Market Moves 23 April 2020

  • GSE advancing obligations aligned

    Sector developments and company hires

    GSE advancing obligations aligned
    The US FHFA has aligned Fannie Mae's and Freddie Mac's policies regarding servicer obligations to advance scheduled monthly principal and interest payments for single-family mortgage loans. Once a servicer has advanced four months of missed payments on a loan, it will have no further obligation to advance scheduled payments. When a mortgage loan is in an .......

    Market Moves 22 April 2020

  • Accessing liquidity

    Christoph Gugelmann, co-founder of Tradeteq, highlights the...

    Access to liquidity is becoming more important than ever; many businesses – both large and small – need support in order to maintain exporting obligations. However, even if the global economy was not currently wrestling with the impact of Covid-19, there would still be a US$1.5trn trade finance gap between what banks can loan versus what businesses need.

    Talking Point 22 April 2020

  • Extension risk

    Willingness and ability to call weighed

    The Covid-19 fall-out appears to have impacted both the willingness and the ability of some UK issuers to exercise call options, since the public primary securitisation market has contracted and funding sources - especially for non-bank lenders - have become scarce (SCI 17 March). Nevertheless, TFSME-eligible issuers are more likely to call their outstanding transactions, given their ability .......

    News 22 April 2020

  • Structural review

    New shape of European CLOs examined

    CLO issuers are having to adapt to the current market environment and consequently new deals are moving away from traditional structures. A new report from S&P examines the major changes it is seeing in proposed European issuance.

    Understandably many deals being proposed are utilising lower leverage and greater protection. “To address the increased downside risks on corporate downgrades, .......

    News 22 April 2020

  • Pressured profitability

    Building societies sensitive to lockdown

    UK residential mortgage originations have decreased significantly due to the current social distancing measures. However, the profitability of building societies depends on their ability to grow their loan books, says KBRA.

    Valuations are a significant step in the process of originating and underwriting new mortgage loans. However, property visits are not taking place at the moment.

    Joanna .......

    News 21 April 2020

  • Rating reaction?

    Potential shift to non-investment grade drives selling

    The CLO BWIC calendar has been dominated by triple-B paper so far this week, as sellers look to off-load bonds ahead of potential downgrades into non-investment grade territory. The pattern could continue for some time, with rating-sensitive investors forced to sell, pushing spreads wider.

    After Moody’s became the latest rating agency to place large swathes of CLOs .......

    News 21 April 2020

  • Moody's puts CLOs under review

    Sector developments and company hires

    Moody’s puts CLOs under review
    Moody's has placed on review for downgrade its ratings on 859 tranches issued by 358 US BSL CLOs (plus another 25 linked US CLO combo notes, secured notes and repacks) and 117 tranches issued by 39 European BSL CLOs. The affected securities represent 19% of Moody's US-rated BSL CLOs and 14% of its European-rated CLOs.

    Market Moves 20 April 2020

  • Bright spot?

    European logistics gaining momentum

    The logistics sector is set to be a bright spot in European commercial real estate post Covid-19. Coronavirus impacts represent one of six fundamental factors behind the sector’s momentum, according to Scope Ratings, alongside growth in e-commerce, end-customer demands, supply chain optimisation, a supply-demand/supply imbalance and new urban developments.

    The agency suggests that these factors are strongly supportive .......

    News 20 April 2020

  • SCI Start the Week - 20 April

    A review of securitisation activity over the past seven days

    Last week's stories
    Bilateral activity
    Opportunistic capital redeployment underway
    Coverage cleared
    Debut programmatic ILW trade executed
    Discounted opportunities
    Insurers target SRT secondary market
    Forbearance foreseen
    Euro CMBS cash-trap thresholds eyed
    Forbearance risks
    Pre-2015 GSE deals could suffer losses
    Price volatility
    Liquidity constraints hit credit risk transfer
    Risk transfer reboot
    Large corporate SRTs prepped
    Second wave
    Widespread CLO rating downgrades add further uncertainty
    TALF sparks rally
    US CLO seniors .......

    News 20 April 2020

  • Interest rate mismatches eyed

    Sector developments and company hires

    Interest rate mismatches eyed
    Moody’s suggests that loan repricing will increase interest rate mismatches for Chinese structured finance deals, posing a higher risk for RMBS than auto ABS, given the longer loan terms and the greater share of floating-rate loans. All Chinese financial institutions must reprice outstanding floating-rate loans to either loan prime rate (LPR)-indexed floating rates or fixed rates .......

    Market Moves 17 April 2020

  • Forbearance risks

    Pre-2015 GSE deals could suffer losses

    As the coronavirus spreads and servicers offer mortgage forbearance plans to struggling obligors, certain pre-2015 credit risk transfer (CRT) fixed severity deals are set to sustain losses without action from Fannie Mae and Freddie Mac. In contrast, actual loss CRT deals do not automatically suffer losses from credit events, but are exposed to risks from rate reductions, permanent principal .......

    News 17 April 2020

  • Coverage cleared

    Debut programmatic ILW trade executed

    Tremor last week executed what is believed to be the first programmatic ILW trade via an online auction. A US$50bn US wind and earthquake contract cleared at a rate on line (ROL) of 12.25% through the platform, having traded at a ROL of 12.5% before brokerage.

    Tremor opened its weekly online ILW auctions on 2 April to provide .......

    News 16 April 2020
×