Complete news archive

  • Cerberus explores RMBS options

    Sector developments and company hires

    Granite alternatives

    Cerberus European Residential Holdings is exploring strategic alternatives with respect to the mortgage loans held in the Towd Point Mortgage Funding 2016-Granite1 and 2016-Granite2 RMBS, which will become eligible for optional redemption from April and May of 2019 respectively. The firm has engaged Morgan Stanley and Bank of America Merrill Lynch as its financial advisors to .......

    Market Moves 17 December 2018

  • Wetherby 2 completed

    SONIA-linked synthetic securitisation debuts

    Lloyds has completed a £142.5m 7.25-year financial guarantee referencing a £1.5bn UK commercial real estate portfolio. Dubbed Wetherby 2 Securities 2018, the transaction is the first synthetic securitisation to reference the new SONIA interest rate benchmark and the third structured as a dual tranche trade (SCI 26 January).

    The £82.5m first loss tranche (0%-5.5%) pays SONIA plus ......

    News 17 December 2018

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  • Landmark transaction launched

    UK RMBS is first securitisation tied to SONIA rate

    The first securitisation with liabilities tied to the Sterling Overnight Index Average (SONIA) rate has been issued by Lloyd’s Bank, which is opting to retain the deal. The £7.6bn transaction, dubbed Elland RMBS 2018, is backed by owner-occupied residential mortgages in England and Wales, originated by Bank of Scotland under the Halifax brand.

    While the assets in the transaction are .......

    News 17 December 2018

  • SCI Start the Week - 17 December

    A review of securitisation activity over the past seven days

    Market commentary
    European CMBS BWIC activity swelled after the Taurus 2018-3 DEU deal priced last week (SCI 12 December). Unusually, noteholders were offered an early prepayment on 14 December as an incentive to price the transaction before the end of the year.

    The market remains soft as conditions refuse to buck the widening spread trend. Several European dealers have .......

    News 17 December 2018

  • ABSPP plans published

    Sector developments and company hires

    APP reinvestment set

    The ECB has outlined the technical parameters for the reinvestment of the principal payments from maturing securities purchased under its asset purchase programmes after net asset purchases cease at end-December 2018. It expects to reinvest ABSPP redemptions back into the ABS market and CBPP3 redemptions back into the covered bond market. The bank says it will aim .......

    Market Moves 14 December 2018

  • Restructuring milestone

    Greek NPL transaction arranged

    Pillarstone has arranged a €174m restructuring in Greece for Famar, one of Europe’s largest providers of contract manufacturing and development services to the pharmaceutical and health and beauty industries. The agreement is considered a landmark, given that restructurings are an exceptional occurrence in the Greek non-performing loan market.

    According John Davison, ceo at Pillarstone: “Famar has made substantial .......

    News Analysis 14 December 2018

  • Running dry

    Euro CLO secondary market update

    The European CLO primary pipeline is running dry. Traders are increasingly looking at BWIC activity instead.

    Several CLO BWICs are out for the bid today. “Yesterday saw a bit of a turn-around in terms of BWIC activity,” says one trader, “though the market is still a little weak and cautious.”

    CLO bonds are pricing significantly wider .......

    Market Reports 14 December 2018

  • JV trend continues

    Landmark NPL transactions agreed

    Banco BPM announced this week a non-performing loan securitisation with Elliott International and Credito Fondiario for a nominal value of €7bn-€7.8bn, while Intesa Sanpaolo and Intrum completed a similar transaction last week. The agreements involve the sale and co-ownership of servicing platforms, which is part of a broader trend in Italian NPL disposals.

    According to Massimo Famularo, board .......

    News Analysis 14 December 2018

  • STS guidelines published

    Sector developments and company hires

    P2P head hired

    Dynamic Credit has hired Giles Andrews as chairman of its supervisory board. The board will have three members and serves to strengthen the corporate governance of Dynamic Credit Group (DCG), which comprises of the asset manager and direct lender Dynamic Credit and the investor servicing platform LoanClear. Andrews is co-founder of Zopa and, in addition to his .......

    Market Moves 13 December 2018

  • Concerns ignited

    Wildfire peril pricing questioned

    ILS market participants are re-evaluating whether the pricing of wildfire risk in catastrophe bonds is adequate, after the 8 November US wildfires caused between US$9bn-US$13bn worth of damage. However, the picture is likely to only become clear over 2019 as the claims are counted and the full scale of loss across multiple perils is measured.

    “It has generally ......

    News Analysis 13 December 2018

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  • Star performer

    CDX beats cash bonds but CMBX leads

    Strong returns in CMBX have made it a ‘standout performer’ in the credit derivatives space this year, although timing is ‘crucial’ against the backdrop of retail volatility. Investors have also found CDX can play a key role in managing risk and generating alpha, while single-name CDS trading may surge in coming months, with further corporate defaults expected.

    Tracy Chen, portfolio .......

    News Analysis 13 December 2018

  • Prepayment offer

    European CMBS market update

    European CMBS BWIC activity has swelled after the Taurus 2018-3 DEU deal priced today. Unusually, noteholders have been offered an early prepayment on 14 December as an incentive to price the transaction before the end of the year.

    The market remains soft as conditions refuse to buck the widening spread trend. Several European dealers have decided to .......

    Market Reports 12 December 2018

  • Global leader appointed

    Sector developments and company hires

    Amended complaint filed

    The state of Colorado has filed a Second Amended Complaint relating to state court actions against Avant and Marlette, alleging that the platforms have violated its Uniform Consumer Credit Code (SCI 12 May 2017). According to a Chapman and Cutler client memo, in addition to making the same claims against the platforms, the state is suing .......

    Market Moves 12 December 2018

  • Libor consultation launched

    Sector developments and company hires

    ILS

    Peak Reinsurance Company has launched Asia’s first sidecar transaction via a new Bermuda-domiciled special purpose insurer, Lion Rock, to provide collateralised retrocession for part of Peak Re’s global property reinsurance risk portfolio. The establishment of this special financial structure, referred to as a “reinsurance sidecar”, allows investors to take on the risk and benefit from specific books .......

    Market Moves 11 December 2018

  • Selling spike

    US CLO market update

    There has been a spike in selling of investment grade paper on the US CLO secondary market, coming mostly from the insurance sector. In past cycles, insurance companies have been more likely to hold on to their assets, but currently seem willing to sell.

    “We are not sure if it is year-end cleansing or if this is more .......

    Market Reports 11 December 2018

  • UK CMBS markets

    Transaction marks first for rating agency

    A Brookfield Asset Management entity, BSREP International II (A), is the sponsor of a new £367.5m UK single-asset single-borrower (SASB) CMBS, dubbed Salus (European Loan Conduit No.33). The transaction comprises a first-lien interest-only mortgage loan originated by Morgan Stanley and backed by the landmark City of London property, Citypoint.

    The mortgage loan comprises a senior loan which will be securitised .......

    News 11 December 2018

  • SCI Start the Week - 10 December

    A review of securitisation activity over the past seven days

    Market commentary
    US CLO BWIC activity last week boomed ahead of the market holiday in honour of former president George H.W. Bush (SCI 4 December). Bid-lists were mainly triple-A oriented, whereas demand for triple-B bonds faded and double-B bond prices were 1.5 points worse off.

    “People are re-evaluating double-B bonds based on market value (MVOC) and are focusing on .......

    News 10 December 2018

  • Risks remain

    Termination risks persist for SF transactions in no-deal scenario

    Contingency plans being implemented by financial institutions will help to avoid many derivatives risks associated with a no-deal Brexit, according to a report from Fitch. However, termination risks still persist for structured finance transactions, should issues around uncleared derivatives not be mitigated.

    As it stands, a no-deal Brexit would result in a lapse of EU authorisation for UK financial services, .......

    News 10 December 2018

  • Corporate finance partner hired

    Sector developments and company hires

    CDO manager transfer

    Dock Street Capital Management has replaced Deerfield Capital Management as collateral manager for the Buckingham CDO II and III ABS CDOs. Under the terms of the appointment, Dock Street agrees to assume all the responsibilities, duties and obligations of the collateral manager under the indenture. Moody's has confirmed that the move will not result in .......

    Market Moves 7 December 2018

  • Reaching capacity

    New CLO managers continue flocking to Europe

    Seven new CLO managers are warehousing assets, with European CLO platforms ready to issue in 1Q19. Most of the new entrants are US managers expanding into Europe, but the increasing number of managers has sparked concerns that the European market may be reaching capacity.

    This year in Europe, five new CLO managers have priced deals, adding to the .......

    News Analysis 7 December 2018

  • Bid scarcity

    European ABS market update

    A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to widen in the CLO and ABS primary markets.

    “We are running a few private processes, which are keeping us busy, and we will hopefully conclude them over the next couple of days,” says a trader.

    The trader comments that .......

    Market Reports 7 December 2018
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