Complete news archive

  • Financial guarantee ILS debuts

    Build America Mutual Assurance Company (BAM) is in the market with what is believed to be the first ILS to transfer the risk of loss on a portfolio of financial guarantees. The Fidus Re Series 2018-1 transaction features US$100m twelve-year class A notes, with a five-year par call.

    BAM provides financial guarantees exclusively on lower risk segments of .......

    News 10 April 2018

  • Mortgage 'institutionalisation' gains traction

    The Dutch mortgage market continues to receive high levels of interest from investors, but RMBS faces stiff competition from other funding options like covered bonds and whole loan strategies. However, securitisation remains well-suited to funding the development of the fast-growing buy-to-let sector in the Netherlands, due to its lack of homogeneity and current light-touch regulatory regime.

    Hans Starrenburg, .......

    News Analysis 10 April 2018

  • SCI Start the Week - 9 April

    A look at the major activity in structured finance over the past seven days

    Pipeline
    A mixed bag of securitisations remained in the pipeline at the end of last week. ABS dominated the newly announced deals, split between consumer/esoteric and auto assets.

    The consumer/esoteric ABS transactions comprise: US$200m ELFI Graduate Loan Program 2018-A, US$235.25m Mosaic Solar Loan Trust 2018-1, US$225m OnDeck Asset Securitization Trust II Series 2018-1, US$188m and US$188m PFS Financing .......

    News 9 April 2018

  • Market moves - 6 April

    Europe

    CSC has hired Robert Berry as chairman of its capital markets group in London and Debra Parsall as director, also in London. Berry was most recently global head of capital markets at Intertrust Group. Parsall was most recently a director of capital markets at SFM Europe.

    The Bank of England has hired Antonio Guevara as an ILS specialist. Guevara .......

    Market Moves 6 April 2018

  • CMBS 'haves' and 'have-nots' highlighted

    The planned conversion of the Westside Pavilion property in Los Angeles - securitised in WFCM 2012-LC5 - is one recent example of a mall borrower resolving a troubled CMBS loan creatively (see SCI’s CMBS loan events database). Morningstar Credit Ratings highlights the move in new research illustrating that the majority of 2012 vintage mall loans should remain stable, .......

    News 4 April 2018

  • Market moves - 29 March

    Europe

    Man Group has hired Simon Finch as cio of credit at Man GLG, its discretionary investment management engine. In this newly created role, Finch will be responsible for Man GLG’s credit business and will have oversight of the credit portfolio management teams. He will report to Teun Johnston, ceo of Man GLG, and work closely with Man GLG’s cio, .......

    Market Moves 29 March 2018

  • Synthetic NPLs gain traction

    The ECB’s latest non-performing loan provisioning guidelines are expected to trigger increased synthetic NPL securitisation issuance. Nevertheless, defining a credit event for a portfolio of loans that are already non-performing remains a significant challenge.

    The ECB guidelines prescribe full provisioning for unsecured NPLs after two years and seven years for secured NPLs. “This could potentially incentivise banks to .......

    News Analysis 29 March 2018

  • Indian NPL investment increasing

    India’s bankruptcy framework is facilitating more investment activity in the nation’s non-performing loan market. Clearwater Capital is one of the latest investors to allocate more capital into Indian NPLs.  

    According to Subhashree Dutta, md at Clearwater Capital: “The new Insolvency and Bankruptcy Code brings US-style Chapter 7-11 bankruptcies to India, enabling the resolution of insolvencies in a time-bound manner, .......

    News Analysis 29 March 2018

  • US CLOs switch focus

    Focus is being drawn away from the US CLO secondary market, but it remains active.

    “The momentum is really with new issues, resets and refis at the moment,” says one trader. “Secondary has been relatively busy this month, but primary is the main focus.”

    The trader continues: “It’s still a premium market with lower bids still generating .......

    SCIWire 29 March 2018

  • Euro CLOs soften

    Pricing levels in the European CLO secondary market have softened this month.

    “CLOs have come off quite a bit with triple-As and double-Bs the most notable movers in secondary,” says one trader. “Unusually, it’s been driven by stock market moves rather than anything in the high yield market – high yield levels are little changed, but CLOs have moved wider .......

    SCIWire 29 March 2018

  • Euro ABS/MBS busy

    European ABS/MBS secondary market activity has picked up this week.

    “It’s been a busy week this week after a quiet week last week,” says one trader. “Overall, March has been busy and month-on-month secondary spreads are a little wider, but not by much.”

    The trader continues: “Everything is trading well, mainly at good levels with a generally .......

    SCIWire 29 March 2018

  • Innovative Dutch SRT completed

    Rabobank has completed an innovative Dutch significant risk transfer (SRT) deal with the EIF. The €128m financial guarantee is the lender’s only transaction where the second-loss risk has been fully transferred, as well as its first transaction under the CRD 4 in the SME space.

    The transaction will be guaranteed by the European Fund for Strategic Investments (EFSI). .......

    News 28 March 2018

  • LoanDepot RMBS debuts

    The first RMBS entirely backed by loans underwritten by marketplace lender loanDepot.com has hit the market. Mello Mortgage Capital Acceptance 2018-MTG1 is backed by a US$299.83m pool of 453 primarily 30-year fixed-rate QM loans.

    The securitisation comprises 226 prime jumbo loans underwritten to loanDepot's underwriting guidelines (representing 59.3% of the pool by loan balance) and 227 high balance .......

    News 28 March 2018

  • CLO portfolio turnover gauged

    Average US CLO manager portfolio turnover rate stood at 37.4% in 2017, ranging from 12% to 82%, according to a new JPMorgan analysis. The study further suggests that CLO managers have generally been able to sell loans at higher prices than the overall loan market.

    The CLO manager portfolio turnover rate used in the study is calculated by .......

    News 27 March 2018

  • Seeking to scale

    The capital relief trades (CRT) market suffers from a material gap between banks’ needs and the availability of investor capital, within the strategy. To facilitate growth, one of the next steps should be to attract greater buy-in from long-term investors, especially pension funds and their investment consultants.

    Kaikobad Kakalia, cio at Chorus Capital, believes that long-term investors - especially pension .......

    News Analysis 26 March 2018

  • SCI Start the Week - 26 March

    A look at the major activity in structured finance over the past seven days

    Pipeline
    An even mix of ABS, CMBS and RMBS remained in the pipeline at the end of last week. Another CRE CLO was also announced.

    The ABS comprise A$699m Driver Australia Five Trust, Sfr335m Swiss Car ABS 2018-1 and the US$3.22bn Tobacco Settlement Financing Corp 2018A and B notes. The CMBS consist of US$500m American Tower Trust I .......

    News 26 March 2018

  • Market moves - 23 March

    CDS clearing developments
    Intercontinental Exchange has transitioned index CDS open interest from CME Group to ICE Clear Credit, follows CME Group’s decision to exit the CDS business and transfer client positions to an alternative clearing house. ICE Clear Europe has also launched clearing for North American investment grade and high yield index CDS instruments, thereby providing regional customers the ability .......

    News 23 March 2018

  • Non-traditional ABS growth to continue

    There was record ABS issuance in 2017, with the most since the crisis. Non-traditional ABS accounted for around US$27bn, with whole business securitisation issuance reaching a record-breaking US$7.4bn, while aircraft ABS came back strongly after a quiet 2016.

    The growth of non-traditional ABS is being driven by investors reaching for yield. Of the various non-traditional sectors, including not .......

    News Analysis 23 March 2018

  • Risk transfer round-up - 23 March

    Credit Suisse is believed to have priced a capital relief trade referencing a loan book originated in Switzerland. The deal was allegedly 3x subscribed, with guidance at 7.625% but printing at 7%.

    Separately, arrangers note an increase in requests for transactions by standardised banks, with deals already said to be in the pipeline. Most of the transactions until now were .......

    News 23 March 2018

  • Grappling with uncertainty

    Capital relief trade issuers are incorporating structural features highlighted in the EBA’s risk transfer discussion paper in an effort to gain some regulatory certainty in the absence of any guidance. Challenges remain, though, as significant risk transfer (SRT) recognition will depend on negotiations between national regulators and banks.

    “There are a number of grey areas that can affect the SRT status of a .......

    News Analysis 23 March 2018

  • Increase in liquidity 'hard to measure'

    Liquidity in structured products is difficult to quantify, and perhaps even to define. Whichever way it is measured, traders agree that it has increased and predict that over the course of 2018 spreads are going to continue their long tightening trend.

    Liquidity is commonly identified by the presence of associated phenomena. Two-way markets made by dealers are considered to be .......

    News Analysis 22 March 2018
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