Complete news archive

  • Middle market boost?

    Two significant trends are emerging in middle market CLOs that are expected to boost diversity across the sector. However, it remains unclear whether these developments will ultimately translate into increased volumes.

    According to DBRS md and head of structured credit Jerry van Koolbergen, one trend is the emergence of US insurance company interest in the space and the other is .......

    News Analysis 15 November 2017

  • Mortgage ILS breaks new ground

    Arch Capital Group recently closed its first public rated mortgage ILS (SCI 18 October). Dubbed Bellemeade Re 2017-1, the US$368.11m transaction features structural departures from previous deals in the programme, while Morningstar Credit Rating's rating facilitated wider interest and broadened investor participation.

    James Bennison, svp at Arch Capital Group, comments that as well as being the first rated transaction from .......

    News Analysis 14 November 2017

  • SCI Start the Week - 13 November

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

    Pipeline
    There were even more additions to the pipeline last week than there had been in the week before. The new arrivals consisted of 18 ABS, eight RMBS, three CMBS and two CLOs.

    The ABS were: US$221.2m Access Point Funding I 2017-A; US$560m Ally Auto Receivables Trust 2017-5; US$194m Aqua Finance Trust 2017-A; US$172.5m CIG Auto Receivables Trust 2017-1; .......

    News 13 November 2017

  • AXA boosts risk transfer foothold

    AXA IM's structured finance unit raised over €1bn in total commitments for the AXA IM Partner Capital Solutions VII fund at the end of September, following its launch in July 2017. The capital was raised from repeat and new clients and is the largest amount that AXA IM has raised for capital relief trades, reflecting an increased asset management foothold .......

    News Analysis 10 November 2017

  • Job swaps round-up - 10 November

    EMEA

    Ares Management has hired Rory McHugh as md. McHugh was previously md, head of alternative finance, specialist lenders and fintech at RBS. Prior to that he was head of structured finance derivatives and automated treasury solutions also at RBS.

    Scope has founded Scope Investor Services to support institutional investors in the selection of fund managers and investment vehicles across .......

    Job Swaps 10 November 2017

  • NPL equity acquired

    Hedge fund Elliott Management has acquired an equity piece in Attica Bank's non-performing loan securitisation, reducing the exposure of Aldridge EDC, the original investor (SCI 7 July). Details of the transaction have not been disclosed, but local industry sources and growing momentum in the Greek NPL market, suggest that Elliott coveted exposures to Greek assets.

    Aldridge paid €70m for the .......

    News Analysis 10 November 2017

  • EMIR inaction could be 'grave'

    The risks from industry inaction regarding EMIR are "grave" and could have "serious negative consequences" on the European securitisation sector, according to Bank of America Merrill Lynch European securitisation analysts. Along with a recent ISDA whitepaper, they outline recommendations to limit the regulation's detrimental effect on the market.

    The BAML analysts say that major negative consequences will result from the .......

    News 9 November 2017

  • Las Vegas SASB CMBS prepped

    Caesars Entertainment Operating Company emerged from bankruptcy last month. The restructuring of its affairs has resulted in the preparation of a CMBS, which is now marketing.

    The US$1.6bn Caesars Palace Las Vegas Trust 2017-VICI CMBS (see SCI's deal pipeline) has been provisionally rated by both S&P and Kroll Bond Rating Agency. The collateral is a five-year, fixed-rate interest-only .......

    News 8 November 2017

  • RMBS divestments resumed

    The Australian Office of Financial Management has resumed its RMBS divestment programme, after putting it on hold two years ago, having failed to sell any assets in its fifth auction (SCI 5 November 2015). The Treasurer has determined that RMBS market conditions have improved sufficiently to warrant restarting the regular auction process.

    Consequently, the next auction will be held on .......

    News 8 November 2017

  • Aqua preps debut ABS

    Aqua Finance is marketing its first public term securitisation. US$194m Aqua Finance Trust 2017-A (see SCI's deal pipeline) is collateralised by a pool of retail instalment sale contracts and agreements primarily used for water treatment equipment and home improvements.

    The US$174.5m class A notes have been provisionally rated single-A by Kroll Bond Rating Agency. Kroll has also rated the .......

    News 7 November 2017

  • Agricultural equipment ABS debuts

    DLL Finance, a Rabobank subsidiary, is in the market with an inaugural equipment ABS. Dubbed DLL Securitization Trust 2017-A, the US$501.5m transaction is backed by 24,080 loans and leases mostly originated by dealers to finance primarily agricultural equipment.

    S&P and Moody's have assigned provisional ratings to the transaction of A1+/P1 on the US$120m class A1 notes (which are expected to .......

    News 7 November 2017

  • Manager BWIC activity highlighted

    A new JPMorgan study sheds light on the relationship between BWIC activity by US CLO manager versus AUM. The analysis suggests that managers with higher outstandings tend to see higher BWIC volumes on a notional basis.

    The JPMorgan study includes all post-crisis issued US CLO BWIC data from 2012-2017, as of 29 September. US$72.66bn in aggregated BWIC volume was recorded .......

    News 7 November 2017

  • Investment property RMBS prepped

    An unusual US RMBS transaction is being marketed (see SCI's deal pipeline). The US$127.332m RCO 2017-INV1 RMBS is collateralised by residential rental mortgage loans.

    Morningstar Credit Ratings has assigned a preliminary rating of triple-A to the US$75.827m class A notes. It has also rated the US$25.594m M1, US$8.34m M2, US$7.13m B1, and US$4.393m B2 classes single-A, triple-B, double-B .......

    News 6 November 2017

  • Airline bankruptcy exposure gauged

    A number of aircraft ABS have been impacted by the bankruptcy of several large carriers in Europe, with the Castlelake 2015 and 2016 transactions disproportionately affected, according to a new Deutsche Bank analysis. However, in most cases, narrow-body aircraft are expected to have little difficulty finding a new home - helping to mitigate the impact on investors in these deals.

    News 6 November 2017

  • Equity-friendly features on the rise

    Demand for CLO paper and an unintended consequence of risk retention rules have led to a rise of equity-friendly features in US CLO indentures, according to Fitch. The agency suggests that the trend also reflects the growing influence of CLO equity investors as CLO debt becomes more broadly distributed.

    "Compliance with risk retention rules has stimulated CLO asset managers either .......

    News 6 November 2017

  • SCI Start the Week - 6 November

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

    Pipeline
    It was full steam ahead once more for the pipeline. There were 13 ABS, an ILS, three RMBS, two CMBS and a CLO added.

    The ABS were: US$1.3bn AmeriCredit Automobile Receivables Trust 2017-4; Auto ABS UK Loans 2017; A$329.3m Eclipx Turbo Series 2017-1; US$502m DLL Securitization Trust 2017-A; US$456.23m DriveTime Auto Owner Trust 2017-4; US$890m Hyundai Auto Lease .......

    News 6 November 2017

  • Job swaps round-up - 3 November

    EMEA

    The Carlyle Group is set to reorganise its executive leadership, effective from 1 January 2018. Deputy cio Kewsong Lee and president/coo Glenn Youngkin will replace David Rubenstein and William Conway as co-ceos of the firm, while deputy cio Peter Clare will become co-cio alongside current cio Conway, with the trio also joining the board of directors. Rubenstein and Conway .......

    Job Swaps 3 November 2017

  • Risk transfer round-up - 3 November

    Two US public pension funds in Arizona and Pennsylvania are rumoured to have completed a capital relief trade each, although the exact identity of the funds could not be confirmed. According to one industry insider: "The risk transfer market is private, so the details of the transactions are sketchy. However, if I am hearing of these deals, I suspect there .......

    News 3 November 2017

  • Pre-emptive lawsuits envisaged

    The threat of significant losses has sparked concern that the US subprime auto ABS sector could see pre-emptive legal actions emerging. With spreads continuing to tighten in the face of increasing delinquencies, investors may start to question whether they are being adequately compensated for the risks involved.

    Joe Cioffi, partner at Davis and Gilbert, says that while losses in subprime .......

    News Analysis 3 November 2017

  • Balance sheet optimisation continues

    Rabobank has transferred part of the risk on a €3bn commercial credit portfolio to pension fund Pensioenfonds Zorg en Welzijn (PFZW). The synthetic securitisation forms part of the lender's efforts to optimise its balance sheet and follows the disposal of a €600m mortgage portfolio to La Banque Postale (SCI 27 October).

    Bas Brouwers, Rabobank cfo, confirms: "This transaction is part .......

    News Analysis 3 November 2017

  • ISPV approach published

    The UK PRA has published its final approach and expectations in relation to the authorisation and supervision of insurance SPVs (SCI passim). In light of public consultation, a new safeguard has been introduced that removes the need for multi-arrangement insurance SPVs (MISPVs) to notify supervisors of proposals to assume new risks before they take effect. The authority has also issued .......

    News 2 November 2017
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