Complete news archive

  • Refi success depends on timing

    Refis from the final quarter of last year appear to have pulled the trigger too early as they reduced their debt costs by less than those US CLOs that refinanced this year. While refis from 4Q16 outperformed only briefly before later once more underperforming issuance cohorts, refis from 1Q17 and 2Q17 have enjoyed outperformance without then succumbing to underperformance.

    CLOs .......

    News 11 October 2017

  • BJETS concerns highlighted

    Business Jet Securities series 2017-1 exposes investors to multiple risks - including performance volatility, transaction structural risks and a servicer with a limited track record - according to Fitch. The corporate jet aircraft ABS is not rated by the agency, which notes that the deal does not meet its investment grade standards.

    KBRA assigned preliminary single-A ratings to the securitisation's .......

    News 11 October 2017

  • ILS issuance hits all-time highs

    The insurance-linked securities market has seen a surge in new issuance this year, with 1H17 witnessing the largest monthly, quarterly and half-year volumes on record. The largest-ever deal size was also recorded and overall market outstandings topped previous peaks.

    Swiss Re reports that ILS issuance volumes in 1H17 topped US$8bn, nearly 40% larger than any previous half-year, and just US$230m .......

    News Analysis 11 October 2017

  • Specialised financing vehicles introduced

    The latest reform of the French finance sector introduces a new category of financing vehicle that is expected to benefit both classic securitisation and risk transfer structures. The reform - the first phase of which is due to be finalised in January 2018 - also expands the legal tools available to French banks for refinancing their loan exposures.

    The reform .......

    News 11 October 2017

  • Treasury report supports securitisation

    The US Treasury has released a report recommending a number of regulatory changes that could make it easier for companies to issue and invest in securitisations. The second in a series on boosting the US financial system, the report stresses the importance of securitisation to a strong economy and suggests repealing elements of the Dodd-Frank Act and lightening other regulatory .......

    News 9 October 2017

  • C-PACE lender breaks new ground

    Greenworks Lending has privately placed the first rated securitisation of purely commercial PACE assets. While the firm intends to tap the market again in the near future, potentially with a public C-PACE deal, the present emphasis is on origination of high quality assets by meeting the needs of commercial real estate property owners.

    Greenworks Lending's US$75m ABS was arranged by .......

    News Analysis 9 October 2017

  • SCI Start the Week - 9 October

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

    Pipeline
    It was a quieter week for the pipeline, with activity noticeably down on the week before. There were four ABS, four RMBS, three CMBS and two CLOs added.

    US$196.3m CPS Auto Receivables Trust 2017-D, Eagle Credit Card Trust Series 2017-1, €486.5m TitriSocram 2017 and US$1.2bn Verizon Owner Trust 2017-3 accounted for the ABS. The RMBS were Fastnet 13, .......

    News 9 October 2017

  • Job swaps round-up - 6 October

    North America

    Roy Guthrie is to succeed JP McNeill - who is transitioning into a long-term strategy role as vice-chairman of the board - as chairman and ceo of Renovate America. Among his previous roles, Guthrie served as cfo and evp of Discover Financial Services and as president and ceo of various Citigroup businesses. Renovate America has also appointed Ari .......

    Job Swaps 6 October 2017

  • Credit unions to tap ABS market?

    US credit unions could soon tap the securitisation market after the National Credit Union Administration stated that such institutions have the authority to issue ABS. The move follows legislation that allows credit unions to adopt powers granted to federal institutions, meaning 3,600 federal credit unions could adopt the ruling immediately.

    The opinion was aired by the NCUA on 21 June, .......

    News 6 October 2017

  • Risk transfer round-up - 6 October

    Barclays has completed another DBRS-rated capital relief trade, dubbed Colonnade Global 2017-1 Financial Guarantee (see SCI's capital relief trades database). Similar to the bank's previous Colonnade Global 2017-3, the credit protection covers both principal and accrued interest (SCI 8 September).

    Barclays bought protection under a similar financial guarantee for the first-loss piece, but has not yet executed the .......

    News 6 October 2017

  • Auto ABS value explored

    There is still good value to be found among US auto ABS subordinate tranches. This appears to be particularly true for the DRIVE, PART, DTAOT, AMCAR and CARMX programmes.

    Spread tiering within non-prime auto ABS endures, with both newer lenders and deeper subprime issuers necessitating higher spread premiums. The tighter end of non-prime auto ABS triple-Bs includes names such as .......

    News 5 October 2017

  • Rating agency opens in Europe

    KBRA has opened its first European office, located in Dublin, Ireland, and intends to expand into further jurisdictions (SCI passim). Several new hires and some existing staff will support the European effort, which will have a concerted focus on infrastructure and aviation securitisation, along with traditional core business areas.

    Kate Kennedy, senior md at the rating agency, comments: "With the .......

    News 5 October 2017

  • NPL coverage guidance strengthened

    The ECB has launched a public consultation on a draft addendum to its guidance on non-performing loans, under which banks will be expected to provide full coverage for newly classified NPLs. The new rule aims to reinforce guidance with regards to fostering timely provisioning and write-off practices.

    The addendum specifies quantitative supervisory expectations for minimum levels of prudential provisions for .......

    News 4 October 2017

  • New dawn for bank funding strategies?

    The European securitisation market faces what is expected to be an "interesting" year ahead, as low-cost central bank liquidity dries up and banks adopt new funding strategies. Together with boosting primary ABS issuance, Bank of England and ECB tapering will likely impact the volume of paper being retained.

    In the UK, the drawdown periods for the Funding for Lending Scheme .......

    News Analysis 4 October 2017

  • Pre-funding mechanism highlighted

    Belmont Green Finance (BGF) is in the market with an inaugural £201.53m UK non-conforming RMBS. Dubbed Tower Bridge Funding 1, the securitisation comprises newly-originated first-lien mortgages originated through the Vida Homeloans brand.

    Moody's and DBRS have assigned provisional ratings to the transaction of Aaa/AAA on the class A notes, Aa2/AA (High) on the class Bs, A1/A (High) on the class Cs, Baa2/BBB .......

    News 4 October 2017

  • Direct lending warehouse formed

    Bespoke Capital has established a direct lending warehouse facility, set up as a cashflow securitisation dubbed Be-Spoke Loan Funding, to fund a portfolio of loans granted to Spanish SMEs. The initial transaction portfolio - comprising 21 obligations - stands at €70.8m, with warehouse notional expected to reach €400m, as of the last drawing point.

    DBRS has assigned final ratings to .......

    News 3 October 2017

  • Risk retention capital largely deployed?

    The availability of risk retention financing has been one of the main reasons that CLO supply has outpaced most projections. Responses to JPMorgan's Q4 CLO survey suggest that US$115bn out of total risk retention capacity of US$200bn may now have been deployed.

    The survey ran from 25-28 September, with CLO debt investors accounting for more than half of respondents. CLO .......

    News 3 October 2017

  • US CLOs keep it light

    Volumes in the US CLO secondary market remain light, but spreads are still firm.

    "Not much has changed over the past month," says one trader. "The bigger issues still apply with heavy new issuance in a re-set focused market holding sway, which means secondary activity has remained a bit light."

    The trader continues: "At the same time, there have been no .......

    SCIWire 3 October 2017

  • Euro secondary sustained

    Activity levels continue to be sustained if not spectacular in the European securitisation secondary market.

    "Secondary is still fairly quiet," says one trader. "New issues are coming through at a good steady rate and occupying people's minds."

    Overall, the trader adds: "The market feels pretty firm and spreads are holding up across the board. That's being backed up by decent .......

    SCIWire 3 October 2017

  • Rated RPL deal debuts

    Chimera Investment Corp is marketing its first rated re-performing loan RMBS, dubbed CIM Trust 2017-7. The US$512.45m securitisation is backed by 3,548 seasoned performing and re-performing first-lien mortgage loans, with US$34.4m of the pool balance comprising non-interest bearing deferred principal amounts.

    Fitch and DBRS have assigned provisional ratings to the transaction of AAA/AAA on the US$264.17m class A notes, AA/AA .......

    News 2 October 2017

  • SCI Start the Week - 2 October

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

    Pipeline
    It was a busy week of comings and goings for the pipeline. At the close of Friday, 11 new ABS remained on the list, along with five RMBS, a CMBS and six CLO/CDOs.

    The ABS were: US$1.48bn Business Jet Securities 2017-1; US$523m-equivalent Canadian Pacer Auto Receivables Trust 2017-1; US$206.65m Diamond Resorts Owner Trust 2017-1; US$128.95m Dividend Solar Loans .......

    News 2 October 2017
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