Complete news archive

  • Euro CLO 1.0 losses crystallise

    A new Bank of America Merrill Lynch study tracks the crystallisation of losses across pre-crisis European CLOs, where tranches have not been repaid in full. The analysis finds that around 60 European CLO 1.0 deals have outstanding rated debt tranches, compared to approximately 210 deals issued since 2001 that have been called and repaid in full or amortised naturally.

    Bank .......

    News 19 September 2017

  • Smaller lessors lifting aircraft ABS

    Smaller aircraft lessors have increasingly tapped the ABS market over the last 18 months, with established lessors utilising other funding methods. The resulting shift in issuance is being reflected in securitised aircraft collateral pools, potentially leading to increased risks.

    Fitch notes that the rise in new and/or smaller lessors in the aviation ABS market is paired with an increase in .......

    News 18 September 2017

  • Margin posting trends surveyed

    Approximately US$1.41trn of collateral was posted for cleared and non-cleared CDS and interest rate swap trades by end-1Q17, according to ISDA's latest margin payments survey. The association's findings highlight significant changes to collateral practices in the derivatives markets over recent years.

    The ISDA survey shows that initial margin (IM) posted by clearing participants to central counterparties (CCPs) for their cleared .......

    News 18 September 2017

  • SCI Start the Week - 18 September

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

    Pipeline
    There was greater variety to last week's pipeline additions, with significantly fewer ABS added. There were four ABS, three RMBS, seven CMBS and four CLOs/CDOs added to the list.

    US$650.5m Globaldrive Auto Receivables 2017-A, Scandinavian Consumer Loans VI, Silver Arrow UK 2017-1 and CNY5.9bn Silver Arrow China 2017-2 accounted for the ABS. The RMBS were US$366.6m Mill City .......

    News 18 September 2017

  • 'Substantial' green ABS volumes eyed

    Vehicle and housing loans have the potential to produce substantial flows of large-scale green ABS transactions over the next five years, according to a new SCI research report produced in conjunction with TMF Group and Ygrene Energy Fund. However, the report - entitled 'Impact investing and green ABS: creating a market of the future' - finds that would-be .......

    News Analysis 18 September 2017

  • Job swaps round-up - 15 September

    EMEA

    Golden Tree Asset Management has opened an office in Sydney, hiring Russell Taylor as md to lead the office. Taylor was most recently md at JPMorgan where he was head of institutional sales for Australia and New Zealand. He worked at the bank for 30 years in a number of roles, including across credit derivatives, structured credit, securitisation, loans .......

    Job Swaps 15 September 2017

  • UK lender markets debut public RMBS

    Together Financial Services is marketing its first public securitisation. Dubbed Together Asset Backed Securitisation 1 (see SCI's deal pipeline), it has a current mortgage portfolio balance of £301m and comprises 4,535 first- and second-lien UK owner-occupied and BTL residential properties.

    The loans in the transaction were originated by Blemain Finance, Together Personal Finance and Together Commercial Finance, which .......

    News 15 September 2017

  • Direct lending securitisation faces barriers

    Lines of credit to European direct lending firms, which borrow from banks and typically lend to middle-market firms, could be ripe for securitisation. However, the securitisation of these funding lines would bring added regulatory scrutiny and rating agency involvement, which would not be welcomed by all corners of the direct lending industry.

    David Quirolo, partner at Cadwalader, Wickersham & Taft, .......

    News Analysis 12 September 2017

  • CDS developments gather momentum

    Two developments - one under ISDA's control and the other seemingly out of it - are dominating the CDS market. The first is a new type of CDS due to be included in credit derivatives indices next year, while the other is the ongoing CDS uncertainty concerning the possible restructuring of a Noble loan.

    The first issue concerns trading definitions .......

    News Analysis 12 September 2017

  • What rhymes with synthetic CDO?

    DealVector coo and co-founder Dave Jefferds suggests that sy...

    Now that synthetic CDOs are back in vogue (SCI 15 August), will history repeat itself, or only rhyme? Over the last two years, volumes have grown from US$10bn to US$30bn for the instrument widely blamed for causing the 2008 global financial crisis. What gives, and should we be worried?

    To answer this question, it is important to understand what makes .......

    Talking Point 11 September 2017

  • SCI Start the Week - 11 September

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

    Pipeline
    There were several additions to the pipeline last week, with ABS accounting for most of the activity. There were a dozen ABS added, along with four RMBS, a CMBS and a CLO.

    The ABS were: CNY3.5bn Autopia China 2017-2; US$1.45bn DB Master Finance Series 2017-1; US$400m Exeter Automobile Receivables Trust 2017-3; US$1.058bn Fifth Third Auto Trust 2017-1; US$1.351bn .......

    News 11 September 2017

  • Third Colonnade global completed

    Barclays has closed its third Colonnade global significant risk transfer trade (SRT), Colonnade Global 2017-3 Financial Guarantee. In unusual fashion for capital relief trades the credit protection covers both principal and accrued interest.

    The SRT transaction is a US$140m CLN that references a US$1.6bn corporate loan portfolio from thirty countries across the globe.

    Rated by DBRS the deal comprises US$1.3bn .......

    News Analysis 8 September 2017

  • Debut conduit CMBS launched

    Stonemont Financial Group has sponsored its inaugural CMBS, backed by a portfolio of office, industrial, retail and bank branch properties across 20 US states. The US$800m CMBS conduit, dubbed Stonemont Portfolio Trust 2017-STONE (see SCI's deal pipeline), is collateralised by a two-year, floating-rate, interest-only mortgage loan securing 94 properties and a leasehold interest in one property.

    Proceeds of .......

    News 8 September 2017

  • Job swaps round-up - 8 September

    EMEA

    Tiger Risk UK has hired Michael Wade as a non-executive chair of TigerRisk Capital Markets and Advisory UK. He is also the Crown representative for insurance at the UK cabinet office and advisor to the Chancellor of the Exchequer on issues relating to Insurance Linked Securities (ILS).

    Beechbrook Capital has hired Jon Petty to the role of associate director .......

    Job Swaps 8 September 2017

  • Cohen and Co adds to Ukrainian NPL deal flow

    Erste Group Bank has successfully sold a Ukrainian portfolio, consisting of €240m of corporate loans and €95m of commercial real estate (CRE), at a significant discount to nominal value. The transaction comes at a time when investor interest in Ukraine is gaining traction (SCI 25 August).

    The portfolio sale was facilitated by Exito Partners and Cohen & Co. The investor .......

    News Analysis 8 September 2017

  • CMBS split loans on the rise

    Pari-passu loans are increasing as a percentage of US conduit CMBS transactions. A recent Deutsche Bank analysis suggests that there are now 500 split loans in CMBS 2.0 deals and while split conduit loans can be of high quality, some investors prefer loan diversity over overlap.

    Split loans can reduce diversification across a CMBS portfolio, particularly when individual portions of .......

    News 7 September 2017

  • US CLOs unswerving

    The US CLO secondary market is yet to swerve from the path it has been following for a large part of this year.

    Light volumes continued in August, but the year's supply-demand dynamic remained. Appetite for a still limited amount of available paper ensures that secondary spreads remain firm - 1.0 spreads throughout the stack are unchanged over the past .......

    SCIWire 7 September 2017

  • Euro secondary returns

    The European securitisation secondary market is beginning to return to life after the summer.

    August saw the usual seasonal lull in terms of trading volumes in ABS/MBS, but the buying bias remained across the board. Consequently, secondary spreads were flat to slightly tighter month on month.

    CLO volumes saw less of a dip and from time to time, especially around .......

    SCIWire 7 September 2017

  • Swap solution for Cyprus NPLs

    Cypriot banks are increasingly using debt-to-equity and debt-to-asset swaps to reduce their non-performing loan portfolios, facilitating deal flow in a relatively dormant market. For investors, the swaps are also a useful tool for bridging the gap between bid and ask prices.

    Debt-to-asset swaps enable borrowers to swap ownership of assets - usually mortgaged assets - in exchange for a reduction .......

    News Analysis 5 September 2017

  • Deals reset middle-market expectations

    Middle-market CLO issuance has picked up again, following a summer lull, and spreads have ground tighter. Investors will be keeping an eye on how tight spreads get, and also on the risk of credit issues as competition for assets intensifies.

    When TCP Whitney CLO 2017-1 priced at the start of August it did so at the tightest triple-A spreads for .......

    News Analysis 4 September 2017

  • Further ratings reviewed on margin requirements

    Fitch has placed 38 ABS tranches on rating watch negative, due to the reduced likelihood of counterparty replacement, resulting from new two-way margin posting requirements (SCI passim). The rating agency notes that one of its key considerations is the ability to replace a counterparty following their downgrade below defined trigger levels and a key factor in achieving ratings above that .......

    News 4 September 2017
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