Complete news archive

  • CMBS green bond debuts

    Natixis has issued the first-ever 'green' tranche in a CMBS, in collaboration with Ivanhoe Cambridge and Callahan Capital. The US$72m bond was incorporated in the recent CSAIL 2017-C8 transaction and refinanced part of the US$358.6m fixed-rate first mortgage loan provided by Natixis to Ivanhoe Cambridge for the acquisition of the 85 Broad Street building in New York.

    Natixis commissioned an .......

    News 6 July 2017

  • Atlante II role confirmed in MPS deal

    The European Commission has approved a €5.4bn precautionary recapitalisation of Monte dei Paschi di Siena under EU state aid rules, which is conditional on a five-year restructuring plan that includes the disposal of a €26.1bn non-performing loan portfolio via securitisation. Atlante II is expected to share the funding of the junior and mezzanine tranches with an undisclosed group of investors, .......

    News 5 July 2017

  • BTL refinancing risk highlighted

    Tighter policy guidance is influencing the range of products that UK buy-to-let mortgage lenders are offering. Indeed, some lenders appear to be exploiting the differences in regulatory lending policies across mortgage products - which could lead to unintended risks within BTL RMBS, according to DBRS.

    Following changes in January to PRA guidance for affordability testing of UK BTL borrowers, lenders .......

    News 5 July 2017

  • Early redemption for Annington CMBS

    The Annington Group is set to refinance its capital structure, after investors passed an extraordinary resolution last week allowing the firm to redeem its Annington Finance No. 1 and No. 4 CMBS. The move is designed to take advantage of favourable market conditions and is expected to reduce the firm's borrowing costs.

    Annington is proposing to replace the outstanding £168.86m .......

    News 4 July 2017

  • Retail woes could hit card ABS

    Store closures across the US are expected to negatively impact credit card ABS trusts, due to their exposure to the private-label card market and co-branded card accounts. Consumers could be more willing to default on a credit card from a retailer without local stores because they won't expect to make future purchases at its other locations or online.

    The private-label .......

    News 4 July 2017

  • Reserve uncertainty weighs on legacy RMBS

    It emerged last week that Wells Fargo withheld over US$90m in cashflow across 20 Bank of America-originated legacy non-agency RMBS, which resulted in losses across the capital structure. The move has introduced uncertainty due to legal complications to the sector, unrelated to ongoing collateral performance.

    Wells Fargo invoked its right as trustee to hold back funds to cover legal costs, .......

    News 3 July 2017

  • Further Sears closures threatens CMBS

    Sears is set to terminate its master lease at 20 unprofitable locations owned by Seritage Growth Properties and vacate the properties in October (SCI 7 April 2015). The move could adversely affect about US$550.4m of loans in associated CMBS.

    The stores are part of the collateral for the US$925m Project Madison loan, securitised in JPMCC 2015-SGP (see SCI's CMBS loan .......

    News 3 July 2017

  • SCI Start the Week - 3 July

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

    Pipeline
    Only a handful of transactions remained in the pipeline last week. Of these, RMBS accounted for the majority of deals: US$393.97m CSMC 2017-RPL1, Residential Mortgage Securities 30 and US$784.33m Towd Point Mortgage Trust 2017-3. A pair of auto ABS - €574m Bumper 9 (NL) Finance and £542m Globaldrive Auto Receivables UK 2017-A - and an ILS (US$100m Fortius .......

    News 3 July 2017

  • Subprime and non-QM compared

    Non-qualified mortgages (non-QM) are not equivalent to subprime mortgages made during the pre-crisis era and do not share the same characteristics, Morningstar comments. The rating agency adds that the QM designation outlined by the CFPB three years ago does not necessarily equate to strong credit quality and - conversely - non-QM mortgages do not necessarily equate to excessive risk.

    Unlike .......

    News 30 June 2017

  • IBRD debuts pandemic cat bonds

    The World Bank has launched US$320m pandemic catastrophe bonds, with the aim of providing financial support to the Pandemic Emergency Financing Facility (PEF), its vehicle that channels surge funding to developing countries facing the risk of a pandemic. The IBRD CAR 111-112 note issuance marks the first time that pandemic risk in low-income countries is transferred to the capital markets.

    News 30 June 2017

  • Job swaps round-up - 30 June

    North America

    Alexander Popov has joined Carlyle Group as md to lead the credit opportunities business within the firm's global credit platform. Popov was previously md with HPS Investment Partners, formerly known as Highbridge Principal Strategies, and before that was svp at Oaktree Capital Management.

    Funding Circle has hired Joanna Karger as US head of capital markets. She has extensive .......

    Job Swaps 30 June 2017

  • Risk transfer round-up - 30 June

    The EIF has recently signed guarantees with five banks in Romania under its SME initiative (SCI 12 May). This is happening at a time when the fund's securitisation team is working on new EFSI deals "similar" to the recent deal with BBVA (SCI 12 June). Additionally, the SSA intends to finalise traditional synthetic securitisations in Italy by the end of .......

    News 30 June 2017

  • EV idiosyncratic risks highlighted

    The inclusion of electric vehicles (EVs) in future European auto ABS collateral pools could introduce idiosyncratic risks, according to S&P. The agency says that these risks would warrant specific consideration in its ratings analysis.

    S&P suggests that the unique risks of EVs - such as limited historical data, technological obsolescence, linkage to the manufacturer and reliance on fiscal incentives - .......

    News 29 June 2017

  • US CLOs slow

    Activity in the US CLO secondary market is slow as the seasonal lull looks to have started early.

    "It's a summer market already and there's overall not much action in secondary while primary continues to roll on with refis and re-sets," says one trader. "There's not much connection from investors for the most part - they're only active here and .......

    SCIWire 29 June 2017

  • GSE SFR deal 'first of its kind'

    The Fannie Mae Grantor Trust 2017-T1 single-family rental securitisation from April was the first transaction backed entirely by institutionally-owned SFR properties (see SCI's primary issuance database). The transaction has several features not found in typical private SFR securitisations, according to Moody's.

    Fannie Mae guarantees the US$944.5m class A notes on the transaction, which is backed by a 10-year US$1bn .......

    News 29 June 2017

  • Euro secondary solid

    The European securitisation secondary market remains solid despite distractions from primary and month-end.

    "As has been the case over the past few weeks people are focused on primary, but secondary is still ticking over this week," says one trader. "Over the past couple of days we've seen a number of bid lists going through and trading at decent to very good levels."

    The .......

    SCIWire 29 June 2017

  • Houston lodging loans plagued by oversupply

    Of all US CMBS loans secured by lodging properties, 10% are exposed to an elevated level of credit risk, with risks highest in Houston, Texas, according to KBRA. The rating agency has designated 255 loans it monitors as loans of concern, due to multiple underlying negative credit factors, such as low DSCR, declines in average occupancy, delinquency or transfer to .......

    News 28 June 2017

  • Refinancings spur trading reversal

    The CLO refinancing wave appears to have caused a reversal of trading trends for investment grade and non-investment grade tranches in the secondary market. Demand for refinanced paper - represented mainly by triple-A to triple-B tranches - has resulted in a -28% year-on-year pull-back in CLO BWICs and -47% in TRACE trading volumes for investment grade tranches, according to JPMorgan .......

    News 28 June 2017

  • 'Novel' single-borrower CMBS prepped

    Blackstone is marketing an unusual US$536m single-borrower CMBS. Dubbed IMT Trust 2017-APTS, the transaction is collateralised by a first lien fixed- and floating-rate mortgage loan on 11 multifamily properties totalling 4,488 units, located in Texas, Florida and California.

    The US$536m mortgage loan comprises two pari passu components: a US$268m floating-rate element, with an initial term of two years and a .......

    News 28 June 2017

  • Private SLABS upgrades anticipated

    Moody's has placed on review for possible upgrade the ratings of 41 private student loan ABS bonds - totalling approximately US$2.56bn worth of securities across 19 securitisations - issued by three marketplace lending platforms. At the same time, Fitch has released an exposure draft of criteria for rating US private student loan ABS that could result in multiple-category upgrades for .......

    News 27 June 2017

  • Euro middle market CLOs on the cards

    Middle market CLO issuance is expanding in the US and emerging in Europe, with a variety of warehouse financing options for middle market loans and increasing variability. Increased middle market activity appears to be pressuring lenders, investors and arrangers, as demand exceeds available supply.

    Investors in the US have flooded the middle-market loan space with liquidity, according to DBRS, with .......

    News 27 June 2017
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