Complete news archive

  • Fresh yen repack prepped

    Another CLO is being repackaged to issue the senior notes in Japanese yen rather than US dollars. There were three repacks in August arranged by Mitsubishi UFJ Morgan Stanley Securities (SCI 16 August 2017).

    The repackaging effectively converts the repack portion of the Fortress class A notes into Japanese yen-denominated securities from US dollar-denominated securities. The expected closing date is .......

    News 25 October 2017

  • Debut Veros deal markets

    Veros Credit has prepped an inaugural rated US$165.28m subprime auto ABS. The transaction, Veros Auto Receivables Trust 2017-1 (see SCI's deal pipeline), is backed by a pool of 17,328 seasoned subprime auto loan contracts secured mostly by used vehicles.

    Kroll Bond Rating Agency has assigned provisional ratings on the transaction of single-A on the US$128.74m class A notes, .......

    News 24 October 2017

  • Libor replacement a "steep challenge"

    A transition to a replacement reference rate away from Libor by 2021 will be a "steep challenge" within structured finance documentation, according to S&P. The rating agency says the ultimate impact will depend on a number of factors, including whether current IBORs will be maintained for existing transactions until final maturity or whether existing transactions need to shift benchmarks.

    There .......

    News 24 October 2017

  • ABS rating effect explored

    Rating changes can have a significant impact on an ABS bond's price and value. While investors are less reliant on ratings than they were before the financial crisis, rating agencies continue to play a significant role in bond pricing.

    An analysis by TwentyFour Asset Management of the 10-year Portugal sovereign bond reveals that larger rating changes correlate to larger spread .......

    News 24 October 2017

  • Proportionality for capital floors?

    The general secretary of the Basel Committee has confirmed that the "finish line is in sight" for the Basel 4 reforms, although his statement fell short of confirming any concrete compromise on capital floors. The statement could be taken as confirmation of a finalisation, given growing momentum at the EU level for more proportionality in regulation.

    William Coen, general secretary .......

    News Analysis 23 October 2017

  • ESNs 'not needed yet'

    European Structured Notes (ESNs) have been on the radar for some time and a recent Moody's analysis praises their potential to offer an additional funding tool to banks. However, it remains far from clear that the banks themselves are pushing for this new type of collateralised bond to be introduced.

    In response to the European Commission's call to find new ways .......

    News Analysis 23 October 2017

  • SCI Start the Week - 23 October

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

    Pipeline
    Additions to the pipeline last week were once again heavily skewed towards ABS. There were 11 ABS names added, along with two ILS, three RMBS and four CMBS.

    The ABS were: US$232.648m Avant Loans Funding Trust 2017-B; Bavarian Sky UK 1; US$539.81m Capital Auto Receivables Asset Trust 2017-1; US$500m Chesapeake Funding II Series 2017-4; Delamare 2017-1; Evergreen Credit .......

    News 23 October 2017

  • Job swaps round-up - 20 October

    Australia

    Baker McKenzie has recruited Duncan McGrath as a partner in its corporate group in Sydney. McGrath was previously a partner at Gilbert + Tobin, where he established and headed the firm's DCM and securitisation practice. His experience includes leveraged and general finance, peer-to-peer lending, insolvency and restructuring, blockchain and smart contracts.

    EMEA

    Orchard Global Asset Management has hired Shawn .......

    Job Swaps 20 October 2017

  • MPS loan appraisal pending

    Cerved Information Solutions, one of the largest Italian servicers, has been selected by Atlante II to manage nearly half of the non-performing loans backing Monte dei Paschi di Siena's (MPS) forthcoming €26bn securitisation (SCI 5 July). MPS can only receive the GACS guarantee for the senior tranche of the deal after a sound appraisal of the secured portion of the .......

    News Analysis 20 October 2017

  • Interest growing in infrastructure

    Deutsche Asset Management subsidiary RREEF America has closed a US$431.3m managed project finance CDO, dubbed RIN. While the deal may signal growing investor interest in infrastructure and project finance debt, lack of homogeneity could hamper the growth of the asset class.

    Moody's has rated the transaction's US$262m class A notes (which priced at three-month Libor plus 150bp) Aaa, US$49.6m class .......

    News Analysis 20 October 2017

  • Risk transfer round-up - 20 October

    Rumours abound of new capital relief trades being prepped. One source suggests that ING is readying a bilateral Dutch SME transaction with PGGM as the investor. Another indicates that Credit Suisse is arranging a trade for Austrian lender Raiffeisen.

    Meanwhile, a Barclays significant risk transfer deal has reportedly been delayed until early November. The transaction was due to be completed .......

    News 20 October 2017

  • Swap downgrades 'justified, necessary'

    Fitch downgraded Deutsche Bank's ratings last month, stating that the bank is no longer a suitable counterparty for top rated securitisations. While the downgrade was prompted by issues relating to that bank specifically, other bank downgrades could - and, it is argued, should - follow.

    Deutsche Bank's long-term issuer default rating (IDR) was downgraded from single-A minus to triple-B plus .......

    News Analysis 20 October 2017

  • Montepio NPL deal marketing

    A €142.5m Portuguese non-performing loan securitisation has hit the market. Dubbed Hefesto STC, the transaction is backed by a portfolio of secured and unsecured NPLs originated by Caixa Economica Montepio Geral.

    The majority of loans in the portfolio defaulted between 2011 and 2017 and are in various stages of the resolution process. The secured loans will be serviced by Whitestar .......

    News 19 October 2017

  • Mortgage ILS landmark imminent

    United Guaranty is in the market with Bellemeade Re 2017-1 (see SCI's deal pipeline). The mortgage insurance securitisation is the first of its type to be publicly rated, potentially opening the gates for an increase in similar issuance.

    The US$368.11m mortgage insurance-linked securitisation (mortgage ILS) has been rated by Morningstar Credit Ratings. The agency has assigned a preliminary .......

    News 18 October 2017

  • Participation interest deal prepped

    Freddie Mac is in the market with the first in a new series of risk transfer RMBS, backed by a US$1.252bn portfolio of 3,231 conforming and super-conforming fixed-rate mortgages. Dubbed STACR 2017-SPI1, the collateral is housed in a participating interest (PI) trust, which will issue certificates for every loan in the form of pass-through certificate (PC) participation interests and credit .......

    News 17 October 2017

  • CRT outlook bullish

    Optimism prevailed at SCI's recent Capital Relief Trades Seminar, where panellists were bullish on the future of the risk transfer market. While capital relief trade activity has slowed this year compared to last, speakers concurred that issuance will grow in 2018, with a greater number of issuers and asset classes emerging.

    Kaikobad Kakalia, cio, Chorus Capital Management, said: "Towards the .......

    Talking Point 16 October 2017

  • SCI Start the Week - 16 October

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

    Pipeline
    Additions to the pipeline last week were heavily skewed towards ABS. There were 20 ABS names added, along with two RMBS, a CMBS and two CLOs.

    The ABS were: €958.4m Alba 9; US$235m Ascentium Equipment Receivables 2017-2 Trust; US$1.182bn BMW Vehicle Lease Trust 2017-2; US$1.05bn CarMax Auto Owner Trust 2017-4; US$350m Credit Acceptance Auto Loan Trust 2017-3; US$999.62m .......

    News 16 October 2017

  • Risk transfer round-up - 13 October

    Risk transfer activity continues, with Lloyds reportedly readying a transaction for Q4. Sources also suggest that Mizuho and Lloyds are arranging a transaction for an Irish bank. Meanwhile, Caplantic is said to be prepping a shipping SRT and is targeting a 30 November deadline.

    .......

    News 13 October 2017

  • Job swaps round-up - 13 October

    Acquisition

    Navient has entered into an agreement to acquire online student lender Earnest for US$155m in cash. Earnest will continue to operate under its current brand and be led by its current management team. Navient has suspended its remaining share repurchase programme through year-end 2018 to allocate capital towards growing its education lending business and building book value. Closing of .......

    Job Swaps 13 October 2017

  • NPL platform to boost recoveries

    The creation of a non-performing loan platform by Portugal's three largest banks - Caixa Geral de Depósitos (CGD), Banco Commercial Português (BCP) and Novo Banco (NB) - is expected to speed up recovery processes. However, the impact on the three banks' asset quality is likely to be limited.

    According to DBRS, the NPL platform is a "positive, but small step, .......

    News Analysis 13 October 2017

  • Mortgage funding facility formed

    Natixis has established a secured funding facility in the form of an SPV, dubbed Rembrandt Dutch Mortgages. The facility will fund mortgage loans, with the borrower exiting the vehicle via a securitisation or a whole loan portfolio sale.

    Rembrandt Dutch Mortgages will purchase loans funded through the issuance of senior and junior variable funding notes (VFNs), provided a stop purchase .......

    News 12 October 2017
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