Complete news archive

  • Risk transfer round-up - 16 June

    One talking point this week was the EBA's announcement at IMN's Global ABS conference of its intention to publish a paper on risk transfer transactions. "This is a very important step," says one issuer.

    He adds: "Despite a surge in risk transfer issuance, many of our clients still have hesitations over these deals, due to regulatory uncertainty over their defining .......

    News 16 June 2017

  • STS could take a year, but optimism prevails

    The implementation of the STS securitisation framework is unlikely to be completed within a year, according to panelists at the recent IMN Global ABS conference. However, speakers on a regulatory panel emphasised that while it may take time to finalise the finer details, optimism is strong that the long-awaited clarity on STS could provide a much needed boost to the .......

    News Analysis 16 June 2017

  • Job swaps round-up - 16 June

    Acquisitions

    The Competition and Markets Authority (CMA) has announced an initial decision in relation to the anticipated acquisition by Heineken UK of Punch Taverns, including Punch Securitisation A. The CMA has decided that the merger may result in a substantial lessening of competition within markets in the UK. The merger will be referred for a Phase 2 investigation, unless the .......

    Job Swaps 16 June 2017

  • International investment boost for China

    Shorevest Capital Partners has launched a US$750m fund targeting Chinese non-performing loans. The move underscores the shift in the market's investor base from a domestic to an international one.

    "It all comes down to the NPL cycle in China, where the investible universe is growing and the infrastructure to facilitate NPL portfolio sales is attractive," says Andrew Brown, partner at .......

    News 15 June 2017

  • Treasury reports on regulatory impact

    The US Treasury has issued a first report in a series regarding regulation of the financial system in a manner consistent with an executive order issued by President Trump back in February. The report addresses the regulation of the depositary system and makes several findings and recommendations which could impact the future regulation of securitisations.

    The report criticises certain regulatory .......

    News 15 June 2017

  • US CLOs similar

    Focus and activity in the US CLO secondary market continue to be similar to recent sessions.

    BWIC volumes have remained light this week and predominantly revolve around the lower part of the stack. At the same time, bilateral trading is still patchy with little paper on offer. As a result, the bonds that do appear continue to trade well and .......

    SCIWire 15 June 2017

  • China innovation paves way for securitised products

    US dollar-denominated notes backed by Chinese regional and local government (RLG) bonds have debuted in China and provide a new opportunity for offshore investment in securities traded on China's interbank bond market. Moody's believes further similar deals backed by Chinese collateral could follow, including CLOs, ABS and RMBS.

    Such US dollar-denominated bonds issued by Chinese RLGs are the first of .......

    News 15 June 2017

  • Euro ABS/MBS unchanged

    Trading patterns in the European ABS/MBS secondary market remain unchanged.

    The lack of primary supply across all sectors continues to stifle flows and discourage BWIC activity. Nevertheless, tone remains positive and demand strong, consequently secondary spreads are flat to slightly tighter on the week.

    There is currently one BWIC on the European ABS/MBS schedule for today. It is a five line .......

    SCIWire 15 June 2017

  • Prosecutors probe valuations process

    US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to the buy-side, as investigations have begun into whether structured credit hedge funds inflated the value of debt securities for their portfolios. The probe is particularly concerned with whether brokers were encouraged to give dishonest valuations for month-end marks.

    The reasons for a fund to seek .......

    News Analysis 14 June 2017

  • Loan refis to increase CLO pressures

    US CLO managers are increasingly constrained by WAS tests in the current environment of declining loan spreads and elevated loan repricings. Half of CLOs within their reinvestment periods have a WAS cushion of less than 10bp, so managers may need to look at WARF and diversity scores.

    CLO managers cannot typically reinvest sales and redemption proceeds without meeting WAS tests. .......

    News 14 June 2017

  • US CLO demand continues

    Demand for paper across the capital structure continues unabated in the US CLO secondary market.

    "There's not a whole lot going on right now," says one trader. "However, we are still seeing good demand across the board."

    The trader continues: "The BWICs that do appear are trading very well. Of late they have involved lower rated paper, which is mainly .......

    SCIWire 13 June 2017

  • ABS first for marketplace lender

    Lending Club in in the market with a US$279.38m ABS backed by near-prime unsecured consumer loans originated via its online lending platform (see SCI's deal pipeline). Dubbed Consumer Loan Underlying Bond Credit Trust 2017-NP1 (CLUB 2017-NP1), it is the first transaction the platform itself has sponsored.

    Kroll Bond Rating Agency has assigned provisional ratings of single-A minus to the .......

    News 13 June 2017

  • Euro secondary flickers

    The European securitisation secondary market is slowly flickering back to life.

    Overall, all ABS/MBS and CLO sectors remain insulated from broader market moves with tone and secondary spreads still solid. Nevertheless, flows have been thin over the past two sessions as the market slowly finds its feet post the Barcelona conference and UK election.

    There has, however, been a flurry .......

    SCIWire 13 June 2017

  • Spanish EFSI deal debuts

    The EIF has closed its second European Fund for Strategic Investments (EFSI) deal, providing BBVA with a €143bn mezzanine guarantee facility. The transaction references a €3bn portfolio of Spanish SME loans and is the first Spanish synthetic securitisation under the Investment Plan for Europe.

    The Investment Plan allows the EIB Group to fund investment projects that - due to their .......

    News 12 June 2017

  • SCI Start the Week - 12 June

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

    Pipeline
    It was another week of limited pipeline activity, although several CMBS have been announced. Along with those there were two ABS, an ILS and two RMBS added to the list last week.

    US$163.1m Upstart Securitization Trust 2017-1 and US$1.3bn Verizon Owner Trust 2017-2 were the ABS, while the ILS was US$100m IBRD CAR 111-112. The RMBS were US$735m .......

    News 12 June 2017

  • Job swaps round-up - 9 June

    North America

    Brian Ford has been appointed head of structured finance research at Kroll Bond Rating Agency, starting the role in New York next week. He previously spent five years at the rating agency, but was most recently at Barclays, where he was credit strategy vp. He has also worked at Citi and began his career at Eaton Vance.

    Hudson .......

    Job Swaps 9 June 2017

  • Bankruptcy reform opens floodgates

    India's bankruptcy law has attracted increased investment in its non-performing loan market, following reforms to the enforceability of contracts. However, concerns remain over whether associated time-bound decisions can be achieved, due to the complexity of the legal system.

    "The main issue with the Indian NPL market was the enforceability of contracts," observes Sakate Khaitan, partner at Khaitan Legal Associates.

    The .......

    News Analysis 9 June 2017

  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace much of the Dodd-Frank Act, specifically criticising Dodd-Frank's "one size fits all" approach to securitisation and doing away with risk retention requirements for all asset classes except RMBS.

    The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act (SCI passim) intends to provide .......

    News 9 June 2017

  • MPS solvency plan outlined

    Monte dei Paschi di Siena (MPS) has set out a plan to demonstrate its solvency to regulators, paving the way for a precautionary recapitalisation by year-end. The plan hinges on the lender's ability to dispose of its €30bn non-performing loan portfolio - including via a securitisation - which it was unable to achieve in December, when it was forced to .......

    News Analysis 8 June 2017

  • NPL RMBS redemptions spike

    US non-performing loan RMBS early redemption activity has hit record levels this year. US$5.3bn of bonds have been called since the beginning of 2017, compared to about US$2.4bn in 2016, according to Wells Fargo figures.

    Last month alone saw issuers calling 14 deals, amounting to almost US$2.5bn in current balance. This total easily surpassed the previous record from April, when .......

    News 8 June 2017

  • WAC caps not deterring RMBS investors

    Since early 2016 a number of European RMBS have been issued featuring net WAC caps, which alter the normal function of the revenue waterfall. While these deals may present worse value for mezzanine noteholders, lack of supply is enabling issuers to structure deals more aggressively in the knowledge that paper will be absorbed by yield-hungry investors.

    Seven European RMBS transactions .......

    News Analysis 6 June 2017
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