Complete news archive

  • 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

  • Job Swaps round up - 29 September

    North America

    HouseCanary has hired Josh Seiff to lead business development. He joins from Fannie Mae where he was vp, multifamily capital markets and trading.

    GC Securities, a division of MMC Securities has announced the establishment of Cerulean Re SAC, a private syndicated collateralised reinsurance platform and Bermuda registered segregated account company (SAC) and licensed special purpose insurer. The joint .......

    Job Swaps 29 September 2017

  • Risk transfer round up - 29 September

    The focus of this past week has been the EBA's SRT discussion paper. Regulators and market participants expect it and the resulting guidance to standardise structural features and boost deal flow in the market (SCI 28 September).

    The paper comes at a time of a flurry of transactions in Q4. Among these, sources mention a Banca IMI-arranged transaction for UBI .......

    News 29 September 2017

  • BMO steps on the gas with debut ABS

    Bank of Montreal is marketing an inaugural auto securitisation, called Canadian Pacer Auto Receivables Trust 2017-1 (see SCI's deal pipeline). The ABS is backed by 42,258 prime retail instalment auto loan contracts and is another first for the bank after debuting the first RMBS sponsored by a major Canadian bank earlier this year (SCI 18 April 2017).

    The deal .......

    News 29 September 2017

  • First solar ABS looks to pay dividends

    Dividend Finance is in the market with its first term ABS securitisation collateralised by secured residential consumer solar loans. The transaction, Dividend Solar Loans 2017-1 (see SCI's deal pipeline), will issue three classes of notes in an aggregate principal amount of US$128.95m.

    Kroll Bond Rating Agency has assigned a preliminary rating of single-A to the US$115.376m class A .......

    News 29 September 2017

  • Trustee role rewritten by court?

    A ruling by the UK High Court could have significant implications for trustees, potentially redefining their role in securitisation. The court's ruling confirms that a trustee cannot outsource decision making and must take responsibility for exercising the discretion that deal documents allow them, although questions do remain.

    GLAS Trust Corporation was brought into the Fairhold Securitisation (FHSL 2006-1) as a .......

    News Analysis 29 September 2017

  • Aviation ABS prepped for take-off

    Global Jet Capital is marketing an inaugural US$1.48bn aircraft ABS. Dubbed Business Jet Securities Secured Note Series 2017-1, the transaction is supported by a portfolio of 181 business jet aircraft, representing 154 obligors, with a remaining term of approximately 62.1 months.

    The securitisation is structured like a master trust with two note classes, each of which is time-tranched in two-, .......

    News 28 September 2017

  • Standardisation to bridge synthetic STS gap?

    The EBA's recent discussion paper on significant risk transfer (SRT) outlines the common structural features of risk transfer transactions in an attempt to harmonise their regulation and supervision (SCI 20 September). The move ultimately may bring the CRR regulation closer to extending the STS label to synthetic securitisations.

    The EBA's proposals are informed by the new European securitisation framework and .......

    News Analysis 28 September 2017

  • ReoCos boost Italian NPL prospects

    The Italian parliament recently approved new amendments to the Italian securitisation law, aimed at improving recoveries of non-performing loans and at facilitating disposals of NPLs by banks, including non-performing lease receivables. Along with a stronger macroeconomic environment, the measures are expected to help boost the liquidity of real estate asset disposals.

    Under the amendments - which were introduced in June .......

    News Analysis 28 September 2017

  • Legacy non-conforming collections fall

    Average collection rates on loans in arrears backing some UK RMBS transactions are showing signs of weakening. At the same time, the average repossession rate for UK non-conforming RMBS has risen to 0.7%, although this is from post-crisis lows.

    Bank of America Merrill Lynch European securitisation analysts highlight that the main transactions affected by deteriorating collection rates on loans in .......

    News 28 September 2017

  • PCP agreements pressure UK ABS

    The increased use of personal contract purchase (PCP) agreements is putting pressure on UK auto ABS, suggests DBRS. While the rating agency does not think deals will be negatively affected in the short term, the trend is worth monitoring.

    DBRS has rated 15 UK auto ABS since 2010 and finds the correlation between new car registrations and prepayment rates, as .......

    News 27 September 2017

  • Bear-flattener trades advocated

    The Fed announced last week that it would unwind the System Open Market Account (SOMA) balance sheet, starting next month. This is part of a range of measures suggesting a tightening of monetary policy, in which case investors may wish to prepare for a flattening in the US yield curve, with several trade options available.

    US$4bn of MBS will be .......

    News 26 September 2017

  • New issue CLOs preferable?

    US CLO relative value discussions often focus on tranche level - where triple-A paper continues to be the consensus pick, despite spread tiering at the top of the US CLO capital structure compressing dramatically - but the case for new issue CLOs over seasoned paper is made less often. In current conditions, however, vintage could be a particularly relevant factor.

    News Analysis 25 September 2017

  • Caribbean consumer deal prepped

    CFG Holdings is in the market with a consumer ABS backed by a pool of local currency fixed-rate personal loans originated by its subsidiaries in Panama, Aruba, Curaçao and Bonaire. Dubbed CFG Investments 2017-1, the US$222m securitisation features a Cayman Islands SPV as note issuer and a borrower SPE in each jurisdiction.

    The pool comprises 75,805 loans totalling US$247.06m, with .......

    News 25 September 2017

  • SCI Start the Week - 25 September

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

    Pipeline
    Additions to the pipeline last week were fairly broadly split. There were five ABS added, along with three RMBS, four CMBS and two CLOs.

    US$750m Bank of the West Auto Trust 2017-1, Bavarian Sky German Loans 7, US$210m CFG Investments 2017-1; US$1bn Honda Auto Receivables 2017-3 Owner Trust and Securitized Term Auto Receivables Trust 2017-2 accounted for the .......

    News 25 September 2017

  • Risk transfer round-up - 22 September

    A Barclays significant risk transfer deal planned for mid-September has reportedly been delayed until mid-October. The new transaction follows the issuer's recent third Colonnade Global capital relief trade (SCI 8 September). The bank is also said to be planning corporate and mortgage SRT transactions for 2018.

    .......

    News 22 September 2017

  • Job swaps round-up - 22 September

    Analytics

    DBRS has begun publishing a monthly report that provides loan-level detail for each US auto loan ABS that has issued loan-level reporting to accommodate recent regulations. Dubbed Figures on Automotive Securitization Tapes (FAST), the tool aims to allow market constituents to synthesise new and existing pools of loans and compare them to other pools in the market. The report .......

    Job Swaps 22 September 2017

  • Toys R Us CMBS exposure gauged

    Toys R Us filed for chapter 11 bankruptcy protection this week. Several US CMBS loans are exposed to the retailer, although no store closures have been announced.

    The company filed for bankruptcy protection in an attempt to resolve US$400m of debt maturing next year. The majority of its stores remain profitable and the company says the filing will not affect .......

    News 21 September 2017

  • Merger to impact SFR volumes

    Starwood Waypoint Homes and Invitation Homes recently announced plans to merge, creating the largest single-family rental company in the US (SCI 11 August). The firms have also stated their intention to go public, a move that is likely to impact their securitisation strategy and potentially curtail issuance in the broader SFR RMBS market.

    The merger will create the largest REIT .......

    News Analysis 21 September 2017

  • EBA releases SRT discussion paper

    The EBA has released its significant risk transfer (SRT) discussion paper, the main elements of which were outlined last month (SCI 18 August), and has launched a public consultation on its contents. The banking watchdog wishes to further harmonise the regulation and supervision of risk transfer through securitisation.

    SRT in securitisations allows originators to achieve regulatory capital relief. The EBA's .......

    News 20 September 2017
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