Complete news archive

  • 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

  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation by investors to increase. Increased investor support is identified in a recent DBRS survey as one of the most important changes required in order to grow the securitisation market, while regulatory concerns once again dominate.

    The DBRS survey was conducted before the European regulatory changes were announced last week .......

    News 6 June 2017

  • SCI Start the Week - 5 June

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

    Pipeline
    With many market participants decamping to Barcelona this week for the industry conference, there was a notable slow-down in last week's pipeline additions. The final count consisted of seven new ABS, an ILS, two RMBS and a CMBS.

    The ABS were: US$259.71m CCG Receivables Trust 2017-1; Citizen Irish Auto Receivables Trust 2017; US$231.684m CommonBond Student Loan Trust 2017-A-GS; .......

    News 5 June 2017

  • Marketplace ABS evolving

    At the upcoming SCI Marketplace Lending Securitisation Seminar in New York on 22 June, panellists will discuss the structuring and evolution of marketplace loan ABS. The fact that deals are increasingly incorporating features to reduce risk is one area that is expected to be covered.

    Ram Ahluwalia, ceo of PeerIQ, notes that more standardisation is still needed for .......

    Talking Point 5 June 2017

  • Job swaps round-up - 2 June

    EMEA

    BNP Paribas Asset Management has launched a new private debt and real assets investment group, headed by David Bouchoucha. This is together with the appointments of Philippe Deloffre as head of real estate debt, Karen Azoulay as head of infrastructure debt and Christophe Carrasco as head of SME lending. The group will focus on three main investment areas: real assets, .......

    Job Swaps 2 June 2017

  • STS strikes investor and issuer balance

    Further details have emerged over the STS securitisation agreement that was finalised this week (SCI 31 May). Most notably, the authorisation process for third parties that support verification and compliance with STS requirements strikes a balance between issuer and investor considerations.

    According to a European Parliament press release, there will be a "light" authorisation process for third parties that support .......

    News Analysis 2 June 2017

  • Risk transfer round-up - 2 June

    Dynamic Credit is prepping another Dutch RMBS originated under the ELAN Woninghypotheken brand. Dubbed DCDML 2007-1, it is being arranged by Goldman Sachs and is expected to launch by end-Q3. The full capital stack DCDML 2016-1 was completed last October (see SCI's primary issuance database), achieving balance sheet relief for the lender.

    .......

    News 2 June 2017

  • MARF listing breaks new ground

    The Mercado Alternativo de Renta Fija (MARF) has admitted a new synthetic securitisation dubbed FT PYMES Magdalena, set up by Banco Santander's securitisation management company, Sociedad Gestora Santander de Titulización SGFT. The move sets a precedent in terms of synthetics being publicly listed and is seen as a test case for the 2015 amendments to Spain's securitisation law.

    Following the .......

    News 1 June 2017

  • Bio-science CMBS prepped

    Blackstone is in the market with a US$330m CMBS backed by a two-year floating rate commercial mortgage. Dubbed CGDB 2017-BIO, the transaction is backed by a first lien on the borrower's fee and leasehold interests in a portfolio of 18 life science, office, laboratory and medical properties.

    The transaction is sponsored by Blackstone's real estate fund Blackstone Real Estate Partners .......

    News 1 June 2017

  • US CLOs stable

    The US CLO secondary market continues to be stable.

    "The market is taking a bit of a pause and we're in the gap between last week's CLO conference in New York and Barcelona next," says one trader. "Overall market tone remains cautiously optimistic."

    The trader continues: "Secondary spreads remain stable with retail concerns not having an impact. Everyone is still .......

    SCIWire 1 June 2017

  • Euro secondary sporadic

    The European securitisation secondary market continues to exhibit the pattern of recent weeks with sporadic bursts of activity in specific areas.

    The stop-start nature of all asset classes has been further exacerbated by recent public holidays, month-end and the run-up to Global ABS. With wholesale absences at the conference next week little is likely to change in the near future.

    SCIWire 1 June 2017

  • STS framework finalised

    A deal has been reached on the long-awaited new EU securitisation regulations, including a framework for STS securitisation. In what is being seen as a major step forward for the European ABS market, the European Commission, Council and Parliament reached a compromise yesterday evening, with risk retention requirements to remain unchanged at the current minimum of 5% and several punitive .......

    News 31 May 2017

  • Credit-scoring models contrasted

    The importance to ABS of the VantageScore credit-scoring model continues to grow, with structured finance transactions increasingly using the credit metric. As such, rating agency DBRS believes investors would benefit from a greater understanding of the FICO alternative.

    "Evidence points at VantageScore gaining traction in consumer lending and, by extension, in structured finance. The inclusion of VantageScore as a credit .......

    News 31 May 2017

  • Irish central bank steps up NPL pressure

    The governor of the Central Bank of Ireland stated this week that the pace of NPL reduction in Ireland is too slow and new strategies are needed to combat the still elevated volume of bad loans. The move signifies increased political pressure on Irish banks to reduce NPL ratios.

    This is somewhat complicated by the fact that Ireland is considered .......

    News Analysis 26 May 2017

  • Risk transfer round-up - 26 May

    According to sources Barclays is prepping a deal, although the underlying asset is unknown. Given the lender's active corporate loan issuance however the underlying asset may likely be corporate loans.

    At the same time we have heard of another GARC deal by Intesa San Paolo. This deal could "possibly" come by the end of the year, sources say. The issuer's .......

    News 26 May 2017

  • First Aussie master trust ABS well received

    The first Australian ABS to use a master trust structure has proved ground-breaking in several ways. While it took a lot of work, the market reaction suggests the effort was well worth it.

    The A$1bn Latitude Australia Credit Card Loan Note Trust Series 2017-1 transaction (see SCI's deal database) was the first deal to come from Latitude Financial .......

    News Analysis 26 May 2017

  • Job swaps round-up - 26 May

    North America

    SFIG has hired Covell Adams as chief administration officer and Scott Brody as director of education and conferences. Adams joins from Wells Fargo Securities where she was head of business strategy and development for the asset backed finance and securitisation unit. Brody was previously md at IMN-Euromoney and he co-founded IMN in 1994.

    KBRA has hired Michael Dean .......

    Job Swaps 26 May 2017

  • MPL ABS event to explore regulatory implications

    Industry participants will gather in New York on 22 June to discuss the major issues in marketplace lending securitisation at SCI's third annual MPL ABS seminar. The first panel will look at regulatory challenges and developments in the sector, including the future of the CFPB and the repercussions of the Madden v Midland case.

    The future of the CFPB is .......

    Talking Point 26 May 2017

  • More store closures add to retail woes

    Retail woes continue to trouble the CMBS sector, with Rue21 filing for bankruptcy last week and announcing it will close approximately 400 stores. Fitch figures show more than ten retailers have now filed for bankruptcy in 2017, including General Wireless Operations (RadioShack) shutting 552 stores, and around 40 retailers have announced store closures.

    Clothing retailer Rue21 takes up a large .......

    News 25 May 2017

  • VW's Spanish auto ABS breaks new ground

    Volkswagen Financial Services has placed the largest Spanish auto ABS since the financial crisis and called on regulators to acknowledge the asset class' utility. The €914bn Driver Espana Four auto loan securitisation is backed by approximately 110,000 financing contracts, around 82% of which are for new vehicles.

    The deal has also achieved the lowest pricing of a Spanish auto ABS .......

    News 25 May 2017

  • CEA completes its largest ILS yet

    The California Earthquake Authority (CEA) has completed its largest ever ILS (see SCI 22 May). The US$925m Ursa Re 2017-1 transaction, structured by Swiss Re, is one of the largest indemnity, annual aggregate catastrophe bonds and covers California earthquake risk.

    Swiss Re underwrote the transaction through two classes of principal-at-risk variable rate notes issued by Ursa Re. The CEA receives .......

    News 24 May 2017
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