Complete news archive

  • Streamlined refi programmes near

    The US FHFA has extended HARP through to the end of 2018 and announced that the new GSE streamlined refinance programme for high LTV borrowers will be effective from 1 October. Given that the eligibility criteria considerably limit the population that can take advantage of the new programme, it appears to be geared towards having an efficient refinancing construct in .......

    News 18 August 2017

  • 'Cross-over' dispute highlighted

    The trustee for the MLCFC 2007-8 CMBS has withheld US$143.7m in principal, according to August remittance data, as the transaction parties seek to determine the payment order. Trepp suggests that the dispute pertains to how principal payments in 'cross-over periods' should be handled.

    The trustee website this month indicates that there is a language dispute between the PSA and the .......

    News 17 August 2017

  • CLO yen repacks prepped

    Three CLOs are being repackaged to issue the senior notes in Japanese yen, rather than US dollars, as the market prepares for the first repacks of resets. Repackaged CLO Series KK-2 will issue ¥25.172bn, Repackaged CLO Series KK-3 will issue ¥29.37bn and Repackaged CLO Series KK-4 will issue ¥27.72bn.

    The ¥25.172bn A notes of Repackaged CLO Series KK-2 have been formed by .......

    News 16 August 2017

  • Self-cert extension risk eyed

    The self-certified mortgage loan ban included in a recent amendment to European legislation (SCI 27 July) could lead to extension risk for securitisation investors, according to DBRS. The rating agency also suggests that the sale and price of distressed or reperforming mortgage portfolios could be negatively affected, which would in turn be detrimental to issuance volumes.

    In a recent commentary, .......

    News 16 August 2017

  • Air Berlin insolvency affects aircraft ABS

    Air Berlin filed for insolvency yesterday. While intervention from the German state should keep the airline operational for at least the next three months, there are a dozen aircraft ABS deals exposed to Air Berlin and temporary cashflow disruptions are anticipated.

    Air Berlin's insolvency filing follows the refusal of Etihad to provide further financial support to the airline. Etihad is .......

    News 16 August 2017

  • Exeter breach an 'atypical' event

    EART 2015-2 senior bondholders received no principal payment this month, after the auto ABS deal's cumulative net loss (CNL) trigger was cured. Although this appears to be an atypical event, it nevertheless highlights the importance of understanding structural characteristics in order to price risks more efficiently.

    Weaker-than-expected credit performance led to a failure of EART 2015-2's CNL trigger in February. .......

    News 16 August 2017

  • Chinese NPL collections surveyed

    Collections for most Chinese non-performing loan securitisations have outpaced originators' initial projections, as of June 2017, according to a Moody's analysis of trustee report data. The study suggests that while originators of unsecured consumer NPL deals are the most optimistic about collections, the expense ratio for these transactions is the highest.

    For the purposes of the analysis, Moody's classified 15 .......

    News 15 August 2017

  • RMBS reaping RPL benefits

    Freddie Mac last week settled its largest SCRT deal to date. The RPL RMBS market is growing and investors are enthusiastic about its prospects.

    Freddie Mac Seasoned Credit Risk Transfer Trust Series 2017-2 has issued approximately US$2bn in guaranteed senior certificates and US$421m in unguaranteed mezzanine and subordinate certificates. It is backed by 9,939 fixed- and step-rate modified seasoned loans .......

    News Analysis 15 August 2017

  • Bespoke boost opportunity

    The search for yield is driving activity in bespoke CDS tranches, referred to as bespoke tranche opportunities (BTOs) post-financial crisis. The sector is expected to receive a further boost if single-name CDS liquidity continues to improve.

    "The reasons why investors are attracted to bespoke investments are the capacity to attain leverage and the ability to create their own portfolio, by .......

    News Analysis 15 August 2017

  • Hedging changes a boon for MBS

    FASB recently announced plans to finalise new accounting rules for financial instruments used for hedging (SCI 24 July). Within the securitisation industry, MBS are likely to be most affected by the move, with the changes largely acting as a supportive measure by potentially boosting liquidity in the sector.

    In terms of how liquidity might be boosted, Wells Fargo structured product .......

    News Analysis 15 August 2017

  • SCI Start the Week - 14 August

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

    Pipeline
    Additions to the pipeline last week were balanced between ABS and CMBS. There were five of each, as well as three RMBS and a CRE CLO.

    The ABS were: US$1.1bn Ally Auto Receivables Trust 2017-4; US$223m Flagship Credit Auto Trust 2017-3; US$888.7m GMF Floorplan Owner Revolving Trust Series 2017-2; US$1.382bn Nissan Auto Receivables 2017-B Owner Trust; and US$335m .......

    News 14 August 2017

  • Job swaps round-up - 11 August

    North America

    John DiRocco has joined CIFC as coo, overseeing non-investment functions, as well as the expansion of the firm's investment product offerings in the US and internationally. DiRocco previously served as coo and a founding member of Reef Road Capital, and before that was at Citadel Investment Group and Paloma Partners. He will be based in New York and ......

    Job Swaps 11 August 2017

    Premium Content

  • Innovative CRE CLO marketing

    Bancorp Bank is marketing a US$314.4m static commercial real estate CLO, backed by 24 floating-rate commercial mortgage loans secured by 31 properties. The transaction, dubbed Bancorp 2017-CRE 2, is structured as a REMIC trust and features several innovations, including not permitting a ramp-up or the acquisition/reinvestment of assets post-closing. The sponsor is also expected to sell the risk retention-compliant first-loss .......

    News 11 August 2017

  • Green agency CMBS 'first' prices

    Fannie Mae has priced its first GeMS REMIC backed exclusively by green MBS collateral. The issuance is the first of its kind in the market and builds on the GSE's previous US$1bn FNA 2017-M2 transaction, which was backed by 30 loans originated under the Fannie Mae green financing business and securitised as green DUS MBS (SCI 16 February).

    FNA 2017-M10 .......

    News 10 August 2017

  • Highly concentrated Trups CDOs see mezz recovery

    Trups CDOs remain an attractive source of capital for community bank issuers, but ratings are increasingly reliant on the largest obligors. Trups deals are expected to largely remain outstanding until legal maturity, with redemptions driven by idiosyncratic factors specific to issuers.

    Outsized bank issuers have taken on even greater importance for pools, as Fitch notes that 64% of outstanding Trups .......

    News 10 August 2017

  • Refi SLABS seeing product, borrower expansion

    Refinanced student loan ABS (SLABS) has grown to become a defined sector within student lending, making up a third of total US SLABS volume. With this growth, lenders are expanding across a range of measures - including loan and borrower type - and new competitors continue to enter the space.

    The broader SLABS sector has been a high point of .......

    News Analysis 10 August 2017

  • Best execution requirements assessed

    MiFID 2, due to be implemented across the EU by 3 January 2018, will have a far-reaching impact on the continent's financial markets, not least ABS. While the new rules will reshape banks' relationships with their customers in many ways, two of the most pressing are the unbundling of research and proving best execution.

    MiFID's unbundling rules mainly apply to .......

    News Analysis 9 August 2017

  • Registered, Rule 144A issuance compared

    The US SEC's division of economic and risk analysis (DERA) has published a report assessing how trends in primary securities issuance and secondary market liquidity relate to post-crisis regulatory reforms, in line with a Congress request under the 2016 appropriations process. The analysis - which spans 2005-2016 - shows that overall ABS (excluding RMBS) issuance has recovered since the trough .......

    News 9 August 2017

  • Subprime auto subs hit record tights

    US subprime auto ABS are pricing at the tightest spreads on record in the face of strong investor demand. The trend is occurring across the capital structure, most recently exemplified by Westlake Automobile Receivables Trust 2017-2, the subordinate tranches of which last week printed at the tightest levels ever for the sector.

    August has historically averaged US$11.6bn in consumer ABS .......

    News 8 August 2017

  • Cat bond issued in blockchain first

    Solidum Re has launched what is believed to be the first-ever catastrophe bond to have been digitised on a private blockchain. Named the ILSBlockchain, this mechanism has replaced the role of a traditional settlement system for the note issuance.

    Cedric Edmonds, director of Solidum Re, notes that an alternative to Euroclear was required as it is becoming increasingly difficult to .......

    News 8 August 2017

  • Innovative ILS coverage offered

    The IBRD has priced a series of catastrophe bonds that will provide the Mexican Fund for Natural Disasters (FONDEN) with innovative parametric coverage of up to US$360m. The ILS were issued across three tranches with exposure to three types of disasters - earthquakes (CAR 113 notes), Atlantic tropical cyclones (CAR 114) and Pacific tropical cyclones (CAR 115).

    The three-year bonds .......

    News 7 August 2017
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