Complete news archive

  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that the EIF is planning to tap the market again in two months.

    The fund completed its first EFSI risk transfer transaction last month (SCI 26 April), as part of a programme to stimulate SME lending in Europe. Not much is known about the forthcoming transaction, other .......

    News 5 May 2017

  • European CLO investor base expands

    The European CLO investor base is broadening, thanks to less perceived volatility than in the US market. As well as the stability Europe offers, panellists at IMN's European CLOs and Leveraged Loans conference last month said that low defaults and strong collateral quality is driving renewed interest in European CLOs across the capital stack.

    While European investors have dominated the .......

    Talking Point 4 May 2017

  • Alitalia exposure examined

    Italy's troubled flagship airline Alitalia has been placed under special administration. Should the company ultimately be liquidated, a number of aircraft ABS could face temporary cashflow disruptions as aircraft are repossessed, repaired and re-leased by the lessors.

    The Italian government has provided Alitalia with a €600m bridge loan to keep it operational and three administrators have been named to direct .......

    News 4 May 2017

  • Irish NPL wave expected

    Allied Irish Bank last month sold €400m gross book value of non-performing buy-to-let loans to Goldman Sachs at a 50% discount to their original value. The transaction signals a shift in the seller base for non-performing loans from foreign banks and bad bank NAMA to domestic Irish lenders.

    According to Tom McAleese, md at Alvarez and Marsal, between 2011 and .......

    News Analysis 3 May 2017

  • Credit card charge-offs ramp up

    Several US credit card banks have reported higher-than-expected net charge-off rates on their card portfolios in their 1Q17 earnings reports. The move seemingly coincides with lenders taking on more risk based on perceived borrower quality and larger credit limits. At the same time, borrowers appear to be taking on too much debt relative to their income growth prospects.

    Year-on-year, net .......

    News 3 May 2017

  • Chinese NPL ABS to expand

    The Chinese government is set to allow some mid-sized banks to issue non-performing loan ABS this year, providing them with a new channel to offload bad loans. The move is part of an attempt to establish a risk curve, which aims to increase the alternatives available in the credit market.

    Efforts to use securitisation as one of the means to .......

    News 2 May 2017

  • Job swaps round-up - 28 April

    EMEA

    Ashurst has promoted Alex Biles and Malcolm Charles to its partnership in London. Biles advises on a broad range of debt capital market products, including structured finance. Charles is a member of the firm's corporate trust and agency practice, advising on securitisations.

    Tikehau Capital has appointed Peter Cirenza as head of its London operations. His new role is aimed .......

    Job Swaps 28 April 2017

  • Multi-seller ABS approach to flourish

    Marketplace loan ABS involving a multi-seller approach is expected to become more commonplace, due to the extra control that online lending platforms can exert over the securitisation process. Investors and loan sellers also benefit from a consistent securitisation programme, but a degree of expertise is required to handle the greater complexity involved in executing such transactions effectively.

    Marlette Funding recently .......

    News Analysis 28 April 2017

  • GSE CRT value explored

    High-LTV GSE credit risk transfer (CRT) deals differ from low-LTV ones in more ways than just LTV ratio. While controlling for these differences shows worse delinquencies for high-LTV deals, loss severities are actually better, and therefore high-LTV CRTs could provide compelling opportunities for spread pickup.

    When Fannie Mae and Freddie Mac launched their CRT programmes in 2013, reference pools consisted .......

    News 28 April 2017

  • SFR composition trends analysed

    Fewer distressed buying opportunities for institutional investors in single-family rental houses has led to a shift of securitised properties from the southwest US to the southeast. A new Morningstar Credit Ratings analysis highlights that the composition of future issuance in the sector will depend on market-driven property acquisition and disposition strategies.

    After peaking in 2014, fewer single-borrower SFR properties are .......

    News 28 April 2017

  • Risk transfer round-up - 28 April

    Deutsche Bank closed its CRAFT CLO 2017-1 this week (see SCI's capital relief trades database). The US$371m seven-year notes reference a US$5.3bn corporate loan portfolio and have a three-year call.

    Sources also suggest that Nordea is prepping another risk transfer transaction. The Nordic issuer's last trade was an €8.4bn transaction with PGGM last year (SCI 25 August 2016).

    At .......

    News 28 April 2017

  • Cypriot securitisation bill pending

    A new Cypriot securitisation framework is currently pending parliamentary approval. The bill is expected to address the restricted scope of eligible investors in the country's non-performing loan market.

    Current Cypriot securitisation legislation - the 'Purchase and Sale of Credit Facilities and Relevant Matters Law of 2015' - is "restricted in both scope and application", according to Thomas Keane, partner at .......

    News 27 April 2017

  • Ocwen actions could hit related RMBS

    The recent court actions against Ocwen Financial Corporation (SCI 21 April) are credit negative for the firm and could also negatively affect related RMBS, Moody's suggests. If the consequences of the legal actions are severe enough, the ratings agency says, they could impact Ocwen's ability to adequately service a number of loans that back several RMBS transactions.

    Moody's has placed .......

    News 27 April 2017

  • Mall refi prospects mixed

    While many CMBS loans on regional malls are expected to struggle to refinance at maturity, Morningstar Credit Ratings has identified three such loans maturing this year which should be able to refinance successfully. These are the West Town Mall, Westfield Southlake and North Hills Mall loans securitised in MSC 2007-IQ16, LBUBS 2008-C1 and JPMCC 2007-CB20 respectively.

    Loans which amortise over .......

    News 27 April 2017

  • US CLOs still slow

    The US CLO secondary market is still slow thanks to a combination of factors.

    "So many bonds are trading at a premium that it makes trades difficult because it's hard for there to be a meeting of minds on value," says one trader. "Also, with so much of the market becoming callable everyone is expecting to be refi'd out of positions, .......

    SCIWire 27 April 2017

  • Second SCRT 'worse credit quality'

    Freddie Mac is in the market with a securitisation of re-performing residential mortgage loans, its second RPL credit risk transfer deal. Moody's notes that the pay history of the transaction is worse than its predecessor (SCI 16 December 2016).

    Moody's has rated the US$30.665m subordinate M1 class of Freddie Mac Seasoned Credit Risk Transfer Trust Series 2017-1 (SCRT 2017-1) at .......

    News 27 April 2017

  • Euro secondary stifled

    The hoped for boom in the European securitisation secondary market this week is being stifled.

    Market sentiment remains very positive bolstered by the rally in wider markets, but sellers remain thin on the ground as most investors seek to retain current positions. Consequently, flows and BWIC volumes have eased as the week has progressed, but secondary spreads are holding firm across the .......

    SCIWire 27 April 2017

  • First EFSI risk transfer boosts SME lending

    The EIB Group has provided a mezzanine tranche guarantee of around €90m to Commerzbank in connection with the first deal under the European Fund for Strategic Investments (EFSI). Dubbed CoCo III-1, the risk transfer transaction references a €1.5bn portfolio of European corporate loans (see SCI's capital relief trades database).

    The EFSI is the central pillar of the Investment .......

    News 26 April 2017

  • Debut issuer brings unusual ILS

    NMI Holdings has priced US$211.3m of 10-year mortgage insurance-linked notes. The ILS, Oaktown Re Series 2017-1, sponsored by NMI Holdings subsidiary National Mortgage Insurance Corporation (National MI), is being privately offered.

    National MI will receive US$211.3m of fully collateralised excess of loss reinsurance protection, covering an existing portfolio of mortgage insurance policies written from 2013 through 2016. The ILS is .......

    News 26 April 2017

  • Special servicing books creep down

    The three largest legacy special servicers - C-III Asset Management, CWCapital Asset Management and LNR Partners - accounted for 86% of US CMBS special servicing resolutions last year, according to Fitch. In a review of its rated CMBS, the agency notes that these servicers represented 82% of the active special servicing segment at year-end 2016.

    Relative to active special servicing .......

    News 26 April 2017

  • Bill to repeal Dodd-Frank scrutinised

    Hearings are scheduled for today on a draft bill published last week by House Republicans which would repeal much of the Dodd-Frank Act. The Financial CHOICE Act would repeal risk retention rules for CLOs and all other asset classes except residential mortgages and would also repeal Volcker Rule restrictions on banks owning the debt securities of CLOs that hold anything .......

    News 26 April 2017
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