Complete news archive

  • 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

  • Specialist lenders driving UK RMBS

    The UK has accounted for an outsized share of the European RMBS market in 2016 and 2017 year to date, relative to 2014 and 2015 volumes. However, the spike in issuance has largely been driven by specialist lenders (SCI passim) and this seems set to continue, due to the success of the Term Funding Scheme (TFS).

    Net mortgage lending continues .......

    News 25 April 2017

  • CLO refinancing capacity gauged

    New issue CLO spread tightening is expected to remain a key contributor to refinancing activity across the sector. US$50bn-US$60bn refinancing capacity remains for US CLOs under the SEC no-action letter (SCI 21 July 2015), according to Wells Fargo figures.

    The no-action letter limits eligible refis to CLOs within four years of issuance that were issued before 24 December 2014. Wells .......

    News 25 April 2017

  • Wireless spectrum auction 'ABS positive'

    T-Mobile won the most number of licences in the US Federal Communication Commission's 600-megahertz spectrum auction earlier this month, spending US$8bn in the US$19.8bn auction. This win is credit positive for wireless tower ABS sponsored by American Tower Corporation, Crown Castle International and SBA Communications, says Moody's.

    The rating agency believes T-Mobile will be prompted to spend more to upgrade .......

    News 25 April 2017

  • Basel 4 raises Dutch SRT prospects

    Higher capital requirements mooted under Basel 4 are likely to disproportionately affect Dutch banks, given their large mortgage exposures. This is expected to result in a flurry of Dutch capital relief trades.

    One industry source notes that a 90%-100% LTV currently results in a 43% risk weight for standardised banks, but the Basel 4 proposal contemplates increasing it to 55%. .......

    News Analysis 25 April 2017

  • Euro secondary boosted

    The European securitisation secondary market has been boosted by the first round result in the French presidential election.

    Trading activity picked up yesterday and the BWIC calendar is slowly growing albeit from very low recent levels. The elements of softness seen last week have reversed and secondary spreads across ABS/MBS and CLOs are flat to slightly tighter.

    There are currently two .......

    SCIWire 25 April 2017

  • European hot spots highlighted

    CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Drivers include a broadening of the investor base for the former and continued bank deleveraging for the latter.

    AFME data for 1Q17 shows that pan-European CLOs led placed European securitisation issuance, followed by UK RMBS and Dutch RMBS. Volumes across these sectors totalled .......

    Talking Point 24 April 2017

  • Self-syndication cost savings considered

    Demand for CLO debt remains high, fuelling suggestions that easy access to investors could encourage issuers to cut out arrangers. While CLO managers may find the idea of making savings through self-syndication attractive, it could prove to be a false economy.

    "In an effort to save costs, issuers may entertain the thought of taking on the job normally done by .......

    News Analysis 24 April 2017

  • Mortgage market model outlined

    The Mortgage Bankers Association has released a whitepaper on GSE reform that outlines its vision for an 'end state' model that fulfills what it describes as an affordable housing/duty-to-serve mission. The report also attempts to shed light on two areas that the association says have tested past reform efforts - the appropriate transition to the reformed system and the role .......

    News 24 April 2017

  • SCI Start the Week - 24 April

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

    Pipeline
    Additions to the pipeline were focused on ABS and RMBS last week, with the former dominating. Among these is a US$1bn-plus ABS and a C$2bn RMBS.

    The ABS were: US$235.6m Ascentium Equipment Receivables 2017-1 Trust; US$900m Coinstar Funding Series 2017-1; US$996.58m Dell Equipment Finance Trust 2017-1; Ford Auto Securitization Trust 2017-R2; US$176m GoodGreen 2017-1; US$268.47m HERO Funding 2017-1; .......

    News 24 April 2017

  • Record cat bond issuance assessed

    The average size of catastrophe bonds climbed significantly - by 31% - to US$292m in 1Q17, according to PCS figures. The firm notes that the issuance of the Galilei Re, Aozora Re and Sanders Re transactions had "disproportionate effects" on volumes (see SCI's primary issuance database).

    "Half the transactions [issued in Q1] were small (under US$200m) and it .......

    News 21 April 2017

  • Risk transfer round-up - 21 April

    The EIF returned to the risk transfer market this week, with a €90m mezzanine guarantee for a €1.5bn portfolio of corporate loans originated by Commerzbank. The guarantee aims to spur lending to mainly German SMEs and midcaps by reducing bank capital requirements.

    Elsewhere, sources in the Dutch market suggest that Dynamic Credit is readying another balance sheet relief RMBS, following .......

    News 21 April 2017

  • Job swaps round-up - 21 April

    North America

    Morningstar has hired Charles Citro as md for CMBS ratings and analytics, based in New York, reporting to Vickie Tillman, president of Morningstar Credit Ratings. Most recently, Citro was senior md at Cushman and Wakefield within the asset surveillance group.

    Nations Equipment Finance has hired Susan O'Donovan as cfo. She was previously at Castleton Commodities International as executive .......

    Job Swaps 21 April 2017

  • Clean-up call volume rising

    US non-agency RMBS amounting to more than US$1bn in UPB was called in 1Q17, making it one of the busiest quarters for calls in many years. There is no longer such a clear skew towards prime collateral backing deals being called, while a greater variety in vintages being called is expected to develop.

    New Residential Investment Corp (NRZ) has been .......

    News 20 April 2017

  • Coinstar ABS debuts

    Coinstar is marketing its inaugural US$900m whole business securitisation. Coinstar Funding Series 2017-1 is backed by revenue generated from a multi-national network of fully automated self-service coin counting machines.

    KBRA has assigned provisional ratings of triple-B to the deal's US$60m class A1
    and US$840m class A2 notes. The anticipated repayment date is April 2022, while the legal final maturity date is .......

    News 20 April 2017

  • US CLOs slumber on

    The slumber seen in the US CLO secondary market pre-Easter is continuing.

    Despite broadly positive market sentiment, volumes continue to be light as investors look to hold on to the paper they have. As result, secondary spreads across the capital structure and vintages are unchanged over the past week or so.

    There are two BWICs on the US CLO calendar .......

    SCIWire 20 April 2017

  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up after the Easter break.

    Yesterday saw a flurry of both bilateral trading and BWICs primarily driven by rotation activity. Secondary spreads remain firm for now given the recent paucity of supply, but the possibility of some weakening in higher beta paper is emerging.

    There are currently four BWICs on the .......

    SCIWire 20 April 2017

  • Special servicing shift underway?

    A shift in the US CMBS special servicing landscape is emerging, according to Fitch's year-end review of servicing trends. While the traditional cartel of legacy CMBS special servicers - who invested in controlling bond positions - continue to represent the largest balance of active special servicing, a new set of players take the lead when measuring volume by named special .......

    News 19 April 2017

  • Ocwen may target MSR purchases again

    Ocwen Loan Servicing has reached a settlement with the New York Department of Financial Services (NYDFS) which brings closer the prospect of the company being able to acquire MSRs again. The California Department of Business Oversight (DBO) has already lifted its own prohibition against Ocwen purchasing MSRs (SCI 24 February).

    The servicing company has been unable to acquire new MSRs .......

    News 19 April 2017

  • 'Substantial' loss forecast after methane claim

    The US$77.2m City View Center loan - securitised in MSC 2007-IQ14 - has received a US$62.5m payment, following the representation and warranty settlement between the special servicer and originator Morgan Stanley (see SCI's CMBS loan events database). The loan transferred to special servicing in late 2008 over a lawsuit, initiated when the borrower violated EPA requirements related to .......

    News 19 April 2017

  • Euro CLO relative value discussed

    Identifying relative value in the current loan environment, where asset spreads are compressing, was a key theme at IMN's recent European CLOs and Leveraged Loans conference. Against the backdrop of rising refinancing and reset volumes, call optionality and manager style emerged as strong contenders.

    From a relative value perspective, Natixis ABS/CLO trader Peter Cui said that in terms of carry, .......

    Talking Point 19 April 2017
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