Complete news archive

  • 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

  • SCI Start the Week - 7 August

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

    Pipeline
    ABS deals accounted for more than half of last week's pipeline additions. There were seven ABS, three RMBS, two CMBS and a CLO.

    The ABS were: US$1.305bn AmeriCredit Automobile Receivables Trust 2017-3; CNY3.67bn Bavarian Sky China 2017-2; A$350m CNH Industrial Capital Australia Receivables Trust Series 2017-1; US$442.78m DT Auto Owner Trust 2017-3; US$979.27m Hyundai Auto Receivables Trust 2017-B; .......

    News 7 August 2017

  • Peripheral ABS playing catch-up

    Structured finance issuance in the European core has held up well over the summer, with spreads continuing to grind tighter. Although peripheral ABS spreads remain wide of the core, the periphery appears to be catching up.

    "Spreads throughout Europe - in both the core and periphery - have been going in the same direction for a while now, albeit at .......

    News Analysis 4 August 2017

  • Risk transfer round-up - 4 August

    Capital relief trade players are expecting a quiet August, before the flurry of activity that will define Q4. Nevertheless, rumours are circulating that a regulatory call might be executed on a transaction that HSBC closed last year. This follows the Cooperative Bank's regulatory call of its Calico Finance capital relief trade issued in 2013 (SCI 1 August).

    .......

    News 4 August 2017

  • Inaugural aviation ABS readied

    Sky Aviation Leasing International is in the market with an inaugural securitisation. Dubbed S-JETS 2017-1, the US$780.8m transaction is collateralised by a portfolio of 21 aircraft on lease to 16 lessees located in 13 countries.

    As of 1 August 2017, the initial weighted average aircraft age of the portfolio is approximately 3.4 years, with a remaining lease term of approximately .......

    News 4 August 2017

  • Job swaps round-up - 4 August

    North America

    Hunton & Williams has promoted a pair of litigation lawyers with securitisation experience to counsel, based in New York. Michael Kruse focuses his practice on complex commercial litigation relating to financial services and structured finance. Robert Rich focuses primarily on representing corporate debtors, secured and unsecured creditors, indenture and securitisation trustees, lessors and other parties in interest in .......

    Job Swaps 4 August 2017

  • Debut diamond ABS prepped

    Diarough Group - the trading name of Egon Holdings and Emby International - is marketing its first public ABS, having issued a private inventory securitisation in 2007. Dubbed Four Seas 2017-1, the latest US$150m transaction is collateralised by Diarough's rough and polished diamond inventory and outstanding receivables.

    KBRA has provisionally rated the transaction single-A in respect of the US$75m class .......

    News 3 August 2017

  • ISDA working on derivatives smart contracts

    Smart contracts and distributed ledger technology could bring cost and efficiency benefits to the derivatives market, says a new whitepaper from ISDA and Linklaters. Along with the whitepaper, ISDA has launched an industry legal working group to focus on smart contracts.

    In order to unlock value in the derivatives market and realise the benefits smart contracts and distributed ledger technology .......

    News 3 August 2017

  • UK ILS hub to drive new issuance, innovation

    The proposed ILS regulatory and tax regime due to come into effect on 1 January 2018 aims to put the UK on an even-footing with other jurisdictions and enable it to become a world leader in the catastrophe bond market (SCI 21 July). Notably, the framework is expected to create an accommodating tax environment for ILS vehicles, making it financially .......

    News Analysis 3 August 2017

  • NPL servicer breaks new ground

    Alvarez and Marsal has established the first independent business loan servicing company in Greece. Named Independent Portfolio Management (IPM), the fully owned subsidiary has been granted a servicer license by the Bank of Greece for the management of claims from loan and credit facilities in accordance with the local legal and regulatory framework.

    "IPM is not a captive servicer owned .......

    News 2 August 2017

  • Regulatory call exercised for Calico

    The Co-operative Bank last week announced a regulatory call of its Calico Finance Number One capital relief trade. The call was executed, after UK PRA approval, as part of the bank's plans to improve its capital position.

    The Co-operative Bank received confirmation from the PRA that the Calico transaction no longer achieves significant risk transfer (SRT) to third parties within .......

    News Analysis 1 August 2017

  • Reinsurance firm taps CLO market

    Nassau Re has priced an inaugural US$438m CLO. Dubbed Nassau 2017-I, the transaction is a broadly syndicated CLO managed by NCC CLO Manager, a wholly-owned subsidiary of Nassau Re affiliate Nassau Corporate Credit.

    Rated by Fitch and S&P, the transaction comprises US$231.3m AAA/AAA rated class A1A notes (which priced at three-month Libor plus 132bp), US$30m AAA/AAA A1Bs (3.28%), US$59.5m NR/AA .......

    News 1 August 2017

  • Reserving practices in the spotlight again

    An additional 10 legacy US non-agency RMBS were called in July, a month after Wells Fargo withheld over US$90m in cashflow across 20 called transactions (SCI 3 July). While the results this time around appear to be more investor-friendly, uncertainty remains over trustee reserving practices.

    Morgan Stanley RMBS strategists estimate that only six of the deals that were called last .......

    News 1 August 2017

  • RFC issued on gas prepay approach

    S&P has requested comments on its methodology for rating US physical commodity prepayment ABS transactions. Such bonds are backed by the payment obligations of municipalities for the delivery of gas and counterparties that hedge gas price fluctuations. Contractual guarantees cover the performance risk of the gas supplier, which is paid upfront for the delivery of gas to the municipalities over .......

    News 1 August 2017

  • Libor gives CLOs pause

    UK FCA ceo Andrew Bailey last week suggested that financial markets should transition away from Libor benchmarks to transactional-based reference rates by end-2021. His speech caught the attention of the CLO industry in particular, given Libor's central role as a reference rate to calculate interest income on debt tranches, as well as on the majority of underlying loan collateral.

    "The .......

    News 31 July 2017

  • SCI Start the Week - 31 July

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

    Pipeline
    The rate of pipeline additions stayed consistent last week. There were six new ABS, five RMBS and five CMBS added.

    The ABS were: Chesapeake Funding II Series 2017-3; US$140m JG Wentworth XXXIX Series 2017-2; US$300m PFS Financing Corp Series 2017-B; US$501.06m Prosper Marketplace Issuance Trust Series 2017-2; CNY2.52bn VINZ 2017-2 Retail Auto Loan Securitization Trust; and US$700m Westlake .......

    News 31 July 2017

  • Risk transfer round-up - 28 July

    Delay has been the theme in the capital relief trades market this week.

    Nordea has begun marketing its delayed corporate risk transfer deal, which appears to have had a positive reception from investors. "Given the size of the deal and the way it was welcomed by the market, I wouldn't be surprised if it is completed by year-end or early .......

    News 28 July 2017

  • Whole business maturity wall eyed

    US whole business securitisation issuance was robust in 1H17, with US$5.1bn priced across seven issuers (see SCI's primary issuance database), up by 84% year-over-year and on pace to break the record US$7.2bn issued in 2015. However, risks to the sector have increased marginally, given a looming maturity wall and declining growth across the restaurant industry.

    Many well-known restaurant .......

    News 28 July 2017

  • Job swaps round-up - 28 July

    North America

    Ashurst is cutting its CLO practice because it sees it as "less relevant" to its global structured finance practice. It says "it will not be replacing the CLO team," many of whom have moved to Chapman and Cutler. The five partners joining Chapman and Cutler are Pat Quill, David Nirenberg, Steve Kopp, Doug Bird and Tom Glushko.

    Hunt .......

    Job Swaps 28 July 2017

  • Synthetic mortgage 'game changer' awaited

    The inclusion of mortgages in leverage ratio calculations and lower risk weights for the asset are at present limiting the issuance of synthetic RMBS. Indeed, capital relief trade players are awaiting the EBA's forthcoming risk transfer guidelines to introduce regulatory consistency and clarity over the future of the product.

    European risk transfer transactions tend to reference corporate assets, due to .......

    News Analysis 28 July 2017

  • Self-cert 'drafting error' unlikely to stand

    A recent amendment to Article 17 of the new European securitisation regulations would ban self-certified mortgages from all new securitisations, sparking concern about the impact this might have on the European RMBS sector. However, the clause appears to be a drafting error and is expected to be corrected before the final rules are implemented.

    Rob Ford, partner and portfolio manager .......

    News Analysis 27 July 2017
×