Complete news archive

  • 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

  • Tranched cover trades gaining traction

    Tranched cover synthetic securitisation issuance is picking up in Europe, as regulatory capital requirements bite. The advantages of such non-standard structures include their limited ongoing costs, as well as their flexibility and bilateral nature.

    Unlike standard synthetic securitisations where all elements of the transaction are contractually defined (including the size and conditions of all tranches), the structure of a tranched .......

    News Analysis 18 April 2017

  • Debut Canadian RMBS prepped

    The first RMBS sponsored by a major Canadian bank is marketing. Dubbed Bicentennial Trust 2017-1, the C$1.96bn deal is backed by 6,364 prime fixed-rate Canadian residential mortgage loans originated by Bank of Montreal (BMO).

    Moody's and DBRS have assigned provisional ratings of Aaa/AAA to the C$1.86bn class A notes, Aa2/AA to the C$39.21m class Bs, A1/A to the C$19.6m class .......

    News 18 April 2017

  • Antares returns with first 2.0 CLO

    Antares Capital Advisers is in the market with its first 2.0 CLO transaction, Antares CLO 2017-1 (see SCI's deal pipeline), its first deal in more than a decade. The transaction is a cashflow SME CLO provisionally sized at US$1.8bn and backed by middle-market speculative-grade senior secured term loans.

    The US$1.035bn A class notes have been rated at Aaa .......

    News 18 April 2017

  • Chinese NPL ABS growing in size and diversity

    The Chinese non-performing loan securitisation sector is set to grow, adding to the existing RMB16.33bn worth of transactions since the market opened in May 2016, according to Moody's. The agency notes that transactions with a mixture of unsecured and secured NPLs are emerging, with deals backed by unsecured loans having weaker credit quality and pricing at a bigger discount than .......

    News 13 April 2017

  • CLO refi value explored

    US CLO triple-A investors should target longer refis from larger managers due to the relatively steep term premium, argue Wells Fargo analysts. Investors hoping to add yield should bear in mind that single-A and triple-B tranches have been most compensated for a move down in attachment point or market value overcollateralisation.

    March refi and new issue pricing data shows CLO .......

    News 13 April 2017

  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising interest rates. Investors may instead hedge against interest rate exposure or invest in floating-rate products with a long performance history, such as corporate CLOs.

    Fitch recently suggested that floating-rate CMBS conduits may re-emerge in the US due to rising interest rates and .......

    News Analysis 13 April 2017

  • New ABCP conduit launches

    A new European ABCP conduit has launched, securitising insured trade receivables that are fully guaranteed by Altradius Credito y Caucion (ACyC). Moody's has provisionally rated IM SUMMA 1's Euro-commercial paper (ECP) class at P2 and its European medium-term note (EMTN) class at A3.

    IM SUMMA 1 is a fund with the ability to purchase further assets and issue further liabilities. .......

    News 12 April 2017

  • US CLOs slow

    The US CLO secondary market is slowing down ahead of the Easter holidays.

    "It was always going to be a pretty slow week given the early finish on Thursday and Friday's close," says one trader. "But there really is very little to report."

    In addition, secondary is still hampered by so many bonds being above par, the trader notes. "Yields .......

    SCIWire 11 April 2017

  • Debut consumer ABS prepped

    Tidewater is marketing its first term consumer finance ABS. Dubbed Tidewater Sales Finance Master Trust Series 2017-A, the US$68.92m securitisation is backed by retail installment contracts.

    While Tidewater has an established auto loan business, this transaction marks the first term ABS from Tidewater Credit Services, an originator of retail installment and revolving contracts to non-prime consumers for the purchase of .......

    News 11 April 2017

  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow.

    Trading patterns continue unchanged across ABS/MBS and CLO sectors - from time to time volumes begin to build before dissipating once again amid positive market sentiment. Last week reflected that as activity fizzled out towards the end of the week, while yesterday saw a flurry of auctions and .......

    SCIWire 11 April 2017

  • Investors 'less bullish', despite record volumes

    Global CLO supply last week hit a weekly record by count and volume for priced deals, with 29 printing at US$13.23bn-equivalent. Against this backdrop, however, JPMorgan's latest CLO survey suggests that investors are the least bullish on the sector for two years.

    Last week's total of CLOs comprised five US new issue and 21 US refinancings/resets, while in Europe there .......

    News 10 April 2017

  • SCI Start the Week - 10 April

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

    Pipeline
    ABS names once again made up the majority of last week's pipeline additions. There were also a couple of ILS and a handful of RMBS.

    The ABS were: US$1bn CarMax Auto Owner Trust 2017-2; US$469.83m Conn's Receivables Funding 2017-A; US$224.94m CPS Auto Receivables Trust 2017-B; US$172.03m Foursight Capital Automobile Receivables Trust 2017-1; CNY2.884bn Fuyuan 2017-1 Retail Auto Mortgage .......

    News 10 April 2017

  • Payless closures to have limited impact

    Only six CMBS loans with exposure to Payless ShoeSource - for a combined allocated property balance of US$34.8m - will likely be hurt by the retailer's planned closure of 379 stores, according to Morningstar Credit Ratings. The agency suggests that these loans may be at an elevated risk because either Payless occupies at least 20% of the gross leasable area .......

    News 10 April 2017

  • Today's RMBS opportunity deconstructed

    US RMBS continue to rally, supported by robust labour and housing markets, cheap credit and increasingly high-quality collateral. In this Q&A article, WyeTree ceo and cio Judith Sciamma explains that since RMBS also have several portfolio characteristics that institutional investors continue to search for in today's investment environment, the sector offers compelling value.

    Q: Why are real money investors looking .......

    Talking Point 10 April 2017

  • Job swaps round-up - 7 April

    North America

    KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitised products team. O'Neill will act as md and Tucker as director and both will report to Keith Newman and Michael Corsi, co-heads of securitised products. O'Neill was previously md at RBC, focusing on non-agency and agency MBS and ABS. Tucker was previously director in the .......

    Job Swaps 7 April 2017

  • Risk transfer round-up - 7 April

    Activity in the capital relief trade space appears to be increasing in line with expectations of more issuance, as the revisions to the CRR kick in next year (SCI 5 April). Indeed, volumes are anticipated to pick up this quarter.

    Most recently, Lloyds closed Salisbury II-A Securities 2017, a tap of the Salisbury deal it issued in December (SCI 14 .......

    News 7 April 2017

  • Chinese auto ABS hits top rating

    The first Chinese auto loan ABS to receive a triple-A rating from S&P is currently marketing (see SCI's deal pipeline), although Fitch has not rated it so highly. Fuyuan 2017-1 Retail Auto Mortgage Loan Securitization Trust is a CNY2.884bn secured by loans to prime quality borrowers.

    The CNY2.505bn class A notes have been rated triple-A by S&P and .......

    News 7 April 2017

  • Irish NPL RMBS 'could start wave'

    Lone Star is back in the market with another Irish RMBS. It is currently marketing European Residential Loan Securitisation 2017-NPL1, which securitises non-performing loans.

    Lone Star priced an Irish non-conforming RMBS, European Residential Loan Securitisation 2017-PL1, last month (see SCI's new issue database). For its latest transaction, the private equity house is offering the senior three tranches, making .......

    News 6 April 2017

  • China tipped as next NPL frontier

    Distressed debt investors are becoming more active in the Chinese non-performing loan market. Recent government action - including the creation of a more transparent and effective legal system - is widening the scope of opportunities in the sector.

    Andrew Brown, partner at Shorevest, notes that the key difference between China and other jurisdictions is the government's control over the economy, .......

    News Analysis 6 April 2017

  • B-piece buyer shift underway

    The US CMBS B-piece investor base is shifting towards those with longer-term capital, following the implementation of risk retention rules. Greater clarity over the structural complexity associated with the rules, together with increasing credit quality is expected to facilitate growth across the sector.

    Risk retention requirements stipulate that third-party purchasers of the eligible horizontal residual interest (EHRI) - totalling 5% .......

    News Analysis 6 April 2017
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