Complete news archive

  • 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

  • US CLOs still strong

    US CLO secondary market tone remains strong amid lacklustre volumes.

    "Overall supply hasn't ticked up too much this week given that it's a new quarter," says one trader. "BWIC and TRACE volumes are fairly light and there's not much in the way of new issuance either so far."

    The trader continues: "The market remains strong - as soon as paper .......

    SCIWire 6 April 2017

  • Deephaven debuts non-conforming deal

    Deephaven Mortgage is in the market with an RMBS backed primarily by non-QM loans extended to non-conforming borrowers. Dubbed Deephaven Residential Mortgage Trust 2017-1, the US$219.82m transaction features a double true sale structure and an atypical cashflow waterfall.

    The DRMT 2017-1 pool consists of 715 fixed rate (31.7% by balance), adjustable interest-only (6.1%) and five- and seven-year hybrid adjustable-rate fully .......

    News 6 April 2017

  • Euro ABS/MBS active

    The European ABS/MBS secondary market is once again active without yet fully taking off.

    "Secondary is now chugging along," says one trader. "There's enough going on to keep us occupied, but nothing major."

    The trader continues: "There are selective opportunities, but there's no real stand-out activity. One possible exception to that is some of the racier positions from the big .......

    SCIWire 6 April 2017

  • Largest STACR to date prices

    Freddie Mac has priced its largest STACR deal to date. The US$1.32bn STACR 2017-DNA2 is also Freddie Mac's second low-LTV deal of the year.

    The M1 class has priced at one-month Libor plus 120bp, while the M2s priced at plus 345bp. The B1 class priced at plus 515bp and the B2s at plus 1125bp.

    STACR 2017-DNA2 has a reference pool .......

    News 5 April 2017

  • Synthetics to receive an STS designation?

    Momentum is growing for a simple, standardised and transparent (STS) designation for synthetic securitisations at the EU level, driven by the support of the European Commission and the EBA. Such a designation is expected to increase supply and enhance standardisation in the risk transfer market.

    Synthetic securitisations were not initially included in the scope of either the Basel Committee's simple, .......

    News Analysis 5 April 2017

  • B&B portfolio sale to bring new RMBS

    UK Asset Resolution (UKAR) has sold two asset portfolios comprising performing buy-to-let loans totalling £11.8bn to Blackstone and Prudential (SCI 31 March). The loans come from the old Bradford & Bingley portfolio and are set to be securitised in two deals, including potentially the largest post-crisis European RMBS to date.

    The two RMBS are Ripon Mortgages and Harben Finance 2017-1 .......

    News 4 April 2017

  • Diverse solar ABS announced

    Sunnova Energy is marketing its inaugural US$254.75m securitisation. Dubbed Helios Issuer Series 2017-1, it is backed by a pool of 13,838 leases linked to residential solar photovoltaic (PV) installations.

    The collateral comprises power purchase agreements (PPA), EZ Pay PPAs and 20 hedged solar renewable energy certificate (SREC) contracts. The solar service agreements (SSAs) securing the transaction have an aggregate discounted .......

    News 4 April 2017

  • US ABS keeps tight

    US ABS secondary spreads are keeping tight as the new quarter begins.

    The run-in for the last quarter and start to the next were relatively quiet across most US ABS sectors. However, the market continued to hold on to its gains from a very strong Q1.

    Multiple sectors and parts of the stack are at or very close to post-crisis .......

    SCIWire 4 April 2017

  • Leverage ratio driving off-balance sheet trend

    A number of European banks - including Rabobank and Credit Foncier - are becoming more active in the true sale securitisation format for risk transfer transactions. The move is being driven by the focus on balance sheet reduction, following the introduction of leverage ratio requirements under Basel 3.

    Rabobank's foray into the true sale format follows its debut off-balance sheet .......

    News Analysis 4 April 2017

  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market.

    Flows and BWIC supply are picking up across the board this week. So far execution levels remain strong as long-standing pent up demand gets some release.

    As a result, secondary spreads remain firm amid positive market sentiment. However, the growing secondary and primary calendars are yet .......

    SCIWire 4 April 2017

  • Portuguese NPL prospects boosted

    Lone Star is set to acquire 75% of Novo Banco, Portugal's third largest lender, in return for a €1bn capital injection. The acquisition, along with the mooted creation of a bad bank, signals growing investor activity in the Portuguese non-performing loan market.

    Under the agreement, the resolution fund (a public body financed by all Portuguese banks) will inject capital into .......

    News Analysis 3 April 2017

  • Compliant wireless tower deal debuts

    SBA Communications is marketing its first risk retention-compliant securitisation. The US$760m SBA Tower Trust Series 2017-1C is backed by a pool of wireless towers located across the US and their related tenant leases.

    The deal is secured by a mortgage loan that the issuer will make to borrowers that are wholly owned by SBA Communications. Fitch and Moody's have assigned .......

    News 3 April 2017

  • SCI Start the Week - 3 April

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

    Pipeline
    The pipeline comprised a mixed bag of issuers last week. ABS deals once again dominated the new entrants.

    Among the newly announced ABS were some esoteric names: US$145m BRE Grand Islander Timeshare Issuer 2017-A, US$282m PFS Financing Corp 2017-A and US$281m TAL Advantage VI series 2017-1. The Income Contingent Student Loans 1 (2002-2006) and US$50.26m Rhode Island Student .......

    News 3 April 2017

  • Job swaps round-up - 31 March

    EMEA

    EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed EJF Investments, it will aim to invest in long-term, cashflow generating assets in three identified target investment areas - risk retention, capital solutions, ABS and specialty finance. Liberum Capital is acting as financial advisor on the admission and it's expected that dealings in the .......

    Job Swaps 31 March 2017

  • Value seen in jumbo 2.0 and RPL deals

    US non-agency issuance volumes are inching up on the back of the housing market recovery. Re-performing (RPL) and post-crisis prime jumbo RMBS, in particular, are tipped as offering value in the current environment.

    Jason Merrill, structured specialist at Penn Mutual Asset Management, says that non-agency legacy RMBS issuance is very tight, without the ratings to support it. This has prompted .......

    News Analysis 31 March 2017

  • Legislation, growth drive Cyprus turnaround

    Cyprus's non-performing exposures (NPE) ratio has experienced significant improvements, given stronger GDP growth and the adoption of an insolvency framework. At the same time, servicing is becoming an increasingly viable option for the restructuring of delinquent loans.

    According to Adriana Alvarado, vp at DBRS: "The steady recovery of the economy, which posted growth for a second consecutive year in 2016, .......

    News Analysis 31 March 2017

  • Debut prime auto ABS prepped

    GM Financial is in the market with its inaugural prime auto loan ABS. The US$1bn GM Financial Consumer Automobile Receivables Trust 2017-1 transaction is backed by 39,380 retail installment contracts originated or acquired by GM Financial.

    The portfolio comprises 22% cars, 21% CUVs, 21% SUVs and 36% light-duty trucks, split 84%/16% between new and used vehicles. The pool has a .......

    News 31 March 2017

  • US CLOs surge

    Activity in the US CLO secondary market has surged this week.

    "There's been something of a quarter-end surge," says one trader. "BWIC activity has picked up over the last few days to recalibrate pricing and clean-up positions."

    The trader continues: "It's been mostly mezz in for the bid and everything continues to trade well especially 2012-2014 deals. Spreads haven't moved .......

    SCIWire 30 March 2017

  • Euro ABS/MBS unchanged

    Spreads and activity levels remain unchanged across the European ABS/MBS secondary market.

    A combination of month-end and benign wider markets has made for another couple of quiet sessions. Consequently, strong market tone and limited supply continue to hold secondary spreads in.

    The pricing of a number of new issues this week could yet shake out some sellers before month-end. However, .......

    SCIWire 30 March 2017

  • 'Less conventional' auto ABS to emerge?

    Moody's expects German carmakers to offer attractive financing terms and retain residual value risks to boost demand for their alternative fuel vehicles (AFVs) and encourage AFV adoption. However, as the technology matures and AFV penetration increases, residual value risk is likely to shift to new industry participants.

    "BMW, Daimler and Volkswagen will make full use of their captive finance operations .......

    News 29 March 2017
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