Complete news archive

  • Synthetic expected loss approach outlined

    Scope has published research that offers a technical illustration of how the expected loss framework described in its general structured finance rating methodology can be implemented for tranches of simple synthetic securitisations. Further, the report describes how expected loss can be calculated in practical cases.

    Simple synthetic securitisations generally allocate losses from a reference portfolio of assets, for which an .......

    News 18 July 2017

  • UK MPL loans in triple-A RMBS

    The £290m Twin Bridges 2017-1 RMBS which priced last week represents the first time that loans from a non-US marketplace lender have been used for a triple-A rated securitisation. While the deal largely securitises loans made by Paratus, it also includes loans from marketplace lender Landbay.

    UniCredit analysts note that the A tranche priced in line with initial price talk .......

    News 18 July 2017

  • SCI Start the Week - 17 July

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

    Pipeline
    Pipeline activity stepped up again last week. The additions consisted of eight ABS, an ILS, five RMBS and four CMBS.

    The ABS were: US$1.375m CarMax Auto Owner Trust 2017-3; US$748m CNH Equipment Trust 2017-B; US$225m CPS Auto Receivables Trust 2017-C; C$460m Ford Floorplan Auto Securitization Trust Series 2017-F1; US$700m Kubota Credit Owner Trust 2017-1; US$1.02bn Navient Student Loan .......

    News 17 July 2017

  • Atypical Dutch RMBS prepped

    RNHB is in the market with an unusual Dutch RMBS backed by owner-occupied and buy-to-let mortgage loans secured by residential, mixed-use and commercial properties. Dubbed Dutch Property Finance 2017-1, the €1.5bn transaction is unique in that borrowers are divided into risk groups and are obliged to share servicing of the debt across the risk group.

    The preliminary collateral pool comprises .......

    News 17 July 2017

  • Job swaps round-up - 14 July

    North America

    Mortgage Capital Trading has hired Bill Berliner to the newly created role of director of analytics. He was previously mortgage community manager at Thomson Reuters.

    BlueMountain Capital Management has hired Lee Kempler as coo for investments. He was previously md at Blackrock.

    FS Investments has hired Michael Carter as evp, head of strategy. He will be based in .......

    Job Swaps 14 July 2017

  • Inaugural NPL ABS launched

    Credit Valtellinese and Credit Siciliano have tapped the market with their first Italian non-performing loan securitisation. Dubbed Elrond NPL 2017, the €526.6m transaction is backed by an NPL portfolio with a gross book value (GBV) of €1.405bn, of which €30.8m is cash in court.

    The collateral comprises loans extended to 3,682 defaulted borrowers and is a mix of secured residential .......

    News 14 July 2017

  • Demand drives Euro CLO portfolio loosening

    With demand for high-yielding assets outstripping supply, more European CLOs are being issued with atypical, looser portfolios. While investors may be taking on greater risk as a result, spreads are not reflecting this, leaving some wondering whether the compensation is adequate.

    Neil Desai, portfolio manager at Highland Capital, says he has seen several European CLOs that have pushed the envelope .......

    News Analysis 14 July 2017

  • Servicer consolidation boosts NPL recoveries

    The Italian servicing industry is experiencing a strong growth trend. Italian non-performing loan recoveries are expected to benefit as a result.

    Sources agree that growth in the servicing industry is the trend with the most positive impact on Italian NPL recoveries, given the widening of the scope of servicer activities and the growth in the volume of servicer-managed NPLs. Many .......

    News Analysis 13 July 2017

  • Mall-backed CMBS defies retail concerns

    JPMorgan and Column Financial are in the market with a US$150m CMBS. West Town Mall Trust 2017-KNOX is backed by a commercial mortgage loan secured by the largest enclosed mall in Tennessee.

    The transaction is sponsored by a subsidiary of Simon Property Group, which co-owns the West Town Mall property with a subsidiary of Teachers Insurance and Annuity Association of .......

    News 13 July 2017

  • Ratings reviewed for payment disruption risk

    Fitch and Moody's have placed a slew of US RMBS classes on rating watch negative, after Wells Fargo withheld trust funds to reserve against future expenses it may incur to defend itself against litigation (SCI 3 July). The actions are primarily due to the trustee's allocation of losses following transaction clean-up calls, which resulted in noteholders failing to receive expected .......

    News 13 July 2017

  • Generali launches cat bond first

    GC Securities has priced the first 144A catastrophe bond that provides indemnity protection against multiple European perils and the first to cover European flood. The €200m Lion II Re transaction provides Assicurazioni Generali with four years of per occurrence cover against windstorms and floods affecting selected European countries, as well as earthquakes affecting Italy.

    The deal marks the third time .......

    News 13 July 2017

  • Final STS document welcomed

    The European Parliament's economic and monetary affairs committee yesterday approved, as expected, the new STS securitisation framework by a substantial majority. The final document indicates an overall positive impact for the securitisation market, although the lack of a third-party regime and complex grandfathering provisions may constrain issuance in post-Brexit UK and the EU respectively.

    According to the final STS document, .......

    News Analysis 12 July 2017

  • NPL secondary market impediments eyed

    The European Commission has launched a public consultation regarding initiatives to facilitate the development of a non-performing loan secondary market. Together with gathering targeted input on improving loan transfers and servicing activities, the consultation introduces a potential new instrument - dubbed the accelerated loan security - that aims to increase the protection of secured creditors from borrower defaults.

    Removing impediments .......

    News 11 July 2017

  • SCI Start the Week - 10 July

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

    Pipeline
    Pipeline activity picked up a little last week, but remained fairly muted. Additions consisted of five ABS, five RMBS and a CMBS.

    The ABS were €275m Bavarian Sky Europe Compartment Swiss Auto Leases 2, US$227m First Investors Auto Owner Trust 2017-2, US$1bn GM Financial Consumer Automobile Receivables Trust 2017-2, US$857m John Deere Owner Trust 2017-B and SMART ABS .......

    News 10 July 2017

  • Grocery-backed CMBS prepped

    Citi and Morgan Stanley are in the market with an unusual US$706.7m CMBS sponsored by Madison International Realty and DDR. Dubbed CGMS 2017-MDDR, the transaction is backed by three separate loans, each secured by a portfolio of predominantly grocery-anchored retail properties located across nine US states.

    Unusually, the loans are not cross-collateralised or cross-defaulted. As a result, payments and losses .......

    News 10 July 2017

  • Attica deal unlikely to be replicated

    Greek bank Attica has announced a securitisation of €1.3bn of non-performing loans. Although rare, the transaction is unlikely to become a template for larger systemic banks, as control of servicing and the portfolio remains an issue.

    Attica will transfer €1.3bn of non-performing loans to an SPV, which will in turn issue a senior bond of a nominal value of €525.2m .......

    News 7 July 2017

  • Job swaps round-up - 7 July

    North America

    Mayer Brown has hired Jay Kallas as counsel in its Chicago office, focusing on structured insurance and reinsurance transactions. He was previously counsel at Drinker Biddle & Reath.

    Cadwalader has hired Peter Morreale as partner in the capital markets team in the Washington, DC office. He was previously at Goldman Sachs, where he was md and associate general .......

    Job Swaps 7 July 2017

  • ESBies unlikely to boost ABS

    The securitisation market is unlikely to see any benefit from the issuance of European safe bonds (SBBS or ESBies), despite a recent European Commission paper supporting their development. This follows an earlier proposal to create a European 'safe bond' akin to US Treasury bonds (SCI 26 October 2016), but questions remain over the product's viability, along with investor appetite.

    Simon .......

    News Analysis 7 July 2017

  • Risk transfer round-up - 7 July

    The second quarter appears to have been a quiet period in the risk transfer market, with only two capital relief trades completed. "Most of the pipeline is scheduled for September or December, with approximately 20 transactions being worked on so far," states one source. "Delays in the CRR regulation mean that many issuers don't feel pressured to bring trades this .......

    News 7 July 2017

  • Short-term STC consultation underway

    The Basel Committee and IOSCO have released consultative documents outlining criteria for identifying simple, transparent and comparable (STC) short-term securitisations and their proposed capital treatment. The criteria take account of the characteristics of ABCP conduits, such as the short maturity of the CP issued, the different programme structures (multi-seller and single seller) and the existence of multiple forms of liquidity .......

    News 7 July 2017

  • Carige NPL deal unveiled

    Banca Carige has launched its keenly-anticipated non-performing loan securitisation (SCI 1 March). Dubbed Brisca Securitization, the €309.7m transaction is backed by an NPL portfolio with a total gross book value of €938.3m.

    The assets comprise 5,001 loans extended to 2,069 borrowers by Carige, Banca Cesare Ponti and Banca del Monte di Lucca. The collateral is primarily located in the northern .......

    News 6 July 2017
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