Complete news archive

  • '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

  • Income-contingent SLABS approach revealed

    Further details have emerged of the UK government's £3.94bn Income Contingent Student Loans 1 (2002-2006) transaction, the first UK student loan ABS to be backed by income-contingent repayment (ICR) loans (SCI 21 February). Together with assigning expected ratings to the deal, Fitch has published a criteria report detailing its approach to rating UK income-contingent student loan securitisations.

    Income-contingent student loans .......

    News 29 March 2017

  • US CLOs sporadic

    Activity in the US CLO secondary continues to be patchy.

    "We're now just seeing sporadic buying and selling," says one trader. "Even though it's quarter-end so people are anxious to get stuff done and there's plenty of money out there, investors are finding there isn't much value to be had."

    The trader continues: "At current levels no one wants to .......

    SCIWire 28 March 2017

  • Euro, US CLO diversity compared

    European CLO collateral pools have better average ratings, measured as lower WARF scores, and slightly lower weighted average coupons compared to US CLOs. However, European CLOs are smaller and lack liquidity compared to US CLOs, according to Morgan Stanley's European CLO factbook.

    European CLOs are generally smaller than US CLOs, at €582m on average, while the median average loan facility .......

    News 28 March 2017

  • Revised restructurings touted for DECO 2006-C3

    Nearly 72% of DECO 11 - UK Conduit 3 noteholders have instructed the special servicer to explore options that may facilitate a faster resolution of the £216.4m Mapeley Gamma and £37.1m Wildmoor Northpoint loans. The move follows the restructuring of the two loans and the subsequent Fitch downgrade of the CMBS' class A1A and A1B notes.

    Accordingly, the special servicer .......

    News 28 March 2017

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility.

    The see-saw in equities and broader credit over the past two sessions has not been reflected in secondary spreads, which continue to hold firm. Indeed, sentiment remains positive and demand continues to outstrip supply.

    Nevertheless, activity overall remains light with only some rotation activity and patchy flows in key .......

    SCIWire 28 March 2017

  • Beacon Seattle loan closed out

    The final three properties securing the Beacon Seattle & DC Portfolio loan - securitised in six conduit CMBS - have been disposed of, resulting in approximately US$55.7m in additional realised losses on top of US$45.2m in losses previously incurred throughout the loan's term (see SCI's CMBS loan events database). At securitisation, the US$2.7bn loan - one of the .......

    News 27 March 2017

  • CSP's second phase delayed

    The FHFA has postponed the implementation of Release 2 of the Common Securitization Platform (CSP) until 2Q19. The agency says that additional time is required for the development, testing and validation of controls and governance processes necessary to "have the highest level of confidence that the implementation will be both smooth and successful".

    Under Release 2, Fannie Mae and Freddie .......

    News 27 March 2017

  • Kensington prepping 'recycled' RMS deal

    Kensington Mortgage Company (KMC) is in the market with a £538.7m UK non-conforming RMBS. Dubbed Residential Mortgage Securities 29, the transaction is backed by seasoned collateral from five legacy deals that are scheduled to be called on their next IPDs.

    The legacy deals are RMS 19, RMS 20, MPS 1, MPS 2 and MPS 3, which were originally issued between .......

    News 27 March 2017

  • SCI Start the Week - 27 March

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

    Pipeline
    Insurance-linked securities dominated the transactions remaining in the pipeline last week, after a heavy volume of deals priced. A handful of ABS, RMBS and CMBS also continued to market.

    The ILS comprise US$178m Integrity Re Series 2017-1, US$300m Kilimanjaro II Re 2017-1, US$300m Kilimanjaro II Re 2017-2 and US$100m Pelican IV Series 2017-1. The ABS consisted of: €1.375bn .......

    News 27 March 2017

  • Job swaps round-up - 24 March

    North America

    Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, where he was a senior analyst for structured products and corporate credit. He will report to the firm's global head of structured credit, Hiram Hamilton, who is relocating to the New York office in April. Hamilton was previously executive director and head of the .......

    Job Swaps 24 March 2017

  • Risk transfer round-up - 24 March

    Deutsche Bank is believed to have priced its CRAFT CLO 2017-1 capital relief trade this week (SCI 17 March), with market sources suggesting that the deal met with "good appetite from investors". The US$357m transaction printed at Libor plus 10.75%, having been upsized from US$200m on strong demand.

    .......

    News 24 March 2017

  • Canadian banks eye credit card appetite

    Canadian banks are capitalising on strong demand for US dollar-denominated credit card ABS. The sector has seen a resurgence in recent months, with deals being upsized and performance remaining sound.

    Last year was a record year for Canadian credit card ABS volumes and the pace seems set to continue in 2017, with two cross-border issuances so far this year, including .......

    News Analysis 24 March 2017

  • SFR strategy raises RMBS questions

    American Homes for Rent (AH4R) announced this week an additional public equity offering, expecting to raise over US$250m, in the latest sign that single-family rental (SFR) companies are significantly changing their funding and operations. SFR securitisation performance has been strong, yet the market opportunity may be dwindling just as it proves its value.

    "The SFR subsector remains small compared to .......

    News Analysis 24 March 2017

  • US ABS holds on

    Despite a boom in supply US ABS secondary spreads are holding on.

    After a quiet week last week, the pricing of the sizeable latest COMET deal and the ever-growing US ABS pipeline combined to give the secondary market a rocky start to the week. Hefty BWIC supply driven primarily by rotation activity added to the new issuance and pushed secondary .......

    SCIWire 23 March 2017

  • Euro CLOs mixed

    Tone and spreads remain strong in the European CLO secondary market, but activity levels are still down.

    "It's a weird market at the moment - it feels quiet, but we are still trading," says one trader. "Clip sizes have gone up so volumes are growing, but the number of trades has gone down. At the same time, a large chunk .......

    SCIWire 23 March 2017

  • Bespoke analysis needed for US retail

    Although some US retailers continue to underperform, investors should be wary of taking a wholly negative view on the sector, according to Morgan Stanley CLO analysts. They point out that with broadly strong US retail sales and growing personal income, problems lie only in certain subsectors within the segment.

    The Morgan Stanley analysts note that retail continues to play a .......

    News 22 March 2017

  • Russian SME ABS sets the standard

    The Russian SME loan market is anticipated to grow, with further SME ABS issuance following suit. As the Russian SME ABS sector develops, several innovations seen in last year's offering from Promsvyazbank are expected to be replicated.

    Promsvyazbank's RUB10bn SPE PSB SME 2015, issued in September last year (see SCI's primary issuance database), was the first domestic issuance .......

    News 22 March 2017

  • Counterparty revisions to hit EMEA ABS

    Moody's is requesting comments on proposals to consolidate and revise its approaches to assessing a number of structured finance-related counterparty risks. If adopted, the changes are expected to have a ratings impact of one to two notches on approximately 210-220 structured finance transactions.

    "The proposed changes are being driven by a variety of factors," says Moody's svp Michelangelo Margaria. "Among .......

    News 22 March 2017

  • Irish RMBS recaptures attention

    The recent resurgence in primary issuance is not the only way to tap Irish RMBS value, as further redemptions for a number of Celtic Residential Irish Mortgage Securitisation series transactions could also provide value in the secondary market. JPMorgan analysts believe indicative pricing levels for CRSM 9 A2 and CRSM 11 A3A could yield a sizable spread pickup relative to .......

    News 21 March 2017

  • US CLOs solid

    The US CLO secondary market remains solid as momentum rebuilds following last week's interrupted activity.

    "It's still not incredibly busy, but it's an interesting market and bonds are trading," says one trader. "There are no truly big buyers right now, though there aren't any major concerns about fundamentals."

    Mezz remains the most active part of the stack, but price moves .......

    SCIWire 21 March 2017
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