Complete news archive

  • 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

  • Lender actions key to managing auto losses

    Rising losses across the US auto ABS sector are at odds with strong economic conditions and low unemployment levels, albeit greater losses in the subprime space are being mitigated by lender actions, such as loan extensions. Whether losses increase further may depend on lenders' ability to maintain or further strengthen credit standards that have been weakening until recently.

    S&P notes .......

    News Analysis 21 March 2017

  • Term curve dislocations 'provide opportunities'

    Carlyle recently priced what is believed to be the first post-crisis US CLO to feature a six-year reinvestment period - the US$612m Carlyle US CLO 2017-1. As the new issue CLO term curve evolves, JPMorgan CLO analysts suggest that investor market segmentation provides opportunities to add alpha when the term curve becomes mispriced.

    "In theory, bonds with longer reinvestment periods .......

    News 21 March 2017

  • Euro secondary ticks over

    The European securitisation secondary market continues to tick over.

    Activity remains patchy across the board with sporadic BWICs and light bilateral volumes. Further distraction has emerged with a handful of new ABS, CLO and RMBS deals now actively marketing, but overall tone is still positive and secondary spreads continue to hold in or tighten.

    The past couple of sessions remained centred .......

    SCIWire 21 March 2017

  • Spanish RPL RMBS marketing

    Blackstone affiliate Spain Residential Finance is in the market with its second Spanish re-performing RMBS. Dubbed SRF 2017-1, the €403.1m transaction is backed by 3,307 seasoned residential mortgage loans extended to borrowers in Spain.

    Consisting of first lien mortgages on residential properties, the portfolio has a weighted average current loan to value ratio of 60.88%, which is lower than the .......

    News 20 March 2017

  • JCPenney exposure gauged

    JCPenney has disclosed the 138 stores that it plans to shutter in an effort to optimise retail operations (SCI 2 March). The impact of the closures on the CMBS market appears to be smaller than anticipated, with 14 liquidated stores encumbered by 17 loans totalling US$1bn, according to Morgan Stanley figures. The IHS Markit CMBX index has exposure to nine .......

    News 20 March 2017

  • SCI Start the Week - 20 March

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

    Pipeline
    Last week's additions to the pipeline took a slightly heavier skew towards ABS. There were nine ABS deals added, as well as five RMBS and three CMBS.

    The ABS were: US$1bn Ally Auto Receivables Trust 2017-2; US$1bn Drive Auto Receivables Trust 2017-B; €448m Driver France 3; Sfr297m First Swiss Mobility 2017-1; US$1.282bn Honda Auto Receivables 2017-1 Owner Trust; US$257.44m Marlette .......

    News 20 March 2017

  • Job swaps round-up - 17 March

    EMEA

    Dentons has formed a securitisation team in Germany by hiring Arne Kluwer, from Clifford Chance, Matthias Eggert and Timo Riester from Baker Mackenzie and Mortimer Berlet as partner, who joins from Clifford Chance. Kluwer starts at the Frankfurt office on 1 April, Eggert and Riester at the Munich office and Berlet starts on 1 May. The firm also recently hired Carl Bjarnram to the .......

    Job Swaps 17 March 2017

  • Risk transfer round-up - 17 March

    Activity continued this week in the capital relief trade space, with Deutsche Bank's CRAFT CLO entering the bidding process on Wednesday. The underlying reference portfolio is expected to be comprised of SME loans.

    Indeed, Deutsche Bank has issued a number of synthetic SME transactions through its CRAFT programme in the past. "Such loans tend to be less granular and less .......

    News 17 March 2017

  • European index exposure favoured

    The roll of the IHS Markit CDS indices next week is expected to result in a number of lower quality constituents entering the reference portfolios. Ahead of the roll, Morgan Stanley credit derivatives analysts reiterate their long-term preference for Europe over the US via a long Crossover position versus CDX HY and buying upside options in the iTraxx Main versus .......

    News 17 March 2017

  • Marketplace lending moving ahead

    A number of positive developments have boosted the marketplace lending sector this week. Among them is the publication by the OCC of further guidelines for fintech firms applying for bank charter applications.

    The extra information is included as a supplement to the OCC's existing licensing manual and it explains how the licensing standards and requirements will be applied in existing .......

    News 16 March 2017

  • US CLOs resume

    Something approaching a normal service is resuming today in the US CLO secondary market after a snowstorm impacted start to the week.

    BWIC volumes have been slow to pick up this week, with the bulk of lists revolving around triple- and double-As. Today sees a return towards normality with five fairly sizeable auctions and focus firmly back on mezz.

    Despite the stop-start .......

    SCIWire 16 March 2017

  • Euro secondary trundles on

    The European securitisation secondary market trundles on seemingly unaffected by the ups and downs of broader markets this week.

    Market tone remains strong across the board, as demand easily outstrips limited supply. Consequently, secondary spreads continue to be flat to slightly tighter as each day passes.

    BWICs are still sporadic and are trading at or above talk as and when .......

    SCIWire 16 March 2017

  • Greek servicing shift underway?

    Piraeus Bank has hired Christos Megalou, a former Eurobank director, as its chief executive. The appointment signals a growing shift in Greek banks' NPL strategies towards the outsourcing of servicing needs to external servicers.

    "The market believes that [Megalou] can turn the bank around by dealing with the non-performing loans," says George Kofinakos, md at StormHarbour in London.

    Megalou took .......

    News Analysis 15 March 2017

  • Swiss auto debut announced

    Multilease is prepping a debut Sfr297m auto lease ABS. Dubbed First Swiss Mobility 2017-1, it is a 32-month revolving cash securitisation of auto lease contracts extended to obligors in Switzerland.

    The underlying assets are financial leases extended to mainly private lessees. The residual value cashflows have a dealer buy-back guarantee from either independent or Emil Frey Group car dealers in .......

    News 15 March 2017

  • European AMC to create 'positive feedback loop'

    Further details have emerged about the EBA's proposed state-funded, pan-EU asset management company (AMC) (SCI 3 February). The initiative is expected to attract more investors to the European NPL market and by extension free up bank capital and spur more lending.

    "The reduction of NPL ratios is a positive sign, but it is too slow," says Mario Quagliariello, head of .......

    News Analysis 14 March 2017

  • Innovative GARC transaction prints

    Intesa Sanpaolo has printed an innovative risk transfer transaction - and the largest to date - from its GARC programme, with Banca IMI acting as arranger. The €2.5bn GARC SME-5 synthetic securitisation references a granular portfolio of Italian SME loans.

    According to Elisabetta Bernardini, head of credit portfolio management at Intesa Sanpaolo: "This was an innovative structure, since it was completed .......

    News 14 March 2017

  • Loan tapes suggest auto trends are 'in line'

    Loan and pool level stratifications in US auto ABS show credit trends in line with economic expansion and the credit cycle. Rising rates and increasing lender competition could alter this dynamic, according to a new JPMorgan study, which analyses early stage delinquencies and loan modifications across 10 auto loan tapes from seven pools (averaging 60,000 loans per tape).

    The study .......

    News 14 March 2017

  • CMBS retention 'first' in the works

    The second US CMBS conduit transaction to use an eligible horizontal residual interest, and the first to have that horizontal interest held solely by a third-party purchaser, is currently marketing. JPMDB 2017-C5 is a US$1bn transaction rated by Fitch, Kroll Bond Rating Agency, Moody's and S&P (see SCI's pipeline).

    The third-party purchaser is Massachusetts Mutual Life Insurance Company, .......

    News 14 March 2017

  • Subprime sponsor risk framework touted

    Gauging sponsor risk in US subprime auto ABS is complicated by the fact that many subprime auto lenders are privately held companies and therefore financial data can be limited. Wells Fargo structured products analysts suggest that using securitisation data to create a modified return on assets (ROA) metric could instead serve as a useful way to assess ABS equity distributions .......

    News 14 March 2017

  • Euro secondary strengthens

    Tone and levels if not volumes continue to strengthen across the European securitisation secondary market.

    The large CDO liquidation BWIC on Friday bolstered the market's already strong tone, as expected. End-user interest in the list affirmed the depth of the ongoing rally in most sectors and while the ultimate AON style trade meant the paper has stayed out of investor .......

    SCIWire 14 March 2017
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