Complete news archive

  • 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

  • Euro CLO equity outperforms

    European CLO equity spreads have experienced a notable turnaround, from a negative -10.5% price return in 2015 to an 8.8% price return in 2016. Indeed, based on a sample of 63 post-crisis deals, JPMorgan figures show that European CLO equity total returns average 32.21%.

    Every CLO in the sample shows a positive total return ranging from 54.3% to 10.1%. JPMorgan .......

    News 13 March 2017

  • Landmark green SRT introduced

    Mariner Investment Group and Crédit Agricole have collaborated to create the first green capital relief trade, the French lender's largest synthetic issuance to date. Dubbed Premium Green 2017-2, the innovative US$3bn risk transfer transaction combines capital management best practices with the objectives of socially responsible investing.

    According to Pascale Olivie, head of structuring, research and asset allocation in Crédit Agricole's .......

    News Analysis 13 March 2017

  • SCI Start the Week - 13 March

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

    Pipeline
    New ABS transactions accounted for more than half of last week's pipeline additions. There were six of these as well as an ILS, three RMBS a CLO and a CDO.

    The ABS were: US$1.168bn BMW Vehicle Lease Trust 2017-1; US$869.86m CNH Equipment Trust 2017-A; US$800m FOCUS Brands Funding Series 2017-1; US$130m JG Wentworth XXXVIII Series 2017-1; Latitude Australia Credit .......

    News 13 March 2017

  • Job swaps round-up - 10 March

    EMEA

    Clayton Euro Risk has formed an alliance with The Dutch Mortgage Consultants (TDMC) to assist in its focus on the residential mortgage market in the Netherlands. The firms began working together in January 2017.

    Jones Day has hired Christine Van Gallebaert as a partner in its banking and finance practice in Paris. The firm has also hired David Aumain and Bassem Caradec. .......

    Job Swaps 10 March 2017

  • Innovative franchise ABS marketing

    Focus Brands is readying a US$800m whole business securitisation. Focus Brands Funding Series 2017-1 is backed by royalties from 5,055 restaurant franchises within the Focus restaurant system and 80 company-operated restaurants.

    The 5,055 franchises represent 98.4% of the company's total system-wide locations, while the 80 company-operated restaurants account for the remainder. The majority of the locations (76%) are spread across .......

    News 10 March 2017

  • Risk transfer round-up - 10 March

    Amid the talk circulating the capital relief trade market this week is a rumour that StormHarbour is seeking to place the thin first-loss piece of a deal from Nord LB. One source also suggests that Mizuho is working on a transaction that references large corporate loans.

    At the same time, Rabobank is said to be becoming more active in the .......

    News 10 March 2017

  • Debut CRE CLO prepped

    Greystone is in the market with its debut US$366.6m CRE CLO. Dubbed Greystone Commercial Real Estate Notes 2017-FL1, the transaction securitises 27 floating-rate mortgages secured by 27 transitional multifamily properties.

    Moody's and DBRS have assigned provisional ratings to the deal of Aaa/AAA on the US$207.1m class A notes, Baa2/AA (low) on the US$25.66m class Bs and NR/BBB (low) on the .......

    News 9 March 2017

  • Retailer's bankruptcy raises CMBS risk

    Hhgregg's bankruptcy filing and plans to close 91 locations, announced this week, may elevate long-term default risk for 10 CMBS loans totalling US$156.8m, says Morningstar Credit Ratings. The rating agency warned last year that store closures were likely (SCI 30 November 2016).

    There are nine properties where closures would take occupancy below 80%, which is the agency's threshold for at-risk .......

    News 9 March 2017

  • US CLO demand drives on

    Activity and demand are growing once more in the US CLO secondary market despite some challenges.

    "Overall buying demand is very, very strong even though there are cross-currents going on that make it difficult for some investors," says one trader. "For example, there are a lot of currently callable bonds going out on BWIC that will trade beyond par, which .......

    SCIWire 9 March 2017

  • Replacement risk weighing on BWIC volume?

    International ABS BWIC volume totalled €9.7bn in 2016, according to JPMorgan figures. Average weekly BWIC volume of €186m last year fell by around 17% from 2H15 and has subsequently fallen to €96m per week in 2017 year to date, reflecting the lack of supply and replacement risk.

    JPMorgan international ABS analysts point to peaks and troughs in secondary market activity .......

    News 9 March 2017

  • Euro secondary simmers

    The European securitisation secondary market is still simmering without yet fully coming to the boil.

    Volumes have picked up a little this week as expected, but have not yet really taken off. Instead, familiar patterns are being maintained across the board - flows remain patchy and BWICs sporadic.

    At the same time, demand continues to outstrip supply amid strong market .......

    SCIWire 9 March 2017

  • Euro CLO warehouse ramping

    Barings has established a warehouse securitisation to ramp up leveraged loans and high yield bonds ahead of the issuance of its forthcoming Barings Euro CLO 2017-1. The transaction comprises a senior funding facility (SFF) and a mezzanine funding facility (MFF), provisionally rated single-A and triple-B (low) by DBRS, and is subject to collateral quality and portfolio profile tests.

    The SFF .......

    News 8 March 2017

  • Securitisation revival required

    The European securitisation market needs to be revitalised imminently to drive the continued recovery and future growth of the region, according to Validis Dombrovskis, vp of the European Commission. While Basel 4 could help, several barriers remain in place that limit European issuance of - and investment in - securitised products.

    During a recent speech to the European Parliament's Committee .......

    News 7 March 2017

  • US CLOs watchful

    US CLO secondary market participants are watching closely for any signs of potential widening despite continuing positive sentiment.

    "Market tone continues to be very positive and nothing came out of the Vegas conference to change that," says one trader. "So, of course, many are starting to get a little nervous and watching closely for signs of any change."

    The trader .......

    SCIWire 7 March 2017

  • Westlake ABS marks 'significant' shift

    Westlake is in the market with its latest ABS, Westlake Automobile Receivables Trust 2017-1 (see SCI's pipeline). While the auto finance firm has previously issued a dozen other deals, its latest transaction differs from its previous ABS in significant ways, says S&P.

    Westlake Automobile Receivables Trust 2017-1 is provisionally sized at US$600m. The US$167m A1 notes have a .......

    News 7 March 2017

  • CMOA structure prepped

    Acis Capital, an affiliate of Highland Capital, is prepping an innovative US$372m CLO. Dubbed ACIS CLO 2017-7, the transaction utilises a capitalised majority-owned affiliate (CMOA) risk retention strategy.

    A CMOA structure involves a combination of the capitalised manager vehicle (CMV) and the majority owned affiliate (MOA) approaches and seeks to solve problems associated with each. Hunter Covitz, md at Highland .......

    News Analysis 7 March 2017

  • Hope note recovery rates examined

    The principal recovery rate of liquidated US CMBS hope notes hit 27.2% in 2016, its highest point since 2011. A recent Moody's analysis shows that the 224 hope notes totalling US$2.74bn disposed of since 2009 registered a weighted average recovery rate of 22%, recovering US$601.6m that may have otherwise been a loss, had the collateral been liquidated at the time .......

    News 7 March 2017

  • Euro secondary supply spikes

    This week is scheduled to see a spike in the volume of paper in for the bid across the European securitisation secondary market.

    Last week was once again very quiet, exacerbated by the Vegas conference and month-end, and yesterday's session was similarly slow. However, flows could be kick-started by the growing BWIC schedule for this week headlined by a very .......

    SCIWire 7 March 2017

  • Enforcement actions to remain rare

    European CMBS note EODs have occurred frequently, but with few instances in which enforcement actions have been triggered. While a peak in note EODs among 1.0 deals is expected this year, noteholders' unwillingness to initiate enforcement actions is unlikely to change.

    A recent Moody's analysis reveals that only three out of 32 EODs ultimately resulted in an enforcement action - .......

    News 6 March 2017

  • UK NC clean-up calls considered

    UK non-conforming RMBS clean-up calls have long been considered out of the money options, but recent activity has changed that. Despite a rally in mezzanine UK non-conforming bonds since the beginning of the year, Deutsche Bank analysts believe this option is not yet fully priced in.

    UK non-conforming RMBS are structured with date-based calls driven by step-up margins on notes .......

    News 6 March 2017
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