Complete news archive

  • 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

  • Aussie card ABS prepped

    Latitude Finance Australia is in the market with a rare Australian credit card ABS. Dubbed Latitude Australia Credit Card Loan Note Trust - Series 2017-1, the transaction is backed by a A$3.76bn pool of MasterCard, Visa and sales finance card receivables originated under retail partnership agreements.

    S&P has assigned the class A1 notes a provisional triple-A rating. These notes are .......

    News 6 March 2017

  • SCI Start the Week - 6 March

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

    Pipeline
    The volume of additions to the pipeline increased a little last week. There were eight new ABS announced, as well as an ILS, three RMBS and four CMBS.

    The ABS were: Avis Budget Series 2017-1; US$409.2m ECMC Group Student Loan Trust 2017-1; US$1.25bn GM Financial Automobile Leasing Trust 2017-1; Golden Bear 2017-1; Latitude Australia Credit Card Loan Note .......

    News 6 March 2017

  • Marketplace ABS disparate but stronger

    Investor confidence in marketplace lending appears to have rebounded after a drop-off in 1H16, but the sector remains too fragmented to make broad conclusions about whether it has stabilised. The disparity between consumer and student loans originated online and the demise of the original peer-to-peer lending model make it difficult to gauge securitisation performance across the sector.

    Indicators of a .......

    News Analysis 6 March 2017

  • Job swaps round-up - 3 March

    Europe
    DBRS     has hired Keith Gorman to the newly created position of svp, global business development. Based in London, Gorman will focus on growing DBRS's RMBS business across Europe. He has been at DBRS for seven years and has 17 years of experience in global structured finance.

    KBRA has appointed Stephen Kemmy as director of its European structured finance group, based .......

    Job Swaps 3 March 2017

  • CMBX mall exposures stressed

    A new Morgan Stanley study applies stress scenarios to mall exposures across the IHS Markit CMBX.6 to CMBX.10 indices in order to identify relative value. The results suggest that CMBX.8 is the best index to short, given a broader downturn in commercial real estate.

    The Morgan Stanley study identifies 168 malls encumbered by a total of US$12.1bn of CMBS debt .......

    News 3 March 2017

  • First ratings for AOMT non-prime RMBS

    Angel Oak is in the market with its first rated non-prime RMBS (see SCI's pipeline). As with the issuer's previous unrated deals, the collateral combines loans to borrowers with prior credit events and self-employed borrowers who use bank statements to verify their income.

    The US$140m Angel Oak Mortgage Trust I 2017-1 RMBS has been rated by both Fitch .......

    News 3 March 2017

  • Risk transfer round-up - 3 March

    Intesa Sanpaolo Group has completed a €2.5bn synthetic SME securitisation through its GARC SPV, marking the programme's fifth issuance. The transaction was arranged by Banca IMI.

    Sources expect more Italian issuers to tap the risk transfer market over the next nine months. They indicate that the market is likely to be dominated by "the usual suspects", including Intesa Sanpaolo and .......

    News 3 March 2017

  • German shipping loss provisions on the rise

    Loss provisions against non-performing shipping loans by German banks are on the rise, due to the slowdown in the shipping industry. At the same time, a number of large German lenders are seeking to reduce their exposure to the sector.

    Commerzbank and Deutsche Bank last month announced increased loan loss provisions for shipping to €900m and €346m respectively in 2016 .......

    News 2 March 2017

  • Horizontal retention CMBS debuts

    JPMorgan is prepping an innovative US$1.1bn conduit CMBS collateralised by 43 commercial mortgage loans secured by 59 properties. Dubbed JPMCC 2017-JP5, the deal is the first conduit CMBS to utilise the horizontal structure to satisfy risk retention requirements.

    The retaining sponsor will satisfy risk retention requirements by purchasing an eligible horizontal residual interest through its majority-owned affiliate. Starwood Mortgage Funding .......

    News 2 March 2017

  • Closures to increase CMBS strain

    The effect of the expected closure of Macy's and Sears stores has already been anticipated by the CMBS market (SCI 6 January), but JC Penney's announcement that it too will close 130-140 stores has added considerably to concerns. A significant number of CMBS loans are exposed to all three retailers.

    JC Penney returned to profitability last year for the first .......

    News 2 March 2017

  • Proposed retention metric assessed

    Risk retention regulations in Europe and the US are severely flawed with respect to their key intention of imposing a strict loss retention requirement, argues a Sustainable Architecture for Finance in Europe (SAFE) white paper published last month. A new risk retention metric (RM) measuring an issuer's level of retention relative to the expected loss of a given securitisation is .......

    News 1 March 2017

  • MSR transfers under scrutiny

    The purchase by non-banks of MSR portfolios from large US banks has ramped up in recent months, as the associated capital charges bite. However, such activity has sparked concern about the ability of the buyers to adequately manage the MSRs and the potential impact on the RMBS market.

    Two REITs that have purchased MSR portfolios and increased their involvement in .......

    News Analysis 1 March 2017

  • Carige NPL strategy unveiled

    The Banca Carige board of directors yesterday unanimously approved an updated strategic plan, under which the bank is targeting an ROE of 7.4% and CET1 ratio of 14.1% by 2020. A critical part of the plan is to reduce the share of non-performing loans on its books to 13.1%, in line with the ECB's target, which the bank hopes to .......

    News 1 March 2017

  • Court makes Madden usury ruling

    Midland Funding violated New York usury laws by charging interest rates of over 25% to borrowers, the US District Court for the Southern District of New York ruled this week. The decision brings a measure of resolution to the long-running Madden vs Midland case (SCI passim).

    The Second Circuit ruled in May 2015 that a non-bank assignee of loans originated .......

    News 1 March 2017

  • US CLO arbitrage favours refis

    US CLO refinancings began in earnest late last year and have grown apace in 2017, dwarfing new issuance. Extremely tight arbitrage between leveraged loan spreads and CLO liability costs has further constrained primary volumes, suggesting refis will dominate issuance for the foreseeable future.

    As of the end of last week, US CLO issuance for the year so far has consisted .......

    News Analysis 28 February 2017

  • Blockchain applications explored

    The Chamber of Digital Commerce and SFIG have formed a strategic partnership focused on advancing the use of blockchain technology in securitisation markets. The two associations will collaborate on research and educational efforts, beginning with a white paper that examines how blockchain can play a role at each stage of the securitisation lifecycle.

    Prepared by Deloitte and entitled 'Applying blockchain .......

    News 28 February 2017

  • Trading expansion underlines optimism

    INTL FCStone's broker-dealer rates group has expanded its trading remit into US agency CMBS and a wider spectrum of ABS, following the formation of a new securitised products group. Alongside its existing involvement in other securitised mortgage products, the move signals the firm's optimism about the value structured products will bring in 2017 and beyond.

    Rob Laforte, senior md, head .......

    News 28 February 2017

  • Crossover opportunities touted

    Although the investor community tends to remain 'monogamous' with regard to CLO and CMBS exposures, the asset classes can offer returns and opportunities for crossover investors. A new JPMorgan study suggests that while US CLOs are cheap at the top of the stack, CMBS offers value in comparably rated tranches at the triple-B level, but CLO double-Bs offer value for .......

    News 28 February 2017

  • Leverage signals maturing CRT market

    The increasing availability of leverage suggests that the risk transfer market is maturing. However, while financing can be applied in a number of ways, the extensive due diligence required means that participation in capital relief trades remains limited to sophisticated investors.

    The availability of financing is a "sign that capital relief trades are developing into a more mature asset class," .......

    News Analysis 27 February 2017

  • SCI Start the Week - 27 February

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

    Pipeline
    Additions to the pipeline last week were fairly steady compared to the week before, as the industry now decamps to Las Vegas. There were five ABS, two ILS, three RMBS and three CMBS.

    US$213.137m Arcadia Receivables Trust 2017-1, Driver UK Multi-Compartment Comp Driver UK Five, LaSer ABS 2017, CNY4bn Rongteng 2017-1 and US$704.21m World Omni Automobile Lease Securitization .......

    News 27 February 2017
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