Complete news archive

  • 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

  • German NPL sales to accelerate

    Germany's positive economic outlook and the loans' relatively low cost of capital have historically meant that German banks are under less pressure to dispose of non-core assets in any significant volume. However, the introduction of IFRS 9 is expected to accelerate NPL sales in the country (and other European jurisdictions) over the coming 12-24 months.

    Although consumer lending and default .......

    News Analysis 27 February 2017

  • Rare consumer ABS readied

    A rare UK consumer loan ABS has hit the market. Creation Consumer Finance's £535.69m LaSer ABS 2017 is backed by 470,321 unsecured personal and point of sale (POS) loans extended to individual borrowers in England and Wales.

    The transaction is the first public securitisation from the originator, which is ultimately owned by BNP Paribas Personal Finance. JPMorgan international securitisation analysts .......

    News 27 February 2017

  • Job swaps round-up - 24 February

    Europe

    Clayton Euro Risk has partnered with Lime Risk Agency to launch specialist insurance products aimed at mitigating mortgage and property risks.

    Alan Kerr has decided to leave his current role at GSO/Blackstone Debt Funds Management in 2017. He is senior md and head of GSO's European customised credit strategies (CCS) business and joined GSO in 2012. Kerr will be transitioning .......

    Job Swaps 24 February 2017

  • Risk transfer round-up - 24 February

    Several risk transfer securitisations are understood to have entered the pipeline this past week.

    According to sources, Lloyds is working on a capital relief trade referencing commercial real estate assets, which is said to be "similar" to Barclays' Griffon deal from last year. Meanwhile, Barclays is rumoured to be prepping a transaction referencing corporate loans that will reportedly be priced .......

    News 24 February 2017

  • CMBS liquidation trust prepped

    An innovative liquidation vehicle backed mainly by commercial real estate loans is marketing. Dubbed VSD 2017-PLT1, the securitisation has an aggregate unpaid principal balance of US$378.1m and monetises recoveries from performing, non-performing and REO assets to pay the notes.

    Interest payments can be deferred by up to one year, if there are insufficient funds to make the payment, while principal .......

    News 24 February 2017

  • FFELP rating actions revealed

    Fitch has disclosed the rating actions resulting from the update to its US FFELP student loan ABS criteria (SCI 27 July 2016). The most significant change to the criteria was the introduction of new stresses aimed at analysing the vulnerability of transactions to maturity risk.

    Of the 813 tranches from 264 transactions reviewed, Fitch has upgraded 42, downgraded 105 and .......

    News 24 February 2017

  • Galton debut 'weaker' than other prime RMBS

    GMRF Mortgage Acquisition Company is in the market with its first ever RMBS (see SCI's pipeline), funded by Mariner Investment Group. Galton Funding Mortgage Trust 2017-1 (GFMT 2017-1) is backed by 363 prime quality, mainly 30-year residential mortgages with total unpaid balance of US$254.5m, but Moody's warns that collateral is weak compared to recent prime deals.

    GMRF Mortgage .......

    News 24 February 2017

  • Investment differentiation

    SCI's profile questions are answered by Triphonas Kyriakis, md for analytics at MSCI; Raghu Suryanarayanan, executive director of MSCI's risk research group; and Thomas Ta, who directs the company's development of risk management analytics.

    Q: How and when did MSCI's analytics business become involved in the securitisation market?
    TT:     MSCI has been helping investors analyse securitised products for over a decade, .......

    Provider Profile 24 February 2017

  • Warm investor response for debut turboprop ABS

    Elix Capital has closed its debut securitisation of turpoprop aircraft at a time when investors are craving such assets to diversify their investment strategies. Dubbed Prop 2017-1, the US$411m deal is the first-ever aviation ABS backed entirely by turboprop airplanes.

    One source notes that structurally the transaction was "fairly straightforward", but that there were challenges involved in educating the investor .......

    News Analysis 23 February 2017

  • Slow start to year 'not concerning' for Euro ABS

    The European securitisation market started the year with its traditional quiet January, but issuance has picked up through February and there are large, innovative deals on the horizon. However, the future of the ECB's ABSPP already appears to be weighing on the market.

    "January issuance was about €3bn this year. It was €6bn in 2016, but only €3.2bn the year .......

    News Analysis 23 February 2017

  • US CLOs subdued but strong

    Activity in the US CLO secondary market is subdued but demand is still strong.

    "Things are on the slower side this week," says one trader. "However, there is no particular softness anywhere."

    The trader continues: "Generally, there's a scarcity of opportunity in secondary at the moment and relatively little new issuance with the focus still on refinancings. So any paper out .......

    SCIWire 23 February 2017

  • Defeasance trending down on volatility

    US CMBS defeasance activity trended lower last year, after steadily increasing year-over-year between 2013 through 2015. Many loans defeased within a few months of their open or prepayment periods, as borrowers sought either to lock in favourable refinancing or to accommodate property sales or portfolio repositioning opportunities.

    CMBS defeasance volumes in 2016 totalled US$17.2bn, down by 23% from the 2015 .......

    News 23 February 2017

  • Risk transfer benchmark introduced

    PCS has launched the first risk transfer quality label for synthetic risk transfer deals. One of the aims of the label is to help incorporate synthetic securitisations into a future STS regulatory framework through criteria that identify key elements of a simple, transparent and standardised instrument.

    The PCS Risk Transfer Label is the product of a cross-industry and pan-European working .......

    News 23 February 2017

  • Euro ABS/MBS edges in

    European ABS/MBS secondary spreads continue to edge in.

    "The market remains strong and well-supported," says one trader. "At the same time, we're not seeing any real rotation activity from clients - even though there's action in primary, they appear content to hang on to their secondary positions as well."

    As a result, the trader adds: "Secondary spreads continue to creep .......

    SCIWire 23 February 2017

  • GSO/Blackstone tops global CLO AUM

    The top 10 US CLO managers once again accounted for around 29% of AUM in 2016 (SCI 22 February 2016), while the top 10 European managers accounted for 59%, according to Moody's latest CLO manager league tables. However, there were a few changes to the composition of the rankings over the year.

    The most notable changes in the US top .......

    News 22 February 2017

  • MC Sports filing threatens CMBS

    Of the 15 US CMBS loans exposed to MC Sports, there are six which stand to be particularly affected by the company's bankruptcy filing last week, says Morningstar Credit Ratings. The largest loan of concern is the US$17.2m Wilsontown Shopping Center loan securitised in JPMBB 2013-C17.

    MC Sports is set to begin liquidation sales immediately at its 68 stores in .......

    News 22 February 2017

  • Ratings expansion outlined

    KBRA has named Jim Nadler ceo, with co-founder Jules Kroll stepping down from the position. The move coincides with the rating agency's plans to expand into rating European securitisations and CLOs.

    Nadler will retain the title of president, which he has held since KBRA was established in 2010, while Kroll will remain chairman. Kroll intends to spend more time on .......

    News 22 February 2017

  • UK government to securitise student loan book

    The UK government is looking to raise £12bn through the structuring and sale of a series of ABS backed by student loans. Its first offering - Income Contingent Student Loans 1 (2002-2006) - securitises a £4.1bn portfolio, but it is not clear whether the paper will appeal to the traditional ABS investor base.

    Student loan ABS is a well established .......

    News Analysis 21 February 2017

  • Euro CLO retention strategies weighed

    Two European CLOs have priced since the US risk retention rules came into effect on 24 December (excluding refinancings) and both are structured to enable the manager to satisfy both European and US risk retention requirements. Several deals structured before the risk retention deadline and some refinanced deals priced recently have also been dual compliant.

    European transactions can remain exempt .......

    News 21 February 2017

  • Marketplace deals readied, with innovations

    Kabbage is marketing its first marketplace loan ABS of the year and its second since inception. Meanwhile, SoFi is in the market with its second consumer loan ABS - SoFi Consumer Loan Program 2017-2 - backed by US$343m of consumer loans and comprising several elements that differ from its previous securitisation.

    Dubbed Kabbage Asset Securitization Series 2017-1, Kabbage's transaction is .......

    News 21 February 2017
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