Complete news archive

  • 'Atypical' ILS issuance tallied

    At 20 transactions, 2016 saw the fewest number of catastrophe bonds brought to the market since 2009, according to Swiss Re's latest ILS Market Update. However, average deal size grew by nearly 20% on 2015 to approximately US$300m on "atypical" new issuance patterns (see SCI's primary issuance database).

    For the first time, volumes in Q3 (at US$925m) were .......

    News 7 February 2017

  • US ABS rolls on

    Strong volumes and demand for paper is rolling on across the US ABS secondary market.

    The rally throughout the stack and in all ABS sectors seen in January has continued into this month. Appetite for paper appears undiminished though the pace of spread narrowing has reduced in some areas over the past week or so as recent tights are reached.

    SCIWire 7 February 2017

  • Individual arbitration for Bethune case

    The US District Court for the Southern District of New York last week ruled in favour of Lending Club in a putative class-action lawsuit alleging that the marketplace lender partnered with Utah-based WebBank to avoid the application of New York state interest rate limitations (SCI 6 May 2016). Moody's notes that the ruling is credit positive for ABS backed by .......

    News 7 February 2017

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    Friday saw a relatively quiet session after a pick-up over the previous two days, but yesterday saw a flurry of activity and a couple of BWICs that traded strongly. Focus in ABS/MBS continues to surround peripheral paper, while CLOs remain most interested in lower mezz. Overall, sentiment is still .......

    SCIWire 7 February 2017

  • SCI Start the Week - 6 February

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

    Please note
    From today, we will be sending out stories as soon as they are published. They will appear as normal on our home page and subsequently collated week by week here. Stories will be sent to you that relate to sectors you expressed a preference for when registering with us; if you wish to update your .......

    News 6 February 2017

  • Healthcare reforms spur CLO concerns

    Healthcare reforms in the US could have a dramatic effect on US CLO valuations, prompting some investors to reduce their exposure to healthcare names across their CLO investments. The healthcare sector is the second largest within US CLOs, accounting for an average 11.8% exposure in post-crisis deals, meaning that President Trump's intention to replace the Affordable Healthcare Act (ACA) and .......

    News 6 February 2017

  • Canadian auto ABS announced

    Bank of Nova Scotia is in the market with its second Canadian auto receivables ABS, the US$752.68m Securitized Term Auto Receivables Trust 2017-1. The transaction is backed by 37,664 prime-quality retail instalment auto loan contracts secured by cars, SUVs and light-duty trucks.

    Provisionally rated by Moody's and S&P, the transaction comprises US$110m P-1/A-1+ rated class A1 notes, US$175m Aaa/AAA class .......

    News 6 February 2017

  • Horse Capital leading the way?

    The recently-issued Horse Capital I catastrophe bond is further evidence of the ILS market continuing to push boundaries. However, it is not only the underlying risks that are changing, given the noticeable shift towards 'cat bond-lite' structures.

    The €255m Horse Capital I priced in December, with Willis Capital Markets & Advisory acting as the sole structuring agent for the deal .......

    News Analysis 6 February 2017

  • Boosting liquidity

    First post-crisis Irish NPL RMBS profiled

    Lone Star's Irish non-conforming RMBS, which it privately-placed in November (SCI 29 November 2016), was notable for its mixed pool of performing and non-performing mortgages. The €536.5m European Residential Loan Securitisation 2016-1 - Ireland's first post-crisis NPL RMBS - is expected to pave the way for further such mixed-pool issuances.

    The collateral comprises a rare mix of performing (accounting for .......

    News Analysis 3 February 2017

  • Bridging the gap

    Neutralising NPL valuation discrepancies addressed

    Achieving valuations that satisfy both sellers and investors has been a major sticking point in many recent European non-performing loan transactions. This has been most notable in Italy, where the wide bid/ask gap has hindered sales of NPLs to SPVs for securitisation purposes. The EBA's latest proposals seek to address this valuation discrepancy by purchasing the loans from banks at .......

    News Analysis 3 February 2017

  • First Euro CLO brings innovation

    The first new issue European CLO of the year, St Paul's CLO VII, has priced. The €414m deal was arranged by Deutsche Bank for ICG, with the bank noting that a structural novelty in certain tranches enables investors to take a rates view.

    The class B3 and C2 notes of the CLO do not have Euribor floor protection to begin .......

    News Round-up 3 February 2017

  • APRA consults on reporting revisions

    APRA released the final version of its updated Prudential Standard APS 120 last November (SCI 10 November 2016) and has now launched a consultation on revisions to associated reporting requirements for securitisation. These reporting requirements are expected to take effect from 1 January 2018.

    Authorised deposit-taking institutions are currently required to report their securitisation activities under three reporting standards and .......

    News Round-up 3 February 2017

  • Disclosure recommendations released

    SFIG has published the first edition in a series of papers aimed at supporting the responsible growth of securitisation in the marketplace lending sector. These green papers are a product of the association's marketplace lending committee best practices initiative and are released with the aim of stimulating further debate and discussion.

    SFIG's marketplace lending committee currently includes 250 individuals, representing .......

    News Round-up 3 February 2017

  • Multifamily risk-sharing debuts

    Freddie Mac has priced its first offering of multifamily aggregation risk transfer certificates. The US$1bn FMPRE 2017-KT01 is backed by multifamily mortgage loans that are awaiting sale into K-Series securitisations.

    KT certificates are designed to transfer to certain investors a portion of the credit risk associated with eligible multifamily mortgage loans prior to sale into K-Series CMBS. On the settlement .......

    News Round-up 3 February 2017

  • US CLOs still strong

    The US CLO secondary market continues to see strong demand.

    "There are a lot of refis out in the market, but the bid is still strong for secondary bonds," says one trader. "At the same time, there's dealer research out there saying that the arb isn't great for new issues, so primary supply could remain limited."

    Consequently, the trader adds: .......

    SCIWire 2 February 2017

  • Origination platform acquired

    Walker & Dunlop has acquired Deerwood Real Estate Capital's loan origination platform, which specialises in sourcing debt and equity for all commercial real estate asset classes. Sixteen of the firm's commercial loan originators are expected to join Walker & Dunlop's capital markets group, including Deerwood co-founders David Rosenberg and Abe Katz.

    "Deerwood marks another fantastic acquisition of talented loan originators .......

    Job Swaps 2 February 2017

  • OTPP promotes ILS leader

    Ontario Teachers' Pension Plan has promoted Gillian Brown to md for credit, ILS and equity products. She is responsible for the fund's credit and equity indexing portfolios, as well as ILS.

    Brown has been with Ontario Teachers' since 1995. She reports to capital markets senior md Ziad Hindo.

    .......

    Job Swaps 2 February 2017

  • CMBS liquidation volume rockets

    US CMBS liquidation volume jumped in January to US$1.4bn, according to Trepp, crossing the US$1bn mark for the first time in 12 months. January's figure is more than double the US$595.3m total from December.

    January saw 99 loans averaging US$14.6m disposed. Loss severity also climbed over 14 percentage points to 57.83%, driven by heavy losses on several large retail and .......

    News Round-up 2 February 2017

  • SFR operators change tack

    Single-family rental (SFR) transactions are benefitting from an improvement in sponsors' business models and strategies, says Moody's. Sponsors have moved away from the bulk purchases in depressed markets that started their businesses to strategies which improve the quality of the properties backing their transactions.

    "With the US housing market recovering from the financial crisis and the inventory of distressed homes .......

    News Round-up 2 February 2017

  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global securitised products investor survey, accounting for 28% of the responses. Nevertheless, half of those polled expect their allocation to securitised products to stay in line with their current allocation, while 36% expect to increase their allocation, compared with 37% in 3Q16.

    The Morgan Stanley survey .......

    News 2 February 2017

  • CLOIE pay-downs pick up

    The total amount of CLOs paid down in the JPMorgan Collateralized Loan Obligation Index (CLOIE) since the December rebalance through 31 January was US$16.98bn in par outstanding, split between US$2.69bn and US$14.28bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$16.3bn across 170 tranches from 38 deals at the January rebalance.

    CLOIE total returns for the month were 0.33% .......

    News Round-up 2 February 2017
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