Complete news archive

  • NZ group turns to ABS

    New Zealand's largest vehicle seller, Turners, has established a NZ$150m securitisation programme that will securitise the group's consumer loan portfolio. The programme will be implemented next month and the first receivable sales transactions are scheduled to occur in March.

    Turners believes the programme will provide an improved funding structure, committed two-year term capital and improved pricing. It also provides the .......

    News Round-up 25 January 2017

  • Euro OTC credit terms to tighten

    Credit terms offered to all types of counterparty will tighten in the three months between December 2016 and February 2017, expects the ECB. A December survey by the central bank found credit terms and conditions for euro-denominated securities and OTC derivatives markets had become less favourable for banks, dealers and hedge funds.

    For the provision of finance collateralised by euro-denominated .......

    News Round-up 25 January 2017

  • Heavy burden

    Student loan servicing under the spotlight

    Average US student debt levels have now swelled to a record US$30,000 plus, sparking concern that the US economy could be negatively affected by constrained home ownership and long-term consumption growth. At the same time, high-profile legal cases relating to the difficulty of debtors to discharge their debt through bankruptcy and the recent CFPB versus Navient case suggest that student .......

    News Analysis 25 January 2017

  • Aligned interests

    US funds continue Spanish NPL storm

    US funds continue to storm the Spanish NPL market for investment opportunities. They appear to be capitalising on funding structures and operational processes that match the asset characteristics of the large non-core disposal programmes seen in the country.

    NPL transaction volumes in Spain reached €23bn in 2016, up from €16bn in 2015, €21bn in 2014 and €6bn in 2013, according .......

    News Analysis 24 January 2017

  • Autos lead US ABS

    The auto sector is currently leading the way in the US ABS secondary market.

    Overall, ABS secondary spreads continued to edge in last week and into this, particularly at the top of the stack. Autos are seeing similar moves but are doing so despite accounting for the majority of secondary supply and dominating the new issue pipeline.

    Rotation activity is .......

    SCIWire 24 January 2017

  • Decree may impact RMBS

    Following recent court decisions, the Spanish government has announced a Royal Decree 1-2017, which requires banks to identify mortgage loans where the presence and operation of interest rate floor clauses were not originated with sufficient transparency. Fitch expects the move to clarify any impact on RMBS transactions.

    Banks will now propose and agree settlements with affected mortgage borrowers, with loan reviews and .......

    News Round-up 24 January 2017

  • Weak pools blunt Countrywide boost

    The positive credit effects of the US$7.35bn settlement proceeds distributed to outstanding Countrywide RMBS trusts last June (SCI 19 May 2016) have been muted by increasing pool losses and rising shares of seriously delinquent loans, says Moody's. The rating agency notes that the influx of cash to the Countrywide deals was not large enough to significantly affect the transactions' credit .......

    News Round-up 24 January 2017

  • L-shaped retention debuts

    Citi and Deutsche Bank are in the market with CD 2017-CD3, the first conduit CMBS to comply with the US risk retention rules by employing an 'L-shaped' structure. The US$1.3bn deal - rated by Fitch, KBRA and Moody's - is collateralised by 52 commercial mortgage loans secured by 59 properties.

    On the securitisation closing date, affiliates of the transaction sponsors .......

    News 24 January 2017

  • Euro secondary still seeks supply

    Demand continues to outstrip supply in the European securitisation secondary market.

    Tone remains positive across the board and investor appetite is still strong in every sector. However, there continues to be next to no supply via BWICs or new issuance. Consequently, when auctions do appear they trade exceptionally well and are keeping spreads flat to slightly tighter.

    There is currently .......

    SCIWire 24 January 2017

  • WestLB spin-off acquired

    Mount Street is set to acquire EAA Portfolio Advisors (EPA) from Erste Abwicklungsanstalt (EAA), which was created at end-2009 under the German Financial Market Stabilisation Fund Act to manage the assets of WestLB. The €200bn portfolio comprised a diverse range of complex non-performing loan, ABS, leveraged credit, asset finance and structured finance assets.

    EPA has reduced the outstanding balance of .......

    Job Swaps 23 January 2017

  • Dutch market strengthening

    The recent STORM 2017-I involved the sale of the largest publicly distributed senior Dutch RMBS tranche since the financial crisis, at €2bn (see SCI's primary issuance database). The deal, amid a number of other credit positives, suggests that the Dutch RMBS market could be poised for growth in 2017.

    JPMorgan European securitisation analysts point out that the Netherlands has enjoyed .......

    News 23 January 2017

  • SCI Start the Week - 23 January

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

    Pipeline
    There was a clear skew towards auto ABS additions for the pipeline last week. As well as five of these deals, there was also a CMBS added.

    That CMBS was US$1.261bn FREMF 2017-K61. The auto ABS were: US$1.116bn Ally Auto Receivables Trust 2017-1; US$1.135bn CarMax Auto Owner Trust 2017-1; US$1bn Drive Auto Receivables Trust 2017-A; US$750.2m Enterprise Fleet Financing .......

    News 23 January 2017

  • Distressed team beefs up

    Michael Carley has joined BTIG as a director of fixed income credit, focused on illiquid markets across high yield, distressed debt, loans, trade claims and private equities. Based in New York, he will report to Drew Doscher, md and head of fixed income credit at BTIG.

    Carley was previously a member of the distressed debt trading group at Jefferies, which .......

    Job Swaps 23 January 2017

  • CMBS pro named president

    ReadyCap Commercial has named Anuj Gupta as president, responsible for loan originations, affinity relationships, capital markets, credit and asset management. He has played an active role in the firm since 2013 and will now join the executive management team full-time.

    Gupta has more than 20 years of experience in commercial real estate lending, having previously led CRE capital markets and .......

    Job Swaps 23 January 2017

  • Representations claims resolved

    Société Générale has agreed to pay a US$50m civil penalty to the US Department of Justice to resolve claims under the Financial Institutions Reform Recovery and Enforcement Act related to its activities in connection with the marketing, sale and issuance of an RMBS dubbed SG Mortgage Securities Trust 2006-OPT2. As part of the agreement, the bank has acknowledged in writing .......

    Job Swaps 23 January 2017

  • CRE lawyer promoted

    Sutherland has elected three new partners and nine new counsel to the firm. One of the new counsel - Brooke Parris - has securitisation expertise.

    Based in Atlanta, Parris represents lenders, servicers, developers and pension fund advisers in various aspects of real estate finance and development. She devotes significant time advising clients on structured finance and real estate finance (including .......

    Job Swaps 20 January 2017

  • Cautious optimism

    Secondary CRT market gaining momentum

    The secondary market for capital relief trades has been growing alongside issuance of syndicated deals, which account for approximately 50% of CRT volume. In spite of a number of hurdles, market participants remain positive about the future of secondary trading in the sector.

    Juan Grana, md of the structured solutions group at Nomura, notes that secondary capital relief trades tend .......

    News Analysis 20 January 2017

  • Duration risk

    Rate rises hurt Fed's MBS book

    The December interest rate hike in the US reflected the increasing health of the economy, but it also created issues for the US Fed's large book of MBS, which make up US$1.7trn of its balance sheet. Indeed, rising rates bring the spectre of duration risk for certain fixed rate assets, such as Fannie Mae 30-year mortgage pools.

    These assets account .......

    News Analysis 20 January 2017

  • Trio appointed partners

    Beechbrook Capital has promoted Sandeep Agarwal, Tim Johnston and Mensah Lambie to partner.

    Agarwal and Lambie both joined Beechbrook in 2008 and are responsible for sourcing, executing and monitoring investments for the firm's private debt funds. Prior to joining Beechbrook, Agarwal worked at ICICI bank in corporate credit, where he was responsible for structuring and monitoring cross-border acquisition financings and .......

    Job Swaps 20 January 2017

  • Tobacco update affects ratings

    Moody's has updated its methodology for rating tobacco settlement revenue securitisations. The methodology changes affect ratings on US$1.5bn of outstanding ABS.

    The update reflects the incorporation of new formulas and procedures related to the October 2015 New York state settlement and an extension of recovery lag assumptions. Moody's has consequently upgraded the ratings of 12 tranches in 10 tobacco settlement revenue .......

    News Round-up 20 January 2017

  • MS names structured credit chief

    Morgan Stanley is moving one of its EMEA capital markets co-heads into Morgan Stanley Investment Management. Claus Skrumsager will take control of a structured credit team and fund that is yet to be finalised.

    Skrumsager will join the firm's solutions and multi-asset platform as portfolio manager and head of private structured credit solutions. He has been with Morgan Stanley for 10 .......

    Job Swaps 20 January 2017
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