Complete news archive

  • Euro secondary slow

    It's been slow start to the week so far for the European securitisation secondary markets.

    Participants look to have taken the opportunity of the US public holiday yesterday to catch their breath and there was little movement in terms of trading or levels. However, tone remains very strong across the board and volumes are likely to pick up as the .......

    SCIWire 17 January 2017

  • Bilateral CLN closed

    Further details have emerged of Deutsche Bank's recent capital relief trade, Gate 2016-1 (SCI 3 January). The €95m six-year bilateral CLN pays three-month Euribor plus 12.75% and references a €1bn portfolio of German SMEs.

    The investor is believed to be a buy-and-hold investor that is experienced in the German SME CRT market and was attracted by the opportunity to gain .......

    News 16 January 2017

  • Multifamily drives delinquencies down

    Fitch reports that US CMBS delinquencies closed out 2016 at US$12.1bn, down 21% by balance from year-end 2015. The overall delinquency rate finished last year at 3.34%, up 5bp from the previous month but down 68bp from 4.02% one year ago, according to the agency's latest index results for the sector.

    The drop in delinquencies is primarily attributable to portfolio .......

    News Round-up 16 January 2017

  • Weather risk platform introduced

    Speedwell Weather has launched its weatherXchange platform, which aims to help companies access index-based weather risk protection and which provides valuation and settlement services. As well as access to weather data, it also provides structuring tools to help new hedgers through the process of designing a hedge.

    weatherXchange is designed to bring index-based weather hedging to new users in energy, .......

    News Round-up 16 January 2017

  • Distressed debt vet hired

    Drew Doscher has joined BTIG as md and head of fixed income credit. He has been tasked with launching the firm's distressed debt and trade claim business, as well as working to expand its high yield and convertible bond capabilities.

    Based in New York, Doscher will report to Anton LeRoy, md and head of fixed income, currency and commodities at .......

    Job Swaps 16 January 2017

  • Ratings suits settled

    The US Department of Justice, 21 states and the District of Columbia have reached a nearly US$864m settlement agreement with Moody's, Moody's Analytics and their parent Moody's Corporation. The settlement resolves allegations arising from Moody's role in providing credit ratings for legacy RMBS and CDOs, including pending state court lawsuits in Connecticut, Mississippi and South Carolina, as well as potential .......

    Job Swaps 16 January 2017

  • SCI Start the Week - 16 January

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

    Pipeline
    There were a few more additions to the pipeline last week. The final count consisted of two ABS, an ILS, two RMBS and three CMBS.

    US$1.672bn Ford Credit Auto Owner Trust 2017-A and US$477.1m SoFi Consumer Loan Program 2017-1 accounted for the ABS, while the ILS was Vitality Re VIII. The RMBS were CAS 2017-C01 and €157.7m Delft .......

    News 16 January 2017

  • Rare mod for 2014 loan

    The US$8.7m Black Gold Suites Hotel Portfolio loan, securitised in COMM 2014-UBS6, has been modified. The loan was sent to special servicing early last year.

    The modification provides some rate relief, under which the borrowers will pay 2% for the next few months, 3.5% for a year after that and 5.6% thereafter. The loan will also become an interest-only note.

    News Round-up 13 January 2017

  • CMBS defaults, delinquencies diverge

    The 12-month rolling loan maturity default rate for European CMBS rated by S&P increased from 21.8% to 22.2% in December. The overall senior loan delinquency rate decreased from 54.7% to 53.7%.

    The delinquency rate for continental European senior loans decreased from 67.9% to 67.1%. The rate for UK loans decreased from 34% to 32.7%.

    .......

    News Round-up 13 January 2017

  • Montagu buys into investment firm

    Montagu Private Equity has acquired shares in Universal-Investment from the company's owners, following the approval of the relevant authorities (SCI 15 September 2016). Financial terms of the deal have not been disclosed.

    Universal-Investment Group has its head office in Frankfurt and subsidiaries and holdings in Luxembourg and Austria. The firm's independent business model will remain unchanged.

    Montagu Private Equity says .......

    Job Swaps 13 January 2017

  • Bank settles risk reporting charges

    BNY Mellon has agreed to pay the US SEC a US$6.6m penalty to settle CLO-related charges. The SEC accused BNY Mellon of miscalculating its risk-based capital ratios and risk-weighted assets reported to investors.

    The SEC found that BNY Mellon deviated from regulatory capital rules by excluding from its calculations around US$14bn in CLO assets that the firm consolidated onto its .......

    Job Swaps 13 January 2017

  • Co-working exposure gauged

    Co-working is expected to play an increasingly significant role in commercial real estate, posing challenges to underwriting and valuation standards for the CMBS market. Morningstar Credit Ratings notes that while loans with exposure to co-working currently account for a small portion of the US CMBS universe, their share could rise as the business evolves.

    Co-working companies lease roughly 1.2 million .......

    News 13 January 2017

  • Flawed logic

    Regulators' confidence in extra ratings 'misplaced'

    The regulatory drive to require multiple ratings for European structured finance products may not achieve its intended aims, despite necessarily adding costs. The findings of a recent Finance Research Letters study suggest that the regulatory initiative is based on an understanding of market practices that is not borne out by facts.

    Conventional wisdom states that investors gain comfort from additional .......

    News Analysis 13 January 2017

  • Rated warehouses proliferating

    CLO-like warehouse transactions are emerging as variations on traditional warehouse financing of CLOs (SCI 19 May 2016). Also called rated warehouses, they are structured to meet specific investor and arranger needs, while retaining many characteristics of the broadly syndicated loan or SME CLOs that they finance.

    "Warehouse transactions are similar in purpose, but different in structure to typical warehouses. Like .......

    News 13 January 2017

  • Fair value credential introduced

    A new credential intended to enhance the quality, consistency and transparency of fair value measurement results in financial reporting has been launched. The Certified in Entity and Intangible Valuations (CEIV) credential is a result of collaboration between the American Institute of CPAs (AICPA), the American Society of Appraisers (ASA) and the Royal Institution of Chartered Surveyors (RICS).

    Certified Public Accountants .......

    News 13 January 2017

  • US CLOs on the up

    Activity and prices are on the up in the US CLO secondary market this week.

    "There's very a positive tone and everyone is bidding up paper," says one trader. "That's particularly the case in double-Bs, but there is strength across the capital structure."

    The trader continues: "People are looking to test the strength of the bid, which appears to be .......

    SCIWire 12 January 2017

  • Dutch non-conforming refi readied

    Morgan Stanley is in the market with the €157.7m Delft 2017, a Dutch non-conforming RMBS backed by loans originated by Lehman Brothers subsidiary ELQ Portefeuille I. The portfolio in its entirety is currently securitised in EMF-NL 2008-1.

    On the closing date, EMF-NL 2008-1 will sell the portfolio to Morgan Stanley Principal Funding. In turn, Morgan Stanley Principal Funding will sell .......

    News 12 January 2017

  • Bank hires derivatives head

    Mizuho International has hired Borja Rivas as md, head of derivatives risk solutions EMEA. He will be responsible for leading the development of the Mizuho International derivatives risk solutions offering in EMEA within its fixed income business.

    Most recently, Rivas was head of HSBC's capital financing Iberia unit. Prior to this, he worked for eight years at UBS in its debt .......

    Job Swaps 12 January 2017

  • Carlyle promotes structured pro

    The Carlyle Group has promoted 62 professionals to senior positions, including 13 new partners. Among these new partners is Justin Plouffe, who - along with Ronnie Jaber - has been named structured credit fund co-head.

    Plouffe is based in New York. He joined the company 10 years ago and was previously an attorney at Ropes & Gray.

    Jaber is also based in .......

    Job Swaps 12 January 2017

  • Record SRT deal launched

    Further details have emerged about Grafton CLO 2016-1, Santander's largest post-crisis corporate loan significant risk transfer deal and its second largest synthetic securitisation (SCI 3 January). The £1.25bn six-year CLN has a three-year replenishment period and provides protection for the first 8% of losses in the underlying portfolio.

    The deal is cash-collateralised. Steve Gandy, md at Santander Global Corporate Banking, .......

    News 12 January 2017

  • Holding steady

    Partnerships, ABS to help marketplace lending stabilise

    The marketplace lending sector endured several tests to its model at the start of 2016, but managed to regain investor confidence by year-end, reflected in a resurgence of MPL ABS issuance. While 2017 could be defined by consolidation, partnerships and greater securitisation activity, questions remain over true lender status, regulatory oversight and how firms will adapt in a rising interest .......

    News Analysis 12 January 2017
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