Complete news archive

  • 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

  • Euro CLOs start strongly

    The European CLO secondary market has had a busy start to 2017 backed by strong price moves.

    "Since the start of the year CLOs have shifted materially tighter across the board," says one trader. "That move is predominately a reflection of improving levels in other asset classes and most noticeable in triple- to single-Bs."

    The trader continues: "We've done quite .......

    SCIWire 12 January 2017

  • Credit strategy head hired

    BGC Partners has hired Arran Rowsell as head of credit strategy in London. Rowsell will report to Tony Warner, executive md and head of BGC's brokerage business in London.

    Rowsell will oversee the coordination of credit strategy across BGC Partners, Mint Partners and RP Martin in the UK. Most recently, he worked as a head of flow credit trading for .......

    Job Swaps 11 January 2017

  • CDO charges partially overturned

    The US SEC has partially overturned a decision penalising Wing Chau and his former firm Harding Advisory, which found Chau and Harding committed fraud in the selection of assets for two CDOs - Octans I CDO and Norma CDO I. Disgorgement and penalties previously imposed by a judge for Norma were upheld, but charges regarding Octans were dismissed.

    The SEC .......

    Job Swaps 11 January 2017

  • Tradewynd bonds affirmed

    Fitch has affirmed the Tradewynd Re Series 2014-1 class 3A and 3B notes, which are expected to mature on 8 January 2018, at double-B minus and single-B respectively. The agency confirms that no reported covered events exceeded the initial attachment levels of the notes within the annual risk period from 1 January 2016 through 31 December. All interest was paid .......

    News Round-up 11 January 2017

  • Aussie auto outlook negative

    The performance of assets backing Australian auto ABS is negative, while the performance of mortgage assets backing Australian RMBS is stable, according to Moody's in a 2017 outlook. The rating agency adds that mortgage delinquencies may increase, but only moderately and from low levels, while auto ABS will generally see higher losses and delinquencies through 2017.

    Moody's says that several .......

    News Round-up 11 January 2017

  • Investment chief named

    Semper Capital Management has promoted Zach Cooper from deputy cio to cio, replacing Jay Menozzi, who has retired from the industry. Cooper will continue as one of the firm's senior portfolio managers. He has over 20 years of structured credit investment experience, having previously worked at Treesdale Partners, PrinceRidge, Highland Financial and Deutsche Bank.

    .......

    Job Swaps 11 January 2017

  • Dual-compliant vehicle launched

    GoldenTree Asset Management has closed on US$600m in commitments for GoldenTree Loan Management (GLM), after being oversubscribed. GLM was established to invest in and manage CLOs that are intended to be compliant with both US and European risk retention regulations.

    While the vehicle was created to address the global regulatory landscape, GoldenTree believes it will also improve the execution of .......

    News Round-up 11 January 2017

  • Green SRT emerging

    The final panel at SCI's recent Capital Relief Trades Seminar struck an optimistic note regarding developments in new jurisdictions and asset classes. Indeed, 'green' lending is emerging as a consideration for some investors in the sector.

    The European landscape as a whole has witnessed a boost in capital relief trade activity. According to Molly Whitehouse, vp at Mariner Investment Group, .......

    News 11 January 2017

  • A nebulous concept

    Challenges in defining the cost of capital highlighted

    The challenges in defining the cost of capital were discussed extensively at SCI's recent Capital Relief Trades Seminar. Panellists agreed that it is a nebulous concept.

    "The most naïve view one usually starts with is that the cost of capital is effectively the coupon of the first year divided by the capital relief," said Jeremy Bradley, director at Lloyds. "Yet .......

    Talking Point 11 January 2017

  • Italian comeback?

    Scope Ratings expects a "slow, unsteady comeback" for public securitisations of Italian non-performing loan ABS in 2017. The agency says that their return "can help improve Italian banks' balance sheets, which will allow them to refocus on retail and corporate lending."

    Bank of Italy figures show that the stock of Italian gross NPLs fell by €4bn to €356bn in the .......

    News 10 January 2017

  • US CLOs picking up

    Activity in the US CLO secondary market is beginning to pick-up for 2017.

    "Today looks like we're finally going to get busy," says one trader. "Everyone is now back at their desks, dealt with year-end marks and so on and secondary supply is starting to build."

    The trader continues: "Action today is lower down the capital stack with close to 30 .......

    SCIWire 10 January 2017

  • FHA snips MIP

    The FHA will reduce the annual mortgage insurance premium (MIP) most borrowers must pay for 30-year mortgages by 25bp for loans up to US$625,000 and by 45bp for larger loans. The new premium rates will affect most new mortgages with a closing/disbursement date on or after 27 January.

    The ongoing MIP was reduced by 15bp for 15-year FHA mortgages with .......

    News 10 January 2017

  • Spread optimism highlighted

    With US CLO new issue triple-A spreads currently in the Libor plus 140bp-160bp range, respondents to JPMorgan's Q1 CLO survey appear optimistic on spreads for 2017. Many (42%) expect spreads to be in the Libor plus 120bp-130bp range by the end of the year.

    Only 6% of respondents believe that triple-A spreads will be wider by the end of the .......

    News 10 January 2017

  • Firm nabs credit vet

    Ares Management has hired Scott Graves as a partner in the firm's private equity group, based in Los Angeles. Graves will lead the Ares special situations funds platform as portfolio manager and head of distressed.

    Graves' primary responsibilities will include overseeing investments within the special situations strategy and expanding Ares' distressed capabilities across the firm. Additionally, he will serve as a member .......

    Job Swaps 10 January 2017

  • Blockchain partnerships inked

    The DTCC has selected IBM, in partnership with Axoni and R3, to provide a distributed ledger technology (DLT) framework to drive further improvements in derivatives post-trade lifecycle events. The firms will work together to re-platform DTCC's trade information warehouse (TIW), building a derivatives distributed ledger solution for post-trade processing based on existing TIW capabilities and interfaces with technology providers and .......

    Job Swaps 10 January 2017

  • Japan, China outlooks stable

    Moody's outlook for the performance of assets backing consumer-related ABS and RMBS in Japan is stable, with defaults and delinquencies to remain low and the credit quality of loans backing new deals expected to be strong. The credit quality of new ABS and RMBS in China should also be good, although there are grounds for concern.

    For Japanese ABS, low unemployment .......

    News Round-up 10 January 2017

  • Sub debt raises CMBS defaults

    The more subordinate debt US CMBS senior loans carry, the more likely they are to default, especially for multifamily and retail properties, according to Fitch. In a recent analysis of over 24,000 CMBS 1.0 conduit loans issued between 2003 and 2008, approximately 1,000 (4%) had subordinated debt at the time of issuance and these were 60% more likely to default .......

    News Round-up 10 January 2017

  • CMBS pay-offs continue slide

    The percentage of US CMBS loans that paid off on their balloon date slid sharply in December to just 58.4%, says Trepp. The November level had been 66.8% and December's reading is the lowest level posted since July.

    The December total also undershoots the 12-month moving average, which is 66.2%. By loan count, rather than balance, 66.8% of loans paid .......

    News Round-up 10 January 2017

  • Euro secondary sporadic

    Activity remains sporadic across the European securitisation secondary market.

    ABS/MBS continues to be as quiet as it was into year-end with only a few flash BWICs and patchy bilateral trading in major names being seen over the past week. However, positive sentiment and pent-up demand mean that spreads remain flat to slightly narrower in the year so far.

    CLOs have .......

    SCIWire 10 January 2017

  • Firm boosts SF sales team

    StormHarbour has hired Christos Danias as md of credit sales for ABS and CLOs. He joins from Cantor Fitzgerald, where he was md of structured credit for Europe, also focusing on ABS and CLO sales and trading. Prior to Cantor Fitzgerald, Danias was head of CDOs, Europe for BNP Paribas and before that worked in CDOs for Credit Suisse.

    .......

    Job Swaps 9 January 2017
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