Complete news archive

  • Loss severities down

    US CMBS disposition volume last month dropped to US$595.3m across 54 loans, down from November's total of US$671m across 58 loans, according to Trepp. Overall loss severity for December fell by 13bp to 43.05%, due to several large retail notes that were resolved with very minor losses.

    Six conduit loans with a combined remaining balance of US$60m suffered losses of .......

    News Round-up 5 January 2017

  • Asset value fund closed

    HPS Investment Partners has closed its first European Asset Value Fund, with aggregate capital commitments of €800m. The fund will seek to take advantage of strategic shifts in the European specialty finance sector, where regulatory-induced deleveraging is leading banks to divest of capital intensive and non-core portfolios and platforms.

    The fund will focus on building a diversified portfolio of performing .......

    News Round-up 5 January 2017

  • Early redemption proposed

    Trustees of Arena 2012-I are seeking investor consent for early redemption of the A2 tranche. The bonds were publicly placed and pay a relatively high coupon of three-month Euribor plus 115bp (see SCI's new issuance database).

    The offer on the table is a redemption price of 101, according to Rabobank credit analysts. While the original call date of .......

    News Round-up 4 January 2017

  • CLOIE positive returns continue

    The total amount of CLOs paid down in the JPMorgan Collateralized Loan Obligation Index (CLOIE) since the November rebalance through 30 December was US$12.78bn in par outstanding, split between US$1.01bn and US$11.77bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$19bn across 191 tranches from 43 deals at the December rebalance.

    Full-year 2016 CLOIE total returns were 4.69% and .......

    News Round-up 4 January 2017

  • Firm inks CLO buyout

    Marble Point has acquired American Capital CLO Management (ACCLOM), an investment manager with approximately US$3.4bn in AUM across eight CLO vehicles. Marble Point and affiliates will acquire majority equity positions in seven of the CLOs, with ACCLOM and the CLOs expected to be rebranded as part of the Marble Point platform.

    Marble Point hopes that the transaction will diversify and expand .......

    Job Swaps 4 January 2017

  • CMBS delinquencies climb again

    The Trepp US CMBS delinquency rate hit its highest level in 14 months in December. The rate has increased in nine of the last 10 months and is now 5.23%, an increase of 20bp from November.

    Last year began with a 102bp drop in the delinquency rate over the first two months, but those early decreases have now been wiped .......

    News Round-up 4 January 2017

  • Extra ACIS from Freddie Mac

    Freddie Mac last month issued one last ACIS transaction of 2016. It was the second ACIS not linked to STACR debt note bonds and attracted a record number of reinsurers.

    The ACIS transaction provides up to a combined maximum limit of US$285m of credit losses on single-family loans and transfers a significant portion of mortgage credit risk on a US$16bn .......

    News Round-up 4 January 2017

  • New lows for prime chargeoffs

    US prime credit card ABS chargeoffs reached a new low of 2.33% in December, says Fitch. Retail credit card metrics were mixed.

    The rating agency's prime credit card chargeoff index is now 10bp below its previous low record of 2.43%, which was reached in October 2016. It is 10% lower year-over-year and nearly 80% lower than the high reached in September .......

    News Round-up 4 January 2017

  • Law firm nabs SF vet

    Norton Rose Fulbright has hired Patrick Dolan as a partner to the firm, joining from Dechert. He focuses his practice on ABS and MBS - often with innovative structures - representing warehouse lenders, issuers, underwriters, investors and multi-seller commercial paper conduits. Dolan has worked on financings and securitisations of various asset types, including PACE bonds, tax liens, structured settlements, marketplace .......

    Job Swaps 4 January 2017

  • 'Basel 4' meeting postponed

    A meeting of the Basel Committee group of central bank governors and heads of supervision (GHOS), originally planned for early January, has been postponed. The Committee says that more time is needed to finalise the Basel 3 framework's final calibration, before the GHOS can review the package of proposals, although it expects to complete this work "in the near future".

    News Round-up 4 January 2017

  • Cash versus synthetic weighed

    Balance sheet securitisations - whereby balance sheet relief is achieved via true sale - are gaining traction in Europe (SCI 25 August 2016). The different motivations for executing a cash versus a synthetic capital relief trade were discussed recently at SCI's Capital Relief Trades Seminar.

    "Generally, we've come to see balance sheet securitisations get far more relevant and important recently," .......

    News 4 January 2017

  • Firm acquires NPL portfolio

    Bain Capital Credit has acquired a €364m portfolio of Spanish non-performing loans. It comprises defaulted first lien Spanish loans to hotel operators, real estate developers, retail centres and residential real estate assets.

    Fabio Longo, md and head of Bain Capital Credit's European NPL and real estate business, says: "We continue to find Spain one of the most attractive markets in .......

    News Round-up 3 January 2017

  • Slew of risk transfer trades close

    A handful of capital relief trades closed in late December, including an unusual deal referencing a portfolio of auto loans. While this transaction was unfunded, the other deals involved the issuance of credit-linked notes.

    The auto transaction, known as Project Phaeton, references a £571m five-year replenishing portfolio of loans to private retail and commercial customers for the finance and lease .......

    News 3 January 2017

  • CLO solution dismissed

    The District Court for the District of Columbia last month ruled against a risk retention solution for CLOs proposed by the LSTA (SCI passim). The association says it strongly believes that the court erred and that regulatory agencies inappropriately applied the risk retention rule to CLO managers.

    CLOs performed extraordinarily well before, during and after the financial crisis. Indeed, the .......

    News Round-up 3 January 2017

  • PHH MSR sale agreed

    PHH Corporation has agreed to sell its entire portfolio of mortgage servicing rights and related servicing advances, excluding the Ginnie Mae MSRs and related servicing advances that were part of a sale transaction announced last November, to New Residential Investment Corp. Total sale proceeds are expected to be approximately US$912m, with the transaction expected to close in 2Q17.

    Of the .......

    News Round-up 3 January 2017

  • 'Transparency over risk retention' advised

    Securitisation of European SME loans would not necessarily lead to lower credit standards, according to the BIS. In a recent paper, analysts at the bank also suggest that while risk retention rules might be necessary for larger transactions due to the presence of moral hazard, such retention rules aren't necessary for smaller firms.

    The research from BIS explores the presence .......

    News Round-up 3 January 2017

  • Opus completes multifamily Freddie deal

    Opus Bank has securitised US$509m of its multifamily loans through a Freddie Mac-sponsored 'Q-deal' securitisation. One class of Freddie-guaranteed notes was issued and purchased by Opus.

    Opus says the deal is "a novel transaction that reduces Opus' commercial real estate concentration, lowers its risk weighted assets, increases its total risk-based capital ratio, lowers its loan-to-deposit ratio and improves its liquidity". .......

    News Round-up 3 January 2017

  • Non-conforming comfort

    Aussie non-conforming RMBS thrives as wider sector stalls

    Until this year, the Australian securitisation market had been recovering gradually from the depths of the global financial crisis, albeit not yet coming close to pre-crisis levels of activity. Issuance has stalled this year, although non-conforming RMBS volume has surged.

    RMBS continues to account for the largest slice of the Australian securitisation market, with CMBS and ABS issuance both remaining .......

    News Analysis 23 December 2016

  • Capital framework 'should be retained'

    The EBA has recommended that that the EU retains its current risk-sensitive framework for bank regulatory capital, against the background of the weak evidence on the existence of pro-cyclical effects due to the CRDIV/CRR framework. The EBA adds that if pro-cyclicality risks were to become more material, the EU financial regulatory framework has various tools at its disposal, which could .......

    News Round-up 23 December 2016

  • Spanish SRT deal completed

    Banco Santander has closed its first Spanish unsecured consumer loan significant risk transfer securitisation of 2016. The €1bn 15-year revolving FT Santander Consumo 2 deal comprises six classes of notes.

    According to Steve Gandy, md at Santander Global Corporate Banking, the structure is a cash securitisation that "allowed us to reduce RWAs assigned to the loans by selling the bottom .......

    News 23 December 2016

  • Lack of occupancy triggers EOD

    The 129-131 Greene Street loan, securitised in GSMS 2014-GC26, has been transferred to special servicing due to an event of default caused by a tenant trigger event. Fitch designated the asset as a loan of concern last month.

    129-131 Greene Street is secured by a two-storey condo in New York City, 100% leased to a Google subsidiary on a 10-year triple-net .......

    News Round-up 23 December 2016
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