Complete news archive

  • Chinese CLO outlook 'negative'

    The performance of assets backing Chinese auto loan ABS and RMBS will be stable throughout 2017, but negative for CLOs, according to Moody's. The rating agency adds that future deals with high exposures to China's lower-tier cities or industries facing overcapacity issues will underperform.

    Chinese auto ABS collateral is expected to be of good credit quality, so delinquencies will remain .......

    News Round-up 5 December 2016

  • Zohar II policy bolstered

    MBIA Insurance Corp has accepted a binding commitment letter from certain holders of its 14% fixed-to-floating rate surplus notes, pursuant to which they will provide senior financing of up to US$325m. Together with subordinated financing of US$38m from MBIA Inc and approximately US$60m from its own resources, the funds will be used to pay an anticipated claim on its insurance .......

    News Round-up 5 December 2016

  • Ratings watch follows classification error

    S&P has placed the ratings of CAN Capital Funding Series 2014-1's class A and B notes on creditwatch with negative implications. A correction by CAN Capital Funding of the delinquency statuses of previously misclassified assets has triggered a rapid amortisation event.

    The misclassified assets should have been classified as either defaulted or subject to a material modification, but the servicer's .......

    News Round-up 5 December 2016

  • Call likelihood examined

    Fitch anticipates that an increasing number of US CMBS approaching the end of their expected life will have clean-up call options exercised over the next several years. Obstacles that may impede them from being exercised efficiently include ambiguity in deal documents, a lack of standardisation of processes and potential litigation costs.

    Fitch notes that PSAs for more recently-issued conduit transactions .......

    News Round-up 5 December 2016

  • CLO vet recruited

    Fifth Street Finance Corp has appointed Patrick Dalton as ceo and a member of the board, effective on 2 January 2017, succeeding Todd Owens. Concurrently, Ivelin Dimitrov will step down as president, cio and a member of the board.

    Dalton joins Fifth Street from Gordon Brothers Finance Company, where he served as president, ceo and chair of the investment committee .......

    Job Swaps 5 December 2016

  • Organisational changes confirmed

    Scope Group's holding company has transitioned into Scope SE & Co KGaA. At the same time, the rating agency is raising capital to finance its accelerated European growth.

    The first tranche of shares - at a volume of €30m - will be placed in the next few weeks, with almost half already confirmed with or reserved by investors. Scope plans .......

    Job Swaps 5 December 2016

  • Allianz absorbs credit manager

    Allianz Global Investors (AllianzGI) has added Sound Harbor Partners to its private debt platform. AllianzGI will acquire Sound Harbor's assets for an undisclosed sum and the Sound Harbor team will join AllianzGI.

    The acquisition will allow AllianzGI's clients to access US private credit investment funds managed by a team with a track record of outperformance. The Sound Harbor team, led .......

    Job Swaps 5 December 2016

  • SCI Start the Week - 5 December

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

    SCI content this week is sponsored by BNY Mellon. All content this week is being made available free of charge, with no registration required.

    Pipeline
    There were a dozen deals added to the pipeline last week, including three Towd Point deals. In total there were six ABS, two RMBS and four CMBS added.

    The ABS were: Canadian Credit Card Trust II Series .......

    News 5 December 2016

  • Noteholder committee mooted

    A number of investors in the UK student loan ABS, Honours, indicated during a recent noteholder conference call their wish to form a committee to assist the issuer in dealing with the Consumer Credit Act non-compliance investigation (SCI passim). Accordingly, the issuer is proposing that one or more ad hoc committees - representing noteholders or individual classes of noteholders - .......

    News Round-up 5 December 2016

  • SMART CLO objections flagged up

    The potential disposal of non-performing assets, as previously proposed by SMART SME CLO 2006-1, has been opposed by noteholders who assert that it would be in breach of the terms of a CDS between the issuer and swap counterparty, Deutsche Bank Frankfurt. As well as problems with the CDS, the noteholders have identified issues with the bank account agreement.

    The .......

    News Round-up 5 December 2016

  • Servicers brace for CMBS wall

    Some US$12bn of the US$92bn of US commercial loans maturing during 2017 could default and end up in the hands of special servicers, says S&P. There will be nearly US$120bn in outstanding performing loans scheduled to mature through 2018, most of which were underwritten in 2006 and 2007, raising questions about whether special servicers will be ready.

    The year-end delinquency .......

    News 2 December 2016

  • Risk retention to affect CMBS liquidity

    The impending US risk retention rule could hamper liquidity for maturing CMBS loans, says Morningstar Credit Ratings. The rule comes into effect on 24 December (SCI passim).

    The agency believes loans maturing this month may suffer from a decrease in liquidity. It says the potential liquidity contraction will add to the refinancing challenge of 2007 vintage loans, many of which .......

    News Round-up 2 December 2016

  • Analytics platforms integrate

    GoldenSource has integrated with ICE Data Services' APEX delivery platform. The move builds on GoldenSource's 10-year history of allowing mutual clients to gain access to ICE Data Services. The aim of integrating with the APEX delivery platform is to provide a scalable way for GoldenSource users to manage their data operations, as well as helping them manage risk exposure and .......

    Job Swaps 2 December 2016

  • Euro CLO involvement to broaden

    The European CLO investor base should broaden in 2017, with some interest from institutions in east Asia, says Moody's. The agency anticipates €13bn-€15bn of new European CLO issuance across 30-35 new transactions, compared to €14.6bn from 37 transactions in 2016 so far.

    "We expect US CLO managers to enter the European market. That said, investor interest in multi-currency deals will .......

    News Round-up 2 December 2016

  • ILS firm swaps chiefs

    Michael Krefta will assume the role of ceo for Hiscox Bermuda as of 1 August 2017. This follows the announcement that Jeremy Pinchin, ceo of Hiscox Re and ILS and ceo of Hiscox Bermuda, will return to London.

    Krefta is currently chief underwriting officer of Hiscox Re and in his new leadership role will be based in Bermuda. He will .......

    Job Swaps 2 December 2016

  • Acquisition prompts amendments

    Structural amendments have been implemented in relation to Dutch auto lease ABS Highway 2015-I, following a change in ownership of the transaction's originator, Athlon Car Lease Nederland. Mercedes-Benz Financial Services Nederland acquired all the shares in Athlon on 1 December.

    As a result, the back-up servicer - De Lage Landen International - has been replaced by Mercedes-Benz Bank, which will .......

    News Round-up 2 December 2016

  • MPL disclosure paper published

    SFIG has released a green paper on the responsible growth of securitisation in the marketplace lending sector, focusing initially on sufficient data disclosure. The paper seeks to identify a framework of market standards and recommends best practices through an open discussion among a broad cross-section of market participants.

    The organisation has also established a marketplace lending committee made up of 250 individuals .......

    News Round-up 2 December 2016

  • Loss severity spikes

    Trepp's latest US CMBS loss analysis reflects a spike in the average loss severity of loan dispositions. For the month of November, US$671m across 58 loans was liquidated with losses. Average loan size fell from US$15.5m in October to US$11.6m, while the monthly loss rate for all loans climbed to 56.38%.

    Accounting for nearly 40% of last month's total liquidated .......

    News Round-up 2 December 2016

  • PACE residuals deal prepped

    Renovate America is in the market with an usual PACE securitisation. Dubbed HERO Residual Funding 2016-1R (Cayman), the US$125m transaction is backed by the residual certificates of five previously issued PACE ABS from the HERO platform.

    The collateral consists of the residual certificates issued by the HERO Funding Trust 2015-1, 2015-2, 2015-3, 2016-1 and 2016-2 deals. These transactions are backed .......

    News Round-up 2 December 2016

  • New entrants to boost issuance

    Moody's anticipates a slight increase in issuance of European ABS and RMBS next year. The agency expects new entrants to take a larger share of the market, amid increasing appetite for non-performing loan transactions and marketplace lending ABS.

    "Our key credit considerations would focus on differing origination criteria from traditional banks and the lack of historical data. Auto ABS will .......

    News Round-up 2 December 2016

  • Post-crisis single-Bs outperform

    The total amount of CLOs paid down in JPMorgan's Collateralised Loan Obligation Index (CLOIE) since the October rebalance through 30 November was US$9.62bn in par outstanding, split between US$1.96bn and US$7.66bn of pre-crisis and post-crisis CLOs. US$17.3bn was added to the post-crisis CLOIE across 182 tranches from 40 deals at the November rebalance.

    CLOIE extended a streak of five straight .......

    News Round-up 2 December 2016
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