Complete news archive

  • 2017 CMBS slowdown expected

    A recent recovery in US CMBS issuance will not be sufficient to balance out an anaemic first half of the year, says Kroll Bond Rating Agency. The start of 2017 is also expected to be slow, and full-year 2017 issuance is predicted to undershoot 2016.

    CMBS issuance grew for six straight years before stopping abruptly this year as the global .......

    News Round-up 24 November 2016

  • Draft ILS regulations released

    As part of the Chancellor's Autumn Statement, the UK government has launched a consultation setting out its proposed corporate, tax and regulatory framework for ILS. The consultation reiterates the government's aim to create an efficient and streamlined regime for multi-arrangement ISPVs (mISPVs) in the UK, setting out the draft regulations it intends to place before Parliament early in 2017.

    The .......

    News 24 November 2016

  • Cov-lite CLO prepped

    Highbridge Capital Management subsidiary HPS Investment Partners is in the market with a new CLO (see SCI pipeline), which will allow up to 80% of the loans in its collateral pool to be covenant-lite. HPS Loan Management 10-2016 has been provisionally rated by S&P and sized at US$410.4m.

    The US$249m class A1 notes have been provisionally rated triple-A. .......

    News Round-up 24 November 2016

  • Small value operations due

    The New York Fed's open market trading desk intends to conduct two small value agency MBS sales operations on 29 November and 1 December. The total current face value of sales across the two operations will not exceed US$100m.

    The Fed says such small value exercises are a matter of prudent advance planning. The desk has published an operating schedule, .......

    News Round-up 24 November 2016

  • Euro ABS/MBS firm

    Tone remains firm in the European ABS/MBS secondary market albeit on low volumes.

    Inevitably with the US Thanksgiving holiday flows have been very light over the past couple of sessions and look set to stay that way for the rest of the week. Nevertheless, sentiment remains positive across the bulk of sectors and consequently secondary spreads are unmoved. Even Italian .......

    SCIWire 24 November 2016

  • EU proposals support securitisation

    The European Commission has presented a package of reforms to strengthen the resilience of EU banks, including measures to facilitate securitisation and derivatives activity. They contribute to the Commission's ongoing work to reduce risk in the banking sector and are in line with the ECOFIN Council in June, where the Commission was invited to put forward relevant proposals no later .......

    News Round-up 23 November 2016

  • CDS 'positive for China'

    The introduction of CDS on the Chinese interbank market is credit positive for asset managers, according Moody's. The agency notes that this is because CDS can provide an alternative tool to hedge bond defaults when defaults are on the rise.

    Nino Siu, avp and analyst at Moody's, comments: "CDS is also key to driving bond market liquidity for non-government bonds, amid record-setting .......

    News Round-up 23 November 2016

  • Clearing default implications considered

    The US CFTC's market risk advisory committee has approved a set of recommendations for improving the methods that clearinghouses use to manage the default of a clearing member. At the same time, three derivatives clearinghouses intend to hold a coordinated exercise to test their procedures for managing a clearing member default.

    The CFTC's recommendations cover communication with clearing members and .......

    News Round-up 23 November 2016

  • RMBS legal claims dropped

    Fraud claims alleged by Federal Home Loan Bank of Boston (FHLBB) against RBS Securities and other RBS companies relating to the marketing and sale of 10 RMBS certificates are being dropped after the plaintiff and defendants filed a joint stipulation seeking dismissal. However, a further two claims against RBS remain, and FHLBB also retains claims against other defendants.

    "FHLBB brought .......

    Job Swaps 23 November 2016

  • Constructive outlook for Euro ABS

    This year has been a year of 'two halves' for the international ABS market, according to JPMorgan European securitisation analysts, with the supply/demand imbalance in 2H16 supplanting the volatility and uncertainty seen in the first half. Against this backdrop, they gauge both ABS investor and issuer perceptions of the sector heading into 2017, based on the results of their latest .......

    News 23 November 2016

  • Below-prime card deal prepped

    Continental Finance Company is in the market with a US ABS transaction securitising below-prime credit card debt. Continental's business model is focused on borrowers with limited credit history or a below-prime credit score.

    The US$40.744m class A notes of Continental Credit Card ABS 2016-1 have been provisionally rated by Morningstar at single-A plus. The US$13.581m class Bs have been rated triple-B .......

    News Round-up 23 November 2016

  • Positive review for RPL deals

    Fitch has reviewed 175 classes from seven US RMBS transactions backed by re-performing loans. The transactions have between five and 23 months' seasoning and serious delinquencies range from 0.6% to 4.7%, which is better than initially expected for peak-vintage RPL collateral. No deal has more than 33bp of realised loss to date, as a percentage of the closing pool balance.

    News Round-up 23 November 2016

  • Relief extended for non-US dealers

    The US CFTC Division of Market Oversight has issued a time-limited no-action letter that extends relief provided to certain CFTC-registered swap dealers (SD) and major swap participants (MSP). The letter states that the division will not recommend enforcement action against a non-US SD or non-US MSP established in Australia, Canada, the EU, Japan or Switzerland that is not part of .......

    News Round-up 23 November 2016

  • Depreciation hits Hertz ABS

    Moody's says that the sharp drop in Hertz Corp's Q3 earnings and reduced full-year guidance are credit negative for the company and, by extension, its rental car ABS. However, the agency notes that several structural features mitigate the impact of lower earnings on the transactions.

    "Hertz Corp faces earnings challenges owing to, among other things, a substantial depreciation adjustment to .......

    News Round-up 23 November 2016

  • On the agenda

    Efforts to tackle European NPLs gather pace

    Efforts by European policymakers to tackle the region's non-performing loan burden appear to be gathering pace. Establishing a central clearinghouse for NPLs has been mooted, while the ECB's latest Financial Stability Review calls for the creation of further government-backed bad banks.

    The concept of a central clearinghouse as a solution to Europe's NPL issue has been backed by Gert-Jan Koopman, .......

    News Analysis 23 November 2016

  • US CLO slowdown

    The slowdown towards the Thanksgiving holiday looks to have begun in the US CLO secondary market.

    Yesterday saw a flurry of BWIC activity, which made for a slightly busier than of late Monday. However, the five lists that went through didn't buck recent pricing trends, though there was some surprise in that no colour at all was released from the .......

    SCIWire 22 November 2016

  • Distressed EM credit fund launched

    Gramercy Funds Management closed its third distressed and opportunistic emerging markets credit strategy, Gramercy Distressed Opportunity Fund III, last month after raising almost US$1bn in commitments. The fund has a five-year investment time-horizon and will invest opportunistically in dislocated and defaulted sovereign, quasi-sovereign and corporate credits and will also target stressed credit opportunities that require flexible capital solutions.

    Gramercy will .......

    News Round-up 22 November 2016

  • Risk firm swipes mortgage vets

    MountainView has hired David Bennett and Michael Riley for its risk analytics team. Both will take the role of md and focus on expanding and improving MountainView's range of services.

    Bennett was previously at Compass Analytics, where he was md working on hedging pipeline risks for mortgage originators. Prior to that, he was MSR manager at Fifth Third Bank, responsible .......

    Job Swaps 22 November 2016

  • Mortgage loan servicing evolving

    An environment of continued regulatory scrutiny will lead US mortgage loan servicing to increasingly fall to non-banks, says Fitch. At a servicer roundtable hosted by the rating agency, 89% of servicers agreed that non-bank servicers will continue to take market share from banks next year.

    The source of non-bank portfolio growth is evolving. Where growth among non-banks was previously driven .......

    News Round-up 22 November 2016

  • Trups defaults decline

    The number of US bank Trups CDO combined defaults and deferrals declined to 14.6% at end-October, from 14.7% at end-September, according to Fitch's latest index results for the sector. Three performing issuers representing US$40m across six CDOs redeemed their Trups last month, while one cured issuer with a notional of US$20m across two CDOs also redeemed its Trups.

    In addition, .......

    News Round-up 22 November 2016

  • Nordic cooperation inked

    SCIO Capital has announced what it terms as "a cooperation" with Nordic-focused institutional investment advisory firm Lapposand and its owner Jessica Eistrand. Eistrand's background is in fixed income and structured products, with several international investment banks and investment advisors. More recently, she has been working with sustainability and alternative investment managers seeking to grow their Nordic institutional investor market presence.

    Job Swaps 22 November 2016

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