Complete news archive

  • Reinsurance pro brought in

    TigerRisk Partners has appointed reinsurance industry veteran Patrick Denzer as partner, with a particular focus on client management and strategic development. He was most recently Americas chairman at Guy Carpenter and has also served as ceo of John B Collins Associates, where he began his career with a focus on property catastrophe reinsurance and was involved in the development of .......

    Job Swaps 15 November 2016

  • CLO duo promoted

    Oaktree Capital has promoted James Turner and Madeleine Jones to jointly lead the European credit team. This comes after Shannon Ward announced her departure to take up a new role in Los Angeles, although she will stay on for a period to ensure a smooth transition.

    Turner has been with Oaktree since 2001 and was previously co-portfolio manager for Oaktree's .......

    Job Swaps 15 November 2016

  • Call for clearing delay

    ESMA has published a report on OTC derivatives central clearing, calling for a delay to the implementation of EMIR obligations for small financial counterparties. It argues that this is necessary because EU legislation is still being finalised, among other reasons.

    The report proposes to amend EMIR's delegated regulations on the clearing obligation to prolong the phase-in period for financial counterparties .......

    News Round-up 15 November 2016

  • Cali tax vote 'ABS negative'

    The passing of California's Proposition 56 - which will increase the state's tobacco tax rate from 87 cents to US$2.87 on a packet of cigarettes - is credit negative for tobacco settlement bonds, says Moody's. The tax increase goes into effect in April 2017.

    Moody's notes that national cigarette consumption declined 9.2% in the year following the federal excise tax increase from 39 .......

    News Round-up 15 November 2016

  • UK inflation to affect ABS, RMBS

    Brexit-driven inflation in the UK will be credit negative for securitisations backed by mortgages, auto loans and other consumer debt, primarily through an increase in defaults among low income borrowers, warns Moody's. These borrowers will be less able to absorb the higher costs resulting from the decision to leave the EU.

    The rating agency notes that the UK is reliant .......

    News Round-up 15 November 2016

  • Default guidelines consultation announced

    The EBA has launched a consultation on its draft guidelines on the estimates of risk parameters for non-defaulted exposures, namely of the probability of default (PD) and the loss given default (LGD), and on the treatment of defaulted assets. The consultation runs until 10 February 2017.

    More specifically, for non-defaulted exposures the draft guidelines detail the estimation of PD and .......

    News Round-up 15 November 2016

  • Retail pushes delinquencies up

    US CMBS delinquencies climbed by 7bp to 3.25% last month, as retail late-pays continue to increase, according to Fitch's latest index results for the sector. New delinquencies of US$789m exceeded total resolutions of US$535m, while portfolio run-off of US$7.6bn exceeded Fitch-rated new issuance volume of US$6.6bn across seven transactions, causing a decrease in the overall index denominator.

    The agency notes .......

    News Round-up 15 November 2016

  • Green bond tool readied

    S&P has published an updated outline of its green bond evaluation framework, following the conclusion of a consultation period on the proposal. Following further testing and calibration of the framework, the agency anticipates launching green bond evaluations in 1Q17.

    S&P's green bond evaluation tool would provide a second opinion under the Green Bond Principles and a relative green impact score .......

    News Round-up 15 November 2016

  • Overcollateralisation errors identified

    Moody's has affirmed the ratings of six tranches from two student loan ABS sponsored by Darien Rowayton Bank (DRB). The action follows the identification of a deficiency in the initial overcollateralisation amount of certain classes of notes and an error in the trustee reports regarding the calculation of overcollateralisation target amounts.

    The effected tranches are the class A1, A2 and .......

    News Round-up 15 November 2016

  • GSE issuance calendars released

    Fannie Mae and Freddie Mac have released 2017 issuance calendars for the Connecticut Avenue Securities and Structured Agency Credit Risk programmes respectively. The first CAS credit risk transfer RMBS is scheduled to launch in early to mid-January, while the first STACR deal is scheduled for February.

    Fannie Mae notes that during each issuance window, it has the option to issue .......

    News Round-up 15 November 2016

  • Euro secondary softens

    Declines in the bond market have begun to feed into the European securitisation secondary market.

    While sentiment continues to be generally positive across secondary, investor interest appears to have thinned since the end of last week with the spike in rate volatility. At the same time, some softness is appearing in spreads in certain sectors.

    Peripheral and UK RMBS are .......

    SCIWire 15 November 2016

  • Dutch RMBS criteria tweaked

    Fitch has updated its criteria addendum for Netherlands residential mortgage assumptions. The change is expected to negatively affect up to four existing RMBS ratings.

    The addendum updates the maturity concentration test that Fitch applies to portfolios that comprise more than 20% interest-only loans maturing within a three-year period, and if the structure includes notes that are rated single-A minus or .......

    News Round-up 14 November 2016

  • REIT engagement requested

    RAIT Financial Trust has responded to an amended Schedule 13D filed last week by Highland Capital Management, which alleges that the REIT has repeatedly declined to engage with it regarding proposals to unlock substantial value for shareholders. At issue is Highland affiliate NexPoint Real Estate Advisors and Nexbank Capital's expression of interest in pursuing a transaction with RAIT.

    The NexPoint .......

    Job Swaps 14 November 2016

  • SCI Start the Week - 14 November

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

    Upcoming SCI event
    Panellists are being finalised for SCI's latest Capital Relief Trades Seminar, 'Navigating the Cash vs Synthetic Debate, Weighing the Cost of Capital', which is being held on 22 November in London. Please email for a conference registration code or click here and follow the link to register.

    The conference programme consists of a series of .......

    News 14 November 2016

  • FFELP criteria revised

    Fitch has revised its criteria for rating US FFELP student loan ABS. The changes aren't expected to have any impact on outstanding ratings, however.

    The revisions clarify how short-term assets - such as claims filed, pending interest subsidy payment and special allowance payments - are treated, as well as partial credit for sponsor's actions, prepayment calculations and reinvestment rates. They .......

    News Round-up 11 November 2016

  • Central clearing 'makes inroads'

    New data shows that central clearing has made inroads into OTC interest rate derivatives markets, but is less prevalent in other OTC derivatives segments. This is according to the results of the BIS seminannual and triennial surveys of positions in the OTC derivatives markets, as of the end of June 2016.

    By June 2016, 75% of dealers' outstanding OTC interest .......

    News Round-up 11 November 2016

  • 'Carriers benefit' from cellular ABS

    The securitisation of the payments of cellular equipment instalment plans (EIPs) helps diversify cell phone carriers' financing, provides liquidity and can lower carriers' overall financing costs, Fitch comments. The agency adds that EIPs also help to bring transparency to consumers in terms of device cost rather than carriers heavily subsidising it.

    The agency adds that handset financing is a financial .......

    News Round-up 11 November 2016

  • Innovative aircraft ABS well-received

    The US$800m Blackbird Capital Aircraft Lease Securitization 2016-1 priced last week, with the senior notes heavily oversubscribed. The deal is noteworthy for featuring a super-senior tranche and a higher percentage of wide-body aircraft than most aircraft ABS.

    Rated by KBRA and S&P, the transaction comprises: US$200m AA/AA rated class AA notes (which priced at a 2.50% yield for a 4.2-year .......

    News 11 November 2016

  • More downgrades for UK SLABS

    Fitch has downgraded Honours' class B, C and D notes and maintains a rating watch negative on these and the A notes. The transaction is a refinancing of the previous Honours deal which closed in 1999, securitising student loans originated in the UK by the Student Loans Company.

    Moody's recently downgraded Honours tranches and also maintained reviews for downgrade (SCI .......

    News Round-up 11 November 2016

  • Transfer pricing

    Italian ABS hindered by NPL valuation issues

    The securitisation of non-performing loans (NPLs) has been deemed a credible solution for Italian banks seeking to offload the assets from their balance sheets. Just one deal has launched to date, however. Getting a plausible valuation for the NPL portfolio being transferred to the SPV may be one of the main obstacles.

    Francesco Franzese, founder and md of Aram Capital, .......

    News Analysis 11 November 2016

  • Kroll adds SF vet

    Kroll Bond Rating Agency (KBRA) has appointed Patrick Welch as chief credit officer. He will report to president and coo Jim Nadler.

    Welch joins from Goldman Sachs, where he spent 19 years and was most recently vp in the credit risk management and advisory department as well as deputy chief credit officer for GS Bank. He covered the structured finance .......

    Job Swaps 11 November 2016
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