Complete news archive

  • Converging approach?

    Current status of capital relief trades discussed

    Representatives from Chorus Capital, Citi and Clifford Chance recently discussed the current status of capital relief trades during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the impact of regulatory changes, the emergence of new assets and jurisdictions, and investor requirements. For a broader .......

    Talking Point 2 November 2016

  • Elliott to acquire Aeolus

    Elliott Management Corp has agreed in principle to acquire a controlling stake in Aeolus Capital Management (ACM) and its affiliates. The deal is expected to be finalised before the end of the year.

    ACM current shareholder and founder Peter Appel will retain substantial minority positions, along with his role as non-executive chairman of ACM. He comments: "This transaction has been .......

    Job Swaps 2 November 2016

  • Pricing solution enhanced

    FINCAD's F3 solution now offers coverage for structured fixed income securities - including RMBS, ABS, CMBS and CLOs - via integration with data analytics providers AD&Co and Intex. Buy-side firms can use F3 to accurately hedge exposure and perform scenario analysis across their entire multi-asset portfolio.

    Advantages of the service include precise hedging, accurate scenario analysis, consistent reporting and streamlined .......

    News Round-up 2 November 2016

  • ILS firm nabs risk vet

    RMS has hired Michael Steel as global head of solutions. He will also chair the company's Europe Leadership Council and provide overall regional leadership for the RMS London and Zurich offices.

    Steel has over 25 years' experience in risk and capital management in the insurance industry and, prior to RMS, was group chief risk officer at AXIS Capital. He also .......

    Job Swaps 2 November 2016

  • Jumbo RMBS 'could see growth'

    Should lenders start offering jumbo mortgages to a greater number of creditworthy borrowers, the US jumbo mortgage securitisation market could grow, according to recent research from S&P. The research also looks at the variation in the jumbo-conforming spread over time and finds that it directly impacts the US RMBS market.

    S&P analysts examine drivers of the variation between conforming and jumbo mortgage rates .......

    News Round-up 2 November 2016

  • Combo repacks emerging

    Several CLO combo notes on downgrade watch, following Moody's updated methodology for the instrument (SCI 10 October), have been resolved via dual-tranche repacks with the aim of keeping the rating stable. The rating agency is reviewing 38 securities backed by CLO debt and equity tranches after adding a refinancing scenario to its approach.

    Moody's will no longer assign new ratings .......

    News 2 November 2016

  • CMBS structured to meet risk rules

    Morgan Stanley has once again teamed up with Wells Fargo and Bank of America to market a US CMBS structured to satisfy risk retention rules on both sides of the Atlantic. MSCI 2016-BNK2 is sized at a little over US$700m (see SCI pipeline) and is understood to be the third private bond designed to meet risk retention requirements .......

    News Round-up 2 November 2016

  • Limited upside for CLOs?

    The total amount of CLOs paid down in JPMorgan's Collateralized Loan Obligation Index (CLOIE) since the September rebalance through 31 October was US$13.02bn in par outstanding, split between US$3.37bn and US$9.66bn of pre-crisis and post-crisis CLOs. US$8bn was added to the post-crisis CLOIE last month across 94 tranches from 22 deals.

    All CLOIE sub-indices have now seen positive monthly total .......

    News Round-up 2 November 2016

  • SLABS worries prompt downgrades

    A slew of Navient Solutions student loan ABS classes have been downgraded by Moody's as a result of concerns about tranches' ability to pay off by final maturity. The rating agency has downgraded 92 ratings, affirmed 34 and upgraded five across 49 FFELP student loan ABS sponsored or administered by Navient.

    Moody's says its downgrades are the result of analysis .......

    News Round-up 2 November 2016

  • CMBS partner poached

    Reed Smith has appointed Jodi Schwimmer as a partner in its global financial industry group in New York. She was most recently a partner at Dechert and brings with her two associates integrated into her practice - Samantha Chertoff and Carla Moore.

    Schwimmer's practice focuses on CMBS, real estate finance and structured finance, representing issuers, underwriters, loan sellers and investors .......

    Job Swaps 2 November 2016

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    After a primarily quiet week last week, Friday saw a slight pick-up in volumes, which followed through into Monday in advance of month-end. However, activity across the board remains patchy and is further hampered by European public holidays this week and broader market volatility driven by negative headlines in .......

    SCIWire 2 November 2016

  • Seed investment agreed

    Canada's Public Sector Pension Investment Board (PSP Investments) has announced a €500m seed investment commitment in a new specialist European credit platform promoted by AlbaCore Capital. AlbaCore intends to focus on private and public credit markets where there are significant inefficiencies in pricing, including European high yield, leveraged loans and direct lending. PSP Investments may deploy further capital in partnership .......

    Job Swaps 1 November 2016

  • GSEs announce validation frameworks

    Both Fannie Mae and Freddie Mac have announced new validation tools aimed at making the mortgage origination process smoother for lenders and borrowers, with greatly reduced rep and warranty risk uncertainty. Fannie Mae's programme, which will be fully ready by 10 December, is called Day 1 Certainty.

    Freddie Mac's programme is expected to be ready next spring. Both programmes provide .......

    News 1 November 2016

  • Brazilian CRA warning

    One of Brazil's two main ABS vehicles may present greater risks than another for investors, Fitch says. The agency warns that securitisation companies that issue agribusiness receivable certificates - known as CRAs - are not required to define collateral-performing balances or loss provisions in measuring available credit enhancement to investors and may face regulations in the near term.

    Brazilian ABS .......

    News Round-up 1 November 2016

  • Senior SF lawyer brought in

    Law firm Sullivan & Worcester has added a new partner to its finance group in New York. Joel Telpner was previously at Jones Day and has strong experience in structured finance and derivatives.

    Telpner spent seven years at Jones Day and before that was a partner at Mayer Brown. He also serves on the editorial board of the Journal of .......

    Job Swaps 1 November 2016

  • APAC auto ABS report launched

    Moody's has launched the inaugural edition of its quarterly APAC auto ABS sector update. It is the second structured finance sector update published for the region by the rating agency, following the first China sector update published in September.

    The APAC auto sector update provides updates on the macroeconomic factors and regulations that affect the sector, as well as new .......

    News Round-up 1 November 2016

  • VW settlement ABS 'credit positive'

    Volkswagen has received final approval from a US federal court for a US$14.7bn settlement under which it will offer to buy back, terminate leases on, or repair around 475,000 vehicles affected by its diesel emissions scandal. Moody's believes this settlement is credit positive for the outstanding US auto lease ABS transaction issued by VW Credit as early lease terminations will .......

    News Round-up 1 November 2016

  • CARAT juniors rated

    Moody's has assigned ratings to the previously unrated class E notes of two Ally Financial auto loan ABS. The ratings are based on the quality of the underlying collateral, as well as expected performance, the strength of the capital structures and the experience and expertise of Ally as servicer.

    The affected transactions are Capital Auto Receivables Asset Trust 2014-3 (US$28m .......

    News Round-up 1 November 2016

  • KBRA adds senior md

    Kroll Bond Rating Agency has appointed Mark Miller as senior md of business development and sales. He was most recently at Blackrock, where he served as md in the iShares division, responsible for institutional distribution of fixed income ETFs.

    Miller has also held business development roles at Citi and Bank of America. He spent 20 years at Salomon Brothers and .......

    Job Swaps 1 November 2016

  • Negative coupons 'widespread'

    Negative calculated coupons are now widespread among European securitisation tranches, according to S&P figures. The agency notes that the market last month joined a host of other fixed income asset classes with its first new issuance of tranches at a negative yield.

    "We estimate that calculated coupons are negative for 21% (or nearly €90bn) of the European ABS, CMBS and .......

    News Round-up 1 November 2016

  • Dispositions tick up

    Trepp's October loss analysis shows a continued up-tick in US CMBS loan dispositions. The average loss severity for loans with losses greater than 2% is 63.12% for October, an increase of 3.79 percentage points from September's tally. Average loan size also climbed to its highest level since January at US$15.5m.

    Several large office loans were liquidated last month, backed by .......

    News Round-up 1 November 2016
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