Complete news archive

  • Model-implied tool launched

    Fitch has launched a new online tool that will enable investors to conduct their own model-implied rating analysis on underlying loan level portfolios backing RMBS. Dubbed 'Resi Investor', the tool acts as an overlay to Fitch's RMBS presale reports, providing investors with a combination of the agency's own credit analysis and their own preferred scenario testing.

    The solution allows investors .......

    News Round-up 13 October 2016

  • Euro ABS/MBS active

    The European ABS/MBS secondary market is staying active this week.

    "The busy primary market is taking a lot of attention, but there's still a lot of activity in secondary," says one trader. "That activity mainly surrounds bid lists where we're seeing bonds from all sectors and up and down the capital structure. For the most part those lists are being .......

    SCIWire 13 October 2016

  • Duration guidelines finalised

    The EBA has published final guidelines on corrections to modified duration (MD) for debt instruments, which set out what type of adjustments to the MD - as defined by the Capital Requirements Regulation (CRR) - have to be performed in order to appropriately reflect the effect of prepayment risk. The guidelines will contribute to the implementation of the European Commission's securitisation package .......

    News Round-up 12 October 2016

  • Accounting provisions paper published

    The Basel Committee has released a consultative document and discussion paper on policy considerations regarding the regulatory treatment of accounting provisions under the Basel 3 capital framework. This follows the adoption of provisioning standards based on expected credit loss (ECL) by the IASB and FASB.

    The Committee supports the use of ECL approaches and encourages their application in a manner that will .......

    News Round-up 12 October 2016

  • Pari passu loans proliferating

    A combined US$64.1bn (original balance) of pari passu loans have been issued across single-asset/single-borrower (SASB) and conduit CMBS 2.0 deals, according to Deutsche Bank figures. US$52bn of the loans were securitised in conduit CMBS and account for 20% of total US CMBS volume since 2010.

    "Smaller deal sizes - declining from US$1bn-plus to US$854m in 2016 - have coincided with .......

    News 12 October 2016

  • Cross-border thresholds proposed

    The US CFTC has voted to propose rules and interpretations addressing the application of certain swap provisions of the Commodity Exchange Act and regulations to cross-border transactions. The proposal defines key terms for cross-border transactions and addresses the cross-border application of the registration thresholds and external business conduct (EBC) standards for swap dealers and major swap participants. It also addresses .......

    News Round-up 12 October 2016

  • Hurricane Matthew exposure eyed

    KBRA has identified 1,307 properties that secure 1,016 loans with an aggregate allocated loan balance of US$14.5bn across 157 CMBS that have exposure to Hurricane Matthew. Almost 90% of the properties were located in Florida (accounting for 59%), North Carolina (18%) and South Carolina (12%).

    To identify the potentially affected CMBS collateral, KBRA queried its database of rated CMBS transactions, .......

    News Round-up 12 October 2016

  • Conn's re-offers notes

    Conn's has entered into an agreement to sell the previously retained class C notes issued as part of its Conn's Receivables Funding 2016-A consumer ABS from March (see SCI's new issue database). The face amount of the class C notes is approximately US$70.5m and Conn's will receive upfront proceeds of around US$71.5m, net of transaction costs.

    The notes .......

    News Round-up 12 October 2016

  • Data error reviewed

    Moody's has placed the ratings of eight tranches from four RMBS issued by Nationstar HECM Loan Trust on review with the direction uncertain. Affecting US$278m of securities, the action follows notification of incorrect data provided by Nationstar when Moody's assigned its ratings.

    The affected transactions are Nationstar HECM Loan Trust 2015-2, 2016-1, 2016-2 and 2016-3. Nationstar informed Moody's on 4 .......

    News Round-up 12 October 2016

  • Reperforming loans up for bid

    Fannie Mae has begun marketing its first sale of reperforming loans, as part of its ongoing effort to reduce the size of its retained mortgage portfolio. The pool of approximately 3,600 loans, totalling US$806m in unpaid principal balance, is available for purchase by qualified bidders

    The terms of Fannie Mae's reperforming loan sale require the buyer to offer sustainable loss .......

    News Round-up 12 October 2016

  • CLO vet poached

    Brian Horton has joined Onex Credit as a portfolio manager. He will work with fellow portfolio manager Paul Travers to continue growing the firm's CLO platform.

    Horton was previously md, portfolio manager at Covenant Credit Partners. Before that, he was svp, senior portfolio manager at ING Investment Management.

    .......

    Job Swaps 12 October 2016

  • Excess baggage

    Reg AB 2 loan-level disclosures weighed

    Loan-level disclosure requirements under Regulation AB 2 are expected to have a limited impact on ABS issuers and investors when they come into effect on 23 November. While the rules aim to boost deal transparency, scepticism prevails about the value they will bring.

    There has been much speculation about the preparedness of market participants in terms of providing and handling .......

    News Analysis 12 October 2016

  • Mall performance gauged

    Regional mall liquidations amounting to US$3.89bn have since 2010 resulted in US$2.88bn in CMBS losses, or a 74% loss severity, according to Morningstar Credit Ratings. The agency estimates that a further US$3.81bn (or 7.8% of the balance) of loans backed by malls are in special servicing, while US$2.82bn are scheduled to mature through next year, many of which are likely .......

    News 11 October 2016

  • Debut collateral trade executed

    Elixium, a multilateral trading facility (MTF) for collateral and secured deposits, has executed its first collateral financing transaction between buy-side collateral and liquidity providers. Citibank executed on behalf of CME Clearing Europe as cash management agent, while Insight Investment executed on behalf of a UK pension fund.

    Elixium hopes to provide participants in the repo market with collateralised liquidity on .......

    News Round-up 11 October 2016

  • Law firm poaches ILS pro

    Dentons has hired John Sarchio as partner in its insurance regulatory practice. He will advise on insurance industry mergers, acquisitions and financings, reinsurance transactions, self-insurance and captive programmes and insurance regulatory consulting and compliance.

    Sarchio has a range of experience, including insurance securitisations, catastrophe bond transactions and other insurance-linked securities transactions, and has previously counseled state and foreign governments on .......

    Job Swaps 11 October 2016

  • Investor nabs loans vet

    NN Investment Partners has hired Gabriella Kindert to its alternative credit boutique. She will be responsible for all illiquid fixed income strategies, including real estate, corporate private debt, project finance and commercial real estate loans.

    Kindert has over 20 years' experience in banking and asset management and has held several managerial positions with firms, including MeersPierson and BNP Paribas, where .......

    Job Swaps 11 October 2016

  • Chinese slowdown APAC's 'biggest issue'

    The slowing Chinese economy is the major issue for the Asia Pacific securitisation and covered bond markets in the next 6-12 months, according to Moody's. The agency's comments are based on the responses from a survey undertaken at its recent Asia Pacific Structured Finance Conference in Singapore.

    The other major factors cited by respondents were the outcome of the US elections in .......

    News Round-up 11 October 2016

  • Manager replacement mooted

    A meeting of the Stanton MBS I controlling class has been convened for 31 October to pass an extraordinary resolution that would see Cairn Capital replace Cambridge Place Investment Management (CPIM) as the ABS CDO's third collateral manager. Instead of receiving direction in writing from at least a majority of the controlling class, the trustee is seeking direction from two-thirds .......

    Job Swaps 11 October 2016

  • Defaults continue climbing

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased to 29.8% from 24.4% at end-September. The delinquency rate for continental European senior loans increased to 67.8% from 63.9%, while the rate for the UK increased to 32.7% from 25.4%. Overall, the senior loan delinquency rate increased to 54.5% from 50%.

    .......

    News Round-up 11 October 2016

  • Illiquid credit head hired

    ICBC Standard Bank has appointed Juliano Mattar to the newly created role of head of investor sales - local markets and illiquid credit. He is tasked with developing and managing the distribution of primary and secondary illiquid credit instruments, as well as emerging market rates and FX products to investors globally.

    Reporting to Guido Haller, head of financial markets at .......

    Job Swaps 11 October 2016

  • European issuance tracked

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest data snapshot of the sector - a decrease of 46.4% from 2Q16 (€75bn) and 30.2% from 3Q15 (€57.6bn). Of this, €16bn was placed (representing 39.8%), compared to €29.3bn placed in 2Q16 (representing 39.1% of €75bn) and €18.6bn placed in 3Q15 (32.3% of €57.6bn).

    UK RMBS led .......

    News Round-up 11 October 2016
×