Complete news archive

  • 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

  • Securitisation revival supported

    The European Parliament is due to discuss proposed amendments to the draft regulation for simple, transparent and standardised (STS) securitisation today. Ahead of this exchange, eight European trade associations have released a paper highlighting the importance of securitisation for jobs and growth in Europe and underlining their commitment to supporting a safe and sustainable market that serves the real economy.

    News Round-up 11 October 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid in the face of strong supply.

    Yesterday was relatively slow thanks to the US public holiday, but last week was busy up until with Friday's close as BWICs across ABS/MBS and CLOs continued to emerge as investors sought to make room for the current hefty amount of new issuance. With much of the .......

    SCIWire 11 October 2016

  • Changing places

    Consultancies driving European valuation recruitment

    Valuation consultancies have been a key recruitment growth area over the past year - either through incumbent firms expanding their headcount or as a result of new market entrants. Valuations-based hiring at sell-side institutions is also active for roles that cannot be offshored, although opportunities are more limited, given banks' prevailing efforts to cut costs.

    The expansion of European valuation .......

    News Analysis 10 October 2016

  • Delinquencies inch up

    US CMBS delinquencies climbed slightly higher last month, largely due to the shrinking denominator, according to Fitch's latest index results for the sector. Loan delinquencies rose by 3bp in September to 3.18% from 3.15% a month earlier.

    Resolutions of US$541m edged out new delinquencies of US$511m. However, delinquencies rose overall due to a US$9bn portfolio run-off that significantly exceeded Fitch-rated .......

    News Round-up 10 October 2016

  • Canadian housing data prioritised

    In its 2016-2020 Corporate Plan, the Canada Mortgage and Housing Corp (CMHC) prioritised identifying gaps in Canadian housing market information to support insightful analysis and housing-related decisions. S&P considers this 'data gap initiative' to be a positive step towards reducing the Canadian residential mortgage market information gap.

    This information gap exists due to the limited public availability of detailed performance .......

    News Round-up 10 October 2016

  • Combo note criteria updated

    Moody's has updated its methodology for rating securities backed by both secured debt and equity tranches of CLOs, following a request for comment on its proposals (SCI 2 August). The updated methodology aims to account for the risks associated with a potential refinancing of the CLO secured debt tranches in such securities and will result in the ratings of a .......

    News Round-up 10 October 2016

  • SCI Start the Week - 10 October

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

    Pipeline
    The pipeline was once again dominated by auto-related ABS last week. Trios of CMBS and RMBS were also announced.

    The auto ABS that entered the pipeline were: US$206.34m CPS Auto Receivables Trust 2016-D, Securitized Term Auto Receivables Trust 2016-1, €742.5m VCL 24 and US$550m Westlake Automobile Receivables Trust 2016-3. The US$147.1m Oportun Funding IV series 2016-C and US$250m .......

    News 10 October 2016

  • VALET exposure eyed

    Fitch has affirmed its ratings on and maintained stable outlooks for Volkswagen Auto Loan Enhanced Trust series 2014-2, 2014-1, 2013-2 and 2013-1, as the transactions continue to perform within its cumulative net loss expectations. However, the agency warns that there are large exposures to the vehicles affected by the VW emissions scandal in each pool, which could have a significant .......

    News Round-up 7 October 2016

  • Spread divergence highlighted

    Moody's reports that three-quarters of the 2006-2007 vintage CLOs it rates have junior note coupons that exceed their portfolio WAS. Further, current OC levels for seven of these transactions are not high enough to significantly reduce the risk of future interest coverage test failures, given the expected fall in WAS-WAC difference and the performance of the underlying portfolios.

    CLO junior .......

    News Round-up 7 October 2016

  • Deleveraging opportunity

    Iain Balkwill, partner at Reed Smith, argues that securitisation is the answer to European NPL woes

    The balance sheets of European banks are currently stocked with huge volumes of non-performing loans (NPLs), which have largely festered while the banks have channelled their efforts towards recapitalisation. As recently demonstrated by the European Banking Authority stress tests, balance sheets have largely been strengthened, which has precipitated a marked shift in focus towards deleveraging the banks through the off-loading .......

    Talking Point 7 October 2016

  • What's in a name?

    Classification confusion constraining MPL ABS

    Uncertainty over how to define marketplace loans - as securities or whole loans - is restricting securitisation of the assets. However, the US SEC could be considering classifying marketplace loans as securities, signalled by the announcement of its upcoming fintech forum.

    Unresolved regulatory issues continue to plague the marketplace loan sector, with issues over true lender status and the Madden .......

    News Analysis 7 October 2016

  • CLO expertise added

    Amherst Pierpont Securities has hired Erez Biala as md and head of structured credit trading and origination. He is tasked with establishing the firm's structured credit trading and origination platform and will lead its efforts to capitalise on current market opportunities in the CLO and related structured credit markets.

    In particular, Biala will be responsible for growing Amherst Pierpont's presence .......

    Job Swaps 7 October 2016

  • US CLOs patchy

    Volumes have been patchy in the US CLO secondary market this week.

    "Yesterday there were a decent amount of BWICs and they traded well," says one trader. "Today is back to being pretty quiet again as it was earlier in the week."

    Quieter days are a result of no more than participants taking pause after the active summer and strong .......

    SCIWire 6 October 2016

  • Seller-financed deal debuts

    Amherst is in the market with its inaugural single-family rental securitisation, dubbed AMSR 2016-SFR1 Trust. The US$489.3m transaction - which is backed by a single floating-rate loan secured by mortgages on 4,262 properties owned by Altisource Residential Corporation (RESI) - is noteworthy for its unique structure.

    The securitisation is part of a seller-financed transaction, whereby Amherst sold the properties securing .......

    News 6 October 2016

  • Endurance acquisition announced

    SOMPO has announced a US$6.3bn acquisition of Endurance, the owner of ILS fund manager Blue Capital Management. The agreement involves a 100% acquisition of the outstanding ordinary shares of Endurance by SOMPO for US$93 per share.

    The deal has been approved by the board of directors of Endurance and is subject to Endurance shareholder approval at a shareholders' meeting. It .......

    Job Swaps 6 October 2016

  • Citi settlement payouts due

    RMBS trustees involved in the US$1.125bn Citi R&W settlement received IRS approval last month. The expert allocation report was also distributed to bondholders, detailing calculations of the allocable share of the settlement payment for each loan group in each accepting trust. Citi is expected to make the settlement payment to trustees in mid-October, with bondholders therefore likely to receive settlement .......

    Job Swaps 6 October 2016

  • NPL offerings auctioned

    Freddie Mac has sold via auction 5,364 deeply delinquent non-performing loans from its mortgage-related investments portfolio (SCI 12 September). Pretium Mortgage Credit Partners I Loan Acquisition, Upland Mortgage Acquisition Company II and Rushmore Loan Management Services were the winning bidders.

    The loans are currently serviced by either Wells Fargo Bank or Ditech Financial. The transaction is expected to settle in .......

    News Round-up 6 October 2016

  • ASF adds policy pro

    Robert Gallimore is set to join the Australian Securitisation Forum in the role of policy executive. His responsibilities will include working with ASF members on developing policy positions, as well as other member engagement matters.

    Most recently, Gallimore was a director - primary markets at RBS, and before that held the role of senior corporate counsel at ABN AMRO. He .......

    Job Swaps 6 October 2016

  • Valuations exec recruited

    CBIZ Valuation Group has recruited Karl D'Cunha as md - portfolio valuation. His practice will include performing valuations of portfolios of illiquid securities, as well as working with asset management companies on other valuation and transaction advisory matters.

    D'Cunha has over 19 years of experience in managing a wide range of financial advisory projects, including complex valuation engagements, M&A advisory .......

    Job Swaps 6 October 2016

  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up.

    "There's a fair bit of primary supply at the moment and we're now seeing some rotation activity off the back of that," says one trader. "As a result, there's been a pick up in sellers in the last few days."

    Nevertheless, the trader adds: "That paper has been digested easily .......

    SCIWire 6 October 2016
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