Complete news archive

  • EBA clarifies EU default definition

    The EBA has published its final guidelines specifying the application of the definition of default across the EU, as well as its final draft regulatory technical standards (RTS) on the materiality threshold of past due credit obligations. Both the guidelines and RTS will harmonise the definition of default across the EU.

    The guidelines clarify all aspects related to the application .......

    News Round-up 29 September 2016

  • Indian MBS PTCs surge

    The surge in securitisation activity in India last year has continued into 1Q16, boosted by renewed interest in MBS PTCs, according to a report from Crisil. The agency adds that the general securitisation growth is due to clarity on distribution tax and because of banks shifting to quarterly, rather than annual, assessment of priority sector lending targets.

    Of total issuance .......

    News Round-up 29 September 2016

  • STACR liquidity boost

    Fitch recently assigned ratings to seven previously unrated notes from seven Freddie Mac STACR RMBS issued between 2013 and 2014, after its similar action last month in respect of seasoned CAS transactions (SCI 31 August). The market is expected to respond favourably to the move, as the newly rated STACR bonds are now eligible to investors that are mandated to .......

    News 29 September 2016

  • Reporting service launched

    Moody's Analytics has launched Regulatory Reporter, a web-based tool designed to enable auto loan and lease ABS issuers comply with new asset-level reporting regulations under Reg AB 2. The solution generates a transaction report in the XML file format required by the US SEC and automatically reconciles key fields between loan level and pool level data. It also includes workflow .......

    News Round-up 29 September 2016

  • Portfolio co-investment agreed

    Arrow Global Group has acquired an additional specialist servicing capability and entered into a five-year servicing agreement in the Netherlands. As part of the investment, it will also co-invest in a secured loan portfolio with a face value of around €1.7bn (across 9,300 loans).

    The transaction sees Arrow Global partner with an existing strategic fund partner, CarVal Investors, to acquire .......

    Job Swaps 29 September 2016

  • Euro ABS/MBS keeps steady

    It continues to be a steady week in the European ABS/MBS secondary market.

    The run in to month end continues to be a steady if unspectacular one in terms of volumes on- and off-BWIC. Nevertheless, ever-improving macro sentiment this week and a growing new issue pipeline continue to ensure secondary spreads remain firm across the board.

    There are currently three .......

    SCIWire 29 September 2016

  • Ex-RMBS trader suspended

    The US SEC has instituted public administrative and cease-and-desist proceedings against Nicholas Bonacci, due to misleading conduct while working as an RMBS trader at Morgan Stanley. He has agreed to pay a civil money penalty of US$100,000 to the general fund of the US Treasury.

    The Commission alleges that on certain occasions in 2012, Bonacci misled Morgan Stanley's customers with .......

    Job Swaps 28 September 2016

  • Sherwood CDO manager replaced

    Dock Street Capital Management has replaced Church Tavern Advisors as collateral manager for Sherwood Funding CDO II. Under the terms of the appointment, Dock Street agrees to assume all the responsibilities, duties and obligations of the collateral manager under an amended and restated portfolio management agreement as well as the applicable terms of the collateral administration agreement.

    Moody's has determined .......

    Job Swaps 28 September 2016

  • Documentation tool offered

    Thomson Reuters and Clifford Chance have paired up to help financial institutions tackle in an efficient manner their regulatory obligations relating to margin rules for uncleared OTC derivatives. Using an innovative approach to contract negotiation, the partnership offers a scalable technology-enabled solution for generating compliant documentation.

    Under the agreement, Thomson Reuters will apply its proprietary contract automation software - Contract .......

    News Round-up 28 September 2016

  • RMBS downgraded on weak performance

    Fitch has downgraded 14 tranches and affirmed 16 tranches across four TDA RMBS and Santander Hipotecario 3. The move reflects the weak performance of the affected transactions.

    The underlying pools of the TDA transactions are partially backed by loans originated by Credifimo, a specialised lender targeting mainly non-prime low income borrowers. As of the latest reporting dates, cumulative gross defaults .......

    News Round-up 28 September 2016

  • Japan RMBS performance 'strong'

    Japanese RMBS performance remained strong in 2Q16 and was unaffected by the Kumamoto earthquake, reports Moody's. Deals rated by the agency continued to exhibit low delinquency and default rates, while the prepayment rate hit a record high.

    Moody's-rated Japanese RMBS has limited exposure to mortgages on properties in the Kumamoto prefecture and Kyushu region. Performance is expected to remain stable .......

    News Round-up 28 September 2016

  • Product development head hired

    US Bank has hired James Ferguson to lead global strategies and product development for its securities services division, based in New York. In his new role, Ferguson is tasked with building product and service offerings more broadly - including the bank's European offerings - to deliver a more unified client experience.

    Most recently, Ferguson was the executive director and global .......

    Job Swaps 28 September 2016

  • NCUA suits resolved

    RBS has reached a final settlement with the NCUA to resolve two outstanding civil lawsuits for US$1.1bn. The settlements relate to two RMBS cases that assert claims on behalf of US Central Federal Credit Union and Western Corporate Federal Credit Union.

    The bank says the settlement amount is substantially covered by existing provisions, as of 30 June 2016, and will .......

    Job Swaps 28 September 2016

  • Fifth community impact NPL pool sold

    Fannie Mae has successfully sold its fifth community impact pool of NPLs. The winning bidder on the pool was The Community Loan Fund of New Jersey, which is an affiliate of New Jersey Community Capital.

    The transaction is expected to close on 22 November and includes 120 loans secured by properties located in the Miami, Florida area with an unpaid .......

    News Round-up 28 September 2016

  • US CLOs limited

    The US CLO secondary market is yet to experience the usual post-conference volume boom.

    "Everyone's now back from ABS East, but unusually for just after a conference supply is fairly limited," says one trader. "A lot of people are hesitating and still trying to figure out where we're going from here, even though there's seems to be plenty of real .......

    SCIWire 27 September 2016

  • Internalisation agreement inked

    RAIT Financial Trust has entered into a definitive agreement to sell its subsidiary Independence Realty Advisors - the external advisor of Independence Realty Trust (IRT) - and certain assets of Jupiter Communities to IRT for US$43m in a transaction to permit IRT to internalise its advisor and property management functions. In addition, RAIT has agreed to sell back to IRT .......

    Job Swaps 27 September 2016

  • Flow-basis deal debuts

    Freddie Mac is rolling out a new front-end credit risk transfer offering dubbed Freddie Mac Deep MI CRT. Through a forward credit insurance policy provided by a panel of mortgage insurance company affiliates, this pilot structured transaction provides additional coverage beyond the primary mortgage insurance on 30-year fixed-rate mortgages with 80%-95% LTVs, which is placed immediately upon their sale to .......

    News Round-up 27 September 2016

  • Airbag recall raises loss risk

    Auto lease ABS have meaningful exposures to the recall of faulty Takata-manufactured airbags, notes Moody's. Auto loan ABS have only minimal exposure, but the lease sector is particularly affected due to the timing of when the leases backing outstanding transactions will mature, compared with when vehicle fixes occur and replacement parts are available.

    "The timing of vehicle fixes versus the .......

    News Round-up 27 September 2016

  • RFC issued on tobacco ABS

    Moody's has issued a request for comment on proposed changes to its rating methodology for tobacco settlement revenue securitisations. The proposals take into account an October 2015 settlement between New York state, certain tobacco companies and the pace of arbitration proceedings involving other US states and territories.

    The agency highlights that the October 2015 New York settlement resolved the NPM .......

    News Round-up 27 September 2016

  • Treasure hunt

    Investors seek other assets as UK RMBS shrinks

    The UK RMBS universe is set to shrink throughout 2016, exacerbated by limited supply and the redemption of the €4.4bn Aire Valley master trust. Against this backdrop, other sectors could benefit from excess investor cash.

    Paragon Group, for one, recently announced that it will not be issuing further RMBS this year. Clayton Euro Risk strategic projects head Simon Collingridge notes .......

    News Analysis 27 September 2016

  • Euro ABS/MBS starts slowly

    The European ABS/MBS secondary market has started the week slowly.

    Softer broader markets meant a dip in activity across ABS/MBS sectors yesterday. However, they remain insulated from the weaker sentiment elsewhere and secondary spreads generally held firm.

    In contrast, the previous few sessions saw robust activity boosted by a positive response to comments from the Fed. Decent two-way flows, with .......

    SCIWire 27 September 2016
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