Complete news archive

  • 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

  • IPO plans 'positive' for CMBS

    Officefirst Immobilien's plans for an IPO on the Frankfurt Stock Exchange before year-end are credit positive for the €468m Taurus 2015-2 DEU CMBS, says Moody's. Officefirst intends to use the proceeds primarily to repay existing debt, but also to convert into a REIT next year.

    The IPO and deleveraging plans would lower refinancing risk for the loan securing Taurus 2015-2 .......

    News Round-up 26 September 2016

  • Monthly CMBS payoffs down

    While payoff rates for CMBS are up for August to 71.3%, from 62.7% in July, they remain below 72% for the fourth month in a row, according to Morningstar Credit Ratings. In a recent report the rating agency finds that while there was a monthly increase, the year-to-date payoff rate for CMBS declined from 76% to 75.4% last month.

    Morningstar expects .......

    News Round-up 26 September 2016

  • Quarterly CMBS prepayments up

    CMBS prepayments have seen an uptick in 3Q16 due to sustained low interest rates and expectations of a rate rise, according to Fitch. The rating agency suggests that this trend is likely to continue into 4Q16.

    Fitch finds that nearly US$18.2bn of loans securitised in legacy conduit transactions between 2006 and 2007 were paid off in 3Q16. Of these, 73% were loan .......

    News Round-up 26 September 2016

  • SCI Start the Week - 26 September

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

    Pipeline
    Pipeline activity seemed elevated again last week. There were eight new ABS added, along with six RMBS, a CMBS and four CLOs.

    The ABS were: €355.2m Cars Alliance Loans France Master Series 2016-09; US$439m DT Auto Owner Trust 2016-4; €513.6m E-CARAT Compartment 9; £138m Marketplace Originated Consumer Assets 2016-1; US$250m Navistar Financial Dealer Note Master Owner Trust II .......

    News 26 September 2016

  • Chinese NPL trio prepped

    Three Chinese issuers are in the market with NPL securitisations (see SCI pipeline). One of them - China Construction Bank - only made its debut in the asset class last week.

    China Construction Bank is joined by China Merchants Bank and the Industrial and Commercial Bank of China (ICBC). China Construction Bank's next offering is sized at CNY1.56bn. The ICBC .......

    News Round-up 26 September 2016

  • Biggest PACE deal issued

    Renovate America is in the market with its eighth securitisation of PACE bonds. Dubbed HERO Funding 2016-3, the US$320.3m deal is the largest such green bond deal completed to date by any issuer.

    Both Kroll Bond Rating Agency and DBRS have assigned ratings of double-A to the class A1 and A2 notes. Moody's has also assigned its highest Green Bond .......

    News Round-up 23 September 2016

  • FpML recommendations published

    ISDA has published recommendations for an updated version for Financial products Markup Language (FpML). The latest version - FpML 5.9 - focuses on regulatory reporting in response to several regulatory developments in the US and Europe.

    These developments include the SEC's security based swaps reporting requirements and clarification on the reporting obligations from the EU's revised MiFID II/MIFIR. It also .......

    News Round-up 23 September 2016

  • Mexican RMBS ratings amended

    Moody's has changed the ratings on several Mexican RMBS transactions to reflect a correction to its cash flow modelling.

    The upgrades consist of certificates from METROCB 06U, from Caa3 to Caa2. This primarily results from a correction to the cash flow waterfall model used to rate this transaction. This led to an increase in the available excess spread to make .......

    News Round-up 23 September 2016

  • CMBS loan collateral value drops

    The value of the collateral behind the US$57.5m PNC Corporate Plaza loan has reduced sharply, notes Trepp. The servicer had previously been posting the securitisation value of US$78.4m, but last month that was reduced to US$37.5m.

    The property is a 29-storey office building in Louisville, Kentucky, built in 1972 and renovated in 2003. It is collateralised in WBCMT 2007-C30.

    PNC .......

    News Round-up 23 September 2016

  • Bank shuffles SF pros

    Credit Suisse has made a series of changes to its asset finance team, with a number of structured finance pros changing roles. Among the changes, Jay Kim has been promoted to global head of structured products.

    Kim's promotion follows the appointment of Brian Chan, former co-head of credit and securitised products, to the firm's board with the new role of .......

    Job Swaps 23 September 2016

  • Commercial mortgage defaults down

    US commercial mortgage annual loan defaults have continued to decline from their 2010 peak, with Kroll Bond Rating Agency noting defaults declined 26% in 1H16, falling to 199. Over the same period last year, the number was 268.

    Kroll's study includes 92,415 commercial real estate loans primarily originated for securitisation between 1995 and June 2015. Of these, through June 2016, .......

    News Round-up 22 September 2016

  • Autos see credit deterioration

    US auto loan and lease credit performance is likely to continue to deteriorate in 2H16 and into 2017, according to Fitch. The rating agency says that year-over-year credit performance deteriorated for auto lenders in 1H16, despite improved loss rates in 1H16 relative to 2H16, which the agency attributes to seasonality.

    Despite this credit deterioration, Fitch adds that its rated auto .......

    News Round-up 22 September 2016

  • Settlement talks watched closely

    Final settlements reached by European banks with the US Department of Justice (DoJ) for the issuance and underwriting of RMBS are likely to be far lower than the DoJ's US$14bn opening position in relation to Deutsche Bank (SCI 16 September), says Fitch. Deutsche Bank has already made the point that US peer banks settled for far lower sums than the .......

    News Round-up 22 September 2016

  • CLO market 'focus on technicals'

    The US CLO market is focussed on technicals, with fundamentals and credit concerns taking a back seat, according to Wells Fargo analysts. They add that the outlook for continued or increasing overseas investment in CLOs remains a primary concern.

    While many industry participants at this week's ABS East conference are bullish on Q4 spread tightening, the Wells Fargo analysts comment .......

    News Round-up 22 September 2016

  • Record involvement for new CIRTs

    Fannie Mae has completed two more credit insurance risk transfer (CIRT) transactions, worth US$14.4bn. The company has now transferred a portion of the credit risk on US$759bn in single-family mortgages, with its latest deals attracting a record number of reinsurers.

    CIRT 2016-7 and CIRT 2016-8 shift a portion of the credit risk on pools of single-family loans to insurers and .......

    News Round-up 22 September 2016

  • Reported CLO WAS levels diverging

    Deal-reported weighted average spread (WAS) of collateral in European CLOs has been rising, while for US CLOs it has been falling. This has pushed WAS test cushions close to breaching for US CLOs and is expected to impact equity cash distributions.

    Unlike computed WAS, reported WAS typically includes the Libor-floor benefit. While the reported WAS in US CLOs has been .......

    News 22 September 2016

  • Dock Street brought in for CRE CDO

    Dock Street Capital Management has been named as replacement collateral administrator to JPMorgan-CIBC 2006-RR1. Under the terms of the appointment, Dock Street will now assume all responsibilities, duties and obligations of the collateral manager under the applicable terms of the collateral administration agreement.

    Moody's says there will be no rating impact, in part due to Dock Street's experience and capacity to .......

    Job Swaps 21 September 2016

  • Threshold extension requested

    Timothy Massad, CFTC chairman, has recommended a one-year extension to the swap dealer de minimis threshold to December 2018. Currently the swap deal de minimis threshold comes into effect in January 2017, whereby the threshold will drop from US$8bn to US$3bn. Massad says that the extension will give the CFTC more time to consider this "critical decision".

    The de minimis .......

    News Round-up 21 September 2016

  • Delinquencies down for Italian SME ABS

    Total delinquencies of Italian SME ABS have decreased from April 2016 to July 2016, from 6.2% to 5.1%, Moody's says. However, the 60-90 day delinquency rate has increased slightly over the same period, from 0.3% to 0.6%.

    The rating agency notes that constant prepayment rates increased from 4.5% to 6.1% between April 2016 and July 2016. As of July 2016, .......

    News Round-up 21 September 2016

  • ICE meets EMIR standards

    The Bank of England has authorised ICE Clear Europe as a CCP in accordance with EMIR. It says that ICE has demonstrated that the clearinghouse's governance, operations, risk management, treasury and banking infrastructure are EMIR compliant.

    "ICE Clear Europe is delighted that our clearing operations have been authorised by the Bank of England in line with the requirements of EMIR .......

    News Round-up 21 September 2016
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