Complete news archive

  • SCI Start the Week - 5 September

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

    Pipeline
    It was another quiet week for the pipeline as the Labor Day weekend came into view. At the final count there were three ABS, one ILS, four RMBS and four CMBS added.

    €800m Ginkgo 2016-PL1, US$533.9m PHEAA Student Loan Trust 2016-1 and US$941.49m WOART 2016-B accounted for the ABS. The ILS was US$250m Nakama Re Series 2016-1.

    US$221.3m .......

    News 5 September 2016

  • ILS start-up names ceo

    Samir Shah has been appointed ceo of Ledger Investing, a start-up that seeks to provide a B2B marketplace for insurance risk securitisations. He will work with the company's founders, cto Aymeric Rabot and coo Julien Brissonneau, as they work towards its next stage of growth.

    Shah brings to the firm his expertise from his last role at AIG, where he was svp .......

    Job Swaps 5 September 2016

  • FRESB loan transferred

    The first significant credit issue to hit a FRESB CMBS occurred last month. The US$3.1m Park Place Apartments loan, securitised in FRESB 2016-SB17, became one-month delinquent and transferred to special servicing.

    Backed by an Elk City, Oklahoma property built in 1985, the loan was originated by Hunt Mortgage in April 2016, according to Wells Fargo structured product analysts. Per the .......

    News Round-up 5 September 2016

  • BlueBay adds senior analyst

    BlueBay Asset Management has hired Marcus Maier-King as a senior credit analyst. In this role, he will leverage his experience in direct investment, mid-market financing, mezzanine, and CLO investments and restructuring. He joins BlueBay from European Capital Financial Services, where he was an investment director.

    .......

    Job Swaps 5 September 2016

  • Retention relief granted

    The US SEC last week provided Sancus Capital Management with a no-action letter in connection with an 'applicable margin reset' (AMR) procedure featuring in its proposed forthcoming CLO. The Commission stated that certain AMR procedures, as described by Sancus, would not constitute an "offer and sale of ABS by an issuing entity" within the meaning of Regulation RR (17 CFR .......

    News Round-up 5 September 2016

  • CLO pay-downs slow

    CLO pay-downs in JPMorgan's CLO index (CLOIE) dropped since the July rebalance through 31 August to US$5.36bn, after a dramatic rise the previous month. This was split between US$3.94bn and US$1.43bn of pre-crisis and post-crisis CLOs.

    The post-crisis CLOs added US$5.5bn with 75 tranches from 15 deals at the July rebalance. Meanwhile, the pre-crisis index returned 1.15%, outperforming its post-crisis .......

    News Round-up 2 September 2016

  • Ischus management affirmed

    Moody's has issued another change of control notice in connection with a Resource America entity, following the firm's merger with C-III Capital Partners (SCI 26 August). The agency confirms that the assignment of the collateral management agreement entered into by GSC ABS CDO 2006-4u, currently managed by Ischus Capital Management, will not negatively impact any of the ABS CDO's ratings.

    Job Swaps 2 September 2016

  • NexPoint targets BDVC takeover

    NexPoint has set out its proposals for a proposed takeover of the Business Development Corporation of America (BDVC), including a permanent 50% reduction of both BDVC's management and incentive fee arrangements. The proposal comes as a counter offer to BSP Acquisition's own outline for purchasing the company and in response to BSP's reluctance to consider NexPoint's approach. 

    NexPoint says its .......

    Job Swaps 2 September 2016

  • Vario adds ex-JPM pair

    Vario Partners has appointed Markus Gesmann as head of research and modelling and Mike Kontaratos as head of investment. The ILS structuring and investment firm says the appointments mean its team of experts is now complete, with all elements now in place to complete transactions and build the Vario funds.

    Gesmass joins from Lloyd's of London, where he led analysis .......

    Job Swaps 2 September 2016

  • MiFID reference service offered

    Trax has launched a MiFID instrument reference data service to assist firms in overcoming the regulatory challenge of correctly identifying reportable instruments. The service, known as Trax MiFID List, provides a view on MiFID I reportable instruments and an early indication of MiFID 2 eligibility.

    Trax says that it is working with its clients to integrate this value-add service into .......

    News Round-up 2 September 2016

  • RMBS hit by servicing transfer

    Moody's has placed the ratings of six certificates from five Mexican RMBS sponsored by Hipotecaria Su Casita on review for downgrade. The move reflects the agency's concerns about the future performance of the transactions, following the servicing transfer from Santander Vivienda to Pendulum.

    The transfer caused a considerable decline in collections for all Su Casita's deals in the month following .......

    News Round-up 2 September 2016

  • CFTC extends swap dealer deadline

    The US CFTC's division of swap dealer and intermediary oversight has issued a no-action letter stating that, in the period up until 3 October 2016, it will not recommend an enforcement action against a swap dealer subject to the 1 September compliance date for its uncleared swap margin rules in the event of failure to comply. Due to certain practical .......

    News Round-up 2 September 2016

  • SIMM facility launched

    ICE Benchmark Administration (IBA) has launched a crowdsourcing facility for the ISDA Standard Initial Margin Model (ISDA SIMM) with the introduction of new margin rules for non-cleared derivatives becoming effective yesterday (1 September). The initiative is already supported by 16 global banks that are submitting risk data to the facility. This number is anticipated to grow alongside industry adoption of .......

    News Round-up 2 September 2016

  • Triple crown

    Rising rates spur CLO resets, equity squeeze

    Rising interest rates are having a three-pronged effect on the US CLO market. Not only are step-up coupons increasingly being refinanced, but CLO debt holders are also benefitting from wider spreads, while CLO equity holders are being squeezed by Libor floors.

    CLO 2.0s structured with triple-A note interest rates that step up over time account for ten of the 13 .......

    News Analysis 2 September 2016

  • Ashurst trio poached

    Paul Hastings has recruited a trio of structured finance partners - Michael Smith, Diala Minott and Cameron Saylor - from Ashurst in London.

    Smith focuses on structured finance, securitisation, capital markets, credit funds and derivatives. He has been involved in the structured finance market for over 20 years and has had a key role in the development of several financial .......

    Job Swaps 2 September 2016

  • US CLOs power on

    The US CLO secondary market powered on through August while most other securitisation sectors experienced something of a summer lull.

    The patterns of activity seen at the start of the month continued through to its close with the CLO rally keeping its momentum amid fairly stable broader markets and sellers still able to find buyers despite high secondary supply volumes. .......

    SCIWire 1 September 2016

  • CMBS defaults anticipated

    More than a quarter of current US non-agency CMBS loans maturing through year-end 2017 will face difficulty refinancing, says Kroll Bond Rating Agency. A spike in maturity defaults is expected in 2Q17.

    KBRA believes 26.1% (US$33.4bn) of loans maturing through year-end 2017 will face difficulty refinancing, based on an analysis of 8,590 current non-agency CMBS loans totalling US$128.2bn with maturity .......

    News 1 September 2016

  • Picking up PACE

    Ygrene seeking to make its mark in ABS

    Ygrene Energy Fund is planning a securitisation before year-end that will offer a unique pool of PACE assets. At the same time, the company has begun building out a team of new recruits to facilitate its long-term securitisation plans.

    Ygrene's chief financial officer, Michael Chan, says that the company is planning to tap the securitisation market some time in 4Q16, .......

    News Analysis 1 September 2016

  • Office Depot closures analysed

    Office Depot's announced plans to shut down 300 stores over the next three years has elevated the risk on US$956.6m in mortgages tied to CMBS, says Morningstar Credit Ratings. The riskiest loans are those with leases expiring before the end of 2018, with either a DSCR below 1.2x or a collateral vacancy rate that falls below 80% if Office Depot were .......

    News Round-up 1 September 2016

  • Dispositions inch up

    August US CMBS disposition volume inched up slightly from July and came in above the six-month average of US$641.6m. Trepp reports that 71 loans totalling US$722.5m were disposed of in August, compared to US$681m in July and US$809.3m in June. Average loan size continues to hover slightly above single digits at US$10.2m.

    Including six smaller loans with a remaining balance .......

    News Round-up 1 September 2016

  • August boost as CLO activity drops

    Secondary CLO activity in 2016 so far is down on 2015 in both TRACE reported volume and BWICs. However, the traditional summer slowdown trend has been bucked, with JPMorgan CLO analysts noting significant activity in August.

    Along with January and November, August has consistently been a quiet month for secondary trading since 2012. In fact, since 2013 it has been .......

    News 1 September 2016
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