Complete news archive

  • Chinese RMBS approach published

    Moody's has published its approach to rating Chinese RMBS using the MILAN framework. The agency will use the approach in conjunction with its existing methodologies to rate RMBS in China.

    The calibration of MILAN for China was primarily driven by benchmarking the Chinese residential real estate market to other jurisdictions that also use MILAN. Moody's says it has used many .......

    News Round-up 16 August 2016

  • Euro defaults hit post-crisis low

    Overall European structured finance credit quality increased in 2015, with the annual default rate falling to its lowest level since 2008, according to S&P's latest annual rating transitions study. Nevertheless, the number of rating downgrades exceeded the number of upgrades.

    S&P had more than 4,800 ratings outstanding on European structured finance securities at the beginning of 2015. Of these securities, .......

    News Round-up 15 August 2016

  • Japanese ratings surge

    S&P's rating of new Japanese securitisations rose by 34.2% year-on-year in 1H16 as negative interest rates spurred new RMBS issuance. The agency assigned ratings to roughly ¥1.33trn during the first half of the year, across 10 new transactions.

    A 43.3% jump in issuance of RMBS - the largest asset class in Japan - helped push up the total issuance figure. S&P says .......

    News Round-up 15 August 2016

  • NPL RMBS approach finalised

    Fitch has finalised its approach for rating RMBS backed by non-performing loans, which leverages its US RMBS seasoned and re-performing loan criteria with respect to loan file documentation, due diligence review scope and sample size, and representations and warranties. However, due to the idiosyncratic and adverse-selection risk, the agency applies a rating cap of single-A to NPL RMBS and expects .......

    News Round-up 15 August 2016

  • SCI Start the Week - 15 August

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

    Pipeline
    The rate of additions to the pipeline has slowed down. Last week there were two new ABS, three RMBS and two CMBS added.

    CNY3bn Fuyuan 2016-2 Retail Auto Mortgage Loan Securitization Trust and Honda Auto Receivables 2016-3 Owner Trust Notes were the ABS, while the RMBS were US$430m JPMMT 2016-2, US$505m Mill City Mortgage Loan Trust 2016-1 and .......

    News 15 August 2016

  • Executive director tapped

    The CRE Finance Council has named Lisa Pendergast executive director. The association says this latest appointment is a significant step in the restructuring of its management team, following the hire of Michael Flood as deputy executive director (SCI 11 May).

    Pendergast brings to CREFC 25 years of industry experience in structured finance markets. Most recently, she was md and head .......

    Job Swaps 15 August 2016

  • Delinquencies inch up

    US CMBS delinquencies increased by 2bp in July to 3.20% from 3.18% a month earlier, according to Fitch's latest index results for the sector. The portfolio run-off of US$7.6bn exceeded Fitch-rated new issuance volume of US$4.1bn from four transactions in June, causing a decrease in the overall index denominator.

    In terms of loan count, 76 loans were resolved in July, .......

    News Round-up 15 August 2016

  • Taurus investment increased

    Chenavari fund Toro recently disclosed that it has increased its investment in an originator - Guernsey LLP Taurus Corporate Financing - in relation to its originated transactions strategy, via two investments of €23m and €12m in loan warehouse transactions. Taurus will act as the originator for and hold risk-retention securities in Chenavari Investment Managers' latest CLO - the €350m Toro .......

    News Round-up 15 August 2016

  • Residential delinquencies at decade low

    The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased by 11bp to 4.66% in 2Q16, according to the Mortgage Bankers Association's latest survey. The rate is 64bp lower than a year ago and the lowest level in exactly ten years.

    The percentage of loans on which foreclosure actions were started during the second quarter was 0.32%, a decrease .......

    News Round-up 12 August 2016

  • Ocwen upgraded to 'average'

    S&P has raised its overall rankings on Ocwen Loan Servicing from below average to average as a residential mortgage primary, subprime, special and subordinate-lien servicer, in a move many investors had been calling for (SCI 10 August). Management and organisation sub-rankings have also been raised from below average to average, and loan administration sub-rankings have been affirmed at average.

    "The .......

    News Round-up 12 August 2016

  • High yield team expanded

    Royal London Asset Management (RLAM) has expanded its global high yield team with four new hires in preparation for the launch of its Multi Asset Credit Fund. The appointments are headed by Khuram Sharih as a fund manager, focusing on leveraged loans and alternative credit.

    The new fund will comprise a directly invested, globally diversified portfolio concentrating on the alternative credit universe. Asset .......

    Job Swaps 12 August 2016

  • SEF acquisition agreed

    Bats Global Markets is set to acquire swap execution facility Javelin SEF. The purchase is intended to accelerate Bats' plans to offer trading of non-deliverable forwards (NDFs) for the FX market.

    Javelin currently offers trade execution for swaps through a combination of an anonymous limit order book and a request for quote model. The transaction is pending regulatory approval, at .......

    Job Swaps 12 August 2016

  • NPL sales exceed 2015 levels

    Sales of European NPLs and non-core assets (NCAs) stand at €112bn of completed and ongoing deals at the end of 1H16, says Deloitte. This already exceeds the €104.3bn for all of 2015.

    Activity has been driven by increased loan sale transactions in continental Europe, particularly in Italy and central and eastern Europe. There has been €14.4bn in completed deals from .......

    News Round-up 12 August 2016

  • BPB deal rated

    Banca Popolare di Bari (BPB) has closed its much-anticipated NPL securitisation, becoming the first bank to make use of the Italian government's GACS guarantee scheme (SCI 30 March). The €150.54m Popolare Bari NPLs 2016 deal is backed by assets with a gross book value (GBV) of €471m and €8.8m of collections.

    Rated by Moody's, the transaction comprises €126.5m Baa1 rated .......

    News Round-up 12 August 2016

  • Treasury successor named

    John Frishkopf is set to retire from NewStar Financial next month, but will remain involved with the firm as an external advisor to provide decision support to the management committee and to advise the board's risk committee on strategic funding matters. He was a founding member of the firm and has served as treasurer and head of its asset management .......

    Job Swaps 12 August 2016

  • CMLS 2014-1 affirmed after wildfires

    Fitch has affirmed all rated tranches of Canadian CMBS CMLS Issuer Corp series 2014-1, including the class G notes, which have been removed from rating watch negative. The rating action reflects the overall stable performance of the pool, in addition to the Clearwater Suites property becoming fully operational after the Fort McMurray, Alberta area was evacuated due to wildfires in .......

    News Round-up 12 August 2016

  • CRT ratings upgraded

    Moody's has upgraded the ratings of 22 tranches from four credit risk transfer RMBS backed by conforming balance loans issued by Fannie Mae and Freddie Mac. The actions are due to the recent performance of the underlying pools and reflect Moody's updated default projections on the collateral and credit enhancement build-up.

    The affected transactions are Connecticut Avenue Securities (CAS) Series .......

    News Round-up 12 August 2016

  • Euro default rate up

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased to 11.9% from 7.3% at the end of July. The delinquency rate for continental European senior loans increased to 59.6% from 58.4%, while the rate for the UK increased to 21.8% from 19.6%. Overall, the senior loan delinquency rate increased to 46.1% from 44.6%.

    .......

    News Round-up 12 August 2016

  • FNMA markets more NPLs

    Fannie Mae is marketing its latest batch of NPLs, including the fifth community impact pool that the GSE has offered to date. The latter is a small US$20.7m pool of 120 high-occupancy loans, focused in Miami, Florida, while there are four larger pools that comprise approximately 6,900 loans totalling US$1.08bn in unpaid principal balance.

    Wells Fargo and The Williams Capital Group are .......

    News Round-up 11 August 2016

  • Bermudan ILS players 'optimistic'

    Bermudan ILS participants are 'optimistic' that the market will continue to grow and diversify, according to a recent survey by the Bermuda Business Development Agency (BDA). Respondents averaged a mark of four out of five in confidence for the market going forwards and pinpoint new products as the best opportunity.

    These potential products include securitising new 'short-tail' lines other than property .......

    News Round-up 11 August 2016

  • Optimistic outlook

    Investors bullish on MPL, but changes needed

    Many interesting topics were raised about the current state and potential future of marketplace lending at SCI's Marketplace Lending and Securitisation Seminar in New York in June. During a panel on investor perspectives, several matters that concern buyers of marketplace loans were discussed.

    The turmoil at Lending Club was initially touched upon during the panel, as well as the subsequent .......

    Talking Point 11 August 2016
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