Complete news archive

  • 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

  • Mixed quarter for Euro CLOs

    The European CLO market came to a brief halt at the end of June, notes S&P in its 2Q16 European CLO performance index report, as investors absorbed the uncertainty created by the result of the UK's referendum on EU membership. Issuance still managed to climb year-on-year, however.

    The second quarter saw market pricing tighten from 150bp to 128bp, and it .......

    News Round-up 11 August 2016

  • Morgan Stanley begins RMBS payments

    Morgan Stanley has begun fulfilling its consumer relief obligations under the terms of its settlement with New York State (SCI 12 February). The settlement concerns failed RMBS sold in the lead-up to the financial crisis.

    Under the terms of the settlement, Morgan Stanley will pay US$550m - including consumer relief of US$400m - to be distributed by the end of September 2019. .......

    News Round-up 11 August 2016

  • Basel 3 impact analysed

    The Global Financial Markets Association (GFMA) has released a new report on the interaction, coherence and overall calibration of post-financial crisis regulatory reform measures agreed upon, or under active consideration, by the Basel Committee. Commissioned from Oliver Wyman, the primary objective of the report is to consolidate and interpret the large and growing base of research on these reforms, in .......

    News Round-up 11 August 2016

  • ABS syndicate head poached

    Mick Wiedrick is set to join BNP Paribas in October as head of ABS syndicate in New York. In the new role, he will help the bank build its client relationships in areas that include auto, equipment and fleet lease ABS.

    Wiedrick joins from JPMorgan, where he was an executive director on the bank's ABS and CMBS syndicate desk. Prior to .......

    Job Swaps 11 August 2016

  • Money market tranches touted

    The basis between money market ABS tranches (MMABS) and corporate CP appears to be widening ahead of the implementation of money market reforms in the US in October. Against this backdrop, Wells Fargo structured product strategists believe that MMABS offers good relative value for the credit risk taken.

    MMABS yields have historically been closely aligned with three-month Libor, which has .......

    News 11 August 2016

  • Investors rally to Ocwen

    RMBS investors in deals serviced by Ocwen are holding meetings in the wake of the publication of an open letter from United Capital Markets ceo John Devaney to S&P. The letter and investors argue that Ocwen has outperformed its peers and that any transfer of servicing away from Ocwen would be seriously detrimental, strongly criticising Gibbs & Bruns for pursuing .......

    News 10 August 2016

  • Investment property underwriting eyed

    Investment property mortgages underwritten to property cashflows pose unique risks relative to similar loans underwritten to borrower personal income, Moody's notes. However, the agency adds that they also have distinct potential strengths.

    Some lenders are originating mortgages secured by individual single-family rental (SFR) properties using underwriting based on mortgage payments relative to property-level rental incomes - property debt-to-income ratios - .......

    News Round-up 10 August 2016

  • Charlesbank branches out

    Charlesbank Capital Partners is broadening its mandate to encompass credit markets, beginning with the recruitment of Sandor Hau as principal and Matthew Jacobson as md. The pair join the company's investment team to help lead the initiative as a supplemental pursuit from its primary focus on private equity.

    Hau joins from Nomura, where he was md and head of corporate credit and special situations. In .......

    Job Swaps 10 August 2016

  • CRE secondary markets ranked

    Austin, Texas is ranked top MSA in a recent Trepp study of US CRE secondary markets. Out of the markets measured by the data firm, Austin provides the lowest unemployment rate and highest average DSCR.

    Denver, Colorado came second in the study, as the market generated the highest growth in CMBS originations and third-highest net operating income (NOI) growth for area .......

    News Round-up 10 August 2016

  • MI cancellation rates examined

    Mortgage insurance (MI) cancellation rates across GSE credit risk transfer (CRT) RMBS remain low, according to a new KBRA analysis. The agency suggests that this could be due to limited loan seasoning, given the sector's short history.

    Nevertheless, KBRA expects MI cancellation rates to occur sooner and at higher rates where significant home price appreciation (HPA) has been or will .......

    News Round-up 10 August 2016

  • MSR partnership inked

    New Residential Investment Corp and Walter Investment Management Corp have entered into a strategic partnership, encompassing MSR purchase and sale agreements, as well as a forward flow arrangement. The move is designed to help both firms achieve their shared objectives of growth and improved earnings with lower risk.

    Under the agreement, New Residential is set to purchase from Walter approximately .......

    Job Swaps 10 August 2016

  • Third manager nominated

    A third collateral manager has been put forward to replace CWCapital Investments as manager of Gramercy Real Estate CDO 2007-1 (SCI passim). The holders of a majority of the CRE CDO's controlling class have nominated Cairn Capital Management North America as successor collateral manager on the deal. Noteholders that wish to object to the appointment are requested to notify the .......

    Job Swaps 10 August 2016

  • Post-crisis Greek CLO emerges

    National Bank of Greece (NBG) has completed the first Greek SME securitisation since 2007. The transaction, Sinepia, will enable the bank to raise up to €300m of medium-term financing.

    The senior tranches of the CLO were placed with the European Investment Bank, European Investment Fund and European Bank for Reconstructions and Development (EBRD). The senior notes - rated double-B by S&P .......

    News Round-up 9 August 2016

  • Hotels raise CMBS concerns

    The days of strong RevPAR growth and occupancy rates are over for US hotels, says Fitch. This could impair loan performance for CMBS as interest rates rise.

    Fitch maintains a favourable outlook for the hotel sector, but the rating agency believes demand has peaked and several key industry metrics could turn negative by 2018. "We are now at the top .......

    News Round-up 9 August 2016

  • Broker hires for Americas team

    RFIB Group has appointed Glenn Jackson as md of RFIB Americas. He will be based in the firm's Tampa office, reporting to Nick Foden-Pattinson.

    Jackson joins from Beach Re, where he served as svp, providing expertise in ILS. Specifically, he advised capital market participants, as well as insurance and reinsurance companies in structuring, modelling and executions of alternative reinsurance transactions.

    .......

    Job Swaps 9 August 2016

  • Sustainability affecting leasing decisions

    Sustainability is becoming an increasingly important factor in the leasing decisions of US office building tenants, which in turn has made it an increasingly important factor in assessing the credit quality of the office collateral that backs commercial mortgage loans, Moody's reports. The agency says that 'green' building features are credit positive for US CMBS backed by those loans, as .......

    News Round-up 9 August 2016

  • Pay-offs continue to decline

    The percentage of US CMBS loans that paid off on their balloon date last month dropped to 55.6%, over five points lower than the June level, according to Trepp. This marks the fourth straight month that the rate has declined and is the lowest reading since last December.

    The July tally is below the 12-month moving average of 67.0%. By .......

    News Round-up 9 August 2016

  • Retail risks weighed

    Exposure to the retail sector poses idiosyncratic risk to US CLO performance rather than widespread challenges, according Fitch. The inclusion of loans from challenged retailers like J Crew and Tailored Brands (Men's Wearhouse) in portfolios remains a concern (SCI 9 June), but is not expected to significantly impact CLO performance.

    Retail is the third largest sector in Fitch's CLO database, .......

    News Round-up 9 August 2016

  • VW settlement to boost prepays?

    Volkswagen's offer to buy back or terminate the leases on US vehicles affected by its emissions violations could boost prepayments for outstanding VW US auto loan and lease ABS, which Moody's believes would be credit positive for the deals. However, a number of uncertainties mean that it is difficult to assess the overall credit effect on VW's ABS from the .......

    News Round-up 9 August 2016

  • CFPB issues final rule on servicing

    The CFPB has amended its mortgage servicing rules to ensure mortgage servicers treat homeowners and struggling borrowers fairly. It is also issuing an interpretive rule under the Fair Debt Collection Practices Act relating to servicers' compliance with certain mortgage servicing provisions as amended by the final rule.

    The CFPB introduced common-sense rules for servicers in January 2014 (SCI 20 January .......

    News Round-up 8 August 2016
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