Complete news archive

  • Loss risk improves for GSE CRTs

    Expected mortgage losses on seasoned GSE CRT transactions are trending positively, says Fitch. The loss projections are driven by strong loan performance to date, a shorter loss exposure window until deal maturity and steady home price growth.

    Coupled with bond deleveraging, the improvement in projected pool losses has resulted in positive rating momentum for the rated classes. Fitch has upgraded .......

    News Round-up 2 August 2016

  • Better loan prices soften CLO blow

    Improving oil and gas loan prices last quarter helped to mitigate the impact from default and triple-C haircuts in US CLOs with exposure to the sector, according to Fitch's latest US CLO index. Average senior OC ratio and par gain declined at a slower pace than in the previous quarter, while exposure to defaulted issuers decreased from 1.1% of the .......

    News Round-up 2 August 2016

  • CLO pay-downs surge

    The number of CLO pay-downs in JPMorgan's CLO index (CLOIE) since the June rebalance through 31 July was US$6.79bn in par outstanding, up dramatically from US$1.45bn the previous month. This was split between US$2.05bn and US$4.74bn of pre-crisis and post-crisis CLOs respectively.

    The post-crisis CLOIE added US$4.4bn with 61 tranches across 11 deals at the June rebalance. Meanwhile, all CLOIE .......

    News Round-up 2 August 2016

  • Parametrics firm names ceo

    Global Parametrics has appointed Hector Ibarra as its ceo. Ibarra will lead the new company, which targets parametric and index-based risk transfers to firms and organisations with unprotected exposure. He joins from the World Bank, where he was lead financial officer. Prior to that, he was avp for PartnreRe, focusing on a variety of areas within ILS.

    .......

    Job Swaps 2 August 2016

  • Global development head hired

    Tetragon subsidiary, LCM Asset Management, has brought in Chris D'Auria to run its global business development efforts. The firm says it will look to utilise his skills to expand its global outreach and tackle the changing regulatory landscape in CLOs.

    D'Auria joins from Deutsche Bank, where he was md and co-head of the bank's global CLO business. His experience has seen .......

    Job Swaps 2 August 2016

  • US ABS issuance booms

    Variability in US ABS new issue volume over the last 12 months has reached its highest level in the post-crisis period, after over US$3bn of new deals priced last week. As US$21.8bn of issuance, July was the busiest month since 2009, when TALF was still in effect.

    Year-to-date issuance is now up to US$110.6bn, according to Wells Fargo figures, gradually .......

    News Round-up 2 August 2016

  • Tightest CLO for nearly a year

    Babson Capital has brought its latest US CLO to the market, with the senior tranche pricing at the tightest spreads seen since September last year. Babson CLO 2016-II's class A notes were registered at 145bp last Friday, coinciding with the ongoing rally in the market.

    "Babson is a fairly sought after name in the market," says one US-based trader. "So in .......

    News 2 August 2016

  • Watershed US CMBS deal prepped

    The first CMBS to include a retained interest intended to meet the definition of an eligible vertical interest under US risk retention rules has hit the pipeline. The US$870.6m WFCM 2016-BNK1 will be issued with sponsors Wells Fargo, Bank of America Merrill Lynch and Morgan Stanley retaining a combined 5% vertical slice in the deal.

    US risk retention rules come .......

    News Round-up 2 August 2016

  • Leveraged finance team recruited

    Allen & Overy has hired a team of five New York-based leveraged finance partners. The team is led by Scott Zemser and includes Alan Rockwell, Rajani Gupta, Judah Frogel and Todd Koretzky.

    Zemser, Rockwell and Frogel join from White & Case, while Gupta and Koretzky arrive from Milbank, Tweed, Hadley & McCloy. The team will assist both domestically and internationally in .......

    Job Swaps 1 August 2016

  • Spanish crowdfunding gets green light

    The official registration of the first equity crowdfunding platforms in Spain last week presented further regulatory inroads for marketplace lending in Europe and could also be an additional boost for Spanish SME ABS. According to Moody's latest Credit Outlook, a further 10 platforms are also believed to have obtained registration at the end of July following the announcement on Wednesday.

    Spain's .......

    News Round-up 1 August 2016

  • CLO rating upgrades continue

    US CLO rating movements held steady in 2Q16 despite default pressures, according to S&P. Upgrades dominated the rating action count, with a total of 141 across 29 transactions.

    The agency says that liability pay-downs continued for 1.0 deals and some of the earlier 2.0s. 67 ratings were raised across 25 reinvesting CLOs as these deals saw below-average deterioration in credit .......

    News Round-up 1 August 2016

  • Hastings closures pose risks

    The beginning of Hastings Entertainment's store closures are not expected to pose a major risk to CMBS, but 19 loans still pose some unwanted exposure, according to Morningstar Credit Ratings. This batch of small loans come to a balance of US$253.9m, with only one exceeding US$19m.

    Although the impact is not expected to be profound, Hastings is a large tenant .......

    News Round-up 1 August 2016

  • CMBS 2.0 maturity defaults spike

    US CMBS 2.0 loans saw a substantial rise in maturity defaults during the first half of 2016, reports Fitch. Across the 2010-2016 vintages, 32 loans totalling US$302.1m defaulted, which is up from just eight loans totalling US$69m during the same stretch the previous year.

    The increase was driven by loans with exposure to oil and gas, including properties in Houston. There was also .......

    News Round-up 1 August 2016

  • SCI Start the Week - 1 August

    A look at the major activity in structured finance over the...

    Pipeline
    The final week of July brought six new ABS deals to the pipeline, as well as two CMBS and four CLOs.

    The ABS were: US$1.025bn AmeriCredit Automobile Receivables Trust 2016-3; US$250m MVW Owner Trust 2016-1; US$1.25bn Nissan Auto Receivables 2016-C Owner Trust; US$1.25bn Toyota Auto Receivables 2016-C Owner Trust; US$475.26m Utility Debt Securitization Authority Restructuring; and US$561.5m Wheels .......

    News 1 August 2016

  • REIT cuts securitisation business

    The board of directors of Two Harbors Investment Corp has approved a plan to discontinue the company's mortgage loan conduit and securitisation business, with the wind-down process expected to be substantially completed this year. The decision has been taken as a result of challenging market conditions and an intention to reduce operating complexity and costs.

    "I am extremely proud of .......

    Job Swaps 29 July 2016

  • Card ABS metrics normalising

    US credit card ABS performance is beginning to normalise from historical lows following a gradual shift up in metrics, says Fitch. Modest performance deterioration had been anticipated and remains within expectations, while overall borrower credit profiles are continuing to improve, leaving any imminent impact to outstanding ratings a very remote possibility.

    A combination of rising consumer revolving debt and a .......

    News Round-up 29 July 2016

  • Korean issuance slows down

    South Korean ABS issuance in 1H16 was down year-on-year by 43.9%, with a total figure of just Won27trn. According to the country's Financial Supervisory Service (FSS), the decline from Won48.2trn a year earlier was due to the Korea Housing Finance Corporation (KHFC) scaling back on its MBS issuance.

    The KHFC issued Won14.6trn for the first half of the year, down .......

    News Round-up 29 July 2016

  • Commerical loan originations rise

    Commercial and multifamily mortgage loan originations pushed up by 17% in 2Q16 from the previous quarter, according to the Mortgage Bankers Association's latest results on the sector. However, the results were not drastically different from the same time last year, with just a 1% increase, while CMBS loan originations contrastingly dropped.

    "Low interest rates combined with strong commercial property market fundamentals .......

    News Round-up 29 July 2016

  • US CLO rally continues

    The US CLO secondary market is continuing a strong week with buyers still pouring money into the space.

    "The focus continued to be in mezzanine and equity yesterday and it looks like it will be the same today," says one trader. "I think a lot of it is hedge fund money trying to tap into the liquidity as the rally .......

    SCIWire 28 July 2016

  • FRTB data initiative launched

    ISDA has launched a new data standards project to help facilitate compliance with the Basel Committee's FRTB rules. The initiative aims to reach a common consensus on the interpretation of risk-factor modellability rules, as well as a shared set of business requirements to support risk-factor assessment and data capture.

    It is in response to the FRTB rules stipulating that risk .......

    News Round-up 28 July 2016

  • Leveraged finance heads appointed

    Goldman Sachs has appointed Dominic Ashcroft and Luke Gilliam as co-heads of leveraged finance capital markets in EMEA. Both were previously mds in the bank's leveraged capital markets team and are based in London.

    .......

    Job Swaps 28 July 2016
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