Complete news archive

  • Reputation management

    Side pocket pros and cons debated

    Side pockets are a portfolio management tool that can benefit both investors and managers alike. But having fallen from grace in the wake of the financial crisis, it is debatable whether they can regain their reputation as a viable liquidity management resource.

    A number of high-profile UK CRE funds were revalued and suspended trading last week as a result of .......

    News Analysis 12 July 2016

  • Next steps

    Madden ruling creates landscape of uncertainty

    On 27 June the US Supreme Court decided not to hear the Madden vs Midland case, resulting in a continued lack of clarity surrounding national and state usury rates. The move has led to marketplace lending platforms taking steps to adapt to the ruling, as well as other participants questioning the reasoning behind the case and the effect it will .......

    News Analysis 12 July 2016

  • Hatteras acquisition completed

    Annaly Capital Management has completed its exchange offer for all of the outstanding shares of common stock of Hatteras Financial Corp (SCI passim). The former's acquisition of the latter is consequently expected to be consummated today (12 July).

    A total of 70,066,823 shares of Hatteras common stock, representing approximately 74.12% of Hatteras' outstanding common stock, were validly tendered in the .......

    Job Swaps 12 July 2016

  • Ginnie Mae RMBS chief named

    Ginnie Mae has added Nancy Corsiglia as evp and coo, reporting to president Ted Tozer. She will administer Ginnie's RMBS and REMIC programmes and be responsible for managing daily operations, including all RMBS operations.

    Corsiglia replaces Mary Kinney, who retired in February. She brings more than 25 years of financial services and mortgage industry experience, and was previously md at .......

    Job Swaps 12 July 2016

  • CMBS balloon pay-offs plummet

    The percentage of US CMBS loans that paid off on their balloon date slid sharply in June, according to figures from Trepp. The rate slid more than seven points from its May level, to 60.7%, which is the lowest reading since December.

    The 12-month moving average stands at 68.6%. The 12-month rolling average by loan count is now 69.1%, after 67.9% .......

    News Round-up 12 July 2016

  • Card ABS downgrades expected

    As much as 25% of S&P-rated European credit card ABS ratings could be downgraded following the agency's methodology changes to rating the asset class. The rating approach, which became effective from yesterday, has been revised to incorporate S&P's same global methodology for assessing the credit quality of securitised consumer receivables.

    S&P rates approximately 50 European credit card ABS transactions, but no upgrades are .......

    News Round-up 12 July 2016

  • Portugal Telecom auction set

    An auction date of 21 July has been scheduled to settle CDS trades referencing Portugal Telecom International Finance. The unanimous decision by the 15-member ISDA Determinations Committee comes after it was agreed earlier this month that a bankruptcy credit event occurred in connection with the company (SCI 4 July). ISDA has identified an initial list of seven euro-denominated bonds as deliverable obligations, .......

    News Round-up 12 July 2016

  • STC risk weights reduced

    The Basel Committee has scaled down the risk weights for 'simple, transparent and comparable' (STC) securitisations and reduced the risk-weight floor for senior exposures from 15% to 10%. The move had largely been expected and, in general, is viewed as catching up with European proposals for the STS securitisation framework.

    "For this topic, the European Commission decided not to wait .......

    News 12 July 2016

  • Euro secondary strengthens

    Supported by the wider market rally the European securitisation secondary market is strengthening and spreads are edging in.

    This week has again started with light flows, but many sectors are now back to around pre-Brexit levels as sentiment continues to improve in line with seeming greater political/central bank certainty. Once more, CLOs are leading the way in terms of both .......

    SCIWire 12 July 2016

  • Financial worries

    Derivatives uncertainties arise from Brexit

    The UK's vote to leave the EU has ignited debate as to what deal the British government will carve out for its financial services industry, including the derivatives market. The need for counterparties to retain their passporting rights suggests that some harmonisation with EU regulations is the most likely scenario.

    Existing ISDA Master Agreements could feel the impact of the .......

    News Analysis 12 July 2016

  • Macro fund prepped

    Algebris Investments (UK) is launching a macro credit fund, managed by partner and macro strategies head Alberto Gallo. The Algebris Macro Credit Fund is designed to help investors generate superior risk-adjusted returns in the current volatile environment and will start trading on 19 July.

    To survive this volatility, the firm says diversification and flexibility are paramount. At the same time, .......

    News Round-up 11 July 2016

  • MUFG poaches ABS head

    Mitsubishi UFJ Securities has brought in Haan Ti as head of ABS for Australia and New Zealand. He joins from Westpac Institutional Bank, where he was director in structured finance and syndicate.

    Ti has also held senior roles at HSBC and Rinker Holdings. His past duties include origination of ABS and RMBS term transactions, as well as origination of structured .......

    Job Swaps 11 July 2016

  • Energy efficiency sale agreed

    Susi Partners, managing authority of the SUSI Energy Efficiency Fund, is set to acquire €1.2m of loans related to lighting energy efficiency assets installed by TerniEnergia. These private contracts will be sold to an SPV regulated under Italian law and back a new Susi Partners receivables securitisation.

    TerniEnergia operates as an energy service company (ESCO) through the 'Hub' platform, a .......

    News Round-up 11 July 2016

  • Freddie factor change announced

    Freddie Mac is implementing a new factor methodology for its single-family and multifamily MBS. The GSE says it will now round, rather than truncate, the last digit of the factors for all such MBS issued on or after 25 July.

    The change is being made primarily in preparation for the single security, where Freddie will match Fannie Mae's current factor .......

    News Round-up 11 July 2016

  • SCI Start the Week - 11 July

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

    Pipeline
    Pipeline activity picked up again last week, with ABS leading the charge. There were nine ABS added to the pipeline, as well as an RMBS and a CMBS.

    The ABS were: Aurorus 2016; US$755m Capital Auto Receivables Asset Trust 2016-2; US$1bn CarMax Auto Owner Trust 2016-3; US$980m Dell Equipment Finance Trust 2016-1; US$750m Enterprise Fleet Financing Series 2016-2; .......

    News 11 July 2016

  • Large loans push delinquencies up

    US CMBS delinquencies last month increased by 20bp to 3.18%, according to Fitch's latest index results for the sector, rising for a third straight month. The sharp increase was mainly due to the addition of three loans to the index, each greater than US$100m in size.

    In total, new delinquencies of US$1.43bn more than doubled total resolutions of US$678m in .......

    News Round-up 11 July 2016

  • Conformance period extended

    The US Fed has extended the conformance period for the Volcker Rule to 21 July 2017. While the extension was largely anticipated by market participants, the timing was later than most expected, coming only two weeks before the previous extension date expires on 21 July 2016.

    The extension allows banking entities to continue divesting ownership in legacy covered funds - .......

    News Round-up 11 July 2016

  • Brexit ratings outlook 'unchanged'

    Fitch has reassured the market that no more UK structured finance rating actions are expected in the near term following the country's vote to leave the EU. However, terms of the exit could present tail risks, including mortgages and leveraged loans experiencing longer-term underperformance.

    Fitch says that the elevation in risk premiums following the UK vote to leave the EU will weaken private .......

    News Round-up 8 July 2016

  • Global issuance trends diverging

    S&P reports that that there is a clear divide in recent structured finance issuance trends, with the US, Europe and Australia all seeing recent declines and countries such as Brazil, Argentina, China and Canada witnessing increases. The agency attributes declines in the former group to both broader volatility and a host of recent regulations governing capital charges and liquidity ratios.

    Amid strong underlying .......

    News Round-up 8 July 2016

  • Gating suspensions highlight risks

    Fitch says that the UK's EU referendum result is posing immediate risks to commercial real estate through the suspension of trading, or gating, of several UK property funds. However, although market activity and valuations are at risk of decline, companies or structured finance transactions in commercial property have buffers to absorb these shocks.

    The funds suspended trading this week following .......

    News Round-up 8 July 2016

  • SFIG warns against tax rules

    The Structured Finance Industry Group (SFIG) has sent a letter to the US Treasury Department outlining its concerns that new income tax regulations could disrupt the securitisation market. The group's Tax Policy Committee describes the regulation as "overly broad" and says it could lead to potentially "adverse, market-chilling effects".

    The regulations are proposed under Section 385 of the 1986 Internal .......

    News Round-up 8 July 2016
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