Complete news archive

  • 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

  • Discount note cat bond emerges

    Swiss Re Capital Markets has placed a US$100m transaction in the ILS market, the first catastrophe bond sold at a discount pursuant to Rule 144A since 2009. Laetere Re was issued on behalf of United Property & Casualty Insurance Company (UPC), Family Security Insurance and Interboro Insurance, providing reinsurance cover on named storms and earthquakes affecting certain US coastal states.

    The .......

    News Round-up 8 July 2016

  • CPT metric provides CLO insight

    DFG Investment Advisers had the highest collateral portfolio turnover (CPT) among US CLO managers in 2015. According to the new portfolio turnover metric from Moody's, American Money Management Corp had the lowest rate.

    Managers' CPT rates vary by month, but are largely consistent over longer periods. Moody's believes that CPT data can reveal important insights about CLO manager performance, particularly .......

    News Round-up 8 July 2016

  • CBD prices bounce back

    The Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index increased by 1.7% in May. Despite falling 2% over the last 12 months, including price decreases in each of the five months before May, CBD office prices finally arrested their slide and rose about 2% in May.

    CBD office is the only CPPI segment to show a 12-month price .......

    News Round-up 8 July 2016

  • Further leverage ratio objections raised

    The FIA has added its voice to the chorus urging the Basel Committee to rethink its proposed revisions to the Basel 3 leverage ratio framework. Five industry bodies issued a joint letter yesterday (SCI 7 July).

    FIA says the lack of offset for initial margin in the current Basel 3 leverage ratio framework proposals would substantially increase clearing members' leverage .......

    News Round-up 8 July 2016

  • Single security, CSP update provided

    The FHFA has released an update on the implementation of the single security and common securitisation platform. The update includes expected milestones that Fannie Mae, Freddie Mac and Common Securitization Solutions (CSS) expect to meet to achieve the stated goals of the projects.

    The 2016 conservatorship scorecard for Fannie, Freddie and CSS calls for the three to implement the first .......

    News Round-up 8 July 2016

  • CMBS downgraded on London fears

    Fitch has downgraded the class A notes of Ulysses (European Loan Conduit No. 27) and placed the class A to C notes on rating watch negative. These actions have been taken as a direct result of the UK's vote to leave the EU.

    The £249m class A notes have been downgraded from triple-B to double-B and placed on watch. The .......

    News Round-up 8 July 2016

  • Cat bond activity dips

    Insurers and reinsurers' overall cat bond sponsorship approached US$3bn for the first half of this year, according to a report by Property Claims Service (PCS). This represents the second annual first-half issuance decline in a row.

    By capital raised, new issuance activity fell 26% year-over-year, with the number of transactions completed down by 12.5%. Average transaction size fell 21.5% to just .......

    News Round-up 7 July 2016

  • Private label CMBS volume drops

    Private label US CMBS issuance has dropped to its lowest level since early 2012, according to Kroll Bond Rating Agency. Just US$968.3m priced in June, which represents a 48% decrease year-over-year through the first half.

    However, the agency does note a robust pipeline slated through July, which could see up to five conduits hit the market. A number of single .......

    News Round-up 7 July 2016

  • Commercial, multifamily expectations flat

    Originations of commercial and multifamily mortgages will total US$500bn this year, expects the Mortgage Bankers Association. That would be roughly flat from the US$500bn originated in 2015 and slightly less than the US$508bn record set in 2007.

    Mortgage banker originations of multifamily mortgages are forecast at US$210bn for this year. Total multifamily lending is forecast at US$273bn.

    "The year has .......

    News Round-up 7 July 2016

  • Leverage ratio response outlined

    Five organisations have issued a joint response to proposed revisions to the Basel 3 leverage ratio framework, urging that the Basel Committee expand the scope of its review. The response includes the recommendation for a well calibrated leverage ratio that will recognise the benefits of securitisation for originating banks.

    The five organisations to issue the response are the GFMA, IIF, ISDA, JFMC .......

    News Round-up 7 July 2016

  • Italy SME weakening noted

    The Italian ABS SME securitisation market is being increasingly dominated by originators with both lower credit and asset quality, says Moody's. However, the outlook for the sector is stable.

    Originator banks with an investment grade credit rating accounted for 13% by number of Italian SME transactions rated by Moody's in 2014 and 2015. They had accounted for 40% in 2011-2013. .......

    News Round-up 7 July 2016

  • JQH loan transferred

    The US$44.95m Chateau on the Lake loan securitised in Wells Fargo Commercial Mortgage Trust 2015-C26 has been transferred to special servicing. The loan is the largest underlying the CMBS.

    Servicing of the loan has been transferred from Wells Fargo to Midland Loan Services, effective from 4 July, due to the bankruptcy of the borrower, John Q Hammons Hotels & Resorts. .......

    Job Swaps 7 July 2016

  • CMBS delinquencies ratchet up

    Trepp's US CMBS delinquency rate took a significant jump up in June, as a number of loans reached their maturity date but were paid off. After the first two months of 2016 saw a drop in delinquencies, the rate has now crept up four months in a row.

    The delinquency rate for US CMBS loans now stands at 4.6%, but remains .......

    News Round-up 6 July 2016

  • PREPA compromise confirmed

    A number of parties within PREPA's restructuring support agreement (RSA) recently agreed to purchase new interest-bearing bonds from the utility, enabling it to fund outstanding principal and interest payments that were due to its bondholders on 1 July. The agreement also includes an extension to the RSA, which pushes it out to 15 December.

    Among the buyers of the bonds was Assured Guaranty, .......

    News Round-up 6 July 2016

  • Manager options outlined

    If Brexit concludes with the UK outside of the EU passporting regime, UK entities may be limited in acting as managers of and risk-retention holders for European CLOs (SCI 30 June). An informal survey of presale documents undertaken by Wells Fargo structured products analysts indicates that of the 84 outstanding 'sponsor retention' European CLOs, 51 have UK-based managers, 24 do .......

    News 6 July 2016

  • CLO equity distributions dropping

    Equity distributions for US CLOs continued their decline in 1H16, a trend that started in 2013 for 1.0 vintages. S&P says that this is due to higher funding costs and a drop in the spread of the assets held in the transactions.

    Loan prepayment levels were high in 2013, and 2014 saw a steady stream too. Because these deals are .......

    News Round-up 6 July 2016

  • RMBS upgraded on CIFG merger

    Moody's has upgraded 11 classes of structured finance securities as a result of Assured Guaranty Corporation's (AGC) acquisition of CIFG. The securities impacted by the move include Alt-A, option ARM, subprime, second lien and resecuritised RMBS.

    Moody's notes that the action is solely driven by AGC's assumption of securities formerly wrapped by CIFG. The former insurer's insurance financial strength (IFS) .......

    News Round-up 6 July 2016

  • RMBS deal agent costs considered

    The rating implications of including a deal agent in a US RMBS transaction would likely be modest, says Fitch. Deal agents have not yet been included in any RMBS of newly originated loans, but the proposed responsibilities would include investor reporting reconciliation, servicer oversight, and representation and warranty enforcement.

    Fitch expects the cost of a deal agent to have a .......

    News Round-up 6 July 2016

  • Risk retention expectations surveyed

    Just over half (51%) of the respondents polled in Morgan Stanley's latest US CRE survey believe the market will pay up for risk retention-compliant CMBS deals. Opinions varied about anticipated quality differences in transactions retained by banks versus B-piece buyers, but overall more participants (38%) expect banks retaining a horizontal strip to result in a higher quality deal. Just under .......

    News 6 July 2016

  • Portfolio solutions head poached

    Federico Montero has joined Evercore's investment banking business in London as an md, leading its European real estate portfolio solutions team. The team will focus on providing independent advice in relation to the sale of non-core loan portfolios secured by commercial real estate, along with related debt advisory opportunities.

    In his new role, Montero will work closely with Evercore's financial .......

    Job Swaps 5 July 2016
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