Complete news archive

  • Exchange offer launched

    Markit has commenced an offer to exchange any and all of the outstanding US$750m aggregate principal amount of 5.000% Senior Notes due 2022 issued by IHS for up to an aggregate principal amount of US$750m of new 5.000% Senior Notes due 2022 to be issued by Markit and cash. For each US$1,000 principal amount of existing IHS notes tendered, eligible .......

    Job Swaps 29 June 2016

  • US CLOs silenced

    The US CLO secondary market has been largely silent in the immediate aftermath of the UK's vote to the leave the EU.

    "The issue was that a lot of people came into their desks on Friday morning with little information", says one trader. "The UK's decision to leave is an unprecedented move, so the market was left in unchartered territory .......

    SCIWire 28 June 2016

  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P. Although the downgrade rate was still higher at 11.2% last year, the upgrade rate increased to an all-time high of 9.8% in 2015 and a jump from 8.4% in 2014.

    Downgrades were up from 10% in 2014, but still presented a slow-down in growth for all but .......

    News Round-up 28 June 2016

  • Cross-border first for Korean ABS

    Hyundai Commercial has completed the first cross-border cash securitisation of auto loans to obligors in Korea. The US$250m Top Commercial Auto I ABS has two equally-sized tranches of floating rate notes, each rated Aaa by Moody's.

    The underlying pool only includes loans to purchase new commercial vehicles and the transaction benefits from several sources of credit enhancement, as well as .......

    News Round-up 28 June 2016

  • Reps framework welcomed

    Fitch has commented on the proposed representations and warranties (R&Ws) included in the Structured Finance Industry Group's (SFIG) RMBS 3.0 initiative, noting that they would be an improvement to current practices, if accepted by the US RMBS market. The proposal includes up to four categories for each rep, with each category containing slight variations to reflect feedback from market participants .......

    News Round-up 28 June 2016

  • Countrywide ratings affirmed

    Fitch has reassured Countrywide bondholders that there will likely be no significant US RMBS rating actions as a result of the US$8.5bn in distributed payments from the Bank of America settlement made five years ago. Following the agreement back in 2011 and a series of litigation issues since then (SCI passim), this month finally saw bondholders from most of the 530 trusts receive .......

    News Round-up 28 June 2016

  • Freddie K-series defeasance soars

    Close to 30% of Freddie Mac K-series eligible first mortgages have either defeased or taken on supplemental debt, says Kroll Bond Rating Agency. Out of 75 rated five-, seven- and 10-year K-series fixed rate transactions with a current outstanding principal balance of US$97.9bn, 8.6% have defeased and 19.9% have taken on supplemental debt.

    To be eligible for defeasance, first mortgages .......

    News Round-up 28 June 2016

  • Madden uncertainty to continue

    The US Supreme Court has denied certiorari in the Madden vs Midland Funding case, electing not to review a Second Circuit decision that found state usury laws applied to debt that had been purchased from a national bank (SCI passim). The decision is expected to prolong the legal uncertainty related to the marketplace lending and securitisation industries.

    Other circuits are .......

    News Round-up 28 June 2016

  • Euro secondary sidelined

    Most participants are waiting on the sidelines in the European securitisation secondary market amid broad market volatility.

    Two sessions on from the Brexit vote and liquidity remains thin across the board, but there is yet to be any sign of the tailspin seen in wider markets. Dealers in every sector widened their bids on Friday but other than some opportunistic .......

    SCIWire 28 June 2016

  • False alarm?

    Basel CRT warning played down

    The Basel Committee caused somewhat of a stir earlier this month when it warned banks against increasing their use of capital relief trades (CRTs). However, portfolio risk-sharing transactions are not expected to be affected.

    The Committee's statement specifically warned that CRTs would receive "careful supervisory scrutiny" going forward (SCI 3 June). It also indicated that its response was due in .......

    News Analysis 27 June 2016

  • MBIA-wrapped RMBS hit

    S&P has lowered its ratings on 112 classes from 58 US RMBS transactions. The affected securities are insured by MBIA Insurance Corp, apart from six, which are re-REMIC notes that have their underlying bonds insured by MBIA.

    The rating actions follow the downgrade of S&P's financial strength rating on MBIA to triple-C from single-B (SCI 17 June). Based on the .......

    News Round-up 27 June 2016

  • GSE risk model update praised

    Fannie Mae last week announced an update to its credit risk assessment model, Desktop Underwriter, as it seeks to better assess the credit risk of non-traditional mortgage borrowers. In its latest Credit Outlook, Moody's says that the GSE's existing technology will improve the credit assessment of loans with non-traditional credit by providing an objective and thorough standard for analysing the risk of the underlying .......

    News Round-up 27 June 2016

  • Special servicer transfers accelerating

    Fitch has observed US CMBS loans transferring to special servicing at an accelerated pace through the first six months of this year. The agency expects this trend to continue for the remainder of 2016.

    At year-end 2015, Fitch identified approximately US$65bn of conduit loans scheduled to mature in 2016. Of that amount, US$10bn was already defeased and US$11bn was already .......

    News Round-up 27 June 2016

  • SCI Start the Week - 27 June

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

    Pipeline
    Pipeline additions were limited last week. The only ABS was €1bn Silver Arrow 7, while the RMBS were RUB5.65bn JSC Mortgage Agent BFCO and US$209m Nationstar HECM Loan Trust 2016-2 and the single CMBS was US$737m SGCMS 2016-C5.

    Pricings
    Many more deals came out of the pipeline. There were 12 ABS prints as well as an RMBS, two CMBS .......

    News 27 June 2016

  • CLO trading head hired

    Nirjhar Jain is set to join Guggenheim Securities' structured products group as an md, based in New York. He will serve as head of CLO trading, reporting to structured products co-heads Scott Levy and Eric Voelker.

    Jain moves from TIG Securitized Asset Fund, where he was the senior portfolio manager focusing on CLOs. Previously, he served as managing partner at .......

    Job Swaps 27 June 2016

  • Single-tranche Russian RMBS debuts

    VTB Capital has completed the first-ever single-tranche Russian RMBS, sponsored by Metallinvestbank. The RUB3.28bn deal offers a 10.25% coupon and will allow the bank to further develop its mortgage business.

    VTB says that a number of innovative features were used in the issue, such as the excess mortgage collateral, reserve funds and issuer's expenses being funded by a loan from .......

    News Round-up 24 June 2016

  • Brexit effects

    The immediate financial market reaction to the UK's decision to leave the EU has been pronounced, with spreads on senior financials and subordinated CDS indices higher by around 30bp and 70bp respectively. In the European securitisation secondary market, dealer bids were wider across the board at the open, but little trading was seen in the first few hours.

    In the .......

    News 24 June 2016

  • MPL conference line-up confirmed

    Panellists have been confirmed for SCI's Second Annual Marketplace Lending Securitisation Seminar, which is being held on 28 June in New York. The event is being held at Kaye Scholer's offices at 250 West 55 Street.

    The conference programme consists of a series of panel debates focusing on issues affecting the marketplace lending sector. Panel sessions include financing, platform differentiation .......

    News Round-up 24 June 2016

  • Agency recruits trio

    Morningstar Credit Ratings has made a trio of new hires in New York, including Lea Overby as md, leading structured finance research. This position is a newly created role for the agency, which will see Overby head up structured finance initiatives and support its analytical team in MBS, ABS and CLOs.

    Prior to moving, her most recent role was as executive .......

    Job Swaps 24 June 2016

  • Hope note provisions 'provide fix'

    Provisions that exclude hope notes in determining who controls a CMBS transaction correct a potential misalignment of interest, says Moody's. These provisions are appearing in a small but growing share of new CMBS transactions.

    "The new provisions we are seeing in servicing agreements place control of a CMBS transaction in the hands of certificateholders with bond positions that are supported .......

    News Round-up 24 June 2016

  • RMBS downgraded on correction

    Moody's has downgraded the rating of the Navigator Mortgage Finance No. 1 €10m class C notes from Ba1 to Ba2. The move reflects the correction of an assumption in the cashflow modelling for the Portuguese RMBS deal, as well as a reassessment of the mitigating factors in relation to counterparty risk.

    In its last rating action on the deal in .......

    News Round-up 24 June 2016
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