Complete news archive

  • Legislation to support Italian SME NPLs

    Moody's says that recent legislative initiatives in Italy should benefit SME NPL securitisations in the country through streamlining the insolvency process and improving loan recoveries. The issuance of SME NPL ABS is expected to re-emerge in Italy in 2016 after nearly ten years of dormancy.

    The Italian government outlined its intent earlier this year to introduce rules establishing a guarantee .......

    News Round-up 14 June 2016

  • Further SLABS extended

    Navient has amended the transaction agreement for SLM Trust 2013-2, in order to extend the legal final maturity date of the US$800m senior tranche to 2043. Since December 2015, Navient has extended the legal final maturity dates on US$6.8bn of bonds from its FFELP student loan ABS.

    .......

    News Round-up 14 June 2016

  • Barbelling risk proliferating

    Fitch warns that credit barbelling is becoming more common in US CMBS, which may place transactions at greater risk of losses over time. Such wide dispersion of credit risk within transactions is becoming more obvious as deal sizes shrink.

    "Barbelling began to surface within Fitch's loan metrics last year and it is showing up more frequently in 2016," says Fitch .......

    News Round-up 14 June 2016

  • ILS fund administrator acquired

    Horseshoe Group has acquired IKONIC Fund Services, expanding its service offering to include fund administration. Horseshoe and IKONIC have partnered since 2011 through the joint venture fund administrator, ILS Fund Services.

    IKONIC will be rebranded as Horseshoe Fund Services as part of the deal, which builds on Horseshoe's status as the largest independent insurance manager to the ILS market. Post-acquisition, .......

    Job Swaps 14 June 2016

  • Euro CMBS defaults drop

    The 12-month rolling loan maturity default rate for European CMBS rated by S&P fell from 8.1% to 7% at the end of May. The senior loan delinquency rate increased from 43.7% to 45%.

    The senior loan delinquency rate rise was driven by increases in both continental and UK loans. The rise for continental loans was from 56.9% to 58.7% and .......

    News Round-up 14 June 2016

  • Demica beefs up

    Demica has added three key new roles to its team in London, with the aim of developing both its origination, structuring and transaction management services and its proprietary technology platform. Mansour Davarian joins the firm as associate director of origination, Markus Musielak joins as a director of structuring and Luke Thompstone joins as senior infrastructure engineer.

    Davarian was previously European .......

    Job Swaps 14 June 2016

  • Attack force

    Contrasting legal approaches add to uncertainty

    The High Court in London decided five cases brought by class X noteholders in 2006 and 2007 vintage European CMBS in April (SCI 13 May). The overall outcome was the same for both judgments - the claimants failed - but the contrasting approaches taken by the judges leave structured finance agreements open to attack using general legal principles, given the .......

    News Analysis 14 June 2016

  • CRE lending teams bolstered

    Greystone has boosted its origination team with the additions of Don Farmer and Lou Tiberio. They will be located in Dallas and Philadelphia respectively, and have joined as part of the company's push to boost its regional mortgage lending production.

    Prior to joining Greystone, Farmer was most recently md of structured finance at Transwestern. He also served roles as south central .......

    Job Swaps 13 June 2016

  • Lender taps CRE arranger

    Walker & Dunlop has boosted its capital markets team with the hire of Stuart Wernick as svp and md. He will be responsible for building the firm's regional production platform in its Dallas office by arranging CRE loans to banks, life insurance companies, CMBS conduits and others.

    Prior to joining, Wernick served as senior md at Berkadia Commercial Mortgage, where he led .......

    Job Swaps 13 June 2016

  • Special servicing head appointed

    Torchlight Investors has reshuffled its special servicing group by appointing Abbey Kosakowski to lead its operations. Kosakowski is already svp for the firm and has previously held senior roles at JPMorgan and Lehman Brothers.

    She takes over the role after Torchlight md and investment committee member, Steven Schwartz, exited it. Schwartz will continue to lead Torchlight's acquisitions group and will .......

    Job Swaps 13 June 2016

  • Credit enhancement model offered

    S&P has launched its Commercial Mortgage Evaluator (CME) tool, a proprietary model that can be used to aid credit risk analysis associated with US and Canadian CMBS collateral. The CME leverages S&P's CMBS rating methodology and utilises individual loan-level credit metrics to derive loan-level credit enhancement levels. These in turn are aggregated to determine pool-level credit enhancement levels, which reflect .......

    News Round-up 13 June 2016

  • Delinquencies inch up

    US CMBS delinquencies increased by 6bp in May to 2.98% from 2.92% a month earlier, according to Fitch. The dollar balance of late-pays increased by US$173m to US$11.22bn, from US$11.05bn in April, driven by the addition of three loans sized at over US$50m into the index.

    In total, new delinquencies of US$756m exceeded resolutions of US$543m. Fitch-rated new issuance volume .......

    News Round-up 13 June 2016

  • CMBS pay-offs dip

    The percentage of US CMBS loans that paid off on their balloon date slid modestly in May to 68%, almost five points lower than the April level, according to Trepp. The May tally is slightly below the 12-month moving average of 68.5%.

    By loan count as opposed to balance, 68.3 % of loans paid off last month. On this basis, .......

    News Round-up 13 June 2016

  • SCI Start the Week - 13 June

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

    Pipeline
    The total number of deals joining the pipeline remained consistent last week, although ABS accounted for a smaller proportion than it had done previously. There were four new ABS as well as three RMBS, three CMBS and one CDO.

    US$500m Chesapeake Funding II Series 2016-2, US$219.85m Foursight Capital Auto Receivables Trust 2016-1, US$111.2m NMEF Funding 2016-A and CNY4bn .......

    News 13 June 2016

  • OTC margin initiative put on hold

    NetOTC has decided to suspend plans to implement a structure which reportedly intended to save banks millions of dollars on uncleared OTC derivative margin payments. The risk solutions company says it has put its operations on hold due to the incompatibility with current regulatory rules.

    The proposed structure had been designed to make the use of collateral more efficient through a centralised, pooled margin space. This .......

    News Round-up 13 June 2016

  • Ares closes direct lending fund

    Ares Management has closed its third European direct lending fund after raising €2.5bn. Ares III was oversubscribed from the initial €2bn target set out by the asset manager, a year after its original launch.

    Co-heads of the Ares European direct lending platform, Michael Dennis and Blair Jacobson, say that the fund will continue the firm's push into the European mid-market space. .......

    News Round-up 13 June 2016

  • Credit metrics eyed

    S&P reports a significant change in conduit/fusion CMBS credit metrics for 2016 transactions compared to the 2013-2014 vintages. The agency notes that collateral pools have continued to deteriorate, with higher loan-to-value (LTV) ratios, lower debt yields, greater hotel concentrations and more interest-only (IO) loans.

    The weighted average S&P LTV has increased to 92.9% from 85.5% in 2013 and the weighted .......

    News Round-up 13 June 2016

  • Going green

    Evolution of renewables ABS discussed

    Representatives from Renovate America, Kramer Levin and T-Rex recently discussed the development of the renewables ABS market during a live webinar hosted by SCI (view the webinar here). Focusing on the PACE and solar sectors, this Q&A article highlights the main talking points from the session, including structuring and performance considerations. For a broader and more in-depth exploration .......

    Talking Point 13 June 2016

  • Placed issuance declining

    €56.9bn of securitised product was issued in Europe in 1Q16, a decline of 20.4% from 4Q15 (€71.4bn) but an increase of 61.2% from 1Q15 (€35.3bn), according to AFME's latest securitisation data report. Of the total issued during the quarter, €14.3bn was placed (representing 25.2% of issuance), compared to €15.6bn placed in 4Q15 (21.8%) and €19.7bn placed in 1Q15 (55.9%).

    For .......

    News Round-up 10 June 2016

  • Gap exposure weighed up

    Morningstar Credit Ratings has identified 231 CMBS loans totalling US$13.89bn with exposure to struggling US retailer Gap. With more than half the loans backed by collateral where leases are set to expire in the next two years, closing stores could impact CMBS deals sooner rather than later.

    Gap - which also owns the Old Navy, Banana Republic, Athleta and Intermix brands - reported its comparable-store sales .......

    News 10 June 2016

  • Fitch finalising SLABS update

    Fitch is in the final phase of updating its criteria for US FFELP student loan ABS. The rating agency expects to publish the new criteria within 60 days.

    The final phase of the criteria review includes transaction testing and model validation. Revisions have been made to reflect changing payment behaviour and loan status trends in FFELP collateral, with slower payment .......

    News Round-up 10 June 2016
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