Complete news archive

  • 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

  • BTL stampede

    Loan issuance surges ahead of tax deadline

    Buy-to-let (BTL) lending in the UK surged in the weeks leading up to the recent stamp duty changes, with implications for RMBS. Lending rose from £3.6bn in February to £7.4bn in March, although the loan approval figures actually fell slightly.

    While the net lending figure for March is the highest since October 2007, lending is expected to dip now that .......

    News Analysis 10 June 2016

  • Auto ABS ratings RFC issued

    Scope Ratings has issued a request for comment on its proposed auto ABS rating methodology. The publication of the methodology will not impact any outstanding ratings.

    The proposed auto ABS methodology applies to securitisations of auto loans or leases that finance new or used vehicles, including transactions exposed to residual value and voluntary termination risks. The methodology complements the rating .......

    News Round-up 10 June 2016

  • ISDA appoints general counsel

    ISDA had appointed Katherine Darras as general counsel in an additional move to the expansion of its board of directors (SCI 9 June). In her role, Darras will lead ISDA's efforts to develop legal standards, documentation and opinions necessary to support global cleared and non-cleared derivatives businesses.

    Darras' responsibilities will also include the development of documentation for facilitating compliance with .......

    Job Swaps 10 June 2016

  • Non-prime RMBS debuts

    Caliber Home Loans is in the market with the first post-crisis RMBS backed by newly originated non-prime mortgage loans. Dubbed COLT 2016-1 Mortgage Loan Trust, the US$161.71m transaction is backed by 368 loans with credit scores (701) similar to legacy Alt-A collateral.

    The pool comprises fixed- and adjustable-rate, prime and non-prime first-lien residential mortgages originated under five programmes: Jumbo Alternative .......

    News 10 June 2016

  • US CLOs solid

    Activity in the US CLO secondary market is maintaining a solid pace in the latter half of this week.

    "Equity remains the hot choice for investors," says one trader. "It's still the area where you get the most bang for your buck."

    Nevertheless, the trader notes a number of lists are offering bonds at the top of the stack today. .......

    SCIWire 9 June 2016

  • REMIC guidance provides clarity

    REMICs have long operated with only limited tax guidance, but two significant pieces of guidance have come out this month. The first is a Second Circuit Court of Appeals ruling concerning certain RMBS and the second is an IRS private letter ruling.

    The application of the REMIC rules to mortgages that have a high probability of default or credit-based restructuring .......

    News 9 June 2016

  • Business development exec hired

    Monica Blocker has joined Houlihan Capital as a vp of business development, joining Michael Norton. Blocker will be responsible for building and maintaining client relationships throughout the US. She joins Houlihan from Geneva Advisors, where she was part of the institutional sales team.

    .......

    Job Swaps 9 June 2016

  • ISDA expands board

    ISDA has appointed two new members to its board of directors after it decided earlier this year to expand its size and scope. The new directors are Credit Suisse's global head of prime derivatives services, John Dabbs, and the president of global operations, technology and risk for CME Group, Kim Taylor.

    Dabbs' role at Credit Suisse sees him focus on .......

    Job Swaps 9 June 2016

  • SEC adopts more SBS rules

    The US SEC has adopted trade acknowledgement and verification rules for security based swaps (SBS), requiring related entities to provide full terms of transactions. The move is designed to help promote the efficient and effective operation of the SBS market.

    The specific requirements include entities providing prompt trade acknowledgement electronically to their transaction counterparties, with this being no later than the end of the .......

    News Round-up 9 June 2016

  • Rapporteurs push for tougher stance

    The European Parliament's ECON Committee rapporteurs have published their first drafts for resolutions on the proposed new European securitisation regulations. The tone of the documents suggests a preference for a tougher regulatory stance on securitisation.

    "We note these drafts are early versions of the regulations and mainly reflect the opinion of the rapporteurs themselves," Rabobank credit analysts observe. "In our .......

    News 9 June 2016

  • Collateral cloud service debuts

    CME Group and CloudMargin have teamed up to provide CME Clearing and CME Clearing Europe customers with the first cloud-based software service that integrates and automates the management of collateral in one place. The service will seek to provide market players with access to their complete collateral inventory to utilise for both cleared and non-cleared derivative transactions.

    The tool handles .......

    News Round-up 9 June 2016

  • Risky retail

    US retail exposure driving CLO differentiation

    US CLO exposure to retail names has come under closer scrutiny in the last couple of months as store closures and the shift to online shopping weigh on the industry. Against this backdrop, the success of specialty brands is driving differentiation across the sector.

    The median retail exposure across the US CLO 2.0 space currently stands at 7.8%, according to .......

    News Analysis 9 June 2016

  • Euro secondary stable

    The European securitisation secondary market continues to show stability.

    Secondary spreads across the board are flat to slightly tighter this week as the vast majority of securitisation sectors remain insulated from headline volatility surrounding Brexit and US rates. CLOs continue to lead the way in terms of demand across the capital structure, while ABS/MBS is seeing more two-way flows.

    However, overall .......

    SCIWire 9 June 2016

  • Euro secondary liquidity 'healthy'

    Around 80% of European ABS BWICs have successfully traded over the last year, a sign that liquidity in the market remains healthy, according to TwentyFour Asset Management. The asset manager notes that €9.9bn worth of bonds has hit the BWIC market since June 2015, with an additional €5bn when European CLO bonds are included.

    TwentyFour says that misconceptions about the liquidity of .......

    News 8 June 2016

  • Vacancy decline supporting SFR deals

    Nationwide rental vacancy in the US is presently 7%, down from 11% in 2009, according to the US Census Bureau. Moody's believes that this drop in vacancy bodes well for the single-family rental securitisations it rates, especially regarding anticipated future enhanced rental revenue, as Generation Y renters are a large component of SFR renters. It also portends higher liquidation proceeds .......

    News Round-up 8 June 2016

  • Fund misuse settlement agreed

    A UK-based investment adviser and its cio have agreed to settle US SEC charges that they breached their fiduciary duties by operating two private funds in a manner inconsistent with prior disclosures. James Caird Asset Management (JCAM) and Timothy Leslie will pay more than US$2.5m to settle the charges.

    JCAM and Leslie told the board and investors of the JCAM .......

    Job Swaps 8 June 2016

  • AMG buys stake in five firms

    Affiliated Managers Group (AMG) has agreed to purchase 100% of a minority stake in five firms owned by a Goldman Sachs-managed investment vehicle. Petershill Fund I will sell its combined US$800m in equity interests in Capula Investment Management, CapeView Capital, Winston Capital Group, Partner Fund Management and Mount Lucas Management.

    Upon completion of the deal, AMG's AUM is expected to .......

    Job Swaps 8 June 2016

  • Commingling risk concerns rating agency

    EMEA ABS is showing increasing credit exposure to the seller/servicer through commingling risk and other risks contingent on the financial quality of the seller/servicer, says Fitch. The rating agency believes this is accounted for in Fitch-rated transactions, but is not being sufficiently addressed in the wider market.

    Counterparty and seller/servicer ratings have drifted downwards over the past several years, with .......

    News Round-up 8 June 2016

  • Negative trade date usage surveyed

    European CLO managers have increased their use of negative trade date principal cash balances to minimise the impact of negative interest rates, according to a recent Fitch survey. Managers mostly rely on announced repayments as the main source of prospective funding for committed trades in excess of the available trade date principal cash balance. Only a few managers occasionally rely .......

    News Round-up 8 June 2016

  • Russian regs choking issuance

    S&P expects Russian structured finance issuance to dampen for the rest of the year due to recent regulatory changes. Financial market turbulence, a decrease in origination of underlying loan assets, asset deterioration and diminishing state support for investor demand have already hit issuance in the country this year.

    As of 1 January, the Central Bank of Russia increased the risk .......

    News Round-up 8 June 2016
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