Complete news archive

  • Euro secondary stays positive

    The European securitisation secondary market is retaining its positive tone and momentum.

    Despite the UK and US public holidays and month-end, activity has improved on the previous week throughout this. The last few days have seen trading across the board and spreads in the vast majority of sectors continue to grind tighter.

    In ABS/MBS prime assets were the main focus yesterday .......

    SCIWire 2 June 2016

  • Post-crisis single-A outperformed

    The total amount of CLOs paid down in JPMorgan's CLO index (CLOIE) since the April rebalance through 31 May was US$3.83bn in par outstanding, split between US$3.65bn and US$180m of pre-crisis and post-crisis CLOs respectively. US$3.4bn across 53 tranches from 11 deals was added to the post-crisis CLOIE at the May rebalance.

    The CLOIE total index saw total returns of .......

    News Round-up 2 June 2016

  • US CMBS secondary demand strong

    The slow pace of primary market issuance is driving US non-agency CMBS trends.

    "We see little bursts of activity and then everything slows back down. Over the last one or two weeks we have really seen the quiet primary market driving the secondary market," says one trader.

    He adds: "Curiously, there was a decent amount of BWIC supply last week. .......

    SCIWire 1 June 2016

  • Building boom threatens hotel CMBS

    Burgeoning hotel room supply could increase risk for the US$3.68bn of fixed-rate loans backed by Manhattan hotels and securitised in CMBS monitored by Morningstar Credit Ratings, says the agency. Delinquent and specially serviced loans account for just 2.8% of the Manhattan loans, but a further 14 loans - with a combined balance of US$730.9m - have DSCRs below 1.2x.

    While .......

    News 1 June 2016

  • CMBS metrics diverging

    A number of metrics appear to be diverging within recent US CMBS 2.0 deals rated by Fitch. A recent comparative analysis of 2014 and 2015 deals undertaken by the agency reveals that originator leverage metrics improved, while the agency's own leverage metrics deteriorated.

    In addition, cashflow haircuts and debt yield also worsened within Fitch's metric, an indicator of aggressive originator underwriting. "The rise .......

    News Round-up 1 June 2016

  • Alt-A recasts to test defaults

    The looming recast to full payment of principal and interest for the remaining interest-only Alt-A loans in 2006-2007 vintage private-label RMBS is expected to drive default rates up again in 2016-2017. Moody's suggests that the spike in default rate will be less severe than that seen in 2015, but a larger portion of loans will be subject to recasts.

    "Defaults .......

    News Round-up 1 June 2016

  • Ginnie fraud settled

    California-based First Mortgage Corporation (FMC) and six of its senior executives have agreed to pay the US SEC US$12.7m to settle charges that they orchestrated a scheme to defraud investors in the sale of RMBS guaranteed by Ginnie Mae. The SEC alleges that from March 2011 to March 2015, FMC pulled current performing loans out of Ginnie Mae RMBS by .......

    Job Swaps 1 June 2016

  • Gateway mod pulled

    The February modification of the US$94.3m Gateway Salt Lake loan, securitised in JPMCC 2010-C1, has been rescinded. Trepp suggests that while the pulling of the modification may not be a first for the CMBS market, it is certainly the largest.

    The 623,205 square-foot mall backing the loan was sold earlier this year to a group that included Vestar and Oaktree .......

    News 1 June 2016

  • Euro CLOs strong

    Activity and sentiment in the European CLO secondary market is strong.

    "Overall tone is very positive and the latest bout of price appreciation has been very, very fast," says one trader. "That speed could be a concern, but people have realised that even though we're now at recent tights we're still wider than a year ago, which has led to .......

    SCIWire 1 June 2016

  • Third community NPL pool sold

    Fannie Mae has auctioned off its latest community impact pool of non-performing loans to New Jersey Community Capital (NJCC). The non-profit company purchased the latest pool of loans through its affiliate, the Community Loan Fund of New Jersey.

    The purchase adds to NJCC's previous acquisitions of the first two community impact pools marketed by Fannie Mae. The latest pool includes .......

    News Round-up 31 May 2016

  • Fair value?

    Call for standardised approach to MPL valuations

    In a sector where there is no standardised pricing methodology or standardised pricing reference data, a wide variety of approaches are currently being used to value marketplace loans (MPL) and peer-to-peer (P2P) loans. Not all of these approaches are deemed appropriate for the assets, however, and their continued use could have significant repercussions for the securitised MPL market.

    The burgeoning .......

    News Analysis 31 May 2016

  • Real estate platform strengthened

    C-III Capital Partners is set to acquire Resource America, following a comprehensive review of strategic and financial alternatives that the latter company announced in January. Under the terms of the agreement, Resource America stockholders will receive US$9.78 per share in cash, or a total of approximately US$207m. The price per share represents a premium of over 128% from Resource America's .......

    Job Swaps 31 May 2016

  • Ex-SEC counsel joins law firm

    BakerHostetler has added Walter Van Dorn to its New York office as a partner. He was most recently at Dentons and has also worked at Thacher Proffitt & Wood, Clifford Chance and the US SEC. Van Dorn has worked in London, Hong Kong and Washington and focuses his practice on corporate securities law, including ABS.

    .......

    Job Swaps 31 May 2016

  • Further Freddie NPLs auctioned

    Freddie Mac is auctioning off its third batch of NPLs this year, a US$783m collection of seasoned residential whole loans. The NPLs are currently serviced by Bayview Loan Servicing.

    The GSE is offloading the loans from its mortgage investment portfolio through seven pools, in the form of five standard pool offerings (SPO) and two extended timeline pool offerings (EXPO). Like .......

    News Round-up 27 May 2016

  • Rochester notes sold off

    OneSavings Bank (OSB) is selling off its investment interest in the Rochester Financing 1 deal. Morgan Stanley will purchase the C, D and E notes, and will launch an auction for the F notes and residual certificates in the transaction.

    The sale must generate at least £95m before there will be consideration of closing the deal, according to OSB. The transaction is .......

    News Round-up 27 May 2016

  • 'Wrong' Madden verdict 'should stand'

    The US solicitor general says that the controversial decision in Madden v Midland Funding (SCI passim) was incorrect and "reflects an unduly crabbed conception of [National Bank Act] pre-emption". However, the solicitor general does not believe that the decision should be reviewed by the Supreme Court.

    A Mayer Brown client memo notes that the solicitor general "concluded that this just .......

    News 27 May 2016

  • Media financing firm secures funds

    Crayhill Capital Management has agreed to finance a new firm called Versa Media, which has been set up to provide production loan financing to independent film and television creators. The new firm has secured a US$100m financing facility from Crayhill and will generate future means of financing through structured finance.

    In addition to traditional subordinated production loans - including mezzanine, .......

    Job Swaps 27 May 2016

  • Aquila broadens investor access

    Aquila Capital is providing institutional investors with access to its latest renewable energy portfolio - Aquila Capital Renewables Fund III - via securitisation. According to the asset manager, the securitisation has been given an indicative investment grade rating by an ESMA-recognised rating agency, with the target of a final single-A minus rating.

    Combined, the securitisation and a direct investment in the fund .......

    News Round-up 27 May 2016

  • For-profit college exposure gauged

    Morningstar Credit Ratings believes that government scrutiny and poor public perception of the US for-profit education industry could intensify default risks on up to US$1.88bn in CMBS. The industry has been hit by a series of investigations and settlements that resulted in the closure of Corinthian Colleges and a 28% decline in enrolments between September 2011 and September 2015. In .......

    News Round-up 27 May 2016

  • NOI trends analysed

    Moody's has published a mid-year update on net operating income (NOI) trends for the main types of collateral backing US CMBS conduit loans. The update covers the period between 2004 and 2015, and tracks year-over-year changes in same-store property financials as reported by borrowers and processed by master servicers.

    The report is based on borrower financials for 2015 that were .......

    News Round-up 27 May 2016

  • Diversified income beefs up

    The PIMCO Diversified Income portfolio management team has been bolstered with the addition of Dan Ivascyn (PIMCO's group cio and portfolio manager) and Alfred Murata (md and portfolio manager). They join Curtis Mewbourne (md and portfolio manager) and Eve Tournier (evp and head of pan-European credit portfolio management) as co-managers on the strategy. Mewbourne will retire from PIMCO at end-September .......

    Job Swaps 27 May 2016
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