Complete news archive

  • Brexit risk to Euro CLO performance

    The European CLO market has seen €4.44bn in new issuance this year, slightly above the €4.39bn up to the same point in 2015, despite volatility in the secondary loan and wider financial markets earlier in the year, notes S&P. It is also despite the potential for further volatility due to geopolitical events such as the Brexit vote.

    CLO managers have .......

    News Round-up 5 May 2016

  • CFTC amends swap requirement

    The US CFTC has approved a final rule to amend a requirement that swap dealers (SDs) and major swap participants (MSPs) exchange the terms of swaps with their counterparties for portfolio reconciliation so that SDs and MSPs need only exchange the 'material terms' of swaps. This requirement is found in CFTC Regulation 23.500(i).

    The final rule also amends the definition .......

    News Round-up 5 May 2016

  • Mobile phone EIP ABS mooted

    As the business model of US wireless carriers moves to further embrace equipment instalment plans (EIPs), they become more likely to issue ABS, says Moody's. Verizon has publically stated its interest in securitisation and there is increased speculation that a deal could be on the cards.

    "We have actually been out there talking to rating agencies, we did a presentation .......

    News 5 May 2016

  • FNMA enhances CAS disclosures

    Fannie Mae has made further enhancements to its loan level disclosure data for its Connecticut Avenue Securities (CAS) programme. From this month, Fannie Mae has expanded its relationship with Equifax to provide investors with monthly updated, anonymous, loan-level credit scores on all CAS deals since the programme's inception in 2013.

    The information being made available was previously only available for .......

    News Round-up 5 May 2016

  • Seattle MBS settlement agreed

    Bank of America has agreed to pay a US$190m settlement to the Federal Home Loan Bank of Seattle regarding pre-crisis RMBS that it sold, according to its quarterly SEC 10-Q filing. The agreement resolves a six-year litigation battle between the two banks after it was finalised on 25 April.

    The government-sponsored Seattle bank had argued in the case that Bank of .......

    News Round-up 4 May 2016

  • Goldman settlement gets approval

    A US$272m settlement in one of the last remaining RMBS class action suits to come out of the financial crisis has been approved. Judge Loretta Preska of the US District Court for the Southern District of New York granted the settlement, which resolves a dispute over faulty pre-crisis RMBS pass-through certificates sold by Goldman Sachs.

    The case, NECA-IBEW Health & .......

    News Round-up 4 May 2016

  • Macro issues affecting Brazilian MBS

    Macroeconomic pressures on Brazil will continue to stress CMBS, says Fitch. Credit-linked CMBS will fall faster in 2016 than in 2015 and other CMBS sectors will also suffer, while RMBS deals should remain stable amid the declining residential market as most borrowers have benefitted from a rise in inflation and trusts have significant seasoning.

    Fitch's Brazilian structured finance ratings have seen .......

    News Round-up 4 May 2016

  • Securitisation leader named

    Hannover Life Reinsurance Company of America (Hannover Re US) has promoted Dale Mensik to svp, financial solutions. He will lead the firm's financial reinsurance and securitisation efforts for the US life insurance market. Mensik has been at Hannover Re US for four years, having previously worked at Deutsche Bank.

    .......

    Job Swaps 4 May 2016

  • CLO 2.0 'more resilient'

    Post-crisis European CLO triple-A ratings would avoid downgrades even if faced with stresses similar to those experienced during the height of the financial crisis, says Fitch. This is due to greater credit enhancement and improved portfolio homogeneity.

    An analysis of Fitch-rated pre-crisis CLOs with similar collateral profiles to the new generation of transactions - including 190 tranches outstanding in 2007 .......

    News Round-up 4 May 2016

  • TigerRisk builds ILS trading capability

    TigerRisk Capital Markets & Advisory has received FINRA approval to trade catastrophe bonds in the secondary market. This will be led by Patrick Gonnelli, who becomes global head of ILS distribution and trading.

    Gonnelli has been at TigerRisk for six years and has also worked at firms such as RK Carvill and Willis Re. Parent company TigerRisk Partners added a .......

    Job Swaps 4 May 2016

  • Argentina headwinds outlined

    Tighter economic policies implemented by Argentina's newly elected government could prove challenging to securitisations within the country, according to S&P. This adds to the agency's worries that inflation, higher interest rates and stricter underwriting standards could suppress both issuance and borrowing.

    A projected slowdown in GDP growth for Argentina is based on the government's new economic policies, with originators responding by .......

    News Round-up 4 May 2016

  • Kane platform rebranded

    Artex Risk Solutions has rebranded the insurance management operations it recently purchased from Kane under the new name of Artex SAC. The acquisition of the platform was made in late 1Q16 as part of Artex's drive to increase its ILS capabilities in Cayman and Bermuda (SCI 22 March). The platform was built as the vehicle for Kane's private ILS and catastrophe .......

    Job Swaps 4 May 2016

  • MiFID 2 transparency changes proposed

    ESMA has proposed amendments to its draft regulatory technical standards (RTS) for MiFID 2. These include revising transparency requirements to non-equity products, including structured finance and derivatives products.

    The proposal is in response to the European Commission's request for ESMA to phase-in the application of certain parts of the new transparency regime by mitigating possible liquidity risks to bond markets. As a .......

    News Round-up 3 May 2016

  • Euro CLO equity returns impress

    Overall European CLO equity returns have largely been as expected, according to a study by data and cashflow analytics firm Codean. Despite the global financial crisis, European CLO equity from the 2006 and 2007 vintages successfully "achieved what it said on the tin".

    Although all deals are sold on the assumption that investors will make solid returns, not all deals .......

    News Round-up 3 May 2016

  • Compromised compliance

    Buyside valuation controls scrutinised

    It is almost two years since the transitional period for AIFMD expired in Europe and the majority of AIF managers now consider themselves to have addressed the directive's requirements. However, as evidenced by regulator-imposed penalties in France, a number of managers have failed to implement adequate valuation controls.

    Over the past 24 months the French regulator, the AMF, has sanctioned .......

    News Analysis 3 May 2016

  • CMBS delinquencies up again

    The US CMBS delinquency rate inched higher again in April, according to Trepp. It was the second consecutive month that the rate crept higher, following large decreases in January and February.

    The delinquency rate for US CRE loans in CMBS is now 4.23%, up 1bp from March. The rate is 134bp lower than a year previously and 94bp lower than .......

    News Round-up 3 May 2016

  • Belgian resi delinquencies nudge up

    The performance of the Belgian RMBS market remained stable in the six months to February, according to the latest indices published by Moody's. The trend for 90-plus day delinquencies increased slightly from 0.64% to 0.71%.

    Cumulative defaults increased marginally from 0.39% to 0.46% as a percentage of original portfolio balance. Similarly, cumulative losses increased from 0.05% to 0.08% of the .......

    News Round-up 3 May 2016

  • Card ABS near record levels

    US credit card ABS performance is still hovering close to record territory, according to Fitch's latest quarterly update for the sector. Charge-offs edged up from 2.52% to 2.65% in 1Q16, but still stayed below the 2.75% mark for the third consecutive quarter.

    Credit card delinquencies also began to normalise, with late pays rising slightly to 1.05% in 1Q16. However, this .......

    News Round-up 3 May 2016

  • US mid-market mix emerging

    Moody's expects the US mid-market loan sector to increase in variety if the upcoming 2016 to 2020 maturity wave coincides with an economic downturn. The agency expects CLOs, private equity firms, hedge funds and banks to play a larger role in the financing of mid-market companies.

    Non-banks have driven the majority of mid-market lending growth since 2007. They accounted for .......

    News Round-up 29 April 2016

  • Funding builds case for ABS

    LendInvest has secured a £40m warehouse financing facility from Macquarie Bank. An ABS issuance is understood to be in the works.

    This is the fourth bank funding line the real-estate marketplace lender has secured. LendInvest has now received a total of £230m in investments from UK and international institutions.

    "We look forward to working with the Macquarie team as we .......

    News Round-up 29 April 2016

  • UK mortgage tool launches

    Moody's Analytics has launched UK Mortgage Portfolio Analyser (UK-MPA), a tool to assess and manage credit risk for UK residential mortgages. UK-MPA enables users to project defaults, prepayments and loss severities to help them to determine loan level and portfolio level performance.

    The tool incorporates a number of factors within its model, including loan and borrower characteristics, regional home prices .......

    News Round-up 29 April 2016
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