Complete news archive

  • 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

  • ISDA, Markit set CDS commitments

    The European Commission is looking for feedback on commitments put forward by ISDA and Markit to address concerns surrounding their licensing of CDS data and indices. Both were alleged to have breached EU antitrust rules by blocking or delaying the emergence of an effective market for exchange traded CDS.

    The allegations date back nearly three years when the Commission accused a .......

    News Round-up 29 April 2016

  • Expanding manager debuts Euro deal

    BlueMountain Capital Management has closed its first European CLO with €410m in commitments, while it also continues to build out its European team. The firm closed four CLOs in the US last year.

    BlueMountain appointed Nick Pappas as European ceo last year (SCI 16 April 2015) and says it has a strong commitment to building its European presence. It hired .......

    Job Swaps 29 April 2016

  • Irish RMBS delinquencies dropping

    Severe delinquencies among S&P-rated Irish RMBS transactions have declined over the past four years as the Irish economy has recovered. However, they do remain stubbornly high and the rating agency expects it will take some time before housing market conditions and delinquencies normalise.

    Total delinquencies among Irish RMBS rated by the agency were 15.7% as of 4Q15. They peaked at .......

    News Round-up 29 April 2016

  • Middle ground

    Issuance, investors challenging CLO mid-market

    Issuance within the US CLO market has dampened so far in 2016 as the sector suffers from the reverberations of wider credit market volatility. The CLO mid-market has not been exempt, but many of its issues remain tied to its small investor base.

    The sluggish start to the year has seen just US$9.9bn in US CLOs issued to date, according .......

    News 29 April 2016

  • Hudson loss forecast increases

    Rising store vacancies at the Hudson Valley Mall in Kingston, New York, has prompted Morningstar Credit Ratings to increase its loss forecast on the loan backed by the shopping centre. Sagging occupancy has now left the US$49.4m loan with expected losses of US$32.5m, a substantial rise from the previous US$24.7m projection.

    This could have direct implications on CFCRE 2011-C1. The loan comprises .......

    News Round-up 28 April 2016

  • European placements trending down

    Only €14.3bn of securitised product was placed in Europe in 1Q16, according to AFME's latest data snapshot on the market, as €42.5bn was retained.

    A total of €56.9bn was issued last quarter, a decrease of 20.3% from the €71.4bn issued in 4Q15. However, it was significantly up from the €35.3bn issued the same time last year - a 61.2% increase on 1Q15.

    News Round-up 28 April 2016

  • Towd debuts WAC cap

    Towd Point Mortgage Funding 2016-Granite 1 is the first European securitisation to place a cap on its net weighted average coupon (WAC) (see SCI 5 April). Moody's says that this could lead to less senior interest paid in the revenue waterfall than is suggested by the coupon on the notes.

    "Senior interest payments are exposed to the servicer's ability to reset mortgage .......

    News Round-up 28 April 2016

  • Clearing rule completion requested

    The FIA has sent a letter to the US SEC urging the agency to finalise rules setting enhanced standards for systemically important security-based swap clearing agencies. The organisation says that without such standards, clearing members that are located within the EU may no longer be able to access covered clearing agencies regulated by the SEC and may face punitive capital .......

    News Round-up 28 April 2016

  • Start-up adds ABS pro

    Financial technology start-up ZestFinance has appointed Steven Fernald as head of capital markets. He reports to ceo Douglas Merrill and will oversee new and existing capital markets relationships.

    Fernald was previously part of the student loan ABS group at Morgan Stanley. He has also worked at UBS.

    .......

    Job Swaps 28 April 2016

  • US CMBS stays supply-driven

    Activity and pricing patterns in the US non-agency CMBS secondary market continue to be driven by expectations over supply.

    "Secondary is still fairly quiet as people are holding on to paper because of expectations of diminishing future supply," says one trader. "So spreads are continuing to tighten and we're also seeing a lot of people buying CMBX risk for the .......

    SCIWire 27 April 2016

  • IMF warns China over NPLs

    The IMF has praised Chinese attempts to tackle its debt problem through new schemes that introduce NPLs to the market, but warns that a lack of careful design could prompt the rise of 'zombie' firms. The organisation therefore lays out a number of recommendations, including the need for a diversified pool of NPLs within any proposed securitisations.

    The response comes after recent moves .......

    News Round-up 27 April 2016

  • Accounting factor

    Fair value, MOA lead retention options

    Many US securitisation market participants are becoming bogged down in the numerous accounting considerations associated with the Dodd-Frank risk retention requirements. With less than eight months until the rules come into force, sponsors are weighing up the best options for consolidating the retained interest.

    RMBS risk retention rules became effective in the US in December 2015, but the remaining asset .......

    News Analysis 27 April 2016

  • Yirendai completes ABS issuance

    Chinese online consumer finance marketplace Yirendai has completed a CNY250m ABS issuance. Yirendai announced last month that it had facilitated a trust to securitise consumer loan products, with the first ABS expected to be listed for trading on the Shenzhen Stock Exchange within four weeks.

    "We are pleased to see the substantial progress of the ABS products issuance," says Ning Tang, .......

    News Round-up 27 April 2016

  • Rate floor ruling assessed

    A recent Madrid court ruling on interest rate floor clauses within retail mortgages should not pose a substantial threat to Spanish RMBS, according to Fitch. The court said that the clauses lacked transparency and were abusive, leaving the possibility that they could become obsolete.

    However, the court did not state that the clauses were illegal, so the implications for affected mortgages may depend .......

    News Round-up 27 April 2016

  • Euro CMBS to remain attractive

    European CMBS investor demand will remain high over the next few years, says Moody's, as CRE returns are more attractive in the low interest rate environment than alternative investments. Investors will have to balance the defensive attributes of low yielding prime properties with looking further afield to find additional yield pick-up.

    "CRE fundamentals are stable, but returns will not be uniform. .......

    News Round-up 27 April 2016

  • SFI website likely delayed

    ESMA says it has encountered a number of issues in its preparations for developing a website on the disclosure of structured finance instruments (SFI). The absence of a legal basis for its funding is one key barrier, which has left the regulator admitting that the website will not be ready for entities to start reporting by the 1 January 2017 deadline.

    The European Commission .......

    News Round-up 27 April 2016

  • Blade ABS hits rough patch

    Moody's has downgraded Blade Engine Securitization Series 2006-1 due to revised future income expectations. The A1 and A2 notes have both been downgraded from Ba3 to B3, while the B notes have been downgraded from B2 to Caa3.

    The rating agency has reduced its expectations for future income from the engine portfolio for several reasons, not least the fact that .......

    News Round-up 27 April 2016

  • London touted as cyber ILS hub

    The London ILS market is "perfectly positioned to become the global centre for cyber risk insurance", says BNY Mellon in a new report. The report recommends new laws to allow the incorporation of SPVs onshore within the London market to offer ILS sponsors and investors more choice and potentially allow new and emerging risks to be transferred to the capital .......

    News Round-up 27 April 2016

  • Euro secondary picks up

    The European securitisation secondary market saw an increase in activity yesterday to go with the improving tone of recent sessions.

    "After being quiet for the past few days flows picked up across the board yesterday," says one trader. "Volumes are still not huge, but we're now seeing a lot of enquiries from investors looking for paper."

    Notably, the trader adds: "That .......

    SCIWire 27 April 2016

  • US CLOs strengthen

    Tone and activity in the US CLO secondary market continues to strengthen.

    "The background remains positive with oil above 40, stocks hitting new highs and people happier with credit in general," says one trader. "For our part, we're seeing a bid for equity, mezz continues to rally and new issue activity is starting up again, so the CLO picture is .......

    SCIWire 26 April 2016
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