Complete news archive

  • FNMA brings fresh CIRT transaction

    Fannie Mae has completed its tenth Credit Insurance Risk Transfer transaction. CIRT 2016-3 shifts a portion of the credit risk on a pool of single-family loans with an unpaid principal balance of approximately US$5.7bn to a single insurer.

    The covered loan pool consists of 30-year fixed rate loans with LTV ratios greater than 60% and less than or equal to .......

    News Round-up 22 April 2016

  • High costs hit non-bank servicers

    Of the three largest US non-bank mortgage servicers - Nationstar, Ocwen and Walter Investment Management - only Nationstar was profitable in 2015, Moody's reports in its latest Servicer Dashboard. With increased regulatory scrutiny set to keep operating costs high, the rating agency believes earnings will improve only marginally this year.

    Nationstar's net income was just US$43m in 2015. Moody's analyst Warren Kornfeld comments: .......

    News Round-up 22 April 2016

  • APAC solutions unit formed

    Natixis has appointed Fabrice Guesde as head of global structured credit & solutions (GSCS), Asia Pacific, to lead the newly-created unit. Based in Hong Kong, he reports to GSCS global head Emmanuel Lefort and locally to APAC fixed income head Viet-Linh Ha Thuc.

    Guesde has been with Natixis since 2006, latterly in Paris as head of credit & insurance solutions. .......

    Job Swaps 22 April 2016

  • SLABS downgraded after correction

    In a move impacting approximately US$1.2bn of securities, Moody's has affirmed six tranches and downgraded 11 across six private student loan ABS sponsored by Navient Solutions. The notes were placed on review on 19 January to reflect the correction of an error in the calculation of net losses on the outstanding collateral pools that were used to run Aaa and .......

    News Round-up 22 April 2016

  • Combo note RFC issued

    Moody's has proposed revisions to how it rates combination securities - otherwise referred to as combo notes. These products are CDOs or CLOs that typically combine their equity with either secured notes from the same transaction or other securities, such as Treasury STRIPS.

    Underlying securities for combo notes are referred to as components. Moody's says that combo note ratings may be sharply .......

    News Round-up 22 April 2016

  • Peabody auction due

    An auction to settle the credit derivative trades for Peabody Energy Corporation CDS is to be held on 4 May. ISDA's Americas Determinations Committee ruled that a bankruptcy credit event occurred with respect to the entity on 13 April, after Peabody Energy Corporation filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the Eastern District of Missouri. .......

    News Round-up 22 April 2016

  • Green shoots

    Renewables ABS on the EU agenda

    A combination of private placements and the banking market should be able to meet the European renewables sector's financing needs in the short term, according to a new SCI/Renovate America research report entitled 'Green securitisation: harnessing institutional investment to tackle climate change'. However, there is growing recognition that the ABS market could take a lead role in raising the €200bn .......

    News Analysis 21 April 2016

  • US CLO patterns persist

    Activity and trading patterns in the US CLO secondary market are persisting.

    "It's still busy with the same kinds of themes continuing," says one trader. "We're generally bid on across most of the stack, non-Volcker paper is a bit behind, but there is still a bid there as well."

    Nevertheless, the trader adds: "We did see a handful of DNTs .......

    SCIWire 21 April 2016

  • 2016 vintage touted

    Recent capital markets volatility has resulted in tighter lending conditions where US CMBS originators are becoming more selective and conservative, while providing the B-piece buyer with greater buying power. Morgan Stanley CMBS strategists believe this will result in better collateral performance of 2016 vintage loans compared to those securitised in 2015 and 2014 vintage deals, where underwriting was less stringent. .......

    News 21 April 2016

  • Investment boost for TCP

    CNO Financial Group has invested in a non-controlling minority interest in Tennenbaum Capital Partners. TCP will continue to operate on a stand-alone basis under its present executive leadership.

    In addition, CNO has agreed to make general account investments over a period of time of approximately US$250m across TCP's managed funds and strategies to assist in, and benefit from, its investment .......

    Job Swaps 21 April 2016

  • Ashurst promotes SF pro

    Ashurst has promoted Paul Jenkins to managing partner, which will see him join the firm's board. This adds to his role as co-head of Ashurst's global finance division.

    Jenkins will also lead the law firm's executive committee, of which he is already a member. He has particular expertise in corporate finance, debt capital markets and securitisation.

    Jenkins will remain located .......

    Job Swaps 21 April 2016

  • CREFC Europe board changes made

    CREFC Europe has made a series of board appointments, including Steve Willingham as the successor to chair Madeleine McDougall on a one-year term from 14 November. ING Real Estate Finance structured products md Mike Shields has also joined the association's board.

    Willingham is head of real estate finance for EMEA at HSBC and has also worked at BlackRock, MGPA, as .......

    Job Swaps 21 April 2016

  • Cat bond issuance hits record

    Catastrophe bond issuance set new records for issuance in 1Q16, according to Aon Benfield's quarterly report on the sector. The ILS sector witnessed issuance of US$2.22bn across 10 transactions, an increase of more than 30% on the previous record set in 1Q15.

    In addition, cat bond outstandings also reached unprecedented heights, standing at US$25bn for the quarter. Bonds covering US named .......

    News 21 April 2016

  • RMBS research head hired

    Vipul Jain has joined Wells Fargo's research and economics department as md and head of residential mortgage research. Based out of offices in New York and Charlotte, North Carolina, he will lead the bank's RMBS research team in developing strategy, publishing research and generating investment ideas for institutional investors.

    Jain reports to Marielle Jan de Beur, head of structured products .......

    Job Swaps 21 April 2016

  • Conduit CMBS LTVs decline

    The credit quality of US conduit/fusion CMBS as measured by Moody's LTV (MLTV) ratio improved in 1Q16, says the rating agency. The MLTV ratio declined from 118.9% in 4Q15 to 118.1% last quarter, marking the first decline since the start of 2013.

    "The credit pendulum swung in favour of subordinate bond buyers late last year, and increasingly they are helping .......

    News Round-up 21 April 2016

  • CLO default risks amp up

    US CLOs are becoming more exposed to the rising number of defaulted issuers, according to Fitch's latest index results for the sector. The exception are triple-A rated tranches, which should remain shielded from potential downgrades.

    Approximately 70% of 233 deals in Fitch's index had exposure to at least one defaulted issuer in 1Q16, with 16% exposed to at least three defaulted issuers. .......

    News Round-up 21 April 2016

  • SIV extension sought

    Harrier Finance Funding is seeking to amend its transaction documents to allow its notes to be extended to July 2022 from July 2016. The proposal has been approved by the sole noteholder and Moody's has determined that the move will not impact the SIV's ratings to be reduced or withdrawn.

    .......

    News Round-up 21 April 2016

  • Euro secondary scrappy

    Activity continues to be scrappy in the European securitisation secondary market.

    Sentiment remains very positive across the vast majority of securitisation sectors in line with wider markets. However, lack of supply is still hampering any sizeable cohesive trading.

    The closest to that yesterday came in Italian paper. There, following strong prints on the 11:00 Italian RMBS BWIC there was an .......

    SCIWire 21 April 2016

  • Euro CLOs active

    The European CLO secondary market continues to be active both on- and off-BWIC.

    "Despite limited direction from primary, the secondary market is still strong," says one trader. "There have been quite a few BWICs in the past couple of sessions and they continue to trade well."

    The trader continues: "Triple- and double-Bs remain the major focus. Yesterday we saw triple-Bs .......

    SCIWire 20 April 2016

  • Sport Chalet exposure gauged

    Morningstar believes that 11 CMBS loans - several of which have significantly elevated risk of term or maturity default - worth US$628.9m could be affected by Vestis Retail Group shuttering its Sport Chalet division in connection with its 18 April Chapter 11 bankruptcy filing. The sporting goods retailer has reportedly already begun liquidation sales at all 47 of its stores .......

    News 20 April 2016

  • US CLO calls climb

    US CLO calls continued to increase last year, as JPMorgan analysts estimate 76 CLO 1.0s and 13 CLO 2.0s were called. While they expect prepayments to remain light in 2016, the analysts believe the recent rally in loan prices could see an even greater rate of optional redemptions.

    The 89 CLOs called last year compare to 85 called in 2014 .......

    News 20 April 2016
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