Complete news archive

  • 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

  • Special situations analyst added

    TCW Group has appointed Steven Purdy to its fixed income credit research group as md and special situations analyst. He will take responsibility for analysing and identifying credit opportunities with companies in stressed and distressed situations.

    Purdy is based in Los Angeles and reports to Jamie Farnham, director of credit research. He was previously based in London with TPG Capital .......

    Job Swaps 20 April 2016

  • Release pricing risks underlined

    CMBS investors could be exposed to greater idiosyncratic property risk as a result of innovations around release pricing. According to Fitch, commercial property lending has seen traditional release pricing mechanisms become modified to favour borrowers.

    This pricing structure governs how much debt borrowers must repay if they dispose of individual properties over the term of the loan. Lenders traditionally require a .......

    News Round-up 20 April 2016

  • ABS platform goes fully green

    Renovate America's PACE programme is the first to be labelled a completely green ABS platform. The move means that Renovate's first four securitisations - completed in 2014 and 2015 - have been designated as green bonds, to add to their two most recent deals.  

    Sustainalytics provided a second opinion that the bonds adhere to the green bond principles, finding that the proceeds fund .......

    News Round-up 20 April 2016

  • Euro ABS/MBS picks up

    Tone and volumes are on the rise across the European ABS/MBS secondary market.

    "The market has been much stronger over the past few days," says one trader. "Now, at last, there is a bit more activity pretty much everywhere."

    The trader continues: "We're seeing buyers across every single sector except UK sterling, which remains a little difficult and Portuguese paper, but .......

    SCIWire 20 April 2016

  • Chasing ubiquity

    Marketplace lending sector prospects discussed

    Representatives from Prosper Marketplace, MountainView Capital and Credit Suisse recently discussed the growth of marketplace lending during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the impact of rising rates and the role of ABS in the sector. For a broader and more in-depth .......

    Talking Point 20 April 2016

  • US CLOs remain robust

    The strong market tone in the US CLO secondary market is continuing and supporting ever-narrowing spreads.

    "The market remains robust and the consensus appears to be that we'll continue to move tighter," says one trader. "The overall positive feeling helped to ensure that secondary held up pretty well at the end of last week when things looked to be getting .......

    SCIWire 19 April 2016

  • Green securitisation webinar launches

    Renewables, or 'green', ABS instruments offer an attractive source of yield and fulfil socially responsible investment criteria. Meeting the goals agreed to at December's COP 21 Conference on Climate Change will require an investment of several trillions of dollars and so many are looking to securitisation to help finance this investment.

    An array of renewable energy projects and assets have .......

    News Round-up 19 April 2016

  • Bidding goodbye?

    BDCs face uncertain future as market turns

    BDCs and other listed vehicles are coming under increasing pressure - not least from their shareholders - to change the way they operate in the structured credit market. In some instances, they are being forced out of the sector altogether.

    A raft of firms have already either liquidated or cut their fees so as to better align themselves with investors. .......

    News Analysis 19 April 2016

  • Global ILS head poached

    TigerRisk Partners has recruited Philipp Kusche as partner and global head of ILS and capital solutions. In this role, he will develop and structure ILS and other insurance risk-to-capital products.

    Kusche arrives from Swiss Re Capital Markets, where he was head of ILS structuring and origination. He was responsible for creating and executing catastrophe bonds, sidecars, contingent capital structures and other alternative .......

    Job Swaps 19 April 2016

  • Distressed strategist brought in

    GSO Capital Partners has recruited David Flannery as senior md, focusing on distressed strategies in both private and public markets. He joins the Blackstone subsidiary from Anchorage Capital Group, where he focused on illiquid credit opportunities and CLOs.

    Flannery also previously worked at Bank of America Merrill Lynch, in various roles that included chief risk officer of global banking and markets and .......

    Job Swaps 19 April 2016

  • Trups defaults, deferrals fall

    The number of combined defaults and deferrals for US bank Trups CDOs decreased from 17.4% at the end of February to 17% at the end of March, according to the latest Fitch index results for the sector. Last month, eight banks representing US$108.5m of notional in 17 CDOs cured.

    A defaulted issuer with a combined notional of US$27m in two .......

    News Round-up 19 April 2016

  • Navient extends more bonds

    Navient has extended the maturity date on an additional US$1.2bn of bonds backed by FFELP student loans. The amendments include the A3 and B tranches of SLM Student Loan Trust 2013-6, which were respectively pushed back to 2055 and 2083.

    SLM Student Loan Trust 2014-2 also had its A3 and B tranches' final maturities extended to 2055 and 2073 respectively. Further, .......

    News Round-up 19 April 2016

  • ATR claims 'non-existent'

    Fitch says that borrower claims against major US residential mortgage servicershave been non-existent, two years after the Ability to Repay (ATR) rule was implemented. However, the agency says this trend could shift with certain non-qualifying mortgages (non-QM) becoming more commonplace.

    The ATR rule was brought in to help protect borrowers from harmful lending practices. Under the rule, mortgage lenders must .......

    News Round-up 19 April 2016

  • Euro secondary stable

    The European securitisation secondary market continues to be stable despite wider market vacillation yesterday.

    A buying bias across asset classes remains apparent, but limited secondary supply is keeping activity patchy. Bolstered by new issuance UK RMBS is seeing some action and spreads are holding up despite the evolving Brexit story. Selective trading in CMBS and some high profile prime names .......

    SCIWire 19 April 2016

  • NPL definitions mooted

    The Basel Committee has issued for consultation a document entitled 'Prudential treatment of problem assets - definitions of non-performing exposures and forbearance'. The proposed definitions aim to harmonise the measurement and application of two important measures of asset quality and thereby promote consistency in supervisory reporting and disclosures by banks.

    At present, banks categorise problem loans in a variety of .......

    News Round-up 18 April 2016

  • SF traders among highest paid

    Structured credit and exotics traders are the highest paid in their profession in London, according to survey results from Emolument.com. The results - which cover traders at director level - reveal that they take away an average of £370,000 a year, split equally between their salary and bonus.

    In contrast, flow credit traders expect to take home less, at around £295,000 a .......

    News Round-up 18 April 2016

  • SEC adopts OTC conduct standards

    The US SEC has adopted final rules implementing business conduct standards and chief compliance officer requirements for security-based swap dealers and major security-based swap participants. The final rules are adopted under the Dodd-Frank Act.

    The rules require security-based swap entities to comply with a range of provisions designed to enhance transparency, facilitate informed customer decision-making and heighten standards of professional .......

    News Round-up 18 April 2016

  • UBS settlement pushed up

    The NCUA has had another of its recent successful RMBS settlements increased after UBS was ordered to pay the federal agency a post-interest total of US$69.8m. The decision was made by the US District Court for the Southern District of New York, after UBS recently agreed to dish out US$33m in compensation for its role in selling faulty deals to two failed corporate credit unions .......

    Job Swaps 18 April 2016

  • CMBS loan drops examined

    Kroll Bond Rating Agency has published a report that provides insight into the nature of changes that occur to US CMBS loan pools during the securitisation process. Many of these changes are in the form of loan 'drops' - loans that don't make the cut for a variety of reasons, including B-piece buyer kick-outs, or in instances where borrowers turn .......

    News Round-up 18 April 2016

  • Private debt fund supported

    British Business Bank Investments has invested £30m in the first close of CORDET Direct Lending, a new debt fund focused on smaller mid-cap businesses. The fund, which will offer direct lending and private debt solutions, has held its first close at approximately €200m and is targeting a final close of €600m within the next year. CORDET has committed to invest .......

    News Round-up 18 April 2016
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