Complete news archive

  • 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

  • SCI Start the Week - 18 April

    A look at the major activity in structured finance over the past seven days

    Pipeline
    Last week there were nine ABS deals added to the pipeline. A further three RMBS and two CMBS also joined.

    The ABS were: A$260m Flexi ABS Trust 2016-1; US$1.316bn Ford Credit Auto Owner Trust 2016-B; CNY2.736bn Fuyuan 2016-1 Retail Auto Mortgage Loan Securitization Trust; US$400m Golden Credit Card Trust Series 2016-3; US$400m Golden Credit Card Trust Series 2016-4; .......

    News 18 April 2016

  • CMBS defeasance driving up

    US CMBS defeasance activity in 2015 reached record levels for the post-crisis era, according to Moody's. In total, activity rose to US$22.4bn in 2015, a 7% increase over the US$20.9bn in 2014 and the highest figure since 2007.

    Moody's says that the rise in activity was a result of borrowers looking to capitalise on low interest rates and complete refinancing ahead of the .......

    News Round-up 18 April 2016

  • CVC CLO stake sold

    Electra Partners has made a £19m investment in CVC Credit Partner's Cordatus Loan Fund VI. The €400m CLO is backed by leveraged loans issued by predominantly private equity-backed companies in Europe.

    The transaction has a 13-year life and will be invested in approximately 100 individual credits. Electra's investment is a majority interest in the CLO's equity and was made through .......

    News Round-up 18 April 2016

  • Special servicing transfers diverge

    Approximately US$15.1bn across 977 US CMBS loans was specially serviced at end-1Q16, compared to US$22.5bn across 1,219 loans at end-1Q15, Fitch reports. While the balance of specially serviced CMBS 1.0 loans has fallen to US$14.4bn from US$22.3bn between 1Q15 and 1Q16, the balance of CMBS 2.0 loans transferring to the special servicer has increased to US$693m from US$242m.

    In 1Q16 .......

    News Round-up 18 April 2016

  • IMA-CVA abandoned

    Industry disappointed by CVA framework revision

    The Basel Committee's recent decision to drop the use of IMA-CVA from its proposed CVA risk framework has taken many in the industry by surprise. The move is also likely to disappoint institutions that were anticipating capital savings as a result of its use.

    Last July's consultative document from the Basel Committee on CVA included three potential approaches: the internal .......

    News Analysis 18 April 2016

  • GSEs offer new mod programme

    Fannie Mae and Freddie Mac will offer principal reduction to certain seriously delinquent, underwater borrowers via its new Principal Reduction Modification programme. This will be a one-time offering for borrowers whose loans are owned or guaranteed by one of the two GSEs and who meet eligibility criteria.

    The modification will be available to owner-occupant borrowers who are 90 days or .......

    News Round-up 15 April 2016

  • First UK marketplace ABS launches

    Funding Circle is in the market with its inaugural rated securitisation, the first ABS of marketplace loans originated in Europe. The £130m deal, dubbed Small Business Origination Loan Trust 2016-1 DAC, is backed by marketplace loans to UK SMEs.

    Moody's and S&P have assigned provisional ratings of Aa3/BBB to the £88.4m class A notes, A2/BBB to the £6.17m class B notes, .......

    News Round-up 15 April 2016

  • RMBS settlement bumped up

    Credit Suisse will pay the NCUA a revised US$50.3m sum for a case settled last month surrounding the bank's role in the sale of faulty pre-crisis RMBS (SCI 29 March). The original agreement had Credit Suisse paying out US$29m, but this has now been increased following prejudgement interest determined by a ruling court in Manhattan.

    The case concerns substantial losses incurred on .......

    Job Swaps 15 April 2016

  • Counterparty risk revisions proposed

    Fitch has released an exposure draft that outlines proposed changes to assessing counterparty risk in structured finance transactions and covered bonds. Although largely unchanged, the agency is introducing derivative counterparty ratings (DCR), as well as considerations to counterparty eligibility.

    The introduction of DCRs would see them replace long-term issuer default ratings. This would work in accordance with Fitch's definition of .......

    News Round-up 15 April 2016

  • SFR loan extensions expected

    During 2016, the operators for eight single-family rental transactions are likely to exercise their loan term extensions for the first time, says Moody's in its latest ResiLandscape publication. This should not have a material credit impact on the securitisations, however.

    Invitation Homes 2013-SFR1 was the first SFR deal to exercise its one-year optional term extension, which it did last December (SCI 9 .......

    News Round-up 15 April 2016

  • Liquidity tool reaches Europe, APAC

    Interactive Data has launched its liquidity indicators services in Europe and Asia-Pacific, and has also branched out from sovereigns and corporates to include certain TBA-eligible RMBS pass-throughs. The tool is built to help firms assess their portfolios' liquidity profiles under a range of proposed market conditions.

    Indicators include estimates of the projected trade volume capacity of a fixed income security. .......

    News Round-up 15 April 2016

  • Italian policy changes welcomed

    The Italian government is proposing to create a €5bn fund capitalised by the strongest financial institutions in Italy, together with the government-owned entity Cassa Depositi e Prestiti. The move is part of new measures to support the banking market and legislation changes to enhance the underlying infrastructure.

    Dubbed Atlante, the fund is intended to backstop any required equity capital raising .......

    News 14 April 2016

  • US CMBS shaped by primary

    New issuance pricing and trends are shaping what's happening in the US non-agency CMBS secondary market.

    "Primary is driving a lot of what's happening in secondary right now," says one trader. "New issuance spreads have come back a long way from recent wides - triple-As peaked at 173 and the latest JPM deal priced at 129 - and secondary levels .......

    SCIWire 14 April 2016

  • Kroll quells TRID fears

    Kroll Bond Rating Agency has published an opinion that tackles some of the key concerns that are surfacing following the TILA-RESPA Integrated Disclosure Rules (TRID) coming into effect late last year. The agency expects the rules to have a limited impact on US RMBS credit enhancement levels.

    In a letter recently penned by the Association of Mortgage Investors, the body stressed that the rules .......

    News Round-up 14 April 2016

  • ISDA directors elected

    ISDA has announced the election of 10 directors at its 31st Annual General Meeting in Tokyo. A further 14 directors are continuing on the board.

    Three new directors were elected: John Feeney, head of pricing and conduct coordination at NAB; Benjamin Jacquard, global head of credit at BNP Paribas; and Hideo Kitano, md, head of credit trading department, head of .......

    Job Swaps 14 April 2016

  • Non-cleared derivatives doc published

    ISDA has published the first in a series of documents to help market participants to comply with new margining requirements for non-cleared derivatives. The 2016 Credit Support Annex for Variation Margin for use with New York Law will allow parties to negotiate collateral terms that comply with variation margin requirements under the new rules.

    The margining framework for non-cleared derivatives .......

    News Round-up 14 April 2016

  • Euro CMBS delinquencies down

    The 12-month rolling loan maturity default rate for European CMBS rated by S&P remained stable at 10.3% at the end of March, the rating agency reports in its latest monthly bulletin. The senior loan delinquency rate decreased from 46.5% to 45.3%.

    Breaking down the delinquency rate, the decrease for continental European senior loans was from 58.8% to 58.4%. The decrease .......

    News Round-up 14 April 2016

  • Bermuda law firm beefs up

    Harneys has recruited corporate and insurance lawyer Michael Skrbic as counsel in its Bermuda office. He joins from Kennedys, where he was partner.

    Skrbic's practice includes ILS, reinsurance, derivatives, regulatory compliance, ISDA documentation and credit restructuring. His experience ranges to Asian-based issues too and has seen him hold senior positions at ACE Group, Zurich Financial Services, Dresdner Kleinwort, Commerzbank and CMS Cameron .......

    Job Swaps 14 April 2016

  • Euro CLOs stay active

    The recent uptick in activity in the European CLO secondary market is continuing.

    "There's more activity across the board thanks mainly to primary continuing to tighten, which gives people comfort that primary and secondary are more aligned," says one trader. "Consequently, the secondary market appears to be getting back to normal."

    However, the trader continues: "That said, it can still .......

    SCIWire 14 April 2016

  • Marketplace challenges weighed

    Expanded access to the ABS markets will be important to the industry's growth, according to a new survey of marketplace lending regulations compiled by Chapman and Cutler. The study also highlights several difficulties that are unique to marketplace loan ABS.

    The report suggests that while the first marketplace ABS only closed a few years ago, securitisation has quickly become an .......

    News 14 April 2016
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