Complete news archive

  • Repo clearing blockchain considered

    The DTCC has teamed up with Digital Asset Holdings to develop a distributed ledger solution which would seek to manage the clearing and settlement of US Treasury, agency and agency RMBS repo transactions. The project would see the corporation and company build and incorporate structured, cryptographic ledger entries into existing securities trade and settlement flows.

    The DTCC notes it is specifically using .......

    News Round-up 31 March 2016

  • ESMA fines trade repository

    ESMA has fined DTCC Derivatives Repository (DDRL) €64,000 for negligently failing to implement systems capable of providing regulators with direct and immediate access to derivatives trading data. Such access is a key requirement under EMIR.

    It is the first time ESMA has taken enforcement action against a trade repository registered in the EU. DDRL is the largest EU registered trade .......

    Job Swaps 31 March 2016

  • Green bond evaluation service starts

    Moody's has launched a new green bond assessment (GBA) evaluation and research service. The GBA service is intended to promote further disclosure and transparency and to set a standard for green bond issuances across sectors and geographies.

    The rating agency notes that green bonds are an increasingly popular source of capital and issuance should increase for years to come. It .......

    News Round-up 31 March 2016

  • Everest names risk head

    Everest Re Group has tapped Michael Kerner as its new evp and head of strategy and risk management. He arrives from Zurich Insurance Group, where he most recently held the position of ceo - general insurance.

    Kerner's experience with Zurich also spanned various actuarial, reinsurance, underwriting and strategy roles. This included roles as ceo of global corporate in North America, global .......

    Job Swaps 31 March 2016

  • Whole loans offloaded

    Rabobank has sold a €1bn portion - representing 0.5% - of its mortgage portfolio to the insurance company VIVAT Verzekeringen. The bank says that the transaction will free up capital to further strengthen its buffers, in line with its capital strategy.

    Residential mortgages granted by local Rabobanks have historically been accounted for on Rabobank's balance sheet. The fact that the .......

    News Round-up 31 March 2016

  • CHAI print points to value

    In its latest monthly update, PeerIQ suggests that the recent CHAI 2016-PM1 print illustrates the thawing that has occurred in the US securitisation market over the last month. Spreads across the transaction's capital structure are almost double those of the CHAI 2015-PM3 deal from December (see SCI's new issue database), but this is said to be reflective of increased .......

    News 31 March 2016

  • Euro secondary stifled

    Sentiment continues to be strong across the European securitisation market but technicals are stifling activity.

    Buying interest remained apparent throughout ABS/MBS yesterday with the exception of UK RMBS, which is seeing some investors hold back over Brexit uncertainty. However, flows overall were still light and there were significant DNTs on BWIC as the gap in buyer and seller expectations for .......

    SCIWire 31 March 2016

  • GACS debutant in the pipeline

    Banca Popolare di Bari is set to become the first bank to launch a non-performing loan (NPL) securitisation via the Italian government's GACS guarantee scheme. The bank reportedly plans to sell up to €1bn worth of NPLs, with JPMorgan, PWC and Prelios understood to be advising on the deal.

    The GACS scheme was introduced by the Italian government earlier this year .......

    News Round-up 30 March 2016

  • US CLOs busy

    Supply keeps on coming in the US CLO secondary market.

    "It's very busy day today, which is a function of both quarter-end and spreads continuing to tighten," says one trader. "That's especially true in mezz, which was underwater and now very clearly isn't."

    Consequently, the trader adds: "We're seeing people testing mezz demand and every day seems to see a .......

    SCIWire 30 March 2016

  • RMBS rating changes proposed

    DBRS is requesting comments on its proposed European RMBS insight model and rating methodology. The proposed changes to its existing methodology are deemed "material" and introduce a new proprietary default model to forecast European mortgage portfolio defaults and losses.

    The new model combines a loan scoring approach and dynamic delinquency migration matrices to calculate loan level defaults and losses. There is .......

    News Round-up 30 March 2016

  • Auction success for CGCMT 2007-C6

    Six REO CMBS assets with a combined unpaid balance of US$55.4m, accounting for 2% of the CGCMT 2007-C6 pool, were put up for bid in online auctions last week. Kroll Bond Rating Agency research shows that all of the properties were in escrow as of 24 March, indicating that they were sold.

    The agency anticipates that the assets will be .......

    News Round-up 30 March 2016

  • Artex makes another acquisition

    Artex Risk Solutions has strengthened its ILS capabilities further by acquiring Hexagon Insurance and its subsidiaries from Robus Group. This follows Artex's decision already this month to also purchase Kane's insurance management operations (SCI 22 March).

    Hexagon exclusively provides PCC facilities to the ILS industry. Its three subsidiaries are Axe Insurance, Septagon Insurance and Hexagon ICC.

    The sale of Hexagon .......

    Job Swaps 30 March 2016

  • SEC derivative rules criticised

    The US SEC's proposals to cap the portfolio limits for derivatives by registered funds could harm a large number of funds and shareholders, according to a letter penned by the Investment Company Institute. The association says that the rules will stymie many funds' ability to diversify their portfolio management, forcing some to even liquidate.

    The rules - outlined late last .......

    News Round-up 30 March 2016

  • REO holds foretell CMBS losses

    Longer REO asset hold times could signal higher US CMBS losses, says Fitch. The average length of time REO assets spent in special servicing increased 10% last year, while REO ageing increased 16%.

    A review of CMBS special servicers' REO asset inventory reveals the average time REO assets spent in special servicing increased to 42 months as of year-end 2015, .......

    News Round-up 30 March 2016

  • Antitrust objections filed

    A number of potential claimants in the CDS antitrust lawsuit have filed objections to the preliminary settlement order (SCI 2 October 2015).

    MF Global Capital, for one, argues that the distribution plan: defines 'covered notional' in a uniform way that assumes all CDS transactions had substantially similar bid-ask spreads; fails to capture 320 CDS trades entered into by MF Global .......

    News 30 March 2016

  • Euro secondary returns

    After a quiet few sessions surrounding the long weekend the European securitisation secondary market looks to be returning to life.

    Yesterday once again saw light activity but tone remains overwhelming positive across most European ABS/MBS sectors and spreads remain well supported as more and more participants return post-Easter. Meanwhile, CLOs continued to lead the way in terms of both activity .......

    SCIWire 30 March 2016

  • Trust issues

    Redwood exit signals CMBS origination pull-back

    The US CMBS market has encountered a rocky start to 2016, with new issue pricing spreads performing unpredictably. A number of other concerns have cast doubt over profitability on the origination side, prompting suggestions that lenders may slowly thin out.

    Redwood Trust is one high-profile casualty of CMBS market volatility, having recently announced its plan to discontinue loan originations for .......

    News Analysis 30 March 2016

  • IRB variation proposals set out

    The Basel Committee has opened up a consultation on new proposals to reduce the variation and complexity involved in calculating credit risk-weighted assets (RWA). The proposals offer a set of changes to the Basel framework's advanced internal ratings-based (IRB) approach for banks computing their RWAs and regulatory capital requirements.

    Specific measures from the proposals include removing the option to use IRB .......

    News Round-up 29 March 2016

  • Auto ABS ratings 'stable'

    Fitch says that growing credit enhancement and robust loss protection should help US auto lease ABS ratings remain stable in 2016. This is in spite of a continued decline in used vehicle residual values (RV) due to increased leasing penetration and a higher supply of off-lease vehicles.

    RV gains fell in 2015 as a result of high new car sales, .......

    News Round-up 29 March 2016

  • GSE merger proposed

    A paper written by key architects of the Obama administration's housing policy has been released outlining a proposal to merge Fannie Mae and Freddie Mac. The new entity would be responsible for the buying, wrapping and guaranteeing of US residential mortgages.

    The authors say Fannie and Freddie are "two enormously important yet flawed institutions" which are having to "endure in .......

    News Round-up 29 March 2016

  • Goldberg bolsters commercial practice

    Goldberg Segalla has brought in Louis Russo as partner and a member of its business and commercial practice group. He moves from Alston & Bird, where he was counsel.

    Russo will provide Goldberg with experience in contract and fraud-based disputes, involving financial services, corporate governance, securities fraud, employment, and residential and commercial loan servicing. He has represented trustees and liquidating .......

    Job Swaps 29 March 2016
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