Complete news archive

  • CDS trading head replaced

    Basil Eggenschwyler is set to take over high yield cash bond and CDS trading for Credit Suisse. Eggenschwyler, who is already in charge of trading high yield credit derivatives, also previously traded CDS at Barclays. He will replace Matthew Courey in mid-April, who will leave to continue his role as chairman of Seeds of Peace, as well as exploring other .......

    Job Swaps 21 March 2016

  • Auto deals driving ABCP

    A recent surge in outstanding ABCP has been driven by increased auto issuance, according to S&P. However, the agency questions the durability of the sector's rally, suggesting that its growth has been overreliant on auto-related deals.

    The ABCP market has risen by 23% in issuance since September 2015, over three-fourths of which has come from auto securitisations. If growth continues on this recent trajectory, outstanding .......

    News Round-up 21 March 2016

  • FNMA completes largest CIRTs

    Fannie Mae has completed its latest set of Credit Insurance Risk Transfer deals, the largest cumulative transactions to date in the GSE's programme. The completion of CIRT 2016-1 and CIRT 2016-2 shifts a combined US$19.5bn of risk on pools from single-family loans to a group of insurers and reinsurers, with the loans acquired between December 2014 and April 2015.

    The .......

    News Round-up 21 March 2016

  • SCI Start the Week - 21 March

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

    Pipeline
    The pipeline was dominated by auto-related ABS entrants last week. A couple of CMBS and RMBS a piece were also marketing, as well as an aircraft ABS and a marketplace lending ABS.

    The auto ABS comprise: US$300m Avis Budget Rental Car Funding Series 2016-1, US$600m Chesapeake Funding II series 2016-1, E-CARAT 6, US$750m Ford Credit Floorplan Master Owner .......

    News 21 March 2016

  • Fed outlines SCCL proposals

    The US Federal Reserve has set out proposals establishing single counterparty credit limits (SCCL) for domestic and foreign bank holding companies with US$50bn or more in assets. The rules are intended to implement the requirements in Section 165(e) of the Dodd-Frank Act and to reduce the number of risks that might arise from such companies' exposure to unaffiliated companies that could .......

    News Round-up 18 March 2016

  • SFR exposure encouraged

    SFR transactions offer value to STACR, CAS, legacy RMBS and consumer ABS deals, argue Wells Fargo analysts. However, there is only limited upside when compared to single-borrower and large loan CMBS.

    "We believe that triple-A and double-A rated SFR bonds should be viewed as a diversifier within a portfolio containing non-agency CMBS or non-agency RMBS. However, we do not see .......

    News 18 March 2016

  • Annual contracts pose risk to ABS

    The inclusion of annual pay contracts in equipment ABS increases the risk on the deals' short term notes, says Moody's. Structures that includes money market tranches often have a significant portion of such contracts, with agricultural-linked deals particularly exposed to them.

    Moody's believes the seasonality of these contracts could create volatility for equipment ABS. A concentration of the contracts in the few .......

    News Round-up 18 March 2016

  • Energy weighs on CLOs

    The energy sector is driving credit deterioration within US CLOs, observes Moody's, which was a key factor in worsening WARFs in 2015. The median WARF dropped for both CLO 1.0s and 2.0s last year, with the former moving up to 2411 from 2399 and the latter from 2772 to 2782.

    Rating downgrades to energy and commodity sector issuers is weighing down .......

    News Round-up 18 March 2016

  • Low APAC auto delinquencies predicted

    A combination of low interest rates and positive credit factors will keep APAC auto loan ABS delinquencies low in 2016, according to Moody's. Countries with high delinquencies, such as India, could also benefit from a significant drop.

    Moody's explains that the asset class will benefit from supportive economic backdrops in certain markets, low rates, strong loan and borrower characteristics, and diversified collateral pools .......

    News Round-up 18 March 2016

  • CMBS 'looking cheap'

    US CMBS spreads remain significantly wide of competing corporate spreads. Despite extra volatility justifying some spread pick-up, single-A CMBS paper is now looking particularly cheap.

    Double-As are 125bp wider than corporate single-A seven- to 10-year spreads, having averaged only 60bp wider over the past few years, note Citi analysts. Single-A spreads pick up more than 200bp over corporates, despite a .......

    News 18 March 2016

  • Euro secondary upswing

    The European securitisation secondary market is seeing an upswing in activity once again.

    Yesterday saw an uptick in activity after a quieter Wednesday, although focus remains very patchy. Peripherals fared well as did UK non-conforming, which began to reverse recent widening amid strong execution across the session's MBS BWICs. However, it was CLOs that once again led the way with .......

    SCIWire 18 March 2016

  • CFTC approves CCP framework

    The CFTC has approved a compliance framework for dual registered central counterparties located in the European Union, further facilitating derivatives trading across the Atlantic. The European Commission has also approved the US regime (SCI 16 March).

    The CFTC's move permits EU CCPs already registered with the US body to become dually-registered derivative clearing organisations (DCOs). The move provides the intended harmonisation .......

    News Round-up 17 March 2016

  • Marketplace lending carries unique risks

    Marketplace lending carries risks unique to the asset class, says Moody's. The rating agency makes the observation as interest in the sector continues to grow, and reinforces its previous analysis about the asset class.

    Moody's notes that marketplace lending platforms may underwrite the loans but do not have skin in the game as they do not bear actual borrower credit .......

    News Round-up 17 March 2016

  • Indices ready to roll

    Markit iTraxx indices roll to Series 25 on Monday 21 March. There are set to be 12 name changes for the Crossover index and four for iTraxx Main, while the senior and sub financials indices will be unchanged.

    Bank of America Merrill Lynch analysts estimate S25/S24 rolls of +0bp, -26bp, +8.4bp and +8bp for the iTraxx Main, Crossover, senior and .......

    News 17 March 2016

  • Aussie arrears push up

    The 30-plus day delinquency rate for Australian prime RMBS increased in from 1.14% in 3Q15 to 1.29% in 4Q15, according to Moody's latest index results for the sector. The increase reflected higher spending levels in the run-up to the holiday season.

    Moody's says that the rise was driven by the performance of prime RMBS issued by major banks, as well as non-authorised .......

    News Round-up 17 March 2016

  • EMEA trust head appointed

    BNY Mellon has promoted Tom Ahern to head its corporate trust business in the EMEA region. He previously led BNY's corporate trust business in Ireland, while simultaneously leading the global analytics functions for the corporate trust operation.

    Ahern's background includes working in CLOs and loan administration. He has worked additionally in BNY's structured portfolio services business within EMEA corporate trust. .......

    Job Swaps 17 March 2016

  • German SME CLO defaults dropping

    The fall in German corporate insolvencies in 2015 will help stabilise German SME CLO deals, says Fitch. The transactions will mostly benefit from a knock-on reduction in default rates, which are already declining.

    Germany's Federal Statistical Office said last week that the country's local courts had reported 23,123 business insolvencies in 2015, which was down 4% on the previous year and at the lowest .......

    News Round-up 17 March 2016

  • UK ILS commitment reiterated

    In its 2016 Budget announcement yesterday, the UK Government reinforced its commitment to establishing a fully functioning ILS market within the country. The government says it is consulting on proposals for a new, competitive framework for the asset class, which would entail the supervision, corporate structure and taxation of ILS vehicles.

    The proposals for an ILS framework are presented in the .......

    News Round-up 17 March 2016

  • CDS pricing service sold

    Markit has acquired Fitch's CDS pricing service. As part of the agreement, Fitch will integrate Markit's own CDS pricing as a component of its risk analytics, implied ratings and other derived services. Markit's service provides pricing data on CDS single names, indices and tranches. Details on the financial terms of the acquisition were not disclosed.

    .......

    News Round-up 17 March 2016

  • Mixed approaches to Valeant risk

    Valeant, the single biggest obligor in US 2.0 CLOs, continues to generate negative headlines. However, CLO managers appear to be divided on Valeant risk.

    Valeant has missed its 4Q15 forecasts and offered a bleaker forward outlook than the market expected. It has also sought to waive the cross default provision related to the delayed filing of its annual 10-K.

    Moody's .......

    News 17 March 2016

  • Euro secondary partly pauses

    The bulk of the European securitisation secondary market took a pause yesterday, but CLOs continue to outperform.

    "Yesterday was a bit quieter after the pick-up in activity that followed the ECB last week and into the start of this," says one trader. "BWICs have been the main focus but supply dropped as many people used the excuse of the FOMC .......

    SCIWire 17 March 2016
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