Complete news archive

  • 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

  • US CCP regime 'equivalent'

    The European Commission has approved the US CFTC's regulatory regime for central counterparties as equivalent to that of the European Union's. The announcement comes after an agreement was reached last month for a common approach that would enable an easier transatlantic working environment for both US and European CCPs (SCI 11 February).

    The decision provides a single set of rules that .......

    News Round-up 16 March 2016

  • YSOC first for Chinese ABS

    Mercedes-Benz is bringing the first auto ABS deal to China to include a yield supplement overcollateralisation (YSOC) feature. The CNY2.5bn Silver Arrow China 2016-1 deal is also the car manufacturer's debut transaction in the Chinese market.

    The CNY2.37bn class A notes have been rated Aa3 by Moody's, while the CNY125m subordinated notes are unrated. All the notes in the deal have a legal maturity .......

    News Round-up 16 March 2016

  • Negative FFELP watches continue

    Fitch has maintained rating watch negative on 106 FFELP trusts as a result of concerns that tranches could miss legal final maturity dates. The scale of possible rating actions will depend on the remaining time to maturity, recent payments trends, issuer actions and external factors, with triple-A ratings possibly being lowered to non-investment grade.

    The rating agency has identified trusts .......

    News Round-up 16 March 2016

  • Quant leader appointed

    Marketplace lending analytics provider PeerIQ has hired Wilfred Daye as md, quantitative strategies. He will head the firm's quant team and be based in New York.

    Daye spent the last six years at UBS, covering numerous securitised asset classes, including marketplace lending ABS. He brings diverse experience on the buy-side and the sell-side, having also spent time at Deutsche Bank, DB .......

    Job Swaps 16 March 2016

  • Airbnb threat to CMBS 'minimal'

    Moody's suggests that the supply and demand imbalance from overbuilding in the hotel sector poses a greater threat to US lodging sector CMBS than peer-to-peer home renting platforms such as Airbnb. This is in spite of the latter's continued growth.

    "Airbnb has had a remarkable growth trajectory," says Moody's vp and senior analyst Jay Rosen. "But the company competes for .......

    News Round-up 16 March 2016

  • Resi, CRE auction platforms launched

    Ten-X, formerly known as Auction.com, has launched two new transaction platforms for buying and selling residential and commercial real estate. Ten-X Homes has been created for move-in ready homes, while Ten-X Commercial is the next iteration of the firm's CRE offering.

    Ten-X Homes will offer homes from a wide range of sellers, including banks, investors, institutions, homebuilders and agents. It .......

    News Round-up 16 March 2016

  • ICE expands CDS clearing

    ICE has introduced CDS clearing for the iTraxx Australia and iTraxx Asia ex-Japan IG indices, as well as for certain sovereigns. These are Australia, China, Indonesia, Korea, Malaysia and the Philippines.

    ICE Clear Credit now clears 27 sovereign names across Europe, Africa, Latin America and the Asia Pacific region, while ICE Clear Europe clears seven sovereign CDS names in Europe. .......

    News Round-up 16 March 2016

  • Euro secondary mixed

    The European securitisation secondary market is seeing mixed activity and results as the wider credit rally runs out of steam.

    "Overall, the secondary market continues to normalise, but it is highly sector-dependant," says one trader. "Yesterday was active, but that was mainly off the back of BWICs, while customer flows were slower thanks to softening in wider credit."

    Those BWICs yielded mixed .......

    SCIWire 16 March 2016

  • US CLO shift

    The tone in the US CLO secondary market continues to shift in a positive direction, but it will be tested today.

    "The past two weeks have seen a shift in tone and mezz has kept rallying versus where we were in January and February," says one trader. "That tone has been helped by stability in global markets, but the recent .......

    SCIWire 15 March 2016

  • Solar ABS breaking out

    US solar securitisation is set to become a mainstream financing option in the ABS market in 2016 and will achieve new issuance records, according to a new white paper by Marathon Capital. This year has already seen a total of US$235m in deals, exceeding the US$234m that hit the market in the entirety of 2015.

    Last year saw a first for .......

    News Round-up 15 March 2016

  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission and adopted by the European Council in December. The package contains the new overarching European securitisation regulation - including STS - as well as the CRR amendment that sets banks' risk weights to securitisation exposures.

    On the topic of supervision, Rabobank credit analysts note it .......

    News Round-up 15 March 2016

  • Euro maturity defaults dip

    The 12-month rolling loan maturity default rate for the European CMBS in S&P's rated universe increased slightly to 10.3% from 10% at end-February. Overall, the senior loan delinquency rate decreased to 46.5% from 47.8%, however.

    The delinquency rate for continental European senior loans decreased to 58.8% from 59.8% during the month. But the rate for UK loans increased slightly to .......

    News Round-up 15 March 2016

  • Final curtain?

    FRTB to constrict liquidity, trading

    The Basel Committee's finalised fundamental review of the trading book (FRTB) marks another milestone in regulators' long and conflicted relationship with securitisation. While the final draft is less punitive than early versions suggested it might be (SCI 15 January), it is still set to limit market liquidity and trading activity.

    "The final version of the FRTB has provided extra clarity .......

    News Analysis 15 March 2016

  • HPF reaping RMBS emergence

    S&P says that China's turn towards securitisation has supported economic and financial initiatives from alternative financiers, such as The Housing Provident Fund (HPF). HPF helps low to middle income households by extending cheaper home loans.

    "Six HPF centres issued RMBS or home loan associated rights in 2015," says S&P credit analyst Jerry Fang. "We expect more HPF-sponsored RMBS to come .......

    News Round-up 15 March 2016

  • Safe harbour RMBS debuts

    JPMorgan is in the market with what is believed to be the first US RMBS structured to comply with the FDIC's 'safe harbour' rule, which became effective on 30 September 2010 (SCI 6 October 2010). The US$1.89bn Chase Mortgage Trust 2016-1 transaction also represents the first post-crisis cash RMBS issuance by a large money-centre bank of its own assets.

    Unlike .......

    News 15 March 2016

  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement to invest in stressed assets in India. The agreement allows for a total investment of up to US$525m, with CPPIB able to invest up to US$450m.

    The flexible investment mandate seeks to take advantage of the growing opportunity arising from the current stress in the Indian banking .......

    News Round-up 15 March 2016

  • ABS bound

    European marketplace lending to see securitisation stimulus

    KPMG and Cambridge University's alternative finance centre both agree that securitisation will play a vital role in the continuing growth of marketplace lending. The bodies recently partnered on a report that highlights the growth seen to date in marketplace lending in the UK and Europe.

    Sarah Walker, UK lead of alternative finance at KPMG, believes that securitisation will feature in .......

    News Analysis 15 March 2016

  • Euro CLOs take off

    Following last Thursday's ECB announcement the European CLO secondary market has finally taken off in terms of both activity and price movement.

    "Post-ECB we have been consistently lifted out of bonds with a lot of buying from macro players and fast money," says one trader. "Consequently, levels have moved much, much tighter."

    The trader continues: "The biggest moves have been .......

    SCIWire 15 March 2016

  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries concerning loans granted by securitisation vehicles. There are now six key requirements.

    First, borrowers must be selected by a bank or financial intermediary registered under article 106 of the Italian Banking Act. The securities issued are reserved for qualified investors only, and the bank or intermediary must .......

    News Round-up 14 March 2016

  • SCI Start the Week - 14 March

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

    Pipeline
    Last week's pipeline additions were heavily weighted toward ABS. There were seven new ABS, one ILS, three RMBS and two CLOs added.

    The ABS were: US$422.841m Element Rail Leasing II 2016-1; US$1bn Ford Credit Auto Lease Trust 2016-A; US$395m OneMain Financial Issuance Trust 2016-2; US$312m Prestige Auto Receivables Trust 2016-1; US$300m Sierra Timeshare 2016-1; US$650.7m Synchrony Credit Card .......

    News 14 March 2016
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