Complete news archive

  • 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

  • Delinquencies continue to decline

    US CMBS delinquencies declined by 2bp in February to 2.91% from 2.93% a month earlier, according to Fitch's latest index results for the sector. In total, resolutions of US$980m outpaced new delinquencies of US$751m. Fitch-rated new issuance volume of US$703m (one transaction) in January was far outpaced by US$4.8bn in portfolio run-off, causing a decrease in the index denominator.

    The .......

    News Round-up 14 March 2016

  • Shareholder alignment announced

    Apollo Investment Management, in consultation with its board of directors, is set to reduce its fees for fiscal year 2017. From 1 April 2016 through 31 March 2017, the base management fee will be reduced to 1.50% on gross assets. In addition, the calculation of the incentive fee will include a performance adjustment that could lower the incentive fee rate .......

    Job Swaps 14 March 2016

  • Pillar 3 updates proposed

    The Basel Committee has opened a consultation on new proposals regarding its Pillar 3 disclosure requirements. The proposals include a draft disclosure requirement of hypothetical risk weighted assets that are calculated on the basis of the Basel framework's standardised approaches.

    In addition, they include a 'dashboard' of key metrics and enhanced granularity for the disclosure of prudent valuation adjustments. There are also .......

    News Round-up 14 March 2016

  • Energy credit event called

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in respect of Pacific Exploration & Production Corporation (formerly known as Pacific Rubiales Energy Corporation). The move follows an agreement between the company and holders of its 5.375% senior notes due 2019 and its 5.625% senior notes due 2025, pursuant to which the noteholders .......

    News Round-up 14 March 2016

  • Spanish electricity debt falling

    The fall in Spanish electricity tariff deficit (ETD) debt suggests that more sustainable levels could be reached by 2018 and 2019, says Moody's. Outstanding ETD debt was cut by 7% to €26.9bn in 2014 from €28.8bn in 2013.

    "Cumulative electricity tariff debt could fall below 100% of regulated revenues by 2019," says Antonio Tena, a Moody's avp and analyst. "The .......

    News Round-up 14 March 2016

  • Credit duo to lead Euro expansion

    Waterfall Asset Management has recruited James Cuby and Henrik Malmer in order to set up a London office for the firm. The pair will act as co-heads of the office, tasked with expanding Waterfall's structured credit and direct lending business in the European market.

    Cuby and Malmer spent the last ten years at Investec Bank, where they established and ran .......

    Job Swaps 14 March 2016

  • Euro secondary sluggish

    Despite last week ending strongly in wider credit the European securitisation secondary market remains sluggish.

    Market sentiment continues to be increasingly positive and there are selective buyers in evidence, but for the most part flows and BWIC supply are patchy and liquidity is thin as investors look likely to stay on the sidelines until the wider credit rally has been .......

    SCIWire 14 March 2016

  • CDS exposures assessed

    A new Office of Financial Research (OFR) working paper uses CDS data to evaluate the impact on banks from a default of their largest counterparties. In addition, it considers from a macroprudential perspective not only the impact on individual banks, but also on the financial system as a whole.

    The report finds that banks' exposures in the credit default swap .......

    News Round-up 11 March 2016

  • Fintech firm expands senior team

    Algomi has added former Thomson Reuters ceo Tom Glocer as a strategic advisor. It has also appointed Howard Edelstein, who has been a strategic advisor to the firm for two years, to its board.

    Glocer is managing partner of Angelic Ventures and a director at Morgan Stanley, Merck & Co and K2 Intelligence. Edelstein is the chairman of REDI Holdings .......

    Job Swaps 11 March 2016

  • Mitigating factors for revolving structure

    Rongteng 2016-1 Retail Auto Mortgage Loan Securitization is originator SAIC-GMAC's first Chinese auto ABS to feature a revolving structure and the second such deal to be issued in China's interbank market, says Moody's. The transaction was issued last month (see SCI's new issuance database).

    The revolving structure allows new loans to be added to the securitised pool after .......

    News Round-up 11 March 2016

  • PACE provider drives growth

    PACE financing provider Ygrene Energy Fund has raised US$30m in operating capital, led by new and existing investors. The firm is set to expand into Georgia, Arkansas, Missouri and Virginia.

    The latest investment brings the Ygrene's total operating and project capital raised to over US$530m. The operating capital will fund the firm's expansion of its YgreneWorks programme, including business and .......

    Job Swaps 11 March 2016

  • MassMutual affiliates to merge

    Babson Capital Management, its subsidiaries Cornerstone Real Estate Advisers and Wood Creek Capital Management, and Baring Asset Management are set to combine under the Barings brand. The combination creates a global multi-asset investment management firm with over US$260bn of assets under management, offices in 20 countries and over 1,700 professionals.

    The firm will be led by Tom Finke, current chairman .......

    Job Swaps 11 March 2016

  • Strategic review nears completion

    In its financial results for the three and twelve months ended 31 December, ZAIS Financial Corp disclosed that its strategic review continues and includes the exploration of merger or sale transactions or a liquidation of its assets. The company last November retained Houlihan Lokey Capital as financial advisor to assist it in evaluating potential strategic alternatives to enhance stockholder value.

    Job Swaps 11 March 2016

  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a second TLTRO programme, expanding QE and cutting rates.

    The ECB's deposit rate has been cut by 10bp to -0.4%. Its main refinancing rate has been cut by 5bp to zero.

    The TLTRO 2 programme will - in contrast to the first TLTRO .......

    News 11 March 2016

  • US CLO see-saw

    Activity and price levels continue to see-saw in the US CLO secondary market.

    "Market tone is pretty strong with people trying to be positive after ABS Vegas, but activity and sentiment is up and down," says one trader. "For example, I'm hearing a lot of people saying they're expecting another leg down in lower mezz."

    The trader continues: "Overall, the .......

    SCIWire 10 March 2016

  • Liquidity assessment service offered

    Bloomberg has launched a liquidity assessment tool (LQA), which is designed to provide institutional investors with a quantitative approach to calculating liquidity risk consistently across asset classes. The tool combines Bloomberg's financial data and machine learning techniques to calculate the multitude of relevant factors influencing liquidity.

    Bloomberg LQA provides users with a standard definition of liquidity and a consistent approach .......

    News Round-up 10 March 2016

  • Container ABS to weather conditions

    Slowing global trade is a concerning development for shipping container ABS. However, Morningstar Credit Ratings believes certain features and market trends should allay ABS investor concerns.

    Global trade is stalling. At 6.9%, Chinese GDP growth last year was the slowest in decades. Meanwhile, the World Trade Organization last September revised down its estimate for world trade growth in 2016 from .......

    News Round-up 10 March 2016

  • AnaCap makes Dutch purchase

    AnaCap Financial Partners and Arrow Global have acquired a portfolio of Dutch residential and commercial mortgages with a face value of €127m. AnaCap also recently acquired a pair of Italian NPL portfolios (SCI 4 March).

    The Dutch portfolio has been acquired by vehicles owned by AnaCap Credit Opportunities III and Arrow Capital. It is AnaCap's first such transaction in the .......

    News Round-up 10 March 2016

  • Italian tax exemption boosts market

    An Italian law decree introducing a flat tax on auction properties is credit positive for RMBS, ABS and covered bonds of secured loans to SMEs, says Moody's. The stamp duty exemption should attract a larger number of potential buyers, with a particular increase in short-term investors' appetite for auction properties.

    Moody's expects that real estate-owned companies and other asset managers, .......

    News Round-up 10 March 2016

  • CLOs cut oil exposure

    While the oil and gas sectors have been a relatively small part of the leveraged loan universe, US CLO exposure to these sectors varies greatly across deals. Combined with idiosyncratic issues in other sectors, the impact on CLOs has been significant, particularly at the most credit sensitive tranches of the capital structure.

    S&P figures show that loans to firms in .......

    News 10 March 2016
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