Complete news archive

  • GGLF expected to stabilise

    Moody's says that the German Ground Lease Finance (GGLF) CMBS continues to perform in line with its expectations after the agency met with the managing agent Immofori in February. Refinancing remains a risk to the transaction, however, and will be contingent on the amount of excess cash left available to amortise the structure prior to its final maturity.

    The transaction has caused .......

    News Round-up 4 March 2016

  • Aussie classification letter published

    ISDA has published a classification letter enabling counterparties to notify each other of their status for clearing requirements under Australia's mandatory central clearing regime for OTC derivatives. Counterparties can bilaterally communicate their status by answering a series of questions.

    Appendices to the letter include a short-form and a long-form version of the Australian Securities and Investments Commission (ASIC) clearing classifications .......

    News Round-up 4 March 2016

  • Survey suggests manager preparedness

    Maples Fiduciary last month conducted a survey of its CLO manager clients with a view to providing insight into risk-retention strategies. The results indicate an overall state of preparedness among CLO managers, which the firm says augers well for industry compliance ahead of the year-end deadline.

    Among the key survey findings is that 73% of managers polled have risk-retention structures .......

    News Round-up 4 March 2016

  • Negative rate impact weighed

    Dramatically low negative interest rates in Europe are credit negative for issuers whose structured finance deals do not accommodate to these rates, according to Moody's. However, the agency expects this trend to revert by 2017.

    "Available buffers are sharply diminishing on swaps which do not accommodate for negative rates," says Sebastian Schranz, a Moody's avp and analyst. "Negative rates erode .......

    News Round-up 4 March 2016

  • QCLO bill passed to the House

    The Barr-Scott bill - which seeks risk-retention relief for qualified CLOs (QCLOs) - has passed the House Financial Services Committee by a vote of 42-15, with 10 democrats joining the bill, according to S&P. The bill now passes to the full House of Representatives for a vote. Assuming passage by the House, it would then have to be introduced and .......

    News Round-up 4 March 2016

  • First CMBS 2.0 loan sees loss

    February US CMBS 2.0 remittances show that 15 loans totalling US$103m became newly delinquent during the month, while eight loans totalling US$104m transferred to special servicing and 189 totalling US$3bn were watchlisted. A 2011-vintage loan became the first CMBS 2.0 asset to liquidate at a significant loss.

    The US$12.4m Campus Habitat 15 loan (securitised in WFRBS 2011-C3) was last month .......

    News 4 March 2016

  • Euro CLOs limited

    The European CLO secondary market remains hampered by a lack of activity.

    "There's nothing really happening this week and the Vegas conference hasn't helped," says one trader. "We're only seeing very limited trading and the few BWICs we've had over the past couple of days haven't shed much light on levels."

    However, the trader adds: "There is a general sense .......

    SCIWire 4 March 2016

  • Calm advised over Madden

    Brian Korn of Manatt Phelps & Phillips has suggested that the marketplace lending industry has "nothing to fear but fear itself" in relation to the Madden vs Midland case. In a recent industry comment, he says that while there is concern that the outcome of the case will have a significant and negative impact on marketplace lending platforms and therefore .......

    News Round-up 3 March 2016

  • Investment loan performance examined

    Morningstar reports that recently it has been presented with a new type of underwriting for loans made to landlords backed by single properties. Typically, these loans are underwritten as consumer loans, with the borrower's income, assets and credit taken into consideration. The new loans, however, are underwritten as business-purpose loans and, as such, rely more on the rental income of .......

    News Round-up 3 March 2016

  • Loss, liquidation totals decline

    US CMBS loss and liquidation totals declined substantially last month, falling in line with levels last seen 12 months ago, according to Trepp. A total of US$567m across 43 loans was disposed of in February, down from US$887.7m in December and US$2.4bn in January. Average loan size also plunged to US$13.2m this month from US$19.4m in January.

    Four relatively small .......

    News Round-up 3 March 2016

  • SA-CCR tool launched

    Misys has brought a new tool to the market that seeks to help banks comply with the Basel Committee's standardised approach for counterparty credit risk (SA-CCR). Misys FusionRisk SA-CCR allows banks to apply the same risk methodology for derivative counterparty exposures across both capital reporting and internal risk limits management.

    The tool will hold all the supervisory data required by the regulation, .......

    News Round-up 3 March 2016

  • Succession question resolved

    ISDA's EMEA Determinations Committee has determined that, for the purposes of the 2003 Credit Derivatives Definitions, no succession event occurred with respect to Novo Banco on or about 29 December 2015. It also ruled that, for the purposes of the 2014 Credit Derivatives Definitions, there is no successor to the relevant obligations of Novo Banco. This is the second CDS .......

    News Round-up 3 March 2016

  • Fourth Gleacher payout confirmed

    Gleacher & Company's board has decided to make a fourth liquidating distribution to the firm's stockholders in the amount of US$1.82 per share of its common stock - approximately US$11.3m in aggregate. The previous distribution was announced last September (SCI 29 September 2015).

    The record date for the latest distribution is 15 March, while the anticipated payment date is one .......

    Job Swaps 3 March 2016

  • Mid-market fund closes

    EFA Group has made its first close of an asset-based direct lending vehicle that provides structured senior secured loans to mid-market companies operating within the real economy. EFA Real Economy Trust (EFA RET) targets net total returns to investors in excess of 10% per annum, which will be distributed semi-annually.

    The firm's general mandate involves the provision of short-term revolving trade finance .......

    News Round-up 3 March 2016

  • Associations confirm STS support

    AFME, the European Fund and Asset Management Association (EFAMA), the International Capital Market Association (ICMA) and Insurance Europe have issued a joint paper backing EU efforts to develop a robust and successful STS framework. The associations believe that STS and the associated CMU could play a pivotal role in enabling non-bank funding alternatives across the region.

    The joint paper affirms .......

    News Round-up 3 March 2016

  • Early redemption for TMNF ILS

    An early redemption notice has been posted for the Kizuna Re II series 2015-1 catastrophe bond, indicating that the notes will be redeemed on 1 April. S&P expects the issuer to pay the unpaid principal and all interest due on this date, with no prepayment penalty.

    The transaction provides for six early redemption events. The cedent, Tokio Marine & Nichido .......

    News Round-up 3 March 2016

  • Euro secondary slows

    This week's recovery in the European securitisation secondary market slowed yesterday.

    Despite increasingly positive market sentiment the anticipated continued uptick failed to materialise yesterday and flows thinned once more. Nevertheless, the wider market story was sufficient to keep most secondary spreads flat to slightly tighter.

    While a few buyers are in evidence sellers are now more elusive and BWICs are largely absent .......

    SCIWire 3 March 2016

  • Risky business?

    Risk-sharing deal opportunities grow

    Capital relief trade opportunities are increasing as more jurisdictions open up. However, with this expansion comes increasing calls for market standardisation.

    Bradley Golding, md at Christofferson Robb & Co, notes that his firm is driven more by its clients' requirements than by any dogmatic approach to particular asset classes. He says: "Our approach [to capital relief trades] is entirely based .......

    News Analysis 2 March 2016

  • UK ILS consultation opens

    HM Treasury has opened a consultation on its proposal for a new regulatory and tax framework for ILS in the UK. The proposal covers a range of issues, including the necessity for a Solvency 2-equivalent framework and the authorisation of insurance SPVs.

    The Treasury's paper explains that the proposals are part of an "initial" outline and could be tailored further down .......

    News 2 March 2016

  • Optimisation tool launched

    Numerix has launched what it describes as a unified XVA pricing, counterparty credit risk management and market risk platform. Dubbed Numerix Oneview, the service allows users to drill down and slice/dice multi-dimensional datasets to provide complex risk and optimisation calculations.

    The firm says that with the finalisation of the fundamental review of the trading book (FRTB), consolidation of XVA pricing .......

    News Round-up 2 March 2016

  • EU adopts CDS clearing rule

    The European Commission has adopted a set of rules which require certain OTC credit derivative contracts to be cleared through central counterparties (CCPs). This implements the clearing obligation under EMIR.

    The EC's decision takes the form of a delegated regulation and refers in particular to euro-denominated CDS covering some European corporates. The clearing obligation will come into force following scrutiny .......

    News Round-up 2 March 2016
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