Complete news archive

  • US CLOs challenged

    Internal and external factors are making things difficult in the US CLO secondary market.

    "There's not a whole lot happening - it's a very challenging market at the moment," says one trader. "Secondary isn't helped by primary being hung as well - it's too difficult to get a deal away with secondary spreads 100+ wider than new issue, the arb .......

    SCIWire 9 February 2016

  • Allianz buys CMBS investor

    Allianz Global Investors is set to purchase Rogge Global Partners (RGP) from rival insurer Old Mutual for an undisclosed fee. The purchase will see Allianz boost its fixed income expertise and inherit RGP's various funds, including its investment strategies in CMBS.

    Allianz says that RGP's team will become part of its global investment platform. This will add to the purchaser's growth, .......

    Job Swaps 9 February 2016

  • CMBS pay-offs jump

    The percentage of US CMBS loans paying off on their balloon date rebounded sharply last month. The January reading is 67.2%, more than 15 points above the December number and close to the 12-month moving average of 67.9%, according to Trepp.

    By loan count as opposed to balance, 64.5% of loans paid off in January. On this basis, the pay-off .......

    News Round-up 9 February 2016

  • Loan loss model changes mooted

    Fitch has proposed changes to its US RMBS loan loss model criteria and is seeking market feedback. The model's core methodology would be unchanged and no rating implications are expected for outstanding bonds issued since 2009.

    The key proposed changes include: a revision to the distressed sale adjustment to reflect new GSE historical data; a cure-rate adjustment for borrowers that .......

    News Round-up 9 February 2016

  • Customer services boosted

    Assenagon has bolstered its customer services capability by appointing Ilona Wachter as md for institutional customers, based in the firm's Frankfurt office. She has over 25 years of experience in asset management and corporate finance.

    Wachter was previously head of business development at Spängler IQAM Invest, focusing on institutional customers. Before that, she held management positions at Muzinich & Co, .......

    Job Swaps 9 February 2016

  • Gateway mod to realise a loss?

    The US$94.2m Gateway Salt Lake loan - securitised in JPMCC 2010-C1 - has been assumed at US$78.5m and modified, following its acquisition by an investor group that reportedly includes Vestar and Oaktree (see SCI's CMBS loan events database). Morgan Stanley CMBS strategists expect the move to result in significant interest shortfalls and a loss to the trust of .......

    News 9 February 2016

  • Euro secondary sidelined

    The European securitisation secondary market remains quiet as participants continue sit out wider market volatility.

    "It's understandably very quiet as everyone watches what's going on in banks and financials, which is brutal to say the least," says one trader. "The majority of investors we speak to are planning on staying on the sidelines - everyone is in risk-off mode."

    However, .......

    SCIWire 9 February 2016

  • SCI Start the Week - 8 February

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

    Pipeline
    Pipeline additions were heavily skewed to ABS last week. A total of 11 ABS deals were added, while there was also a single ILS, an RMBS, a CMBS and a CLO.

    The ABS were: US$1bn BMW Vehicle Lease Trust 2016-1; US$850m CNH Equipment Trust 2016-A; US$141m EDvestinU Private Education Loan Issue No.1; US$649m Enterprise Fleet Financing Series 2016-1; .......

    News 8 February 2016

  • Commingling concerns addressed

    S&P has decided that no action will be taken as a result of its failure to correctly apply its criteria for unrated servicers when rating three auto ABS. Porsche Financial Auto Securitization Trust 2014-1, Porsche Innovative Lease Owner Trust 2014-1 and Porsche Innovative Lease Owner Trust 2015-1 are all serviced by Porsche Financial Services (PFS).

    The fact that the documentation .......

    News Round-up 8 February 2016

  • Originator fund eyes broader investment

    Blackstone/GSO Loan Financing - which currently invests predominantly in CLO income notes - is seeking shareholder approval to permit investment in all debt tranches of CLOs and loan warehouses, as well as in exposure to risk retention entities. The amendments to the investment policy will enable the company to invest in Blackstone/GSO US Corporate Funding (US MOA), a newly-formed entity.

    Job Swaps 8 February 2016

  • Mobile phone ABS comparability assessed

    The credit performance of US mobile phone financing depends on many of the same factors as other types of consumer lending and therefore ABS tied to the debt would carry similar risks as other ABS, says Moody's. However, there are also some unique risks and strengths to consider.

    Use of financing is growing rapidly as carriers change their business models. .......

    News Round-up 8 February 2016

  • CLO asset slip to affect OC cushions

    So far this year over 1.4% of the assets held within US CLOs have been placed on creditwatch with negative implications or had ratings lowered, says S&P. Another 0.9% have had ratings raised or been placed on creditwatch with positive implications.

    The net result was a slight deterioration in the overall credit quality of US CLO assets, which S&P notes .......

    News Round-up 8 February 2016

  • CMBS tweak raises thickness fears

    MSBAM 2016-C28 contains a series of non-investment grade exchangeable classes, which is a nuance not seen before in a CMBS 2.0 transaction. Fitch believes the feature raises the question of sufficient tranche thickness and maintains that insufficient thickness - particularly below 1% - creates accelerated downgrade risk and a higher rate of loss given default.

    Fitch has assigned a provisional .......

    News Round-up 8 February 2016

  • Hancock exposure gauged

    About US$114m in US CMBS securities across 16 loans could be affected by Hancock Fabric's second bankruptcy filing in nine years, according to Morningstar Credit Ratings. However, the agency expects the impact to be limited to a few small-balance loans with low current debt service coverage ratios and projected occupancy below 80%, should the retailer reject its leases.

    Among the .......

    News Round-up 8 February 2016

  • HSBC settles over mortgage practices

    The US Justice Department, the Department of Housing and Urban Development and the CFPB, along with 49 state attorneys general and the District of Columbia's attorney general, have reached a US$470m agreement with HSBC to address mortgage origination, servicing and foreclosure abuses. The settlement reflects a continuation of enforcement actions to hold financial institutions accountable for abusive mortgage practices, with .......

    Job Swaps 8 February 2016

  • Countrywide verified petition filed

    Bank of New York Mellon, as trustee for all 530 RMBS involved in the Countrywide settlement, last week filed a verified petition for judicial instruction regarding the proper distribution of the allocable shares within deal capital structures. As a result, it now appears that the final payment of the US$8.5bn may be delayed once again.

    Morgan Stanley RMBS strategists suggest .......

    News Round-up 8 February 2016

  • Patriarch resigns as Zohar manager

    Patriarch Partners is stepping down as collateral manager of Zohar CDO 2003-1, Zohar II 2005-1 and Zohar III. The firm says it will work with a new collateral manager - whose appointment has yet to be announced - to ensure a smooth transition.

    Lynn Tilton, ceo of Patriarch Partners, comments: "The constant litigation between Patriarch and MBIA that began in .......

    Job Swaps 8 February 2016

  • Euro secondary lacklustre

    Friday saw another lacklustre session in the European securitisation secondary market.

    Macro market weakness once again kept investors stuck on the sidelines. Consequently, flows were light and spreads were broadly range-bound.

    Prime assets were once again the positive area with two-way flows albeit at low volumes focused at the front end of the curve. Meanwhile, non-eligible peripheral bonds remain the .......

    SCIWire 8 February 2016

  • Repo RMBS debuts

    Jefferies Funding is in the market with an RMBS backed by a one-year revolving warehouse facility guaranteed by Jefferies Group. The US$225m Station Place Securitization Trust 2016-1 transaction is structured with two legs of back-to-back repurchase agreements.

    The facility's collateral will be newly-originated first-lien, fixed-rate residential mortgage loans eligible for purchase by Fannie Mae, Freddie Mac or Ginnie Mae. At .......

    News 5 February 2016

  • Goldman credit team formed

    Goldman Sachs is creating a new credit group that will combine its structured and leveraged finance businesses, as well as integrate its financial and strategic advice in these areas. Americas Credit Finance Group will be led by co-heads Christina Minnis and Vivek Bantwal, following the retirement of Craig Packer, who was co-head of the bank's leveraged finance unit in the Americas.

    Minnis was the .......

    Job Swaps 5 February 2016

  • Euro secondary varies

    Volumes continue to be light in the European securitisation secondary market with performance still varying sector by sector.

    CMBS continues to be one of the strongest sectors. Prices remain well-supported and yesterday's €45m BWIC traded well.

    Prime assets are still seeing two-way flows albeit at much lower volumes than previous weeks. Buying interest in short-dated paper remains the dominant theme, though .......

    SCIWire 5 February 2016
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