Complete news archive

  • SCI Start the Week - 25 January

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

    Pipeline
    ABS deals accounted for more than half of last week's pipeline additions. There were six new ABS announced, as well as two RMBS and three CMBS.

    The ABS were: CNY1.31bn Autopia China 2016-1 Retail Auto Mortgage Loan Securitization Trust; US$1.14bn CarMax Auto Owner Trust 2016-1; €666m Driver Espana Three; Golden Credit Card Trust Series 2016-2; US$604.42m Hyundai Auto .......

    News 25 January 2016

  • SEFs officially registered

    The US CFTC has granted registration to 18 SEFs, which had previously operated under temporary registration status. A further five SEFs currently remain temporarily registered.

    The newly registered SEFs are: 360 Trading Networks; BGC Derivatives Markets; Bloomberg SEF; Chicago Mercantile Exchange; DW SEF; GFI Swaps Exchange; ICAP Global Derivatives; ICAP SEF (US); ICE Swap Trade; Javelin SEF; LatAm SEF; MarketAxess SEF; SwapEx; Thomson .......

    News Round-up 25 January 2016

  • Indian ABS delinquencies stabilise

    The build-up in delinquencies for Indian ABS transactions that closed in 2015 was slower than for those that closed in 2014, as overall delinquencies stabilise. Delinquencies for transactions issued in 2013 and 2014 fell last year, with Fitch noting that the country's economy remains resilient and has rebounded from the slow growth seen in 2014.

    Fitch expects national requirements that banks maintain .......

    News Round-up 25 January 2016

  • RCI residual value risk weighed

    Auto loan ABS sponsored by Renault's captive finance company RCI Banque are not directly exposed to the market value of Renault vehicles, according to Moody's. Although RCI Banque's dealer floorplan ABS is more closely linked to the manufacturer's creditworthiness, the transaction benefits from a payment rate trigger to mitigate its exposure.

    "RCI Banque's auto loan ABS are only indirectly exposed .......

    News Round-up 25 January 2016

  • PREPA deal collapses

    The deadline for an agreement on PREPA's US$8bn debt restructuring deal was missed, following a breakdown in talks between the utility and its Ad Hoc Group of bondholders. PREPA alleges that the bondholder group was seeking to impose changes on the restructuring agreement (RSA) that it had already rejected in December.

    The deadline had been moved numerous times as the utility struggled to agree .......

    News Round-up 25 January 2016

  • Maturity wall diminishing

    Falling US CMBS delinquencies and the slowing pace of special servicing loan transfers year-over-year have contributed to improved performance metrics within the existing portfolio of Fitch-rated fixed rate conduit transactions. At the same time, the size of the maturity wall has declined year-over-year and continues to diminish.

    Current delinquencies have declined by over 50% from a peak of 9.01% in .......

    News Round-up 25 January 2016

  • Virginia reaches RMBS settlement

    Eleven banks have agreed on a US$63m settlement with the Commonwealth of Virginia and the Virginia Retirement System (VRS) over allegations surrounding the sale of allegedly misrepresented RMBS. The agreement has been hailed as the largest non-healthcare-related recovery ever obtained in a suit alleging violations of the Virginia Fraud Against Taxpayers Act.

    The banks included and the proportion they paid in .......

    Job Swaps 25 January 2016

  • Conduit leverage to 'continue rising'

    The credit quality of US conduit/fusion CMBS continued to deteriorate in Q415, Moody's notes. Indeed, the agency expects conduit loan leverage to continue rising "for some time yet".

    Conduit loan leverage - as measured by Moody's loan-to-value (MLTV) ratio - rose to 118.9% in 4Q15 from 118.2% in the prior quarter, exceeding its pre-crisis high of 117.5% for the third .......

    News Round-up 25 January 2016

  • Euro secondary strengthens

    Tone in the European securitisation secondary market continued to strengthen into the last week's close on the back of positive wider markets.

    Once again, senior prime assets were the main focus on Friday, albeit with patchy and thin flows on- and off-BWIC. Secondary spreads in autos and UK RMBS held steady, but Dutch RMBS edged a little wider following the .......

    SCIWire 25 January 2016

  • More scrutiny on SFR managers

    Certain operational risk fundamentals for property managers in the single-family rental space are only now being addressed, says Morningstar. This is largely due to the lack of an extensive operating history.

    "As the rush to acquire large numbers of rental houses has slowed, institutional property managers are turning their attention to stabilising their platforms and focusing on documenting policies, strengthening .......

    News Round-up 22 January 2016

  • Small balance RMBS RFC issued

    S&P is requesting feedback on proposed changes to its surveillance of US RMBS backed by small-balance commercial loans. These securitisations are backed by mortgages on properties that have commercial characteristics - such as mixed-use, multifamily or retail - but also have underwriting and transaction structural features aligned to RMBS.

    The agency warns that the proposals would bring higher loss projections .......

    News Round-up 22 January 2016

  • STS securitisation supported

    The European Economic and Social Committee (EESC) has added its voice to calls for the introduction of a simple, transparent and standardised (STS) securitisation regime in Europe. It says securitisation can still be a secure system and can create growth through the unlocking of additional credit.

    "The risks involved in such transactions should now be clearly understood and responsibilities well .......

    News Round-up 22 January 2016

  • Canadian OTC proposals published

    The Canadian Securities Administrators (CSA) is seeking comment on its proposed approach to OTC derivatives. It has set out certain requirements for the treatment of customer collateral, record-keeping and disclosure for clearing intermediaries and regulated clearing agencies.

    The CSA intends to ensure that the clearing of customer OTC derivatives transactions will be done in such a way that customers' collateral .......

    News Round-up 22 January 2016

  • Euro secondary improves

    Better wider markets have improved European securitisation secondary tone once more.

    A combination of a return to form in stocks/broader credit, the ECB press conference and the successful execution of the Spanish OWIC boosted the secondary market across the board yesterday and that has continued into this morning. Nevertheless, it is only the prime and ECB-eligible peripheral sectors that are .......

    SCIWire 22 January 2016

  • Risk manager switches shops

    Fitch Solutions has poached Justin Revelle from Moody's Analytics to serve as regional business manager for the Americas. In this role, he is responsible for strategic growth initiatives and sales support in North America and Latin America, and will report to md and global product head Brian Filanowski.

    Revelle undertook a number of roles for Moody's, most recently focusing on .......

    Job Swaps 21 January 2016

  • Marketplace ABS guidelines provided

    Marketplace loans are "the most exciting securitisation asset class to emerge since credit cards and student loans," says K&L Gates. The law firm has drawn up a report with 10 guidelines which market participants should keep in mind.

    First, the report notes that it is important to be aware of how marketplace loan securitisations can differ from other ABS. One .......

    News Round-up 21 January 2016

  • EBA consults on 'implicit support'

    The EBA has launched a consultation regarding its guidelines on implicit support for securitisation transactions. The guidelines were drafted to provide clarity on what constitutes 'arm's length conditions' and when a transaction is not structured to provide support for securitisations.

    The capital requirements regulation (CRR) foresees restrictions on implicit support to securitisations due to significant supervisory concerns and the belief .......

    News Round-up 21 January 2016

  • Euro CLOs suffer

    The European CLO secondary market is suffering under heavy selling pressure.

    "Activity is almost entirely driven by selling from accounts," says one trader. "The only demand we are seeing is for short-dated bonds and there is none whatsoever for 2.0 paper."

    Consequently, the trader continues: "We're seeing BWIC after BWIC in the 2.0 space. However, we're seeing no colour from .......

    SCIWire 21 January 2016

  • New highs for CMBS repays

    Two-thirds of European CMBS loans maturing in 2016 will repay as a result of high prepayment levels, according to Moody's. This will be a dramatic increase on the average 38% repayment rate that has been recorded since 1Q12.

    "These high repayments are a product of improved lending conditions and stabilising occupational market fundamentals for secondary quality properties, which started 12 .......

    News Round-up 21 January 2016

  • China, India seeking alternative finance

    The development of domestic securitisation markets in India and China can boost the countries' financial systems and help serve affordable credit to underprivileged areas that are often excluded from the conventional banking system, reports Moody's. In particular, the rating agency highlights the importance of non-bank finance companies (NBFCs) in serving such segments of society by combining securitisation with their ability to .......

    News Round-up 21 January 2016

  • Fresh mortgages rap for Ocwen

    Ocwen has settled US SEC charges that it misstated financial results by using a flawed and undisclosed methodology to value complex mortgage assets. Ocwen has made a string of settlements (SCI passim) and under this latest one will pay the SEC a US$2m penalty.

    The SEC found Ocwen inaccurately disclosed to investors that it valued assets independently at fair value .......

    News Round-up 21 January 2016
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