Complete news archive

  • FHFA scorecard heralds change

    The FHFA has released its 2016 scorecard for the GSEs and Common Securitization Solutions (CSS). Highlights include the imminent end to HARP and an updated timeline for the implementation of the single security initiative, as well as credit risk transfer (CRT) changes.

    The FHFA scorecard calls for the GSEs to prepare for the expiration of HARP by creating a new .......

    News 18 December 2015

  • Rapporteurs assigned to securitisation files

    The European Committee on Economic and Monetary Affairs is expected to start work on two key securitisation files as soon as the European Parliament reconvenes after the Christmas break, following the recent appointment of rapporteurs and shadow rapporteurs for the documents. The PCS Secretariat reports that for the STS securitisation file, the rapporteurship has been assigned to the S&D group .......

    News Round-up 18 December 2015

  • Black whole

    Whole business securitisation treatment unclear

    The path to eligibility remains unclear for whole business bonds when it comes to the securitisation criteria under Solvency 2. This has stalled new issuance and prompted pricing instability.

    "The regulators' sentiment on securitisation has somewhat reversed course and it is clear that certain types of securitisation are now seen more favourably," says Conor Downey, partner at Paul Hastings. "However, .......

    News Analysis 18 December 2015

  • UPI consultation underway

    The Committee on Payments and Market Infrastructures and IOSCO have published for public comment a consultative report entitled 'Harmonisation of the Unique Product Identifier (UPI)'. The report outlines proposals for implementing a harmonised global UPI, whose purpose is to uniquely identify OTC derivatives products that authorities require to be reported to trade repositories (TRs).

    The UPI would consist of a .......

    News Round-up 18 December 2015

  • Delavaco performance triggers breached

    The underperformance of the Delavaco loan backing FirstKey Lending 2015-SFR1 - the first multi-borrower single-family rental securitisation rated by Moody's - will have minimal impact on the deal's performance, according to the agency. This is due to the small size of the loan; the low LTV at closing (61.2%); and the cash-trap mechanisms in the transaction. The borrower has also .......

    News Round-up 18 December 2015

  • Euro secondary stalls

    Activity in the European securitisation secondary market has stalled.

    Year-end illiquidity was fully in evidence yesterday with an extremely slow day across the board and secondary spreads closed unchanged. Italian and Dutch paper did garner some interest, but saw negligible trading.

    There is currently one BWIC on today's European schedule - a single €1.9m line of QUADF 2011-1 A1 due .......

    SCIWire 18 December 2015

  • US CLOs equity focused

    Post Fed lift-off activity has picked up a little across the US CLO secondary market, but it is the equity space that is attracting the most focus today.

    "There are few more lists around today than yesterday," says one trader. "It's mostly tidy up activity and volumes are relatively low, but there will be a lot of interest in the .......

    SCIWire 17 December 2015

  • Bloomberg to buy BRAIS

    Bloomberg has agreed to acquire the Barclays Risk Analytics and Index Solutions (BRAIS) business from the bank for approximately £520m. This includes Barclays' indices on securitised products, covering US MBS and CMBS, pan-European floating and fixed rate ABS, and US and European covered bonds.

    The transaction includes the sale of intellectual property in relation to the POINT portfolio analytics tool. Barclays .......

    Job Swaps 17 December 2015

  • Greek foreclosure effect limited

    A new foreclosure framework will only offer limited benefit to Greek RMBS transactions, says Fitch. This is because lenders are unlikely to increase foreclosures in an illiquid residential property market where house prices are still falling.

    The threat of repossession may deter strategic defaulters, however. These appear to have contributed to persistent weakness in the country's mortgage market, where early- .......

    News Round-up 17 December 2015

  • Fed to maintain MBS policy

    In a unanimous decision by the FOMC, the US Fed announced yesterday that it is moving its target range for the federal funds rate up to 0.25% to 0.5% from zero to 0.25%. However, it stresses that it will maintain its existing policy of reinvesting principal payments from its holdings of agency debt and MBS.

    The bank will also continue rolling over .......

    News Round-up 17 December 2015

  • Uncleared swap margin rules finalised

    The US CFTC has approved a final rule on margin requirements for uncleared swaps for swap dealers (SDs) and major swap participants (MSPs). The vote was split with two in favour and one opposed.

    The new regulation addresses uncleared swaps entered into by SDs or MSPs that are not subject to regulation by the US Fed, the OCC, the FDIC, .......

    News Round-up 17 December 2015

  • Single-name clearing commitment unveiled

    ISDA, Managed Funds Association and SIFMA's Asset Management Group have announced that 24 of their collective member firms have pledged to begin voluntarily clearing their single-name credit default swap trades through central counterparties (CCPs). The initiative is intended to enhance the transparency and efficiency of single-name CDS and to promote a robust marketplace that can be accessed to manage credit .......

    News Round-up 17 December 2015

  • Counterparty rating actions inked

    S&P has taken various credit rating actions on 74 tranches in 33 European RMBS and ABS transactions. The move follows the downgrade of Barclays and Deutsche Bank, which are counterparties in the affected transactions (SCI passim).

    Specifically, S&P has: lowered and removed from credit watch negative its ratings on 65 tranches in 26 RMBS and two tranches in two ABS; .......

    News Round-up 17 December 2015

  • State aid settled

    KBC is set to repay the Flemish Regional Government the full outstanding tranche of €2bn of state aid, as well as a penalty of 50%, before year-end - five years ahead of schedule. In so doing, the group will meet all of the remaining financial obligations imposed on it during and after the financial crisis (SCI passim).

    The repayment was .......

    Job Swaps 17 December 2015

  • Euro secondary chugs along

    Despite wider credit market volatility the European securitisation secondary market is still maintaining its course.

    "We've kept going - there have been a few BWICs, but none of the volatility of broader markets," says one trader. "Flows have been light, but we're still chugging along."

    Overall, the trader adds: "Tone remains constructive and technicals are helping the market. We've got .......

    SCIWire 17 December 2015

  • US CLOs lose momentum

    The US CLO secondary market looks to have lost its momentum as quickly as it appeared yesterday.

    The high proportion of DNTs seen across yesterday's BWICs combined with broader market volatility looks to have stemmed selling volume for now. As the market awaits the Fed later today there are only two CLO auctions due and only limited bilateral activity elsewhere. While .......

    SCIWire 16 December 2015

  • Lloyd's planning insurance index

    Lloyd's has announced plans to launch its own insurance-based index, the Lloyd's Index, in the middle of 2016. The index aims to provide managing agents, brokers and other insurers with new options for the managing of risk and form the basis of index-related products that could attract the interest of wider capital markets participants.

    "I believe this proposal would be .......

    News Round-up 16 December 2015

  • Aussie equity cushions increase

    Rising house prices have pushed down Australian RMBS LTV ratios, says Moody's. The additional equity will be useful in absorbing potential losses, although the size of that equity cushion varies across states.

    Housing prices in Australia have risen by an average of 44% over the last seven years. Despite housing price falls in certain regions, the rating agency notes that .......

    News Round-up 16 December 2015

  • Interest shortfall approach finalised

    S&P has finalised its new rating methodology for structured finance temporary interest shortfalls. The criteria include a sliding scale that limits ratings to certain level, depending primarily on the duration of the aggregate interest shortfall outstanding and expected.

    Another section of the methodology contemplates upgrades for reperforming bonds to as high as double-B plus after the reimbursement of all past .......

    News Round-up 16 December 2015

  • Trups defaults, deferrals stable

    The number of combined defaults and deferrals for US bank Trups CDOs was 18% at the end of November, as it had been at the end of October (SCI 16 November), according to Fitch's latest index results for the sector. There were no new deferrals, defaults or cures last month.

    One cured issuer with notional of US$10m in one CDO .......

    News Round-up 16 December 2015

  • Spanish SME risks outlined

    Increased lending to SMEs in Spain is seen by Moody's as a positive for the country's economic growth. However, fierce lending competition could spur mispricing risks and loosening underwriting standards.

    "SMEs form the backbone of the European economy, and the Spanish one in particular," says Gaston Wieder, avp at Moody's. "They represent 99.9% of the total number of enterprises, provide almost .......

    News Round-up 16 December 2015
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