Complete news archive

  • Interbank ABS arriving

    Shanghai Provident Fund Management Centre is set to issue an ABS backed by housing fund loans on China's interbank bond market, according to Shanghai Clearing House. The CNY6.96bn (US$1.09bn) deal is believed to be the first of its kind and will launch on 4 December.

    The bonds will be split into two sales, the first consisting of CNY5.02bn, with the .......

    News Round-up 3 December 2015

  • Recycling risk?

    STS synthetic exclusion scrutinised

    The European Commission's Capital Markets Union proposals for reviving Europe's securitisation market sparked the most debate among players in the capital relief space this year, according to a new SCI research report entitled 'Capital relief trades: the mechanics of recycling risk'. Under the framework for simple, transparent and standardised (STS) securitisation, synthetic balance sheet transactions remain ineligible for .......

    News Analysis 3 December 2015

  • Euro secondary keeps busy

    The upswing in activity in the European securitisation secondary market is continuing.

    Yesterday saw a pick-up in trading across the board both on- and off-BWIC. Notably, prime assets returned to form and a strong buying bias, in Dutch RMBS in particular, saw spreads in both ABS and MBS generally tighten.

    Meanwhile, Portuguese paper continued to outperform in peripherals and ended the day slightly .......

    SCIWire 3 December 2015

  • US RMBS still quiet

    The US non-agency RMBS secondary market is still quiet after the return from Thanksgiving and could now stay that way for some time.

    "It's been fairly quiet this week so far with about $200m in for the bid on Monday and Tuesday," says one trader. "Today is a bit busier but is dominated by a large AON list from a .......

    SCIWire 2 December 2015

  • Third straight decline for delinquencies

    The Trepp US CMBS delinquency rate declined for a third straight month, falling by 10bp in November to 5.13%. The rate is now 62bp lower year-to-date and 67bp lower than the year-ago level.

    Slightly less than US$1bn in loans became newly delinquent last month, which put 19bp of upward pressure on the delinquency rate. About US$450m in loans were cured, .......

    News Round-up 2 December 2015

  • CLO projections remain strong

    US and European CLOs should continue to perform well in 2016, says Moody's. However, loan collateral is expected to remain weakened and default rates are projected to rise in US and Chinese CLOs.

    "US CLOs will perform well next year, with loan defaults rising slightly but remaining low overall due to tighter underwriting standards," says Moody's svp Algis Remeza. "And .......

    News Round-up 2 December 2015

  • EMEA ratings transition positive

    EMEA structured finance securities continued to experience a decrease in downgrade activity and an increase in upgrade activity in 1H15, compared to 2013, according to Moody's latest transition study for the region. The 12-month downgrade rate for EMEA structured finance decreased from 16% to 4.8%, while the 12-month upgrade rate rose from 6.9% to 37.8% over the same period.

    The .......

    News Round-up 2 December 2015

  • OC cushions survive energy slump

    While US CLOs have so far avoided the worst of the energy sector's economic woes, the triple-C and single-D buckets in CLO 2.0 deals have crept up throughout the year, notes S&P. Further adverse moves could impact OC cushions, but they remain stable for now.

    "The effects of price declines within the US broadly syndicated loan (BSL) market have started .......

    News Round-up 2 December 2015

  • SEF collusion case filed

    A class action lawsuit was filed last week that accuses 10 banks and two trading platforms of colluding to halt competition from SEFs in the interest rate derivatives (IRDs) market. The Public School Teachers' Pension and Retirement Fund of Chicago brought forward the suit, having purchased IRDs from the defendants.

    Quinn, Emanuel, Urquhart & Sullivan is representing the plaintiff in .......

    News 2 December 2015

  • Hedge fund goes private

    BlueCrest Capital Management is to transition to a private investment partnership and will return to its clients the US$8bn it currently manages for them. Following the transition, BlueCrest will only manage assets on behalf of its partners and employees.

    BlueCrest will continue to trade all current major strategies and retain its offices around the world. Strong growth in employees and .......

    Job Swaps 2 December 2015

  • TPG acquires property group

    TPG Real Estate has closed its acquisition of TriGranit, including a portfolio of office and retail assets predominantly located in Poland. The acquisition will build on TPG's existing central European real estate platform as the firm pursues a full spectrum of real estate activities.

    "The new TriGranit will manage a much wider scope of activities than before. As an integrated real estate .......

    Job Swaps 2 December 2015

  • Post-crisis double-Bs keep outperforming

    The total amount of CLOs paid down in JPMorgan's CLO Index (CLOIE) in November was US$2.41bn in par outstanding, split between US$2.26bn and US$0.15bn of pre-crisis and post-crisis CLOs. The post-crisis index added US$5.7bn across 70 tranches from 13 deals at the November rebalance.

    Pre-crisis triple-A discount margins widened 10bp, while post-crisis triple-A DMs widened 4bp. Post-crisis CLOIE saw negative .......

    News Round-up 2 December 2015

  • Securitisation package approval imminent?

    The European Council appears set to approve the CMU securitisation package. The Presidency of the Council, Luxembourg, reported yesterday that a special working group has discussed the proposals in six meetings, after which different compromise proposals were prepared. There seems to have been no further reaction to the latest compromise texts, however.

    Consequently, Rabobank credit analysts suggest that formal approval .......

    News Round-up 2 December 2015

  • Online lender ABS debuts

    Online lender loanDepot has closed a US$150m securitisation of unsecured personal loans. It was structured and sold by Jefferies.

    This inaugural ABS also coincides with loanDepot's expansion of its consumer lending division to a new location in Orange County, California. The company began offering unsecured personal loans in May, making it the first national non-bank lender in the US to .......

    News Round-up 2 December 2015

  • Volcker amendments implemented

    An extraordinary resolution has been passed by St Paul's CLO III noteholders that amends the investment management agreement to comply with the Volcker Rule. Under the amendments, noteholders have the option to hold notes with different voting rights in respect of resolutions to remove or replace the CLO manager. This involves splitting each class of rated notes into three separate .......

    News Round-up 2 December 2015

  • Euro secondary picking up

    Activity in the European securitisation secondary market is starting to pick up.

    "Yesterday was very quiet again with not a lot of flows or BWICs," says one trader. "However, it appears to be picking up today and the BWIC calendar is building for the rest of the week, though involving a lot of off-the-run securities."

    The most active sector yesterday was .......

    SCIWire 2 December 2015

  • ABS to boost SMEs

    The British Business Bank (BBB) is considering securitisation as part of its wider remit to increase funding to UK SMEs. It aims to provide capital to increase the supply of asset finance solutions for small businesses and securitisation may be used as a refinancing tool.

    This strategy is part of the BBB's ENABLE funding programme, which aggregates asset finance portfolios .......

    News 1 December 2015

  • US CLO slow return

    The US CLO secondary market is slowly getting back to some semblance of normality after a quiet holiday-shortened week last week.

    Yesterday only saw one BWIC and one OWIC, both primarily involving equity pieces. In both cases more than usually extensive colour was released.

    The 2.0 equity OWIC had two line items trade - BHILL 2013-1X E at 71a and .......

    SCIWire 1 December 2015

  • European outlook improves

    European structured finance will benefit next year from an improved macroeconomic landscape, consumer confidence and a more competitive lending environment, which will boost asset performance, says Fitch. The rating agency has changed its asset performance outlook to stable/positive for 2016.

    Asset performance outlooks for several individual markets have improved as GDP growth and lenders' greater appetite to underwrite loans to .......

    News Round-up 1 December 2015

  • Tobacco ABS reviewed on data update

    Fitch has placed 49 tranches of tobacco settlement ABS on rating watch and revised two from rating watch negative to rating watch evolving in connection with an ongoing and comprehensive review of its entire tobacco settlement ABS portfolio. The agency says it is taking these actions because of updated or corrected data, assumption changes, anticipated additional payments and corrections to .......

    News Round-up 1 December 2015

  • Short-duration MBS fund offered

    BPV Capital Management has added a sixth fund to its line-up of mutual fund products - the BPV High Quality Short Duration Income Fund. The firm says that a short-duration product focused on the US agency MBS market is "quite rare", especially when it's offered in a mutual fund format

    "The current low interest rate environment may present unattractive risks .......

    News Round-up 1 December 2015
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