Complete news archive

  • 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

  • Complex debt guidelines finalised

    ESMA has published its final report on guidelines on complex debt instruments and structured deposits in MiFID 2. The guidelines are intended for the assessment of securitised debt and money market instruments incorporating a structure which makes it difficult for the client to understand the risk involved.

    The guidelines also apply to structured deposits incorporating a structure which makes it .......

    News Round-up 1 December 2015

  • Trade repository concerns highlighted

    The Committee on Payments and Market Infrastructures (CPMI) and IOSCO have completed a review of jurisdictions' compliance with the principles for financial market infrastructures (PFMI). They find an overall high level of observance with the PFMI responsibilities, although there are concerns regarding trade repositories.

    The CPMI and IOSCO review covered the implementation of the PFMI responsibilities across all financial market .......

    News Round-up 1 December 2015

  • Asian delinquency trends to diverge

    Moody's forecasts that delinquency rates for structured assets in Asia (ex-Japan) will diverge in 2016. China and Singapore are generally expected to show rising delinquency trends, while performance in India and Korea should exhibit strength.

    "China's gradual economic slowdown will trigger a slight rise in delinquencies from current low levels across a range of asset classes in the country, while .......

    News Round-up 1 December 2015

  • Direct lending fund closed

    BlueBay Asset Management has closed its Direct Lending Fund II SLP, exceeding its revised target of €2bn and completing the fundraising in less than a year. The fund builds on strong support from existing investors, with over 80% of its previous fund's investors committing to the new fund, and attracted new investors globally.

    The fund will provide flexible financing solutions .......

    News Round-up 1 December 2015

  • Euro secondary lull continues

    The lull in activity seen at the end of last week in the European securitisation secondary market carried over to another quiet session yesterday.

    With most secondary market participants pre-occupied with month-end there was little investor activity and only very patchy and light flows from dealers, nor were there any European BWICs. However, market tone remained positive with spreads broadly .......

    SCIWire 1 December 2015

  • Growing trade

    Receivables ABS opportunities emerging

    A number of UK government legislative initiatives are expected to help breathe life into small businesses. This, in turn, could help deepen interest in trade receivables securitisation as a useful tool for facilitating working capital.

    The Small Business, Enterprise and Employment Act is cited by Moody's as one particular initiative that can help boost SME access to private sector finance .......

    News Analysis 30 November 2015

  • VW issuance to expand

    Volkswagen says it plans to continue diversifying its mandate for auto ABS issuance amid the ongoing fuel-emissions scandal. The manufacturer notes that the priority will be to secure liquidity and not maximise basis points.

    Moody's recently commented on Volkswagen-sponsored ABS in light of the heightened risks potentially involved. The agency expects a negative effect, particularly on US deals, as a .......

    News Round-up 30 November 2015

  • MiFID delay gets green light

    The European Parliament's MiFID 2 negotiating team has given the go-ahead for the regulation to be pushed back a year from its originally planned implementation in January 2017. However, it says that such an agreement is contingent on the European Commission finalising legislation swiftly.

    "Furthermore, the Commission and ESMA need to come up with a clear roadmap on the implementation .......

    News Round-up 30 November 2015

  • SCI Start the Week - 30 November

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

    Pipeline
    The pace of pipeline additions slowed last week due to Thanksgiving. The final count consisted of three ABS, one ILS, one RMBS, three CMBS and one CLO.

    US$713m Castlelake Aircraft Securitization Trust 2015-1, A$190m Liberty Series 2015-1 Auto and SC Germany Consumer 2015-1 accounted for the ABS. The ILS was US$200m Nakama Re 2015-1 and the RMBS was .......

    News 30 November 2015

  • APRA proposal 'credit positive'

    APRA's proposed changes to Australia's prudential framework for securitisation are credit positive for Australian banks (SCI 26 November), according to Moody's. The agency expects the proposal to improve access to securitisation funding by broadening the investor base for Australian transactions and enabling the securitisation of new asset classes.

    "Some of the proposals - in particular the reintroduction of date-based calls .......

    News Round-up 30 November 2015

  • ABSPP 'pause' due

    The Eurosystem is set to temporarily pause its purchases under the ABSPP between 22 December and 1 January 2016, in anticipation of lower market liquidity during this period and to reduce potential market distortions. Purchases will resume on 4 January.

    However, the ECB anticipates purchases made during the period of 27 November to 21 December to be "somewhat frontloaded", in .......

    News Round-up 30 November 2015

  • Proof of concept

    Risk transfer regulatory, structuring considerations discussed

    Representatives from Reed Smith and StormHarbour Securities recently provided an introduction to capital relief trades, focusing on regulatory and structuring considerations, during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session. For a broader and more in-depth exploration of the risk transfer space, attend SCI's Regulatory .......

    Talking Point 30 November 2015

  • Euro auto delinquencies down

    European auto ABS performance continued to improve in 3Q15 as arrears reached record lows, says Fitch. The rating agency's 30-plus day delinquency index fell from 0.83% in the previous quarter to 0.76% and its 60-plus day delinquency index fell from 0.4% to 0.37%.

    Fitch's annualised loss index decreased from 0.2% in 2Q15 to 0.15% in 3Q15. Macroeconomic factors were positive .......

    News Round-up 27 November 2015

  • HERO hits the market

    Renovate America has issued the first ever 'green' PACE securitisation. HERO Funding Trust 2015-3 represents 8,939 home improvements made to reduce energy or water consumption or produce renewable energy.

    The notes are considered green bonds based on the classification standards of the International Capital Market Association. The transaction is secured by approximately US$207.7m of PACE bonds, issued by WRCOG, SANBAG .......

    News Round-up 27 November 2015

  • Windermere clarity requested

    Hayfin Capital Management has made a request to the English High Court to decide how interest should have been calculated on the payment of class X notes in Windermere VII CMBS. The bonds were structured to continue paying following the default of the underlying loans.

    Hayfin has also asked the court whether an event of default occurred on the class B notes of .......

    News Round-up 27 November 2015

  • Property market sensitivity weighed

    A 20% decline in Australian property values would affect only a small proportion of triple-A rated prime RMBS, according to S&P. In a new report, the agency considers the sensitivity of Australian prime RMBS to a potential decline in property market values.

    "Strong property price growth has featured prominently in Australia's economic narrative during the past two decades," S&P notes. .......

    News Round-up 27 November 2015

  • Euro secondary slumbers

    The European securitisation secondary market is taking it easy through the US public holiday but market tone is staying strong.

    Despite low volumes yesterday spreads remained firm to slightly tighter across the board. UK non-conforming and buy-to-let bonds are still the most active areas and remain better bid, primarily from the Street. At the same time, peripherals continue to generate .......

    SCIWire 27 November 2015

  • Prudential changes proposed

    The Australian Prudential Regulation Authority (APRA) has released a paper that sets out revisions to the country's prudential framework for securitisation. The regulatory body intends to simplify the rules, in order to strengthen the funding profile for market players and add clarity for entrants looking for capital benefits.

    The proposals take into consideration global reform initiatives and specifically incorporates the Basel .......

    News Round-up 26 November 2015

  • Utility factor

    PREPA deal presents opportunities, risks

    Puerto Rico Electric Power Authority (PREPA) plans to exchange newly issued utility cost recovery charge (UCRC) ABS bonds to its uninsured bondholders as part of an agreement to reduce its debt burden. The deal remains in limbo for now, however, as PREPA continues thrash out details with the bondholders yet to sign up.

    The planned securitisation, which Moody's says would .......

    News Analysis 26 November 2015

  • Spanish repossession recovery to continue

    Moody's expects recoveries on repossessed Spanish properties to continue rising. Recovery rates have so far risen alongside an improving economy and a 5.8% increase in Spanish house prices since 2013.

    "Given the favourable economic backdrop, we consider that Spanish securitisation vehicles will be able to sell their repossessed properties more easily," says Moody's vp Carole Bernard. "So far, losses on .......

    News Round-up 26 November 2015
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