Complete news archive

  • US job growth supports card ABS

    Strong employment growth should keep US credit card ABS performance metrics near records through the end of the year, says Fitch. Prime charge-offs are expected to increase this month and delinquencies are expected to rise.

    The unemployment rate for October fell to 5%, according to the US Department of Labor, which is a level last reached in April 2008. The .......

    News Round-up 24 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Trups CDOs quiet

    The US Trups CDO market is quiet again after a small flurry of BWIC activity last week.

    "It's pretty quiet across the Trups CDO sector," says one trader. "There were a few lists last week, but participation was light so there wasn't much action off the lists and a lot of DNTs etc on them."

    The market is likely to .......

    SCIWire 23 November 2015

  • Zohar bankruptcy filed

    Patriarch Partners has filed a Chapter 11 bankruptcy petition for Zohar CDO 2003-1. The firm says its actions are a result of it trying to protect against efforts by MBIA to obtain the assets of the transaction.

    The latest development extends the controversy surrounding Patriarch's management of the Zohar deals. The SEC charged the firm earlier this year for defrauding clients and collecting .......

    Job Swaps 23 November 2015

  • SCI Start the Week - 23 November

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

    Pipeline
    Last week it was RMBS and CMBS which dominated the pipeline's additions. In contrast to the week before, there were only three ABS and one CLO, while there were five RMBS and four CMBS.

    €800.4m Bavarian Sky 4, US$332.5m DRB Prime Student Loan Trust 2015-D and US$102m JG Wentworth XXXVI accounted for the ABS. The RMBS were: US$345.141m .......

    News 23 November 2015

  • Structuring head recruited

    Demica has appointed François Terrade as head of structuring, responsible for creating financing solutions to secure optimum advance rates and the lowest cost of funds for the firm's corporate clients. Based in London, he will combine traditional bank securitisation techniques with funding alternatives for non-bank investors.

    Terrade previously held roles in cross-border receivables finance at GE Capital International and was head of structured .......

    Job Swaps 23 November 2015

  • Largest ACIS deal inked

    Freddie Mac has obtained the largest insurance policy to date under its Agency Credit Insurance Structure (ACIS) programme. The transaction transfers much of the remaining credit risk associated with the fourth actual loss STACR offering, STACR Series 2015-DNA3.

    The policy transfers up to a combined maximum limit of approximately US$702.4m of losses on a pool of single-family loans acquired from .......

    News Round-up 23 November 2015

  • Auto incentive warning

    The proliferation of vehicle incentives could depress the value of used vehicles and contribute to higher loss severity, according to Fitch. The agency warns that this could ultimately push up auto loan and lease ABS loss rates.

    The average incentive per vehicle has risen gradually this year and rose above US$3,000 per vehicle in recent weeks. Incentive levels rose to .......

    News Round-up 23 November 2015

  • Asset manager expands board

    David Richards has been appointed to American Capital's board of directors after it voted to increase its size to 10. He will become a member of the board's executive committee and its audit, compliance and valuation committee.

    Richards recently joined the firm from Pine River Capital Management, where he was a portfolio manager focusing broadly on financial sector investments. Prior .......

    Job Swaps 23 November 2015

  • Post-issuance changes eyed

    Fitch reports that US borrowers are increasingly seeking to change the terms of their CMBS loan shortly after securitisation. The agency says that some of the proposed changes - had they been known prior to issuance - would have resulted in the loan being modelled differently and often more conservatively.

    Fitch has seen approximately 15 requests this year for rating .......

    News Round-up 23 November 2015

  • Aussie affordability deteriorating

    Moody's reports that housing affordability in Australia has deteriorated significantly over the 12 months to October 2015. The agency suggests that this increases the risk of delinquency and default for Australian RMBS.

    "Nationally, Australian households with two income earners spent an average of 29.3% of their monthly income on monthly mortgage repayments as of 30 October 2015, up from 28.2% .......

    News Round-up 23 November 2015

  • Marketplace ABS deals struck

    Victory Park Capital (VPC) has closed a pair of securitisation financings: a A$100m ABS warehouse programme with zipMoney, an Australian digital retail finance provider; and a US$175m marketplace lending transaction, alongside KKR.

    Dubbed zipMoney Trust 2015-1, the Australian transaction comprises three classes of unrated notes issued by Perpetual in its capacity as trustee. Pricing on all classes of notes is .......

    News Round-up 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015

  • Fighting Irish

    RMBS fundamentals trending up

    The performance of Irish RMBS continues to improve against the backdrop of a stable economy. A potential slowdown in the recovery and lingering NPLs point to a number of challenges, but a dramatic downturn is not anticipated.

    "Clearly, the level of new issuance is still relatively low, but there are a number of positive factors - particularly the rise in .......

    News Analysis 23 November 2015

  • PartnerRe deal approved

    Shareholders of PartnerRe have voted to approve EXOR's proposed acquisition of the firm, edging the deal closer to completion. The vote was made yesterday (19 November) at PartnerRe's special general meeting at the company's offices in Bermuda.

    PartnerRe's board of directors also declared a special dividend of US$3 per share payable to common shareholders, contingent upon the completion of the acquisition. .......

    Job Swaps 20 November 2015

  • Leadenhall brings in two

    Leadenhall Capital Partners has made two new hires to bolster its portfolio management team. Joel Milnes joins as an investment analyst in the firm's non-life team, while Craig Gillespie moves into life investments as a portfolio manager.

    Milnes arrives from Markel International, where he worked in the reinsurance pricing team. He focused particularly on pricing marine and specie, energy, financial .......

    Job Swaps 20 November 2015

  • ICE prices senior offering

    ICE has priced an underwritten public offering of US$2.5bn in new senior notes. It says it will use the proceeds, along with available cash and borrowings under its US dollar commercial paper programme, to finance the cash element of its purchase of Interactive Data.

    The offering is split equally between US$1.25bn in aggregate principal amount of 2.75% senior notes due to .......

    Job Swaps 20 November 2015

  • GSEs continue risk transfer innovation

    Fannie Mae and Freddie Mac have both priced innovative risk transfer deals. The deals build on plans outlined earlier in the year (SCI 20 August).

    Fannie Mae has completed two more credit insurance risk transfer (CIRT) transactions, one of which has, for the first time, been completed directly with a multi-line insurer. Also for the first time, the covered loan pools of .......

    News Round-up 20 November 2015

  • RMBS uses new servicing fee structure

    Mill City Mortgage Loan Trust 2015-1 has introduced a fee-for-service structure which is unique to rated re-performing loan (RPL) securitisations, notes Moody's. This new structure will see Shellpoint Mortgage Servicing charge a base free that increases as a loan becomes more delinquent.

    The rating agency notes that this fee structure provides monetary incentives for the servicer to work out delinquent loans .......

    News Round-up 20 November 2015

  • HECM deal rated

    Nationstar Mortgage is marketing an RMBS backed by inactive home equity conversion mortgages (HECM), believed to be the first deal of its kind to be rated. Moody's has assigned provisional ratings to three classes of Nationstar HECM Loan Trust 2015-2.

    The class A tranche in the deal has been rated Aaa by the agency. The M1 tranche has been assigned an A3 .......

    News Round-up 20 November 2015

  • SFIG proposals 'credit positive'

    SFIG has proposed a transaction parties framework for private-label RMBS which contains a pair of features that will provide a stronger governance structure for these securities, says Moody's in its latest ResiLandscape publication. These features are an expanded transaction parties framework and the role of a 'deal agent' (SCI passim) to provide independent oversight of the trust and represent investors' .......

    News Round-up 20 November 2015
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