Complete news archive

  • 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

  • New wave

    Next CMBS modification wave 'unlike predecessors'

    US CMBS maturity modifications have been modest this year, but the pace is set to pick up in 2016. Moreover, not only the pace of the mods - but also the manner of them - is set to change.

    With US$83bn of performing conduit loans due to mature in 2016, Citi CMBS analysts expect 21% to face difficulties refinancing. Many of the .......

    News Analysis 20 November 2015

  • Carve out?

    CMU CLO treatment weighed

    The European Council has published its first compromise proposal in respect of the Securitisation Regulation forming part of the CMU action plan (SCI 2 October). The newly proposed Article 5a appears to misunderstand the practices of the CLO market, however, adding to the industry's disappointment at the treatment of the sector.

    Article 5a requires originators, sponsors and original lenders to .......

    News Analysis 20 November 2015

  • Euro secondary accelerates

    The recent uptick in the European securitisation secondary market accelerated further yesterday.

    A noticeable pick up in flows was seen across the board. As a result, prices were broadly either unchanged or edged a little higher.

    Stronger but still selective activity was seen in Autos, CLOs and CMBS. At the same time, peripherals held firm with continued buying interest in Italian .......

    SCIWire 20 November 2015

  • US RMBS steady

    The US non-agency RMBS secondary market is keeping steady.

    "Anticipation of year-end is increasing, but while the market is a little slower it's steady," says one trader. "It's been fairly busy this week with increasing volumes each day - there's around $1bn in for the bid today."

    The make-up of today's supply is steady too, the trader notes. "Sellers today .......

    SCIWire 19 November 2015

  • Euro CMBS maturity defaults tumble

    At the end of October, the 12-month rolling loan maturity default rate for European CMBS rated by S&P decreased from 20% to 10.3%. The senior loan delinquency rate increased from 47.1% to 49%, however.

    The delinquency rate for continental European senior loans increased from 59.7% to 61.3%. For the UK, the rate increase from 18.8% to 20%.

    .......

    News Round-up 19 November 2015

  • FFELP downgrades anticipated

    Fitch has released an exposure draft that showcases proposed amendments to how it rates US FFELP student loan ABS. The agency expects to place potentially impacted tranches on rating watch negative, with potential downgrades to follow.

    Among the main proposals is a revision of the assumptions and stresses for deferment, forbearance, IBR, default timing and prepayments. Fitch is considering amendments that .......

    News Round-up 19 November 2015

  • EBA consults on cross-border liquidity

    The EBA has launched a public consultation on its draft regulatory technical standards (RTS) related to liquidity requirements for cross-border intragroup financial support under stress conditions. The RTS aims to specify the additional criteria set out for institutions seeking to apply higher inflows and/or outflows on liquidity and credit facilities on cross-border transactions.

    In particular, the draft RTS specify how .......

    News Round-up 19 November 2015

  • Euro HPA 'RMBS positive'

    Recovering house prices in the UK, Ireland, Spain and the Netherlands will help to suppress RMBS deal losses, says Moody's. However, the recovery has been noticeably less pronounced in the Italian market.

    All else being equal, the increase in borrower equity which typically results from house price growth should lead to higher recoveries on loans that default. The risk of .......

    News Round-up 19 November 2015

  • Netting synchronisation service set up

    Markit has launched a service to help banks to automatically update their risk systems after netting and compression activity at their clearinghouses. It is live with LCH.Clearnet's SwapClear and will expand to other clearinghouses.

    Netting exposures within a clearinghouse allows firms to reduce the capital and operational costs associated with OTC derivatives. Markit's offering is also designed to allow firms .......

    News Round-up 19 November 2015

  • Aussie arrears at record low

    Australian nonconforming RMBS arrears fell to a record low of 3.99% in September, according to S&P's latest performance index (SPIN) result for the sector. The total is down from 4.47% in August, a drop of 0.48%.

    "The nonconforming arrears level is significant because it is the lowest recorded since we began compiling the SPIN in 2000," says S&P credit analyst Narelle .......

    News Round-up 19 November 2015

  • Pharma scrutiny 'contained'

    The ongoing scrutiny of Valeant Pharmaceuticals International and other drug company pricing practices will curtail gains that CLOs have recently made on M&A activity in the generic and specialty pharmaceutical sector, according to Moody's. The agency suggests that these negative sector developments will have limited credit implications for CLOs, however.

    M&A activity in the pharma sector spiked in 1H15 and .......

    News Round-up 19 November 2015

  • FRTB impact analysed

    The Basel Committee has published the results of its interim impact analysis of its fundamental review of the trading book. The report assesses the impact of proposed revisions to the market risk framework set out in two consultative documents published in October 2013 and December 2014. Further revisions to the market risk rules have been made since then and the .......

    News Round-up 19 November 2015

  • Call for change at FSC

    Fifth Street Finance Corp (FSC) has responded to calls from RiverNorth Capital Management for certain changes at the firm. It says that RiverNorth's press release on the matter was inflammatory and misleading, noting that since its founding 17 years ago, Fifth Street has created "a long-term track record as a middle market credit-focused asset manager with strong underwriting and portfolio .......

    Job Swaps 19 November 2015

  • Euro secondary tight

    Spreads across the European securitisation secondary market are holding up, but liquidity remains tight.

    "Market tone and pricing levels are better across secondary in line with global credit," says one trader. "However, we're not seeing huge flows, they even fell back a little yesterday, and liquidity is still tight, so it doesn't take many trades to move spreads."

    UK non-conforming .......

    SCIWire 19 November 2015

  • Winning NPL bidders named

    Fannie Mae has announced the winning bidders for its third non-performing loan (NPL) sale of approximately 7,000 loans totalling US$1.24bn in unpaid principal balance (UPB), divided among three pools (SCI 12 October). The winning bidders for the transaction - which is expected to close on 17 December - are Fortress (New Residential Investment Corp) for pools one and two, and .......

    News Round-up 18 November 2015

  • US CLO drop off?

    After Monday's high watermark, US CLO secondary volumes have dropped significantly and could stay that way for some time.

    "There's not much going on," says one trader. "Sure, there are still a few lists and we're still being lifted out of stuff, but not in large volumes - it's more pockets of activity."

    This pattern could continue for some time, .......

    SCIWire 18 November 2015

  • CRT deals upgraded on performance

    Moody's has upgraded the ratings of 37 tranches from six credit risk transfer transactions backed by conforming balance RMBS loans issued by Freddie Mac and Fannie Mae. US$1.6bn of securities are impacted by the move.

    The affected deals are: Connecticut Avenue Securities (CAS) Series 2014-C04; and Structured Agency Credit Risk (STACR) Series 2014-DN3, 2014-DN4, 2014-HQ1, 2014-HQ2 and 2014-HQ3. Moody's notes .......

    News Round-up 18 November 2015

  • Chinese concentration risk highlighted

    China Shanshui Cement Group's default last week will test how Chinese CLO structures withstand underlying corporate defaults, says Fitch. The agency notes that this event highlights the concentration risk prevalent in typical Chinese CLO structures, which it considers a major obstacle to assigning high ratings in the sector, along with the lack of financial information on underlying loans.

    Fitch downgraded .......

    News Round-up 18 November 2015

  • MBS efforts bolstered

    Palmer Square Capital Management has recruited Vesta Marks as a portfolio manager focused on building out the firm's efforts in CMBS and RMBS. He was previously md at Tradex Global Advisory services, where he oversaw mortgage credit within its flagship hedge fund.

    Marks has also served as a portfolio manager at Semper Capital Management, where he was responsible for investments .......

    Job Swaps 18 November 2015

  • Euro secondary on the up

    Activity and sentiment are on the up in the European securitisation secondary market.

    Bolstered by improving broader markets, activity in securitisation secondary picked up yesterday and market tone continues to improve. Better buying interest was seen across most sectors and spreads are broadly flat to slightly tighter.

    Prime autos and RMBS saw healthy flows yesterday, while the bid for UK .......

    SCIWire 18 November 2015
×