Complete news archive

  • Invitation chooses to extend

    Invitation Homes has decided to exercise its one-year optional term extension on the single loan backing Invitation Homes 2013-1, a move that Moody's has labelled credit neutral. The deal, which was the first-ever single-family rental securitisation, still has a number of technical conditions to be settled before the extension takes effect.

    The decision to extend the loan resolves the uncertainty surrounding the deal, which led to Kroll Bond Rating .......

    News Round-up 9 November 2015

  • Slovak RMBS rating approach published

    Moody's has published its approach to rating Slovakian RMBS, using its MILAN framework. The rating agency will use this approach in conjunction with existing methodologies to rate both RMBS and covered bonds in Slovakia.

    Moody's issued a request for comment six weeks ago (SCI 23 September) and its rating approach implements the proposals from that RFC. The Slovakian residential real .......

    News Round-up 9 November 2015

  • Office drives delinquency drop

    US CMBS delinquencies fell by 9bp in October to 4.37%, from 4.46% a month earlier, according to Fitch's latest index results for the sector. The dollar balance of late-pays fell by US$348m to US$16.4bn during the month.

    Resolutions of US$833m in October exceeded new delinquencies of US$504m. Fitch-rated new issuance volume of US$5.2bn across five transactions was outpaced by US$5.8bn .......

    News Round-up 9 November 2015

  • SCI Start the Week - 9 November

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

    Pipeline
    The pipeline continued to grow last week as a raft of new deals were announced. In total there were seven ABS additions as well as six RMBS, four CMBS and four CLOs.

    The ABS were: Bilkreddit 7; US$106.1m BlueVirgo 2015-1 Trust; US$788.54m Chrysler Capital Auto Receivables Trust 2015-B; US$180m Diamond Resorts Owner Trust 2015-2; US$200m Ocwen Master Advance .......

    News 9 November 2015

  • Timeshare delinquencies push up

    Fitch reports that US timeshare ABS delinquencies moderately increased in 3Q15, rising to 2.96% from 2.66% in the previous quarter. The number is also a slight jump from the 2.79% delinquency rate in 3Q14, making it the first year-over-year increase since 2013.

    Defaults also increased last quarter at 0.59%, which is up slightly from 0.57% in 2Q15 and 0.53% observed .......

    News Round-up 9 November 2015

  • Purpose test amendments adopted

    The retention undertaking letters for Castle Park CLO, Orwell Park CLO, Dartry Park CLO, Phoenix Park CLO and Sorrento Park CLO have been amended to include two further representations made by their manager GSO/Blackstone, which aim to comply with the 'purpose test', as envisaged under the European Commission's Capital Requirements Regulation proposals (SCI 2 October). The amendments state that the .......

    News Round-up 9 November 2015

  • Mexican RMBS approach published

    Moody's has published its transitioned approach for rating Mexican RMBS using its MILAN framework. The agency recently proposed the change from its previous rating approach in a request for comment to the market (SCI 18 September).

    Under the MILAN framework, Moody's begins with a portfolio analysis of the securitised collateral pool. The results of this analysis are the portfolio's expected losses .......

    News Round-up 9 November 2015

  • AIMCO equity acquired

    Fair Oaks Income Fund has entered into binding contracts to acquire, in the primary market, US$25m notional of AIMCO CLO Series 2015-A equity notes. The investment represents 78% of the transaction's total equity.

    The manager of the CLO is Allstate subsidiary AIMCO. The deal's current target portfolio has a principal value of US$500m across an expected 200 unique bank loan .......

    Job Swaps 9 November 2015

  • Blockchain usage examined

    A new GreySpark Partners report examines how a number of investment banks and exchanges are experimenting with usage of blockchain and distributed ledger technology (DLT). The report highlights how these experiments are supported by software applications that are being developed by US and European financial technology start-up companies, and how usage of the blockchain by banks is poised to increase .......

    News Round-up 9 November 2015

  • Euro secondary quiet

    The European securitisation secondary market closed last week quietly and looks set to start today in the same vein.

    Secondary volumes dropped again on Friday as the primary market drew investor attention and secondary spreads for the most part were unchanged despite continued broader market positivity. A few sectors did however see some uptick in prices - notably CMBS and .......

    SCIWire 9 November 2015

  • Fresh & Easy exposure gauged

    About US$209.2m in CMBS exposures across 16 loans could be affected by Fresh & Easy's latest bankruptcy filing, reports Morningstar. However, the agency says that the impact would be limited to five loans with balances of less than US$7m.

    These loans have the greatest risk of going delinquent because the grocer occupies at least 48% of the leasable space. Conversely, .......

    News Round-up 6 November 2015

  • Volcker compliance sought

    Separate meetings of St Paul's CLO IV noteholders have been convened for 26 November to consider and, if thought fit, pass an extraordinary resolution. The issuer wishes to amend the investment management agreement (IMA) to comply with the Volcker Rule.

    The proposed amendments will provide noteholders with the option to hold notes with different voting rights in respect of resolutions .......

    News Round-up 6 November 2015

  • Amherst welcomes mortgage team

    Standish Mellon Asset Management has strengthened ties with subsidiary Amherst Capital Management by moving its mortgage team over to the firm. The team will remain in Boston and continue to utilise the same investment processes for Standish clients.

    However, it will gain access to Amherst Capital's real estate data set and analytical tools to provide additional advantages to its work .......

    Job Swaps 6 November 2015

  • CLO-driven offering closes

    CIFC Asset Management has closed an offering of US$40m in aggregate principal of unsecured senior notes. Proceeds from the offering will be used by the firm, together with short-term investments and cash currently on its balance sheet, to comply with future CLO risk retention obligations.

    The notes will pay interest semi-annually at a rate of 8.5% per annum and will .......

    News Round-up 6 November 2015

  • ESMA seeks clearing feedback

    ESMA has opened a public consultation on draft requirements regarding indirect clearing. The draft rules cover arrangements for OTC derivatives and exchange-traded derivatives.

    ESMA's consultation aims to address issues raised by stakeholders in prior consultations. It also seeks to ensure consistency in the application of EMIR and MIFIR.

    .......

    News Round-up 6 November 2015

  • Trigger event for cat bond?

    The class C notes of MultiCat Mexico Series 2012-I have been downgraded from single-B minus to triple-C minus by S&P. The rating agency had placed the ratings on credit watch on 28 October.

    The ILS bond remains on credit watch with negative implications. They were placed on credit watch because of concerns that a trigger event may have occurred when .......

    News Round-up 6 November 2015

  • CMBS liquidations dip again

    US CMBS loan dispositions have dipped back below the US$1bn mark to reach a liquidation volume similar to the end of the summer, says Trepp. There were 54 loans totalling US$868.9m liquidated with losses in October.

    Although total disposition volume declined, average loan size has continued to trend upward. From US$11.48m in August and US$14.46m in September, average size reached .......

    News Round-up 6 November 2015

  • Broker-dealer adds RMBS trio

    Nathan Hale Capital has made three hires to strengthen its institutional agency RMBS team. The new additions are Scott Mooney, John Fenwick and DJ Dal Pizzol.

    Mooney has more than 15 years of experience in trading agency RMBS. He was most recently director of mortgage-backed trading at Société Générale in New York and has also worked at BNP Paribas and .......

    Job Swaps 6 November 2015

  • PREPA agreement formalised

    The Puerto Rico Electric Power Authority (PREPA) has entered into a restructuring support agreement with an Ad Hoc Group of PREPA bondholders, comprising traditional municipal bond investors and hedge funds, its fuel line lenders and the Government Development Bank for Puerto Rico. The agreement formalises the economic terms agreed between PREPA, the Ad Hoc Group and the fuel line lenders .......

    News Round-up 6 November 2015

  • OTC outstandings compressed further

    The notional amount of outstanding OTC derivatives contracts declined from US$629trn at end-December 2014 to US$553trn at end-June 2015, according to the BIS. The organisation says that trade compression to eliminate redundant contracts was the major driver of the decline.

    Gross market value of outstanding derivatives contracts declined even more sharply in 1H15. Market values decreased from US$20.9trn to US$15.5trn .......

    News Round-up 6 November 2015

  • CLO manager acquired

    Conning has agreed to acquire CLO and high yield bond specialist Octagon Credit Investors, taking over management of its US$12bn in assets. Andy Gordon will continue as Octagon's ceo, and the firm's existing investment and business teams will remain in place.

    The acquisition will enable Conning to expand its expertise by inheriting Octagon's experience in below-investment grade assets. These assets span across .......

    Job Swaps 6 November 2015
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