Complete news archive

  • Euro secondary strengthens

    The positive tone in the European securitisation secondary market continues to build.

    "Overall, we're strengthening, but still lagging the positive tone in broader markets," says one trader. "We're seeing something of a pick-up and flows are better especially in some of the recently quiet sectors."

    The trader continues: "We're not seeing much in prime, but Portuguese RMBS and UK non-conforming .......

    SCIWire 4 November 2015

  • US CLOs stay light

    Volumes are still low in the US CLO secondary market, but there are patches of activity and also some action in Trups CDOs.
    "CLO trading is pretty light at the moment as people are still calibrating the market after their month-end marks," says one trader. "However, there is activity here and there."

    For example, the trader reports: "There's been some hedge .......

    SCIWire 3 November 2015

  • MERS settlement agreed

    Bank of America has agreed to pay US$335m to settle a lawsuit, in which it allegedly misled shareholders about risky mortgage securities and its dependence on the electronic mortgage registry known as MERS. According to an SEC quarterly earnings filing from the bank, the agreement remains subject to final documentation and court approval.

    The settlement fee will be paid to Pennsylvania Public School .......

    Job Swaps 3 November 2015

  • Regulation threatens market viability

    Banks' market making ability in securitised products is set to be severely affected by the Basel Committee's proposed Fundamental Review of the Trading Book (FRTB). JPMorgan ABS analysts have joined a growing chorus (SCI 15 June) in warning that FRTB would make secondary trading in securitised products unprofitable.

    The final FRTB ruling is expected to be published next month, before .......

    News 3 November 2015

  • Utility benefits polled

    Financial Markets Consulting has polled market participants on the inefficiencies that continue to challenge post-trade processing in both exchange-traded and cleared OTC derivatives, along with potential solutions that could address them. Commissioned by SunGard, the study underscores a desire among global clearing firms for industry-wide collaboration and utilities to eliminate redundant and inefficient processes, drive the standardisation of data and .......

    News Round-up 3 November 2015

  • Pre-crisis double-Bs outperform

    The total amount of CLOs paid down in JPMorgan's Collateralised Loan Obligation Index (CLOIE) since the September rebalance through 30 October was US$3.74bn in par outstanding, split between US$2.41bn and US$1.33bn of pre-crisis and post-crisis CLOs. The post-crisis index added US$4.3bn across 57 tranches from 10 deals at the October rebalance.

    Pre- and post-crisis triple-A discount margins each widened by .......

    News Round-up 3 November 2015

  • Automated lender launches

    Aries Capital has launched an automated mortgage banking platform that specialises in non-recourse, permanent and bridge loans from US$3m to US$75m for hotel, multifamily, self-storage, retail and other commercial properties in the US. Headquartered in Chicago, LendingCap Commercial is headed by Neil Freeman, Aries chairman and ceo, and Rushi Shah, Aries svp and president of LendingCap.

    LendingCap's originators are expected .......

    Job Swaps 3 November 2015

  • CLO equity investment disclosed

    Fair Oaks Income Fund has entered into binding contracts to acquire, in the primary market, US$25.5m notional of equity notes and US$10m of class F notes of Neuberger Berman CLO XX. The purchase represents 66% of the total equity of the transaction.

    Managed by Neuberger Berman, the CLO's current target portfolio has a principal value of US$500m across an expected .......

    Job Swaps 3 November 2015

  • Euro secondary refocuses

    After a couple of quiet sessions the European securitisation secondary market looks set to refocus in the days ahead.

    "After a very busy week last week on our side at least it was pretty quiet yesterday and one or two data points were enough to distract the market," says one trader. "However, there are a couple of big BWICs today, .......

    SCIWire 3 November 2015

  • Deutsche re-allocates trading resources

    Deutsche Bank's management board has approved a five-year plan to revamp its strategy in the hope of achieving a number of newly set financial objectives. In a large cost-cutting scheme, the bank will exit uncleared CDS market-making and agency RMBS trading, along with higher risk-weight securitised trading.

    The cuts are part of Deutsche's goal to reduce costs to below €22bn in .......

    Job Swaps 2 November 2015

  • Population growth to support RMBS

    Population growth will support housing demand and property prices in the UK, the Netherlands and Ireland, says Moody's. Housing supply shortages and robust economic growth could help reduce losses on residential mortgage loans.

    The UK is projected to experience population growth of 3.2% until 2020, with 1.5% growth in the Netherlands. Moody's believes this will support housing markets in the context .......

    News Round-up 2 November 2015

  • CMBS criteria updated

    Moody's has updated its methodology for rating multi-borrower large loan and single-asset/single-borrower (LL/SASB) CMBS. The changes incorporate previous proposals from two request for comments that the agency sent out in August and September (SCI passim).

    The main changes to the methodology include updated LTV targets for US, Canadian and Japanese LL/SASB CMBS. The agency has also refined adjustments that it makes to .......

    News Round-up 2 November 2015

  • SCI Start the Week - 2 November

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

    Pipeline
    The number of deals joining the pipeline and staying there grew again last week. In total there were eight new ABS, one ILS, three RMBS, one CMBS and two CLOs.

    The ABS were: US$1bn AmeriCredit Automobile Receivables Trust 2015-4; US$650m Arby's Funding Series 2015-1; US$732m Bank of the West Auto Trust 2015-2; US$820m Nissan Auto Lease Trust 2015-B; .......

    News 2 November 2015

  • Trups defaults drop again

    The number of combined defaults and deferrals in US bank Trups CDOs dropped to 18.1% at the end of September from 18.8% in August, according to Fitch's latest index results for the sector. The drop resumes following two straight months of the indices remaining unchanged (SCI passim).  

    In September, 16 bank issuers representing US$138m of notional cured in 10 CDOs, while there were .......

    News Round-up 2 November 2015

  • CMBS defaults dip

    Fitch's US CMBS cumulative loan default rate for fixed-rate CMBS fell slightly to 13.2%, as of 3Q15, from 13.3% at end-2Q15. The agency suggests this is due to fewer new defaults and strong new issuance levels.

    In 3Q15, 38 loans totalling US$779.1m were newly defaulted during their term. This represents a decrease from 3Q14, when 77 loans totalling US$1.11bn defaulted. .......

    News Round-up 2 November 2015

  • Smaller portfolios catered for

    Finacity Corporation has established Finacity Capital Management (FCM), a new business designed to facilitate efficient processing of trade receivables and access to the securitisation markets for companies with smaller portfolios of receivables. Magnetar Capital has provided strategic capital to FCM, which is initially capitalised with US$50m.

    The business will fund transactions in the range of US$5m to US$25m using a .......

    Job Swaps 2 November 2015

  • Euro secondary rolls on

    The bulk of the European securitisation secondary market took month end in its stride and continues to roll on at a solid if unremarkable pace.

    Friday was quieter than earlier in the week, but saw relatively healthy flows for month-end. Overall, tone remained positive and spreads were little moved.

    The main area of buying focus was once again UK prime .......

    SCIWire 2 November 2015

  • SF team bolstered

    Ashurst has recruited partners Scott Pierpont and Lee Ann Anderson to its structured finance team, based in New York and Washington, DC respectively. In a separate move, Eric Bothwell has been appointed partner in New York and Cameron Saylor has been appointed partner in the London office.

    Pierpont joins the firm from Jones Day and has experience in structured finance, .......

    Job Swaps 30 October 2015

  • Drug store deal CMBS impact weighed

    Walgreens Boots Alliance is set to acquire Rite Aid for US$17.2bn, in a move which will impact almost US$10bn of CMBS conduit loans. There is slightly more 'high risk' exposure in legacy CMBS than in 2.0 deals.

    Morgan Stanley analysts note that there are an estimated 12,674 Walgreens and Rite Aid stores across the US, with 3,248 of these located .......

    News 30 October 2015

  • Law firm expands in California

    Baker Botts is opening an office in San Francisco. It will be the firm's second office in California and it is expected to work closely with the team already established in Palo Alto.

    Patricia Stanton, chair of the firm's real estate practice, will move from its Dallas office to take the role of partner-in-charge in San Francisco. The firm expects to grow .......

    Job Swaps 30 October 2015

  • South African affordability analysed

    South African borrowers whose mortgage debt backs RMBS are "much more likely" to make regular payments than other borrowers, says Moody's. This is expected to remain the case, even if interest rates rise materially.

    Should interest rates rise by 3%, only an additional 1% of borrowers would have difficulties repaying their mortgages. To affect an additional 10% of borrowers, rates .......

    News Round-up 30 October 2015
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