Complete news archive

  • Underperforming retail asset warning

    The US CMBS retail subsector should continue to stabilise through the end of the year, says Fitch. However, already underperforming assets in secondary and tertiary markets could lose momentum in 2016 if retailers face a particularly weak holiday season.

    Sales in September were up 2.4% year-over-year and Fitch expects retail holiday sales - excluding autos - to be up 3%-4%, versus 4.1% .......

    News Round-up 21 October 2015

  • French true sale RMBS debuts

    Crédit Agricole has closed FCT Crédit Agricole Habitat 2015, a self-led retained securitisation of French home loans. The transaction is the bank's first true sale RMBS in France.

    The underlying asset portfolio consists of French residential mortgage loans extended to individuals, which are either guaranteed or benefit from a first mortgage lien. The €10bn transaction has been fully subscribed by the .......

    News Round-up 21 October 2015

  • Default predictors identified

    In an analysis of default frequencies of both US agency and non-agency mortgage loans originated from 1999-2008, S&P finds that default rates for both agency and non-agency loans were higher for crisis-era vintages relative to pre-crisis vintages. The study also suggests that the default rate of agency loans was approximately 30%-65% that of comparable non-agency loans, with FICO scores, debt-to-income .......

    News Round-up 21 October 2015

  • Euro secondary retains BWIC focus

    BWICs are continuing to dominate the European securitisation secondary market.

    Thanks in part to a relatively quiet primary market, secondary auctions saw increased interest yesterday. Most bonds in for the bid traded in line with expectations and tone across most sectors firmed a little. The notable exception is CLOs where any potential rally is being hampered by strong primary and secondary supply.

    SCIWire 21 October 2015

  • US CLOs show stabilisation signs

    US CLO secondary spreads are showing the early signs of stabilising.

    "The last month has been challenging and we've been widening for the past four weeks," says one trader. "However, it now feels like the widening could be coming to an end, though prices are not yet firming up by any stretch of the imagination there is a sense they might .......

    SCIWire 20 October 2015

  • CLO expert recruited

    CIFC has brought in Robert Klein as senior portfolio manager and md in structured products, leading the firm's structured products portfolios. He reports to co-presidents Oliver Wriedt and Steve Vaccaro and will also join the firm's operating committee.

    Klein joins from Prospect Capital Management, where he was the lead portfolio manager and founder of the firm's CLO business. Prior to .......

    Job Swaps 20 October 2015

  • DOJ lawyer moves on

    Geoffrey Graber has joined Cohen Milstein Sellers & Toll as a partner. He will be part of the firm's consumer protection and product safety practice group, and will contribute to other practice areas, including whistleblower/false claims, securities fraud and public clients.

    Prior to joining the firm, Graber served as a deputy associate attorney general and director of the RMBS Working .......

    Job Swaps 20 October 2015

  • BTL rate buffers evaluated

    The prospect of increasing interest rates in the UK is prompting a re-examination of mortgage affordability, says Moody's. However, the agency believes that UK buy-to-let landlords should benefit from substantial affordability buffers through rising rental income.

    "With a 0.5% interest rate hike, if we take the rising cost of rent since the loan was granted into account, the percentage of BTL landlords with insufficient .......

    News Round-up 20 October 2015

  • Corporate head hired

    First Names Group has appointed Malcolm Macleod as head of corporate services in the Channel Islands. In this newly created role, he will focus on developing key sectors such as structured finance, real estate and capital markets.

    Macleod will be supported by First Names client service director Paula Thompson and corporate lawyer Carol Keenan. Macleod joins from Capita Asset Services, where he was .......

    Job Swaps 20 October 2015

  • Firms pay price for CDS decision

    A pair of UBS advisory firms have agreed to settle US SEC charges that they failed to disclose a change in investment strategy by UBS Willow Fund. UBS Willow Management and UBS Fund Advisor will pay US$17.5m to settle the charges, more than US$13m of which will be returned to investors.

    UBS Willow Management marketed the UBS Willow Fund as .......

    Job Swaps 20 October 2015

  • Barclays settles with NCUA

    Barclays has agreed to pay US$325m to settle NCUA claims that it sold faulty RMBS. It is the latest in a string of settlements (SCI passim) and brings the NCUA's total recoveries to over US$2bn.

    The proceeds will be used to reduce Temporary Corporate Credit Union Stabilization Fund assessments charged to federally insured credit unions to pay for the losses .......

    Job Swaps 20 October 2015

  • Innovative community bank CLO closed

    StoneCastle Financial has closed Community Funding CLO, believed to be the first pooled bank credit securitisation to print since 2008. Citi arranged the transaction.

    The deal comprises two tranches: US$205m class A notes (rated A3 by Moody's), which priced with a fixed rate coupon of 5.75%; and US$45.5m unrated preferred shares, which were retained by StoneCastle. The collateral has an .......

    News Round-up 20 October 2015

  • CMBS workouts exceed transfers

    With four European CMBS loans worked out last quarter, the pace of workouts continues to exceed new special servicing transfers, according to Moody's latest monthly update on the sector. A total of 114 loans were in special servicing at end-September, securitised within 45 large multi-borrower and 40 single-borrower CMBS transactions monitored by the agency.

    As well as the workouts, another .......

    News Round-up 20 October 2015

  • Euro secondary picking up?

    After a quiet start to the week, the European securitisation secondary market looks to be picking up.

    "Yesterday was very quiet both on- and off-BWIC," says one trader. "The highlight was probably the deep mezz UK non-conforming auction, which on the face of it was pretty interesting and saw strong client interest. But as is the case with many BWICs .......

    SCIWire 20 October 2015

  • Moving pieces

    CMBS spread widening spurs B-piece reassessment

    Widening US CMBS spreads have accompanied looming risk retention requirements in reshaping the investment landscape for CMBS B-piece buyers. While short-term investors could be pushed out of the space, single-asset/single-borrower (SASB) deals could provide new opportunities.

    A growing US CMBS pipeline this month is likely to precipitate a steepening credit curve, following US$11bn of issuance in September. Spreads have subsequently .......

    News Analysis 20 October 2015

  • NPL provisioning guidance welcomed

    Brazil's capital markets regulator Comissão de Valores Mobiliários (CVM) recently released guidance to trustees and auditors of fundos de investimentos em direitos creditórios (FIDCs) on procedures to determine non-performing loan (NPL) provisioning levels. Moody's notes in its latest Credit Outlook publication that the move is credit positive for senior tranches of securitisations because it will divert more collateral cashflow to .......

    News Round-up 19 October 2015

  • Retail pay-off exposure highlighted

    Approximately US$3.7bn within Fitch's US CMBS loan universe is still scheduled to mature through the remainder of 2015, with an additional US$47bn scheduled in 2016 and US$65bn in 2017. Collateral backed by retail properties accounts for a large proportion of loans due to mature, as well as loans defaulting at their 2015 maturities.

    As of October 2015, approximately US$2.4bn, US$7.1bn .......

    News Round-up 19 October 2015

  • SCI Start the Week - 19 October

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

    Pipeline
    Activity picked up last week as several deals joined the pipeline. These deals consisted of eight ABS, four RMBS, three CMBS and a CLO.

    The ABS were: US$277m Ascentium Equipment Receivables 2015-2 Trust; BBVA Compass Auto Receivables Trust 2015-A; US$900m CarMax Auto Owner Trust 2015-4; US$873.15m Dell Equipment Finance Trust 2015-2; Ford Credit Auto Lease Trust 2015-B; US$140.68m .......

    News 19 October 2015

  • Deutsche reveals revamp

    Deutsche Bank is set to undertake a 'fundamental' reorganisation of its leadership structure, led by the transition of its corporate banking and securities (CB&S) division into a new corporate and investment banking group. The move is part of a drive by the bank to provide a 'better controlled, lower cost and more focused bank', according to Deutsche Bank co-ceo John Cryan.  

    The .......

    Job Swaps 19 October 2015

  • CLO default rise expected

    US CLO pool default rates are expected to rise at some point in 2016 or 2017, according to JPMorgan's 4Q15 client survey. Responses were varied as to how the credit cycle will play out, with some respondents believing that upcoming credit stress will be idiosyncratic, while others expected more broad-based scenarios.

    JPMorgan CLO analysts note that a systemic rise in default rates .......

    News Round-up 19 October 2015

  • Asian aircraft ABS debuts

    BOC Aviation has sold a portfolio of 24 aircraft to Shenton Aircraft Investment I, in what is believed to be the first aircraft lease ABS from an Asian-based sponsor. SHNTN 2015-1 has issued two tranches of notes to finance a portion of the purchase.

    The tranches comprise US$747.4m of 4.75% series A notes and US$60.5m of 5.75% series B notes. S&P and Fitch .......

    News Round-up 19 October 2015
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