Complete news archive

  • Euro secondary slowly improves

    Tone and activity are slowly picking up in the European securitisation secondary market.

    Bolstered by stronger broader markets sentiment in most secondary sectors has improved, which is helping to stabilise spreads and encourage participants to return, but liquidity remains generally thin. In prime, autos led the way yesterday notably in VW assets, whereas in peripherals Portuguese bonds saw the biggest .......

    SCIWire 6 October 2015

  • US CLOs keep busy

    The US CLO secondary market looks set for another busy week after last week's uptick in activity.

    Last week saw an increase in secondary activity with focus primarily around 2.0 triple-As, double-Bs and triple-Bs. With macro concerns and quarter-end causing a volatility spike, price transparency evaporated and kept some investors on the sidelines.

    Consequently 2.0 spreads across the stack moved .......

    SCIWire 5 October 2015

  • CMBS vintage differences grow

    There are considerable differences between early US CMBS 2.0 transactions and those rated in 2015, says Fitch. The rating agency continues to observe declining underwriting standards and increasing credit enhancement levels.

    Credit enhancement has significantly increased at both triple-A and triple-B minus since 2010. Triple-A credit enhancement has increased from 17.125% in 2010 to 23.625% in 2015, while triple-B minus enhancement .......

    News Round-up 5 October 2015

  • CDS clearing RTS issued

    ESMA has issued a draft regulatory technical standard (RTS) for the central clearing of CDS. It defines the types of CDS contracts which will have to be centrally cleared, the types of counterparties covered by the obligation and the dates by which CDS central clearing will become mandatory.

    The submission follows a previous RTS on interest rate derivatives developed by .......

    News Round-up 5 October 2015

  • Negative returns for post-crisis CLOIE

    The total amount of CLOs paid down in JPMorgan's Collateralised Loan Obligation Index (CLOIE) since the August rebalance through 30 September was US$1.45bn in par outstanding, US$1.37bn of which comprises pre-crisis bonds. The post-crisis CLOIE added US$7.4bn across 85 tranches at the August rebalance.

    The post-crisis index suffered negative total returns in each category during the month, especially at the .......

    News Round-up 5 October 2015

  • SCI Start the Week - 5 October

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

    Pipeline
    The number of deals joining the pipeline picked up again last week, with CMBS leading the way. There were four ABS, two RMBS, seven CMBS and three CLOs announced.

    US$1bn BMW Vehicle Lease Trust 2015-2, US$1.63bn DPABS 2015-1, US$833.33m Nissan Auto Receivables Owner Trust 2015-C and US$800m World Omni Auto Receivables Trust 2015-B accounted for the ABS. The .......

    News 5 October 2015

  • VW rating actions 'premature'

    S&P says it is premature to take any rating actions, including credit watch, on the VW ABS it rates. The agency rates 33 transactions originated by separate finance subsidiaries of VW and backed by loans or leases related to vehicles from the Volkswagen group.

    On 24 September, S&P placed its A/A-1 long- and short-term corporate credit ratings on VW on .......

    News Round-up 5 October 2015

  • CMBS 2.0/3.0 defeasance tallied

    In a review of US CMBS 2.0/3.0 remit reports, Morgan Stanley CMBS strategists find that 75 loans totalling US$1.5bn have prepaid and 155 loans totalling US$3.4bn have defeased, driven by rising property valuations and falling interest rates. An additional 88 loans totalling US$2.2bn have paid off during their open periods or at maturity.

    As a result of these prepayments, 19 .......

    News Round-up 5 October 2015

  • Marketplace warehousing facility inked

    Cross River Bank has partnered with marketplace lender Marlette Funding to complete a US$100m private, unrated amortising warehouse facility. The transaction is the first to be completed between an FDIC insured bank (CRB) and a marketplace lender.

    The two firms will share the 12.5% equity tranche, with Deutsche Bank acting as lender in the deal. CRB ceo Gilles Gade says .......

    Job Swaps 5 October 2015

  • Growing pipeline

    European supply surge whetting investor appetite?

    A heavy European securitisation pipeline is pushing spreads wider, enticing investors to pick up cheap paper. Nevertheless, calls remain for the ECB to extend its buying mandate to a more diversified pool of ABS across a broader range of countries.

    European issuance to date is up by 10% in 2015 from the same time last year, according to Mark Hale, .......

    News Analysis 5 October 2015

  • Euro secondary mixed

    Activity in the European securitisation secondary market continues to be mixed.

    For the most part ABS/MBS is still being hampered by very thin liquidity and prices are softening across the board. Prime assets continue to benefit from a buying bias albeit only in pockets. Unsurprisingly autos remain the main focus and are seeing reasonably healthy two-way flows, though spreads continue .......

    SCIWire 5 October 2015

  • Capital clarity

    CMU securitisation package receives market approval

    The release of the European Commission's Capital Market Union (CMU) action plan has been hailed for reducing capital requirements and outlining a succinct and centralised definition for simple, transparent and standardised (STS) securitisation. However, key concerns remain over Solvency 2 capital recalibrations.

    The action plan introduces amendments to the Capital Requirements Regulation and a new overall securitisation legislation. The latter .......

    News Analysis 2 October 2015

  • Underwriting push-back?

    Concerns over the US$115m Prudential Plaza loan are believed to be behind COMM 2015-CCRE26 pricing this week at a significant concession across the capital structure. Morgan Stanley CMBS strategists suggest that underwriting of the loan, the largest in the deal, provides little margin for error and that it may be a future modification candidate under certain scenarios.

    The COMM 2015-CCRE26 .......

    News 2 October 2015

  • ESMA reports on rating agencies

    ESMA has published two sets of technical advice and a report on the regulation of credit rating agencies in the EU. These papers consider measures to provide stronger controls around credit ratings for structured finance instruments and to reduce reliance on credit ratings.

    The report finds that regulation has improved the governance and operation of rating agencies but that it .......

    News Round-up 2 October 2015

  • Delinquencies drop lower

    After four months of negligible movement, the Trepp US CMBS delinquency rate dropped significantly lower in September, falling by 17bp to 5.28%. The rate is now 75bp lower than the year-ago level and 47bp lower year-to-date.

    US$1.4bn in loans became newly delinquent last month, which put 26bp of upward pressure on the delinquency rate. Almost US$700m in loans were cured, .......

    News Round-up 2 October 2015

  • RMBS settlement progress tracked

    JPMorgan paid US$3.555bn in consumer relief to 158,107 borrowers through 31 March 2015, according to figures from US National Mortgage Monitor Joseph Smith. The settlement payments are due to claims that Chase, Bear Stearns and Washington Mutual packaged and sold bad RMBS.

    JPMorgan is required to provide a total of US$4bn in credited consumer relief by 31 December 2017. JPMorgan .......

    News Round-up 2 October 2015

  • Lack of data limits marketplace ratings

    Fitch states that it would struggle to assign a high investment grade rating to securitisations of marketplace lender consumer and SME loans. While recognising that marketplace lenders are not necessarily focusing on riskier borrowers, the agency notes that higher rates being charged to SMEs suggest they have previously been rejected by retail banks, implying a higher degree of risk.

    The .......

    News Round-up 2 October 2015

  • Euro CLO growth continues

    European CLO issuance continues to show strong growth, with Fitch counting 38 new transactions in the 12 months to July 2015. This is 36% higher than the same period a year earlier and includes 10 new post-crisis managers, with manager strategies varying.

    Loan supply has been 47% lower so far in 2015 than it was in the same period last .......

    News Round-up 2 October 2015

  • CDS settlement details disclosed

    Further details have been revealed about the settlement of an antitrust class action case that involved a dozen banks allegedly rigging CDS markets in collusion with ISDA and Markit (SCI 15 September). The accused have agreed to pay a final recovery figure of US$1.86bn, in addition to providing injunctive relief for enhancing competition in the CDS trading domain.

    As part of the settlement, ISDA .......

    Job Swaps 2 October 2015

  • Agency seeks above-currency comments

    S&P is requesting comments on proposed changes to its methodology for assigning ratings above the foreign currency ratings on the sovereigns in a multijurisdictional structured finance transaction. The proposed criteria would constitute a global framework.

    Few rating changes are expected if the proposed criteria are adopted. From a test on CDOs, CMBS, ABS and covered bonds, the rating agency expects .......

    News Round-up 2 October 2015

  • 'Limited' cat bond growth forecast

    Fitch reports that the global catastrophe bond market experienced strong issuance through the first nine months of 2015, despite a modest decline from the record level reported in the prior year. The agency calculates that US$5.5bn of cat bonds were issued during the period, down from US$6.2bn in 2014.

    "Repeat sponsors have replaced maturing issues and taken advantage of current .......

    News Round-up 2 October 2015
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