Complete news archive

  • FNMA brings actual loss deal

    Fannie Mae has completed its latest credit risk sharing transaction, CIRT 2015-3. For the second time since the credit insurance risk transfer (CIRT) programme's inception in 2014, an international reinsurer participated in the RMBS. Coverage is provided based upon actual losses for a term of 10 years.

    Under the securitisation, Fannie Mae retained risk for the first 50bp of loss on .......

    News Round-up 28 September 2015

  • Euro secondary stays thin

    Liquidity remains thin in the European securitisation secondary market.

    Last week ended as anticipated with many players staying on the sidelines as a selling bias prevailed and bid-offers moved ever wider. Even flows in CLOs diminished as the relatively hectic BWIC schedule saw a flurry of DNTs. Overall, away from prime assets, secondary spreads have edged out further.

    Today currently .......

    SCIWire 28 September 2015

  • Model bail-in clause provided

    AFME has published a model clause for contractual recognition of bail-in. It provides model wording designed to assist banks in complying with obligations under the Article 55 of the EU's Bank Recovery and Resolution Directive (BRRD).

    The directive requires banks to insert clauses in contracts to give effect to bail-in in a very broad range of liabilities governed by non-EU .......

    News Round-up 25 September 2015

  • UK ILS proposals promoted

    The London Market Group (LMG) has provided an update on its work towards improving London's attractiveness as a potential hub for future ILS activity. Two particular proposals have been put forward by LMG chair Steve Hearn, including changes to corporation law to enable ILS vehicles to be set up in the UK.

    A proposal to change UK corporation law would involve creating a necessary protected cell structure .......

    News Round-up 25 September 2015

  • Aussie reporting exemptions allowed

    ISDA has published an Australian single-sided reporting letter, allowing certain market participants to take advantage of the Australian single-sided reporting regime for Phase Three entities. The letter provides necessary representations to allow Phase Three entities to take advantage of an exemption from reporting.

    The letter allows market participants to provide counterparties with status representations which can be used to determine .......

    News Round-up 25 September 2015

  • High LTV STACR priced

    Freddie Mac has priced its first STACR actual loss offering with original LTV ratios ranging from 80% to 95%. The transaction is the GSE's sixth in 2015 and fifteenth since the programme began in 2013.

    The US$872m STACR 2015-HQA1 has a reference pool of single-family mortgages with a UPB of more than US$19bn. The reference pool consists of a subset .......

    News Round-up 25 September 2015

  • Euro CLO activity surges

    The European CLO secondary market is seeing a surge in activity this week.

    "It's been a busy week this week primarily driven by BWICs," says one trader. "It's mostly been about selling, but there are still some buyers left in the market."

    The majority of sellers are either hedge funds or asset managers, the trader notes. "So, I'd say most .......

    SCIWire 25 September 2015

  • Colony adds finance chief

    Colony American Finance (CAF) has hired Christopher Hoeffel as cfo. He arrives from Investcorp, where he was head of real estate debt investments, including three high-yield debt funds.

    Hoeffel has also held senior roles at JPMorgan, Bear Stearns, Eastdil Realty and Walker & Dunlop. His duties have ranged from real estate investment banking to originating, underwriting and selling CMBS.

    CAF provides acquisition financing and .......

    Job Swaps 25 September 2015

  • LL, MASB structures could limit ratings

    Multi-borrower large loan (LL) and multi-asset/single borrower (MASB) CMBS may be structured in a way which raises risks for senior bondholders, says Moody's. The rating agency believes these structural shortcomings must be offset by higher credit enhancement to ensure sufficient credit quality to achieve the highest ratings.

    Credit negative structures include non-senior sequential payment priority and release provisions that do .......

    News Round-up 25 September 2015

  • Euro ABS/MBS sidelined

    Investors are for the most part staying on the sidelines in the European ABS/MBS secondary market.

    Sellers are outnumbering buyers in most sectors as broader market volatility is now heavily impacting ABS. Inevitably VW paper is taking the biggest hit at the moment and that is causing reticence in the rest of the European auto sector. Instead, buying is continuing .......

    SCIWire 25 September 2015

  • US RMBS shaken

    The US non-agency RMBS secondary market has been impacted by broader market volatility and the FOMC statement following last week's rate decision.

    "We had the worst case scenario from the Fed - keeping rates the same wasn't the main issue, but the statement afterwards really didn't help," says one trader. "The Fed's comments suddenly got everyone thinking the world is .......

    SCIWire 24 September 2015

  • Standardisation 'a double-edged sword'

    Scope Ratings says it welcomes initiatives to increase standardisation in the European securitisation market, providing they strengthen transparency and enable better credit risk analysis of transactions. However, the agency warns that standardisation of transactions can prove a double-edged sword and should not divert market participants from careful credit analysis.

    Better disclosure among originators and issuers, as well as standardisation of .......

    News Round-up 24 September 2015

  • CDS manager tapped

    La Française Global Investment Solutions (GIS) has appointed Michael Hattab-Maruani as senior credit portfolio manager. Hattab-Maruani joins the team that manages La Française GIS' credit opportunities strategy, contributing his expertise in credit derivatives. His arrival also comes as the firm readies the launch of a new UCITS credit vehicle.  

    Before this move, Hattab-Maruani was head of the US credit equity proprietary trading desk at BNP Paribas. .......

    Job Swaps 24 September 2015

  • Euro market looks liquid

    European ABS BWIC activity was high over the summer, while the traded percentage also surprised to the upside. From this perspective, at least, European liquidity appears healthy, with UK RMBS proving particularly liquid.

    Over the 16-week period from 1 June until the end of last week, JPMorgan analysts counted €3.6bn of bonds at current face value - or €6.9bn in .......

    News 24 September 2015

  • Corporate partner poached

    Costanza Russo has joined Faegre Baker Daniels' corporate team as partner. She will advise international financial institutions, commercial banks, governments, corporations and sponsors with major project financing and refinancing across international borders.

    Costanza's experience focuses particularly on Eastern European and the Italian market. Her expertise encompasses a number of areas, including derivatives, structured finance and real estate financing.

    Prior to joining Faegre .......

    Job Swaps 24 September 2015

  • Ukraine moratorium eyed

    ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a potential repudiation/moratorium has occurred in respect of the Republic of Ukraine. The move comes after Ukraine agreed to a restructuring deal with creditors that includes a 20% write-down to the face value of about US$18bn of Eurobonds.

    ISDA's resolution establishes that some, but not all, of the conditions for a .......

    News Round-up 24 September 2015

  • New frontiers?

    Deal innovations break new ground for RMBS

    Recent US RMBS transactions have increased expectations about the dawn of a 3.0 market. However, while their innovations may open new territory, a true 3.0 environment appears to remain a way off.

    RMBS issuance has remained low and lack of liquidity remains a key concern. The bid-ask spread underlines the struggle with liquidity.

    "In July and August, we liquidated about .......

    News Analysis 24 September 2015

  • Euro secondary still selective

    The European securitisation secondary market continues to see trading across the board, but only on selected names.

    Secondary spreads closed unchanged yesterday on, once again, patchy activity on- and off-BWIC. Most sectors saw some action, but prime assets remain the strongest performer. Autos were much quieter than the previous session with only the German programmes edging wider.

    There are currently .......

    SCIWire 24 September 2015

  • Real return for US CLOs

    US CLO secondary market activity is experiencing something of a real return to form following the extended summer lull.

    "We are finally returning to something like normal post-Miami," says on trader. "However, people are still reflecting on the Fed and that will continue to hang over the market for some time."

    Nevertheless, the trader adds: "There's now a fair amount .......

    SCIWire 23 September 2015

  • VW 'rule breach' impact weighed

    The US Environmental Protection Agency's issuance of a notice of violation of the Clean Air Act (CAA) to Volkswagen has direct implications for securitisations backed by Volkswagen vehicles. Volkswagen's auto loan (VALET), auto lease (VWALT) and dealer floorplan (VWMT) transactions will all be affected.

    Volkswagen is alleged to have fitted software to certain Volkswagen and Audi vehicles sold since 2008 .......

    News 23 September 2015

  • Bs lose out in hope note refi

    The One & Two Prudential Plaza loan has been refinanced in such a way as to avoid paying proceeds to the modified B-note. Barclays CMBS analysts describe it as "the worst case of hope note strategic refinancing to date".

    The CMBS loan paid off last month with a full recovery and deferred interest paid to the senior US$336m A-note, while .......

    News 23 September 2015
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