Complete news archive

  • Aussie auto loss rise anticipated

    Fitch expects Australian auto portfolio losses to increase over coming quarters as rising unemployment and delinquencies converge by year end. This follows higher recorded auto arrears in 2Q15, with 60 plus days and 30 plus days arrears reaching 0.56% and 1.34% respectively - an increase of 7bp and 9bp over the quarter.

    The annualised loss rate remained almost unchanged at 0.6% though, .......

    News Round-up 7 September 2015

  • CDO settlement 'credit positive'

    Taberna Capital Management's recent settlement with the SEC in relation to charges made over its fraudulent management practices of 11 CDOs (SCI 3 September) is credit positive for the transactions, according to Moody's. The agency says that settlement proceeds for the CDOs - which have a par of around US$5.2bn - along with other diverted interest and principal proceeds, will pay down .......

    News Round-up 7 September 2015

  • SCI Start the Week - 7 September

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

    Pipeline
    Last week six ABS, five RMBS, one CMBS and two CLOs were added to the pipeline. The CMBS was Taurus 2015-3 EU DAC and the CLOs were US$398m NewStar Commercial Loan Funding 2015-2 and US$512m York CLO-2.

    The ABS were: US$131.2m CarNow Auto Receivables Trust 2015-1; US$310.4m CCG Receivables Trust 2015-1; Driver UK Three; US$1bn Hyundai .......

    News 7 September 2015

  • RMBS tail risk protections examined

    All post-crisis US jumbo RMBS have credit enhancement floor protections built in to protect the deals from tail-end losses. However, Moody's notes that the protections for the subordinate bonds differ across transactions.

    Tail-end losses are defined as losses that occur late in the transaction's life when only a few loans remain in the mortgage pool. In those transactions, credit enhancement floors .......

    News Round-up 4 September 2015

  • Debt restructuring move agreed

    The Puerto Rico Electric Power Authority (PREPA) has made a move to reduce its debt by agreeing to a restructuring of the power revenue bonds held by PREPA bondholders from the ad hoc group. The group will exchange all of their outstanding bonds for new securitisation notes and receive 85% of their existing bond claims in new securitisation bonds.

    As part of the agreement, bondholders will be given two options. .......

    News Round-up 4 September 2015

  • Subprime auto delinquencies rise

    The US subprime auto loan ABS sector showed mixed signals in June as losses remained stable on a year-over-year basis, but 60 plus day delinquencies rose to their highest June level since 2009, says S&P. Though showing some weakening, the prime sector stayed largely within historical norms for the month.

    "The prime sector experienced a gradual increase in losses," says .......

    News Round-up 4 September 2015

  • CRT rating upgrades begin

    Moody's is the first rating agency to upgrade CRT bonds after taking action on CAS 2014-C01 M1, STACR 2013-DN2 M1 and both STACR 2014-DN1 M1 and M2. Upgrades for a wave of newer deals are also anticipated.

    The bonds were upgraded this month as a result of recent performance of the underlying pools and because of updated loss assumptions and .......

    News Round-up 4 September 2015

  • CDS trader returns to bank

    Melvyn Merran has joined UBS to trade clearing house-processed credit derivatives. He will trade CDS indices, credit options and ETFs, reporting to global head of credit flow Philip Olesen. Merran most recently traded credit index options at Deutsche Bank following a first stint at UBS.

    .......

    Job Swaps 4 September 2015

  • Euro secondary ticks up

    Broader market improvement on the back of the message from the ECB and the Chinese holiday has extended into the European securitisation secondary market with a slight uptick in activity and some improvement in pricing levels.

    Flows continued to revolve around the usual suspects with sterling-denominated prime and peripherals, especially Italy, benefitting the most. At the same time, the CLOs .......

    SCIWire 4 September 2015

  • US RMBS on hold

    The US non-agency RMBS secondary market is effectively on hold until after the long weekend.

    "It's quiet this week with volume down significantly," says one trader. "There's only about $100m in for the bid today - very low for Thursday."

    The trader goes on to explain: "There's plenty of people away and there'll be even more tomorrow as the long .......

    SCIWire 3 September 2015

  • EMIR dispute concerns outlined

    The World Federation of Exchanges (WFE) has written a letter to the European Commission expressing concern over delays and a lack of transparency in EMIR equivalence determinations for third country central counterparties (CCPs). The trade organisation believes these issues could present a challenge to economic growth and development in many emerging market economies.

    "For emerging markets to develop their capital markets, .......

    News Round-up 3 September 2015

  • IOSCO provides alignment update

    IOSCO has published its final report on the implementation progress made by 25 jurisdictions in adopting legislation, regulation and other policies for incentive alignment in securitisation. The report finds significant but mixed progress has been made,

    The report covers recommendations for national authorities to evaluate incentives across the securitisation value chain and formulate approaches to incentive alignment and to set .......

    News Round-up 3 September 2015

  • Corporate services rival acquired

    Elian has agreed terms to buy SFM Europe, which it says will significantly expand its European footprint, on top of enhancing its corporate services and structured finance offering. On completion of the deal, SFM Europe will operate as a separate division of Elian.

    Elian's parent company Electra Partners says funding for the transaction will be provided exclusively by Elian. This will be done through .......

    Job Swaps 3 September 2015

  • CLO commodity exposure 'negative'

    US CLO 2.0s' exposure to oil and gas and to metals and mining increased slightly in 1H15, which is a credit negative according to Moody's. With commodity market stresses moving into the credit market, CLOs with the largest exposures could suffer credit losses on their junior notes should there be widespread and correlated distress among related issuers.

    Of the CLO 2.0s .......

    News Round-up 3 September 2015

  • CMBS barbelling rises

    US CMBS deals are increasingly including meaningful exposures to lower leverage loans that skew a pool's overall credit metrics. While investment grade exposure is also growing, there has been a sevenfold increase in high leverage loans since 2013, leading to increased barbelling.

    Kroll Bond Rating Agency examined the 101 conduits it rates to identify which underlying loans have credit characteristics consistent .......

    News Round-up 3 September 2015

  • IOSCO consults on OTC harmonisation

    The Committee on Payments and Market Infrastructure (CPMI) and IOSCO have published a consultative report open for comment on the harmonisation of a first batch of key OTC derivatives data elements. The report refers to OTC derivatives other than unique transaction identifiers and unique product identifiers, which are subject to comment from a separate report published last month (SCI 20 .......

    News Round-up 3 September 2015

  • Fee fraud settlement reached

    The US SEC has approved a settlement concerning Taberna Capital Management (TCM) and its alleged involvement in fraudulently retaining fees belonging to CDO clients. RAIT Financial Trust, the parent company of TCM, says the agreed payment fee is US$21.5m.

    According to the SEC's investigation, TCM failed to inform CDO clients that it was retaining payments known as 'exchange fees' in connection with .......

    Job Swaps 3 September 2015

  • Rates hold back Aussie arrears

    Relatively low arrears for housing loans underlying prime RMBS in Australia are due to borrowers benefiting from low interest rates, suggests S&P. Nevertheless, overall arrears increased marginally during Q215 from the previous quarter.

    Of all regions, arrears were highest in Western Australia where they climbed to 1.49% during Q2. This is in part due to the region feeling the effect of .......

    News Round-up 3 September 2015

  • RFC on SLABS approach extended

    Moody's has published a report that illustrates the application of its proposed new assumptions for rating FFELP student loan ABS. Concurrently, the agency has extended its request for comment period on proposed changes to its approach in rating the asset class.

    Among the changes Moody's proposes is adjusting rating assumptions to accurately reflect the maturity risk from the substantial and .......

    News Round-up 3 September 2015

  • Blackstone buys into mortgage insurer

    Blackstone has bought a significant equity stake in PMI Group through its Blackstone Tactical Opportunities unit and has agreed to provide a working capital facility to the company in exchange for warrants and other rights. Blackstone is also expected to nominate a director to the board. PMI will use the funds to pursue its investment strategy, which may include raising .......

    Job Swaps 3 September 2015

  • Euro secondary still slow

    Despite hopes for a post-August spike, volumes in the European securitisation secondary market are still only growing slowly.

    "It's still pretty quiet and could take a while to really get going," says one trader. "This week has been slower than we hoped as broader market volatility continues and people are also waiting on the ECB today and the growing primary schedule .......

    SCIWire 3 September 2015
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