Complete news archive

  • 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

  • US CLOs becalmed

    A late Labor Day combined with continuing broader market volatility has becalmed the US CLO secondary market.

    "We're in a holding pattern and it's really, really quiet," says one trader. "It's not unsurprising given the position of Labor Day this year - even though we're in September this is effectively the last week of summer."

    Consequently, the trader adds: "I .......

    SCIWire 2 September 2015

  • CLO slice financing considered

    Although the US CLO market has now surpassed its pre-crisis size, the number of managers issuing CLOs has decreased. With risk retention set to cull numbers further, vertical slice financing could provide managers with a solution.

    There were 181 CLO managers issuing before the crisis, but only 126 post-crisis. A Citi survey suggests risk retention rules will mean only 80-100 managers .......

    News 2 September 2015

  • Ground lease venture formed

    Anika Equities has partnered with David Eyzenberg, principal at Avison Young, to form a subsidiary called Anika Equities GLF. The new entity will create and purchase ground leased fee positions.

    The aim is to acquire the ground under select quality-stabilised commercial real estate assets valued at US$15m and over at a premium cap rate. The ground is then leased back .......

    Job Swaps 2 September 2015

  • CMBS properties acquired

    CALCAP Advisors has acquired two Las Vegas apartment properties in an Auction.com sale. The seller for both properties was an LNR Partners entity, which purchased the assets via a CMBS foreclosure in January.

    The two properties are El Pueblo de Los Arboles Apartments and El Pueblo de Las Brisas Apartments, which were acquired for US$9.77m and US$4.75m respectively. The purchase .......

    News Round-up 2 September 2015

  • Solar firm taps SF expert

    8minutenergy Renewables has named Fred Vaske as vp of project finance. He previously worked as director of structured finance for SunPower, where he structured and negotiated both power purchase agreements with commercial customers and the sale of commercial project portfolios to financial investors. Vaske has also held senior roles in project finance for Hanwha Q CELLS USA and Recurrent Energy, and was .......

    Job Swaps 2 September 2015

  • Origination enhancements 'reduce risk'

    Widespread changes to US residential mortgage origination practices since the financial crisis have reduced the risk of fraud and misrepresentation, according to Fitch. The agency believes a key driver behind the previous poor performance of peak vintage collateral was weak operational controls for the information used in the loan decision process.

    Several of the improvements since, however, have been driven by .......

    News Round-up 2 September 2015

  • CLO negative returns persist

    The total amount of CLOs paid down in JPMorgan's CLO index (CLOIE) since the July rebalance through 31 August was US$5.88bn in par outstanding, split between US$4.04bn and US$1.84bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$10.8bn, with 135 tranches from 26 deals at the August rebalance.

    The CLOIE total index experienced negative returns in the month of .......

    News Round-up 2 September 2015

  • Chinese issuance quotas 'positive'

    Moody's says that the People's Bank of China's (PBOC) inaugural approval of issuance quotas for Chinese securitisations is a positive development for the country's securitisation market. Under the new system, issuers should have greater certainty about the size and number of deals that they can issue over a set period.

    "The quota system will enable sponsors to speed up the .......

    News Round-up 2 September 2015

  • Euro CLOs seek clarity

    The European CLO secondary market is seeking clarity on pricing levels following a very quiet summer.

    "It's been very quiet - the bulk of activity in August was in triple- and double-A 2.0s, with very little in 1.0s, and there's been next to nothing so far this week," says one trader. "So, it's very difficult to tell where clearing levels .......

    SCIWire 2 September 2015

  • Japanese CMBS RFC issued

    Moody's is requesting comment on proposed enhancements to its approach to rating Japanese large loan and single-asset/single-borrower (SASB) CMBS, with the proposals likely to result in rating upgrades. The rating agency sought comment on similar CMBS in other jurisdictions last month (SCI 7 August).

    The rating agency's proposals are broadly the same as its proposed approach to rating large loan and .......

    News Round-up 2 September 2015

  • Retail therapy

    Store closures spur CMBS reassessment

    US CMBS players are keeping a cautious eye on struggling retailers with exposure to the asset class. Against this backdrop, asset diversity and the ability of loans to refinance are key differentiators.

    "The retail exposure in US CMBS is certainly plentiful," says Manus Clancy, senior md at Trepp. "The major worries currently lie with Sears and K-Mart, particularly where they .......

    News Analysis 2 September 2015

  • Euro ABS/MBS struggles back to life

    The European ABS/MBS market is slowly struggling back to life after the summer lull.

    Secondary market tone remains generally weaker and liquidity is still thin across the board. Euro-denominated prime assets continue to be the main focus for the market, but some buying interest has returned for peripheral paper, particularly Italian and Portuguese bonds.

    There are four BWICs on the .......

    SCIWire 2 September 2015

  • A bright future for securitisation

    James McEvoy, head of structured finance at Alter Domus, app...

    An increasing appreciation of how securitisation can help fund the real economy seems to be finally gaining traction, after a number of years of limited activity throughout Europe.

    The European Commission's green paper on building a Capital Markets Union published earlier this year set securitisation as a key pillar in creating a fully integrated single market for capital and funding .......

    Talking Point 2 September 2015

  • Liquidity, collateral quality compared

    JPMorgan ABS analysts have reviewed liquidity and collateral quality, based on TRACE data from 1 June to 29 August, in the two benchmark US ABS sectors - autos and credit cards. The analysis indicates that credit card ABS saw the largest cumulative trading volume during the period, at US$12bn. The sector also posted the highest number of block trades - .......

    News 1 September 2015

  • CLO drilling exposure weighed

    Moody's has placed 11 offshore drilling companies under review for downgrade, five of which have loans held in outstanding US CLOs. Wells Fargo structured products analysts suggest that the potential downgrades present key, yet difficult to model, risks to CLO investors.

    The five companies with exposures in CLOs are: Transocean; Seadrill Partners; Ocean Rig; Paragon Offshore; and Pacific Drillings. A total of 445 CLO funds have .......

    News 1 September 2015

  • CLO 1.0 potential scouted

    The US CLO 1.0 market may now be well onto the home straight, but that does not mean there is not still value to be found. Illiquidity is a risk and certain plays depend on the timing of when deals are called, but investors able to handle these factors can still generate alpha.

    JPMorgan analysts estimate there is still US$80.6bn .......

    News 1 September 2015

  • SME ABS growth predicted

    A new study commissioned by Amicus reveals that 69% of European institutional investors believe there will be an increase in the issuance of SME finance-related ABS over the next two years. In addition, 73% of institutions polled expect there to be a growing appetite for investing in securitisations providing access to SMEs' underlying cashflow assets.

    Investor types that will likely be most attracted to .......

    News Round-up 1 September 2015

  • Auto delinquencies outpace losses

    Most US subprime auto finance securitisers have reported higher managed portfolio delinquencies since year-end 2011, according to S&P. The agency says this is partly due to a return to pre-crisis underwriting standards and new relatively small, deep subprime auto finance companies entering the ABS market.

    Delinquencies averaged a record low of 6.05% at year-end 2011, but made a 65% increase with .......

    News Round-up 1 September 2015

  • CMBS delinquencies, losses rise

    The Trepp US CMBS delinquency rate continued its summer trend of oscillation and inched up slightly in August. The delinquency rate for US CRE loans in CMBS moved up 3bp in August to 5.45%, undoing July's 3bp  improvement. The rate is now 65bp lower than the year-ago level and 30bp lower year-to-date.

    In August, US$1.3bn in loans became newly delinquent, which .......

    News Round-up 1 September 2015

  • RMBS recoveries revealed

    August non-agency RMBS remittances show cash payouts for three DBALT deals in relation to the Monarch Alternative Capital representations and warranty settlement. A few HVMLT deals also received chunky subsequent recoveries during the month.

    The DBALT settlement was finalised in July between HSBC, which is trustee on the affected deals, and Deutsche Bank. The payouts came to US$29.26m, US$52.52m and .......

    News Round-up 1 September 2015
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