Complete news archive

  • Product director drafted in

    Mark Demo has joined AcadiaSoft as product director. Demo will assume responsibility for directing the company's response to regulatory changes, as well as leading AcadiaSoft's product and industry working groups. He will report to AcadiaSoft ceo Chris Walsh.

    Demo arrives from JPMorgan, where he was vp of business architecture and transformation. He was additionally responsible for collateral market infrastructure planning in .......

    Job Swaps 27 August 2015

  • RFC on joint-support approach

    S&P is requesting comments on a proposed update to its methodology and assumptions for rating jointly-supported financial obligations, which will incorporate a revised view of correlation risk among the supporting parties following observations from the financial crisis. In addition, the proposed criteria will address the agency's view of increased correlation when the rating is above that of the sovereign.

    Under .......

    News Round-up 27 August 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving as broader market volatility reduces.

    Market sentiment improved across the board yesterday and consequently secondary spreads edged in slightly, albeit on continuing very low volumes. Yesterday's BWICs all traded at or above expectations with the Italian RMBS auction a highlight, though covers were below recent levels.

    Nevertheless, the summer lull is .......

    SCIWire 27 August 2015

  • CDS curve fund launched

    XAIA Investment and Universal-Investment are jointly launching a new fund that will use CDS curves as a source of income. The XAIA Credit Curve Carry fund will invest in CDS for a single issuer or company with two different maturities, thus creating opposite positions buying and selling protection of different maturities simultaneously.

    XAIA says that the fund aims for a return .......

    News Round-up 26 August 2015

  • Liquidity cited as a concern

    Morgan Stanley's Q3 global securitised product investor survey lists central bank policies as the top concern for the third quarter in a row, accounting for 32% of respondents' votes. Liquidity - added this quarter - was ranked second, securing 22% of votes. Disappointing US economic growth, meanwhile, dropped from second place to third.

    Over the next three months, the majority .......

    News Round-up 26 August 2015

  • Reinvestment extensions to pick up?

    A total of 24 US CLOs have been refinanced so far this year (see SCI's new issuance database), representing a tranche balance of over US$9bn, according to Bank of America Merrill Lynch figures. Among the more recent refinancings, three took the unusual step of increasing the triple-A coupon spreads in return for substantially extending the reinvestment period.

    The .......

    News 26 August 2015

  • FHFA plots GSE paths

    The FHFA has adopted a final rule to establish single-family and multifamily housing goals for Fannie Mae and Freddie Mac for 2015-2017. It has also released a risk transfer document pointing to continued large volumes of CRT deals in various forms.

    The final rule sets the same benchmarks for each GSE. For single-family, the GSEs have been set a purchase .......

    News 26 August 2015

  • CLO redemption waiver requested

    A recent investor notice for Gresham Capital CLO III requests that the trustee of the deal waive a rating requirement with regards to its optional redemption terms. The deadline for objections from the controlling class of noteholders (class B) is 17 September.

    Bank of America Merrill Lynch securitisation analysts explain that an optional redemption may occur when the issuer can certifity to .......

    News Round-up 26 August 2015

  • RMBS trust suit filed

    The FDIC has filed a lawsuit against BNY Mellon over alleged breaches that the bank made as trustee for approximately US$2.06bn worth of bonds in 12 RMBS trusts. Standing as receiver for Guaranty Bank, the FDIC claims that the breaches led to it losing over US$440m from the sale of a resecuritsed transaction - SSGN 2010-S1.

    In its filing to the US .......

    Job Swaps 26 August 2015

  • FFELP ratings diverge

    S&P last week upgraded the ACCSS 2007-1 A3 and A4 FFELP student loan ABS tranches to triple-A from double-A plus. The bonds are currently under review for possible downgrade by Moody's and Fitch for extension risk beyond final maturity.

    The tranches are two of five ACCSS senior classes from the 2005-1, 2005-2, 2006-1 and 2007-1 transactions upgraded to triple-A after .......

    News Round-up 26 August 2015

  • Gagfah opportunity identified

    Price tiering for Gagfah CMBS has emerged over the summer, although not in the way that might be expected. These price movements make TAURS 2013-1 appear particularly cheap.

    Deutsche Bank European securitisation analysts initially expected a staggered prepayment throughout 2016 of the three Gagfah transactions, with TAURS 2013-1 the most likely to prepay on a standalone basis. However, the market appears .......

    News 26 August 2015

  • CRE recognition urged

    CREFC Europe has sent a letter to the European Commission, calling for it to include a special mention for CRE debt and CMBS when it releases its securitisation 'package' in accordance with its Capital Markets Union action plan next month. The letter stresses that the current proposals do not accommodate securitised CRE debt, while noting that a healthy CMBS market .......

    News Round-up 26 August 2015

  • Euro secondary struggles on

    The European securitisation secondary market continues to struggle on amid broader market volatility.

    Yesterday's European BWICs covered at reasonably strong levels where the line items did actually trade. However, the overall lack of flows continues to hamper price transparency and is pushing bid-offers still wider.

    Today's BWIC schedule currently sees four lists. At 10:00 London time is a seven line .......

    SCIWire 26 August 2015

  • US secondary slowdown

    US BWIC supply has slowed to a trickle today across asset classes.

    Events in China and the feared knock on impact on the US Fed's rate strategy look to have sidelined the bulk of US securitisation secondary market participants. The resultant absence of sellers is making for a quiet looking day across asset classes even for the fourth week of .......

    SCIWire 25 August 2015

  • CLO equity acquired

    Fair Oaks Income Fund has entered into binding contracts to acquire in the primary market US$28m notional of equity notes (representing 73% of the total equity) and US$8.6m notional of class F notes of Shackleton 2015-VIII CLO. Managed by Alcentra, the CLO's current target portfolio has a principal value of US$430m across an expected 156 unique bank loan issuers, with .......

    Job Swaps 25 August 2015

  • US CMBS realise losses

    August remittance data shows a mixed picture for US CMBS. A couple of prominent loans have moved into special servicing, while subordinated notes have realised losses in LBUBS 2008-C1, JPMCC 2006-LDP7 and CSMC 2008-C1.

    The US$64m Chesapeake Square loan securitised in JPMCC 2004-LN2 has been transferred into special servicing, report Barclays analysts. It is the second time the loan has .......

    News 25 August 2015

  • Resurfaced CMBS amended

    Goldman Sachs has restructured its REITALY Finance CMBS transaction by splitting the €109.3m of class A senior notes to include some additional protections. The deal, which provides exposure to leisure properties, had recently been postponed by the bank (SCI 24 July).

    Fitch has assigned single-A plus and single-A ratings to the newly tranched A1 (€70m) and A2 (€39.3m) notes respectively. The .......

    News Round-up 25 August 2015

  • Rate rise risks downplayed

    Fitch suggests that US credit card ABS metrics will remain in record territory near term, despite potential September interest rate rises. In prime indices, delinquency rates are expected to be steady, while charge-offs could see a slight improvement for the month.

    In addition, the monthly payment rate (MPR) for cardholders paying back their balance is expected to rise, while gross .......

    News Round-up 25 August 2015

  • APAC trading head named

    Barclays has appointed Alex Aram as head of credit trading for the Asia Pacific region. He will be responsible for the bank's regional credit business across investment grade, high yield and distressed debt, which have been brought together under one management structure.

    Aram has previously held several senior positions for Barclays, including leading its distressed debt business in the region, as well as convertible bond .......

    Job Swaps 25 August 2015

  • Euro secondary holds up

    In the face of continuing equity market volatility the European securitisation secondary market appears to be holding up relatively well.

    True price discovery remains very difficult with almost no trading thanks to the summer lull combined with the extreme equity and FX market volatility discouraging any securitisation market participants still at their desks. However, dealers for now appear to be taking .......

    SCIWire 25 August 2015

  • Time to review

    Asset reviewer relevant beyond mandated role

    Public securitisations in the US will soon require an asset reviewer - as mandated by Reg AB 2 (SCI passim) - but the benefits of such a role may see it also included in both private and international deals. However, concerns remain that the function will not be used in the sector that led to its creation.

    "One of the .......

    News Analysis 25 August 2015
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