Complete news archive

  • Oil exposure affects CLOs

    The percentage of US CLO 2.0 loans trading below 90 has increased above 6% for the first time since the start of the year, with a clear inverse relationship to oil prices. Meanwhile, having steadily climbed for years, the percentage of US loans with Libor floors has also finally fallen.

    A continued fall in oil prices - and rise in .......

    News 11 August 2015

  • CRE counsel recruited

    Bert Greenwell has joined Alston & Bird as counsel in its real estate finance and investment group. His practice focuses on the representation of institutional lenders for both securitisations and portfolios in all aspects of CRE transactions.

    Greenwell has also represented investors in the acquisition, development, operation and disposition of commercial real estate. He moves from Kelley Drye & Warren, .......

    Job Swaps 11 August 2015

  • Guggenheim settles fiduciary breach

    Guggenheim has agreed to pay a settlement fee of US$20m to the US SEC following charges that it breached its fiduciary duty. The settlement is believed to be the culmination of a four-year probe into the firm's relationship with Michael Milken.  

    According to the SEC's charges, Guggenheim failed to disclose a US$50m loan that one of its senior executives received from an advisory .......

    Job Swaps 11 August 2015

  • FFELP trust trio called

    Navient has exercised call options on three FFELP student loan ABS trusts that represent a total of US$216m in bonds. The three trusts - SLM Student Loan Trusts 2002-6, 2003-8 and 2003-9 - will now be repaid on 15 September.

    "The exercise of our option represents our continued support of an active and liquid student loan ABS market," says Jack Remondi, president and ceo of .......

    News Round-up 11 August 2015

  • Hotel prices lift up

    Hotel prices have risen 37% over the past 12 months, outpacing the central business district (CBD) office segment by more than 10 percentage points over the same timeframe, according to Moody's/RCA Commercial Property Price Indices (CPPI) national all-property composite index. The CPPI rose 1% in June, led by a 1.3% rise in the core commercial segment.

    Moody's says that hotel prices .......

    News Round-up 11 August 2015

  • CLO credit quality remains strong

    Moody's has released its debut 360-degree report of the European CLO market and its 2Q15 performance, analysing macroeconomic and financial market conditions, high yield corporate sector trends and credit conditions that correlate with credit quality. The report adopts the same approach that the agency recently used in its report on the US CLO market's performance in 1Q15 (SCI June 3).

    The .......

    News Round-up 11 August 2015

  • Euro CLO 2.0 bond re-priced

    The class A noteholder of Carlyle Global Market Strategies Euro CLO 2013-1 has approved the reduction of the margin on the notes from 130bp to 115bp and the elimination of its right to remove/replace the collateral manager (SCI 31 July), with effect from the 17 August IPD. The move marks the first time that a European CLO has been 'Volckerised' .......

    News Round-up 11 August 2015

  • Euro secondary winds down

    The European securitisation secondary markets continue to wind down as seasonal factors hold sway.

    "We're really in summer mode now with not a lot of flows," says one trader. "Activity is down to a minimum with little BWIC supply and no major credit news to stimulate trading."

    One piece of relevant news did however come from the similarly quiet primary .......

    SCIWire 11 August 2015

  • US CLOs keep quiet

    The US CLO secondary market looks set to keep to the relatively quiet trend of recent weeks.

    Despite ever-present hopes of a pick-up in activity the combination of Friday's non-farm payrolls fuelling September rate rise speculation and mid-August illiquidity is encouraging reticence in the US CLO secondary market, which makes another quiet start to the week likely. However, since the NFP .......

    SCIWire 10 August 2015

  • ILS team formed

    Lombard Odier Investment Managers (LOIM) has recruited an ILS team that includes Gregor Gawron, Simon Vuille and Marc Brogli. Based in Zurich, the team will report to LOIM cio Jan Straatman.

    The team will pursue a wide-ranging approach, targeting different risk types and regions. Straatman says that the team will target cat bonds due to their higher starting yield and floating rate coupon .......

    Job Swaps 10 August 2015

  • OC degradation analysed

    The average par NAVs and overcollateralisation (OC) cushions in US balance sheet CLOs fell in almost half of the quarterly issuance seen in 2Q15, according to Wells Fargo structured product analysts. In most quarterly issuance samples they studied, over 40% of deals experienced OC degradation between 1Q15 and 2Q15.

    The Wells Fargo analysts believe that the decrease in OC is .......

    News 10 August 2015

  • OTC clearing rules adopted

    The European Commission has adopted new rules that make it mandatory for certain OTC interest rate derivative contracts to be cleared through central counterparties (CCPs). This is the first clearing obligation that has been proposed by ESMA and it is expected that the mandate will be extended to other types of OTC derivative contracts in the near future, which may .......

    News Round-up 10 August 2015

  • Alternative finance growth predicted

    European institutional investors predict that the alternative finance market will grow by 23% over the next two years, according to a new study by Amicus Finance. This could be driven by the demand for expansion finance by SMEs, which is already generating momentum with a number of recent financing initiatives (SCI passim).

    In total, just under three-quarters (73%) of institutional .......

    News Round-up 10 August 2015

  • SCI Start the Week - 10 August

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

    Pipeline
    Pipeline activity picked up again last week, with significant ABS additions. There were also four new RMBS, three CMBS and three CLOs added.

    The ABS were: US$1.064bn Capital Auto Receivables Asset Trust 2015-3; US$750m CNH Equipment Trust 2015-C; US$247m Credit Acceptance Auto Loan Trust 2015-2; US$260m DRB Prime Student Loan Trust 2015-B; Ford Credit Floorplan Master .......

    News 10 August 2015

  • Post-trade transparency report released

    IOSCO has published its final report on the potential impact of mandatory post-trade transparency in the CDS market. The organisation concludes that greater post-trade transparency in the CDS market - including making the price and volume of individual transactions publicly available - would be valuable to market participants and other market observers.

    The report's analysis is based upon a number of relevant .......

    News Round-up 10 August 2015

  • Delinquencies 'nearly unchanged'

    US CMBS delinquencies were nearly unchanged in July amid low resolution and new delinquency volume, according to Fitch's latest index results for the sector. Loan delinquencies moved just 1bp lower in July to 4.53% from 4.54% a month earlier, while the dollar balance of late-pays fell by US$70m to US$17.1bn from US$17.17bn in June.

    July resolution and delinquency activity was .......

    News Round-up 10 August 2015

  • Timeshare delinquencies at record low

    US timeshare ABS delinquencies fell again this past quarter to their lowest level in eight years, reports Fitch. Total delinquencies for 2Q15 were 2.66%, down from 2.79% in 1Q15 and 2.92% observed in 2Q14.

    The trend continues a consistent year-over-year improvement since 2012, as defaults also decreased to 0.57% in 2Q15. This figure is down from 0.67% in 1Q15 and 0.66% a .......

    News Round-up 10 August 2015

  • Swaps supervision penalty issued

    The US CFTC has ordered Morgan Stanley to pay a US$300,000 penalty for failing to hold sufficient US dollars in segregated US accounts to meet all of its obligations to cleared swaps customers. The regulator has also ordered the bank to implement adequate procedures to prevent future regulatory violations.

    The CFTC claims that on numerous days from 12 March 2013 to 7 March 2014 .......

    Job Swaps 10 August 2015

  • Euro secondary limited

    Activity in the European securitisation secondary market remains limited as seasonal illiquidity prevails.

    Nevertheless, Autos alongside Dutch and UK prime continue to see some signs of life. At the same time, there is selective demand for Italian, Portuguese and Spanish paper.

    Today, currently sees one BWIC on the schedule - at 14:30 London time there is a single €700k line .......

    SCIWire 10 August 2015

  • Small strides

    Non-bank lending key to SME securitisation?

    SMEs continue to be billed as the backbone of the European economy, as a number of initiatives seek to remedy the lack of traditional bank support for the sector. Securitisation is expected to play a key role in this process, but a number of obstacles must be overcome if it is to make a significant contribution.

    "Although direct lending has .......

    News Analysis 7 August 2015

  • OTC messaging service launched

    AcadiaSoft has introduced MarginSphere Xpress, an email messaging service that allows clients to extend communications to counterparties who are currently not connected to its OTC derivatives service.  MarginSphere 2 clients can now automate their entire margin call process through the new messaging enhancements, which are expected to provide substantial cost savings. Xpress follows the recent launch of AcadiaSoft's updated MarginSphere 2 platform (SCI 3 June).

    .......

    News Round-up 7 August 2015
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