Complete news archive

  • Chimera internalises management

    Chimera Investment Corporation has entered into an agreement with Fixed Income Discount Advisory Company (FIDAC), a subsidiary of Annaly Capital Management, to internalise its management. In connection with the transaction, Chimera will purchase Annaly's 4.4% stake in the firm for a purchase price of US$126.4m or US$14.05 per share.

    Annaly and the independent members of the Chimera board agreed to .......

    Job Swaps 6 August 2015

  • CLO equity fund launched

    American Capital has launched a new US$450m fund focused on investing in CLO equity tranches and comprising entirely of third-party investors. The American Capital CLO Fund I will purchase US$300m of American Capital's existing CLO equity portfolio at its fair value as of 30 June, while the additional US$150m will comprise of investment capacity.

    Closing of the fund is expected to occur .......

    News Round-up 6 August 2015

  • Basis 'favours CDX hedging'

    The recent sharp divergence in the performance of cash and synthetic products has taken the cash-CDS basis on either side of the Atlantic to its most negative levels since 2012. Cash credit spreads are wide in Europe and close to two-year wides in the US, but CDX and iTraxx spreads are only 15bp off their tights for the cycle.

    Cash .......

    News 6 August 2015

  • EBA consults on CVA exemption

    The EBA has launched a consultation on its regulatory technical standards (RTS) on the procedures for excluding transactions with non-financial counterparties (NFCs) established in a third country from the own funds requirement for credit valuation adjustment (CVA) risk. The proposed RTS align the treatment of NFCs established in a third country with the treatment of EU NFCs.

    However, as NFCs established .......

    News Round-up 6 August 2015

  • Swap registration rules adopted

    The US SEC has adopted new rules for supervising the business operations of security-based swap dealers and major security-based swap participants in their registration process with the regulator. The rules address all aspects of the registration regime, setting forth the extensive set of information required to be provided and kept up to date by a registrant.

    The rules require senior .......

    News Round-up 6 August 2015

  • Euro secondary improves

    Levels are improving in the European securitisation secondary market, but activity remains patchy and limited.

    "The market has generally got better in terms of spreads over the past couple of days," says one trader. "However, flows remain very thin - there's not a lot going on by way of BWICs, primary has slowed and the client side is very quiet, .......

    SCIWire 6 August 2015

  • US CLOs patchy

    Activity in the US CLO continues to occur in patches as volumes stay reasonably low.

    "We're chugging along," says one trader. "I wouldn't say it was busy, but it's not as quiet as it was two weeks ago and there's a consistent drip of BWICs so it's not a ghost town."

    The middle of the capital structure remains the main .......

    SCIWire 5 August 2015

  • Alpha credit event called

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a bankruptcy credit event occurred in respect of Alpha Appalachia Holdings. Alpha Natural Resources filed for chapter 11 bankruptcy relief on 3 August to "enhance the company's future as it weathers a historically challenged coal market." ISDA will publish further information, including whether a CDS auction will be held, in due .......

    News Round-up 5 August 2015

  • Renewables deal prepped

    Hannon Armstrong Sustainable Infrastructure Capital (HASI) is marketing a US$125m securitisation that is backed by a pool of 80 contractual rights to payments associated with ground leases for utility scale projects. The contractual rights in HASI SYB Trust 2015-1's collateral pool include a mixture of variable and scheduled payments, 28.4% of which arise from wind projects and the remainder from solar projects.

    News Round-up 5 August 2015

  • Investment adviser acquired

    Benefit Street Partners (BSP) has agreed to acquire TICC Capital's investment adviser TICC Management, with the intent to transition TICC Capital's investment strategy from syndicated loans and CLO investment vehicles to primarily focus on private debt investments. The closing of the transaction is contingent upon approval by TICC Capital stockholders, as well as the election of four new independent directors, among other .......

    Job Swaps 5 August 2015

  • Alpha exposure 'limited'

    The bankruptcy of Alpha Natural Resources is expected to have a limited impact on the US CLO market, with fewer than 170 deals exposed to the issuer. Thomson Reuters LPC data indicates that CLOs own US$308m of total exposure to Alpha Natural Resources and only US$265.2m of its Term Loan B.

    A Wells Fargo analysis of Intex data also shows .......

    News Round-up 5 August 2015

  • SF practice adds another

    Chris McGarry has joined Ropes & Gray as a partner in the firm's finance practice. He will advise on structured finance transactions, with a focus on CLOs and securitisations for clients including arrangers, sponsors, originators and investors.

    Prior to joining, McGarry practiced at Weil, Gotshal & Manges and, previous to that, Clifford Chance. He also served as vp in RBS' .......

    Job Swaps 5 August 2015

  • Mid-market manager recruited

    Medley Management has hired David Indelicato as md and head of credit management. He will focus on providing capital solutions to middle market companies and private equity sponsors.

    Prior to joining Medley, Indelicato was svp at GE Antares Capital, where he was a risk team leader responsible for underwriting, structuring and managing private equity sponsor-backed leveraged finance transactions. Previous to this, .......

    Job Swaps 5 August 2015

  • RMBS calls edge up

    Fitch reports that close to 50 legacy US RMBS transactions were called through optional redemptions in 1H15. This is on pace to slightly exceed the number of transactions called in prior years, but is still a relatively low percentage of the approximately 1,000 prime and Alt-A transactions that are currently eligible to be called.

    Mortgage pools in transactions called this year .......

    News Round-up 5 August 2015

  • Top CLO managers revealed

    The rankings of the top 10 global CLO managers are relatively unchanged from January, according to Moody's latest CLO manager league tables. The tables show that in the US the top 10 managers' market share has declined slightly as other large managers have grown their share, and CLO issuance remains strong.

    "In the US, the top 10 managers' market share .......

    News Round-up 5 August 2015

  • Euro secondary keeps it light

    With light flows and a light BWIC calendar summer is taking its toll on the European securitisation secondary market.

    "With primary active last week and now that we're into August there's very little going on in secondary," says one trader. "The BWIC calendar is pretty light as well."

    Overall, the trader describes secondary spreads as mixed with light flows ensuring .......

    SCIWire 5 August 2015

  • US CLO hope

    There are hopes that activity in the US CLO secondary market could start to rise once again this week, but similar expectations have been dashed before.

    "Last week was another quiet one in the end for both CLO secondary and primary," says one trader. "It feels like there's going to be a little bit of a pick-up this week, but .......

    SCIWire 4 August 2015

  • Student loan resistance?

    The strong recent selling bias in the US student loan ABS secondary market driven by rating agency downgrades caused by extension risk may be seeing some resistance at last.

    "Student loan ABS has easily been the most active sector in securitisation secondary of late," says one trader. "We've seen a lot of lists, albeit with a lot of DNTs, and .......

    SCIWire 4 August 2015

  • Demonstrating prudence

    Prudent valuation practices discussed

    Representatives from PricewaterhouseCoopers and Prytania Solutions recently discussed how IPV and prudent valuation practices are adjusting to new European regulatory requirements during a live webinar hosted by SCI (view the webinar here). Topics included the definition of a prudent valuation and investment bank key requirements, as well as the role of the risk management function. This Q&A article .......

    Talking Point 4 August 2015

  • Negative returns hit CLO index

    The total amount of CLOs that paid down in JPMorgan's CLO index (CLOIE) since the June rebalance through 31 July was US$7.24bn in par outstanding, split between US$4.18bn and US$3.05bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$11.2bn, with 137 tranches from 25 deals at the July rebalance.

    The CLOIE total index exhibited negative returns in the month of July in .......

    News Round-up 4 August 2015

  • Freddie launches SB certificates

    Freddie Mac has expanded its credit risk transfer programme with the introduction of SB certificates, a new form of multifamily MBS which are backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. Approximately US$108m is expected to be guaranteed in the first series (SB1), which are anticipated to price this week and settle on or about .......

    News Round-up 4 August 2015
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