Complete news archive

  • SCI Start the Week - 3 August

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

    Pipeline
    The pace of deals joining the pipeline slowed last week. At the final count there were 11 additions.

    The five ABS were: US$1bn AmeriCredit Automobile Receivables Trust 2015-3; US$1bn CarMax Auto Owner Trust 2015-2; US$255m MVW Owner Trust 2015-1; US$100m NewStar Commercial Lease Funding 2015-1; and US$123.5m SolarCity LMC Series IV Series 2015-1.

    The five CMBS .......

    News 3 August 2015

  • SME lending consultation opens

    The EBA has launched a paper inviting stakeholders to provide their input and evidence in support of an ongoing analysis on bank lending to SMEs and its impact on the SME supporting factor. The final document, which will inform the European Commission's own report on the impact of own funds requirements on lending to SMEs, is expected to be published .......

    News Round-up 3 August 2015

  • WMS offloaded

    The Co-operative Bank has entered into agreements with Capita regarding outsourcing its mortgage processing services for all of its residential mortgage portfolios, with effect from 1 August. Under the transaction, Capita Asset Services has acquired Co-op subsidiary Western Mortgage Services (WMS). WMS will simultaneously enter into a master services agreement with the Co-op and certain of its subsidiaries to service .......

    Job Swaps 3 August 2015

  • Euro secondary stays strong

    European securitisation secondary market spreads are holding on to recent stronger levels amid low volumes.

    As anticipated, flows were very light across the board on Friday, which left spreads for the most part unchanged. However, the day's previously mentioned CLO BWIC did trade well.

    There are currently no BWICs on the European calendar for today.

    .......

    SCIWire 3 August 2015

  • Montpelier purchase approved

    Endurance Specialty Holdings says it has received all regulatory approvals required in connection with its previously announced acquisition of Montpelier Re Holdings (SCI 1 April). The acquisition was made for a consideration of 0.472 shares of Endurance and US$9.89 in cash for each Montpelier common share, representing US$40.24 per Montpelier common share, or US$1.83bn in aggregate at the closing price.

    The cash .......

    Job Swaps 31 July 2015

  • ABCP maturity cap impact gauged

    Fitch believes that the EBA-proposed one-year maturity cap for underlying exposures in ABCP securitisations (SCI 29 June) will prevent existing European ABCP programmes from achieving qualifying securitisation eligiblity and the associated lower capital charges. As at May, the agency's data reveals that 54% of funded assets have medium- and longer-term maturities and would leave the programmes ineligible.

    All 12 programmes rated by .......

    News Round-up 31 July 2015

  • Auto issuers cleaning up

    US auto ABS issuers are calling more deals on time, with 18 out of 22 issuers demonstrating a perfect call record between December 2012 and May 2015. This performance is positive for investors and supports confidence, and is expected to continue to improve.

    The 82% on-time call rate compares to a rate of 72% for September 2011 to November 2012. .......

    News 31 July 2015

  • Global CLO approach updated

    Fitch has updated its global rating criteria for CLOs and corporate CDOs. The update includes an explicit description of the stress portfolio construction for managed CLOs, as well as publications of the FX stresses on US dollar- and sterling-to-euro multicurrency CLOs and the default skew assumptions for multicurrency CLOs.

    For constructing stress portfolios in rating new transactions, the agency typically starts with the .......

    News Round-up 31 July 2015

  • CMBS loan losses drop

    Trepp reports that monthly US CMBS loan losses fell 28% month-over-month to US$679.84m in July, despite several 100% losses. The July total was low in comparison to the totals hovering near US$1bn over the prior three months, which was due in part to smaller average loan sizes.

    In total, 72 loans were disposed of with losses in July, down just .......

    News Round-up 31 July 2015

  • Mexican RMBS criteria revised

    Fitch has updated its rating criteria for Mexican RMBS that are sponsored by commercial banks and Sofoles/Sofomes. The update includes the revision of assumptions related to the agency's expected base-case frequency of foreclosure as a result of the stable macroeconomic expectation for the country.

    The update is also a response to the stable trends observed in delinquencies of mortgage portfolios. Fitch .......

    News Round-up 31 July 2015

  • Duke pursues rate reduction bond

    The Florida Public Service Commission has selected Saber Partners to advise it on financing a new securitisation bond that has been authorised for issuance following a new Florida law. The Commission is permitted by the state law to allow Florida investor-owned utilities to issue rate reduction bonds to recover costs associated with closing nuclear power plants.

    Duke Energy became the first utility to apply to .......

    News Round-up 31 July 2015

  • Card payments hit historic highs

    Fitch reports that average US credit card monthly payment rates reached all-time historical levels during 2Q15 as consumers kept payment obligations in check. Borrower credit profiles have remained stellar as a result, allowing the sector's improvements to continue on from the previous quarter.

    Late payments continued to ease, also hovering at historical low levels, leaving charge-off rates steady and delinquency .......

    News Round-up 31 July 2015

  • Key man vote solicited

    Sound Harbor Partners is seeking to create consistency across its CLO stable by replacing the key managers on the Landmark transactions it acquired from Aladdin Capital (SCI 16 October 2012). The firm plans to implement what it describes as a two-step restructuring that would avoid a key man event.

    Specifically, notices have been issued in connection with Landmark VIII CLO .......

    Job Swaps 31 July 2015

  • Euro CLO 2.0 repricing proposed

    A notice has been issued for Carlyle Global Market Strategies Euro CLO 2013-1, which - if passed - would trigger the first repricing of a European CLO 2.0 deal. CELF Advisors is seeking consent from the sole investor to reduce the class A coupon margin from 130bp to 115bp from the 17 August IPD and to eliminate their right to .......

    News Round-up 31 July 2015

  • Euro secondary dries up

    Yesterday saw another very quiet day in the European securitisation secondary market and today looks to be little different as liquidity appears to have dried up into month-end and potentially the rest of the summer.

    Even flows in prime assets faded away yesterday as ABS/MBS was becalmed across the board. CLOs too saw only a handful of trades, but the .......

    SCIWire 31 July 2015

  • Status quo for US RMBS

    The US non-agency RMBS secondary market has returned to the status quo this week after a bumpy start.

    "We had a volatile start to the week with the Asian sell-off on Monday, but the RMBS market settled down fairly quickly as broader volatility eased," says one trader. "Certainly since the Fed meeting it's been pretty quiet and we've returned to .......

    SCIWire 30 July 2015

  • CDS trader switches banks

    Basile Delaville has joined Deutsche Bank to trade CDS indexes. He arrives from Bank of America, where he was a member of the structured credit trading group. Before this, Delaville started his trading career with CDOs at Calyon.

    .......

    Job Swaps 30 July 2015

  • IDR data points to payment

    Navient has released historical income-driven repayment (IDR) data for some of its FFELP student loan ABS pools currently on review for downgrade due to heightened maturity risk. The data - which was released as a new line item in the firm's historical trust performance data spreadsheets - provides much-needed transparency into the performance of the pools affected by Moody's and .......

    News 30 July 2015

  • Turbo boost for marketplace deal

    SoFi has priced its US$417.6m ABS offering of refinanced student loans, the first marketplace lending transaction to have its senior notes rated triple-A by a rating agency. DBRS assigned the top rating for the class A1 and A2 notes in SoFi 2015-C, while Moody's assigned an Aa2 rating to the senior notes, which equaled US$387.3m.

    The notes are backed by a trust certificate representing 100% .......

    News Round-up 30 July 2015

  • Trups defaults drop again

    The number of US bank Trups CDO combined defaults and deferrals marginally decreased to 19.3% at end-June from 19.6% at end-May, according to Fitch's latest index results for the sector. There were 12 banks representing US$111.7m of notional in 15 CDOs that cured during June, while no defaults occurred. 

    One previously cured issuer representing US$4m of notional in one CDO also .......

    News Round-up 30 July 2015

  • SFR vacancies trending up

    Vacancy rates are generally trending higher across single-family rental (SFR) securitisations, according to Morningstar Credit Ratings. The agency says that this was anticipated based on the higher number of lease expirations seen in recent months.

    For example, a slight increase in vacancy rates for five Invitation Homes transactions corresponds to higher levels of lease expirations in the summer months. In .......

    News Round-up 30 July 2015
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