Complete news archive

  • US CLOs seek clarity

    As the US CLO BWIC calendar continues to build strongly this week, market participants are hoping for clarity on pricing levels.

    "It's looking like the most active week in several," says one trader. "That's partially thanks to month-end, but it is also due to sellers sensing that a bid has developed in mezz, which is teasing out higher numbers of .......

    SCIWire 28 July 2015

  • Freddie launches whole loan deal

    Freddie Mac has priced its inaugural Freddie Mac Whole Loan Security, a cash offering of approximately US$300m of actual loss RMBS securities. The transaction follows the GSE's recent STACR and ACIS offerings (SCI passim) in its continued attempts to sell a portion of its credit risk.

    Freddie Mac Whole Loan Securities Trust Series 2015-SC01 comprises US$278m in guaranteed senior certificates and .......

    News Round-up 28 July 2015

  • Europe emerging

    European CLO, loan markets discussed

    Representatives from Thomson Reuters, Credit Suisse, CVC Capital Partners and Goldman Sachs discussed the European CLO and loan markets in a live webinar hosted by SCI earlier this month (view the webinar here). Topics included primary CLO issuance, loan market developments and the impact of developments in Greece.

    Q: How has the European primary CLO market fared?
    A:     Alex Lembcke, .......

    Talking Point 28 July 2015

  • EMEA CMBS performance 'stable'

    The stable performance of the Fitch-rated EMEA CMBS portfolio in 2015 is largely due to a limited number of loans maturing so far this year, according to the agency. The percentage of loans in default (44.4%) and post-maturity (63.7%) increased marginally in 2Q15, while the proportion of loans in special servicing (42.3%) fell slightly.

    The agency's maturity repayment index improved to 68.3% .......

    News Round-up 28 July 2015

  • Risk officer recruited

    Churchill Asset Management has hired Christopher Cox as senior md and chief risk officer. The appointment follows the recent launching of the firm by TIAA-CREF, with its focus on originating, underwriting and managing senior loan investments (SCI 10 April).

    Reporting to Churchill president and ceo Kenneth Kencel, Cox will serve as a member of the investment committee and is responsible for overseeing .......

    Job Swaps 28 July 2015

  • Hiking cycle history considered

    As the likely Fed rate hike date draws nearer, Barclays ABS analysts have examined the performance of securitised products during previous hiking periods. The effect on securitised product credit sectors has previously generally been benign.

    The Barclays analysts paid particular attention to agency RMBS both before and during previous hiking cycles. A typical hiking cycle lasts a year and a .......

    News 28 July 2015

  • CLO consultant tapped

    Eric Bothwell has joined Ashurst as a senior consultant within its CLO practice. He arrives as md from UBS, where he was most recently involved in the sale and unwinding of non-core asset portfolios.

    Bothwell was also one of the founding members of Goldman Sachs' new issue CLO team, responsible for all aspects of transaction structuring, execution and marketing. His .......

    Job Swaps 28 July 2015

  • Called CLO profiles examined

    A recent Wells Fargo analysis of US CLO redemptions suggests that the average time between end of reinvestment (EoR) and when a deal is called is 30 months. The median senior note factor at the time of the call was 7.8%.

    The analysis examines the profile of called CLOs by issuance vintage and by year of EoR, based on a .......

    News Round-up 28 July 2015

  • Euro secondary shows caution

    It's been a cautious start to the week for the European securitisation secondary markets, but BWIC volume is increasing.

    "Overall, market tone is reasonably cautious both because of macro issues, especially China, and also because of the time of year," says one trader. "However we continue to see decent client interest in non-conforming and select peripherals."

    Meanwhile, with month-end approaching .......

    SCIWire 28 July 2015

  • Credit firm merger agreed

    Ares Management and Kayne Anderson Capital Advisors have agreed to merge and form Ares Kayne Management. The firm will provide a combined US$113bn of AUM, with the transaction expected to close on or around 1 January 2016.

    The new business will focus on tradable credit, direct lending, energy, private equity and real estate. Upon closing of the merger, Kayne Anderson .......

    Job Swaps 27 July 2015

  • US CLO sellers return

    Sellers appear to be returning to the US CLO secondary market.

    After a very quiet month so far the US CLO BWIC schedule is now building strongly for this week in anticipation of month-end. There are already ten lists on the calendar over the next few days mainly involving mezz and equity paper across a range of vintages.

    Today currently .......

    SCIWire 27 July 2015

  • SCI Start the Week - 27 July

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

    Pipeline
    The pace of pipeline additions was steady last week, although there was more variety in the names. The week's additions consisted of seven ABS, an ILS, two RMBS, six CMBS and two CLOs.

    The ABS were: €800m Bavarian Sky Compartment German Auto Loans 3; €1.45bn BBVA Consumo 7; US$376.7m CHAI 2015-PM1; US$260.75m Diamond Head Aviation 2015; .......

    News 27 July 2015

  • CMBS default rate 'steady'

    The US CMBS default rate has held steady at 13.3%, the same as year-end 2014, reports Fitch. This is due to stable to lower new defaults and steady new issuance levels.

    In 1H15, 109 loans totalling US$1.5bn were newly defaulted, representing a decrease from 1H14 when 161 loans totalling US$2bn defaulted, and from 2H14 when 133 loans totalling US$1.8bn defaulted. .......

    News Round-up 27 July 2015

  • Volcker deadline drives BWICs

    The first half of 2015 saw US$18.5bn of US CLO bonds on BWIC, US$11bn of which occurred in Q2, according to Citi figures. A record US$4.7bn was out for bid during June alone, ahead of the Volcker Rule deadline.

    Triple-A supply has been trending upwards since November 2014 and represented the largest percentage of BWIC volumes in 2Q15, at 60%. .......

    News 27 July 2015

  • Euro secondary holds up

    The European securitisation secondary market is continuing to hold up despite thin liquidity.

    Buy-side activity remains patchy with volumes overall still very light away from prime. What flows there are are mainly two-way though a selling bias in autos has emerged as investors seek to make room for new issues in the sector among a reasonably strong primary pipeline overall.

    SCIWire 27 July 2015

  • Expanding brand

    CRE appetite spurs European CMBS variety

    European CMBS primary issuance remains slow in relative terms, but the sector continues to innovate. Regulatory pressures are driving alternative options to rated CMBS, as demand for real estate continues.

    A recent Paul Hastings report suggests that European CMBS issuance is set for its best year since 2007. A total of €3.3bn of new CMBS has already been issued in .......

    News Analysis 24 July 2015

  • Multi-state PACE deal debuts

    Ygrene Energy Fund has completed the first property-assessed clean energy (PACE) securitisation that combines both residential and commercial assets. The US$150m private transaction is also the first PACE deal to combine projects in multiple states, including California and Florida, and to include both special taxes and assessments in a single securitisation.

    The class A notes have been rated double-A by Kroll .......

    News Round-up 24 July 2015

  • No-action impact gauged

    Prior to publication of the US SEC's no-action letter (SCI 21 July), an estimated US$261bn of US CLOs had to refinance before 24 December 2016 to avoid risk retention for the refinanced tranches. The ruling means that an additional US$152bn of CLOs should be able to refinance during 2017 without triggering the risk-retention requirement, according to Wells Fargo figures.

    There .......

    News 24 July 2015

  • Euro secondary stays firm

    Tone and spreads in the European securitisation secondary market are staying firm.

    Yesterday saw another solid day in secondary market activity across the board. The usual hotspots continued with prime assets seeing most flows once more, although Italian paper is receiving increasing attention.

    BWIC activity remained reasonably healthy yesterday with most line items going through at or around expected levels .......

    SCIWire 24 July 2015

  • Private debt pro recruited

    CVC Credit Partners has brought in Chris Fowler as md for its private debt team. He will be responsible for investments in CVC Credit's European mid-market lending strategies, reporting to md and portfolio manager Neale Broadhead.

    Fowler joins from GE Capital, where he was md in the mid-market leveraged finance origination team. Prior to this, he worked for Morgan Stanley in .......

    Job Swaps 24 July 2015

  • ILS team reinforced

    SCOR Investment Partners has recruited Sidney Rostan and Pierre Mouilhade as portfolio managers for its ILS team. Both will report to Vincent Prabis, who heads the ILS team.

    Rostan will focus on collateralised reinsurance and private transactions for SCOR. He joins after being head of Natixis' ILS business, where he worked on origination, structuring and placement of catastrophe bonds and .......

    Job Swaps 24 July 2015
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