Complete news archive

  • 15-year Freddie K debuts

    Freddie Mac issued its first 15-year K programme CMBS last week under the ticker FREMF 2015-K1501, reports Wells Fargo. The 14.5-year WAL LCF A3 tranche priced 2bp tighter than the original price talk, in contrast to the week-over-week spread widening for most structured products.

    Freddie Mac guarantees the payment of principal and interest on FREMF 2015-K1501 A3, even though the .......

    News Round-up 14 July 2015

  • Bulk upgrades for Spanish RMBS

    Moody's has upgraded the ratings of 254 tranches, confirmed 23 tranches and affirmed 106 tranches in 115 Spanish RMBS transactions. The agency's actions are a result of its update to several of its cross-sector, primary and secondary rating methodologies for structured finance securities, in order to incorporate the new counterparty risk assessment that it recently introduced for banks (SCI 16 March).

    News Round-up 14 July 2015

  • Finance chief named

    Steven Noreika has been promoted to cfo of Fifth Street Finance (FSC) and Fifth Street Senior Floating Rate (FSFR), replacing the departing Richard Petrocelli. FSC and FSFR are subsidiaries of Fifth Street Asset Management. Prior to his promotion, Noreika was chief accounting officer of FSAM. He previously held roles at Time Warner and Marcum & Kliegman.

    .......

    Job Swaps 13 July 2015

  • Euro upgrades trump downgrades

    S&P's upgrades exceeded downgrades in European structured finance for the first time since 2007, according to the agency. This partly reflected stabilisation in the macroeconomic backdrop and its effects on consumers, corporates and sovereigns.

    "While the average change in credit quality for structured finance securities remained slightly negative, with a decline of 0.02 notches, this was the smallest net deterioration .......

    News Round-up 13 July 2015

  • Solar uncertainties lingering

    S&P says that the limited operational history of the solar sector is currently capping its ratings for solar ABS transactions at a ceiling of triple-B. The agency has so far rated three solar securitisations in this rating category, but says there are other contributing factors that market participants have flagged up.

    S&P explains that the operational history of the solar sector, or .......

    News Round-up 13 July 2015

  • Chinese expansion predicted

    The Chinese auto ABS and RMBS markets have high potential for growth over the medium term and should expand on the success of CLOs in China, says Moody's. This is due to high demand for auto loans and mortgages in the country on the back of higher consumption and rapid growth in the housing sector.

    The result has left auto .......

    News Round-up 13 July 2015

  • New deposit guarantee 'credit positive'

    The implementation of a revised German deposit guarantee scheme is credit positive for SME securitisations in the country, reports Moody's. The new law, which came into effect this month, guarantees corporate deposits in the German public sector and cooperative banks for €100,000.

    Moody's says that the new statute mitigates set-off risk from the corporate credit exposure within SME transactions . A borrower might .......

    News Round-up 13 July 2015

  • PartnerRe meeting pushed back

    PartnerRe and AXIS Capital have moved back their joint special meeting of respective shareholders from 24 July to 7 August as they explore enhancements to the terms of their amalgamation agreement. This follows rival bidder EXOR's recent enhancements to its all-cash offer for PartnerRe (SCI 8 July).

    PartnerRe and AXIS intend to communicate any enhancements to their agreement to shareholders .......

    Job Swaps 13 July 2015

  • SCI Start the Week - 13 July

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

    Pipeline
    A number of deals joined the pipeline last week. These were largely ABS and CLOs, although activity remains quieter than it was a few weeks ago.

    The ABS were US$1.02bn Ally Auto Receivables Trust 2015-1, US$718m Drive Auto Receivables Trust 2015-C and US$250m Navistar Financial Dealer Note Master Owner Trust II Series 2015-1. There was also .......

    News 13 July 2015

  • Innovation inspiring ILS positivity

    Innovation continues apace within ILS, with the asset class remaining well placed given its low correlation to broader financial markets and strong risk-adjusted yields, according to Twelve Capital's half yearly outlook. The firm adds that private ILS could tap into a variety of reinsurance opportunities that are continuing to generate returns in excess of comparable catastrophe bond securities.

    Twelve Capital says that these contracts .......

    News Round-up 10 July 2015

  • Sandell blasts PartnerRe board

    Sandell Asset Management has issued a public letter to the PartnerRe board and its chairman Jean-Paul Montupet questioning their behaviour and commitment to fair process in the ongoing bidding war for the firm (SCI passim). In particular, the letter outlines Sandell's dismay towards the PartnerRe board's decision to deny the customary request by EXOR to be provided with a list .......

    News Round-up 10 July 2015

  • Mortgage REIT diversity dawns

    Kroll Bond Rating Agency says there are signs that some traditional agency mortgage REITs are diversifying towards CRE securities. The agency says residential mortgage REITs could be faced with either increasing leverage or diversifying due to rising funding costs and margin compression.

    Strong investor demand has allowed mortgage REITs to significantly grow portfolios by issuing over US$50bn in equity and US$7.8bn in senior .......

    News Round-up 10 July 2015

  • CSP advisory group established

    Freddie Mac, Fannie Mae and Common Securitisation Solutions (CSS) have formed an Industry Advisory Group to provide feedback and share information on efforts to build the Common Securitisation Platform (CSP) and implement the single security. This follows the US FHFA's recent progress update on the single security, outlining the objective to finalise its structure in 2015 (SCI 18 May).

    In addition .......

    News Round-up 10 July 2015

  • RFC threatens FFELP downgrades

    Moody's is seeking comments on proposed changes to the cashflow assumptions that it uses in its approach to rating US FFELP student loan ABS securitisations. The agency proposes to adjust its current assumptions regarding defaults, voluntary prepayments, deferment and forbearance, and to introduce a new assumption to address the income-based repayment programme.

    "Low prepayment rates, persistently high rates of deferment .......

    News Round-up 10 July 2015

  • SME financing proposals outlined

    IOSCO has published a report providing recommendations for regulators to facilitate capital raising by SMEs in emerging markets. Among the measures proposed is further tapping into alternative methods of financing such as securitisation.

    The report follows a survey sent out by IOSCO's growth and emerging markets committee, which looked to gain insight into the challenges and best practices of SME financing. IOSCO notes .......

    News Round-up 10 July 2015

  • Further ABSPP purchases detailed

    The ECB this week  provided an updated breakdown of its ABSPP holdings. As of the end of last month, the Eurosystem held €8.8bn in securities purchased under the programme - with €6.6bn purchased in secondary and €2.2bn from the eurozone primary market.

    The ECB previously provided an ABSPP breakdown for April at the start of June (SCI 2 June), so these .......

    News 10 July 2015

  • CMBS certificates removed

    Morningstar has made an amendment from its June 17 pre-sale report on the capital structure of Citigroup Commercial Mortgage Trust 2015-GC31. Based on an update to the offering circular the class X-B certificates have been removed from the transaction in the agency's post-sale report. No other key changes have been made.

    .......

    News Round-up 9 July 2015

  • CLO issuance forecast broadened

    US CLO issuance totalled US$59bn in 1H15, which is approximately 3% lower compared to 1H14, according to Morgan Stanley's CLO Market Tracker results. Nonetheless, Morgan Stanley still projects an annualised issuance of nearly US$120bn, which is well in excess of its original forecast of US$75bn-US$85bn.

    At the same time, US leveraged loan issuance has declined to US$143bn during the first six months of .......

    News Round-up 9 July 2015

  • BBC-linked deals 'manageable'

    The announcement from the UK government's summer budget that the BBC will have to meet the £650m cost of free TV licences for over-75s could impact the three securitisations linked to the broadcaster but remain manageable, according to Barclays Capital securitisation analysts. The transactions are: Juturna, White City and Pacific Quay.

    As a partial mitigant, the BBC is expected to be allowed .......

    News Round-up 9 July 2015

  • CDS roll reform proposed

    ISDA has published a recommendation to amend the single-name CDS roll frequency to a new on-the-run semi-annual basis following feedback from market participants (SCI 17 June). This would shorten the roll-call tendency from its current quarterly basis and further align single-name CDS contracts with CDS index trades, says the organisation.

    Under the current convention, market participants roll to a new .......

    News Round-up 9 July 2015

  • New players spurring UK RMBS

    Moody's says that new players in the UK's prime mortgage market and pre-crisis legacy assets hold the keys to deal issuance for the next 12 months. In the 18 months from January 2014 to June 2015, such pools accounted for almost half of all newly issued UK RMBS at 15 out of 33 deals, which is £8.2bn out of total .......

    News Round-up 9 July 2015
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