Complete news archive

  • US CLOs still seeing sellers

    In the face of expected limited liquidity for the bulk of this week the US CLO secondary market is already seeing a healthy number of line items in for the bid.

    Despite Barcelona and the swathe of DNTs on last week's heavy auction schedule the US CLO BWIC calendar is already growing for this week. For the most part the .......

    SCIWire 15 June 2015

  • New lender mitigants outlined

    Fitch says that global RMBS transactions backed by mortgages from new lenders need to be analysed cautiously, as they pose a number of additional risks compared with transactions from more established lenders. The agency has recently received multiple enquiries to rate transactions from new lenders and notes that that the lack of historical data is the main challenge.

    Fitch says .......

    News Round-up 15 June 2015

  • ISDA principles gain backing

    A group of 11 industry associations has published a letter supporting a set of principles developed by ISDA aimed at improving consistency in regulatory reporting standards for derivatives (SCI 26 February). The principles call for derivatives reporting requirements to be harmonised across borders, as well as further development and adoption of global data standards.

    The associations signing the letter are: .......

    News Round-up 15 June 2015

  • Counterparty risk approach released

    Scope Ratings has published its rating methodology for counterparty risk in structured finance transactions and is requesting comments on the proposal by 31 July. The proposed methodology describes how the agency analyses the credit risk introduced into a structured finance transaction by financial or operational counterparty exposures.

    Scope says that financial institution counterparties with credit quality of BBB/S-2 or higher, .......

    News Round-up 15 June 2015

  • Corporate trust team bolstered

    BNY Mellon has appointed Adam Gelder as head of financial institutions for its EMEA corporate trust team. Gelder will be responsible for the growth and development of the company's financial institutions business in EMEA, reporting to Robert Wagstaff, head of UK sales and relationship management at BNY Mellon. Gelder has worked at Deutsche Bank for the last 18 years in .......

    Job Swaps 15 June 2015

  • CFPB oversight extended

    The US Consumer Financial Protection Bureau has published a rule that will allow the agency to supervise larger non-bank auto finance companies for the first time. The agency also released the examination procedures that examiners will use to ensure that auto finance companies are following the law.

    Currently, the CFPB supervises auto financing at the largest banks and credit unions. The .......

    News Round-up 15 June 2015

  • RFC issued on Dutch RMBS

    S&P has requested comments on proposed changes to its methodology for rating Dutch RMBS. The proposals align the criteria for Dutch RMBS closely with the agency's global RMBS criteria, and apply to all new and existing ratings on Dutch RMBS and to the analysis of Dutch residential mortgage covered bonds.

    S&P says the proposed criteria constitute a starting point for assessing .......

    News Round-up 15 June 2015

  • European regulatory barriers discussed

    The European securitisation market's regulatory capital costs are a barrier to demand and liquidity, according to a recent Moody's roundtable discussion. The agency reports that investors do not believe the capital treatment of European structured finance instruments reflects their associated risks.

    Investors noted in the discussion that if the current levels of regulatory capital associated with structured finance instruments remain the .......

    News Round-up 15 June 2015

  • SCI Start the Week - 15 June

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

    Pipeline
    It was another busy week for the pipeline. There were nine new ABS added - including yet another Chinese deal - as well as three RMBS, three CMBS and a CLO.

    The ABS were: US$214m American Credit Acceptance Receivables Trust 2015-2; US$96.4m CommonBond Student Loans Trust 2015-A; CNY1.9bn Driver China Two Trust; A$285m Flexi ABS Trust .......

    News 15 June 2015

  • Agency grabs Europe head

    DBRS has hired Detlef Scholz as group md, head of Europe. In the newly created position, Scholz will be responsible for overseeing all of the agency's day-to-day operations in the EMEA region, focusing on the strategic development of its rating business and senior outreach activities. He will report to ceo Dan Curry.

    Prior to joining DBRS, Scholz held a range of positions at Moody's, .......

    Job Swaps 15 June 2015

  • Securitisation head tapped

    Richard Burke has joined Mizuho as head of securitisation. He replaces Shinichi Nochiide, who is relocating to Japan for the bank.

    Burke arrives from HSBC, where was md and head of asset-backed finance for the Americas. He has additionally held senior roles at JPMorgan and Merrill Lynch.

    .......

    Job Swaps 15 June 2015

  • Trups default drop continues

    The number of US bank Trups CDO combined defaults and deferrals decreased marginally to 19.7% at the end of May from 19.8% at the end of April, according to Fitch's latest index results for the sector. In addition, two banks representing US$15m of notional in two CDOs cured in the month.

    There were no new deferrals or defaults in May. .......

    News Round-up 15 June 2015

  • Liquidity squeeze

    Osmo Timonen, an expert in bank regulation at management and...

    Since 2012, the Basel Committee on Banking Supervision has been working on a major overhaul of market risk capital requirements for banks´ trading-book positions. The regulatory initiative - entitled the Fundamental Review of the Trading Book (FRTB) - will increase regulatory capital requirements and, as a result, drive up the cost of trading. The secondary market for securitised products is .......

    Talking Point 15 June 2015

  • More of the same for European ABS/MBS?

    Last week's weaker tone in the European ABS/MBS secondary market looks set to continue.

    Last week saw overall ABS/MBS spread widening on the back of negative market sentiment, poor liquidity and broader rates volatility. This week is likely to see even more of the same with continuing Greek concerns and most market participants away from their desks in Barcelona.

    There .......

    SCIWire 15 June 2015

  • US CLOs winding down

    The US CLO secondary market is winding down after a busy week.

    As expected, yesterday's CLO BWICs saw a high proportion of DNTs with reserves not met thanks to reduced liquidity. At the same time, there was a high amount of line items where no colour was released.

    Nevertheless, there were a few buyers in evidence and some bonds did .......

    SCIWire 12 June 2015

  • RMBS manager benefits weighed

    The inclusion of a transaction manager (TM) in new US RMBS transactions would likely benefit investors in higher loan default scenarios, according to Fitch. In an effectively designed framework, the TM would bear responsibility for coordinating with all transaction parties, including servicers, trustees, custodians, specialty vendors and investors.

    In addition to assuming or directly replacing servicer responsibilities (SCI 19 March), .......

    News Round-up 12 June 2015

  • Toro investments underway

    Chenavari affiliate Toro Limited has closed its first primary investment under its private asset-backed finance portfolio strategy. The move comes after the company last month raised net proceeds of approximately €330m in a share placement on the LSE in connection with the voluntary liquidation of the Toro Capital I ABS fund.

    In its first investment, Toro has acquired €26.5m in .......

    Job Swaps 12 June 2015

  • RMBS repurchase suit dismissed

    The New York Court of Appeals has upheld a ruling dismissing a lawsuit - which alleged that Deutsche Bank Structured Products (DBSP) had breached reps and warranties with respect to US$330m in MBS mortgage loans - as time-barred. A ruling in favour of the appellant's arguments in Ace Securities Corp, Home Loan Equity Loan Trust, Series 2006-SL2 v. DBSP would have had the effect of extending the limitations period .......

    News Round-up 12 June 2015

  • ABS CDO manager resigns

    Vertical Capital has resigned as collateral manager of Kleros Preferred Funding. Pursuant to Section 12 of the management agreement, the issuer will appoint a successor collateral manager at the direction of a majority-in-interest of preference shareholders. If a successor has not assumed all of the collateral manager's duties and obligations under the management agreement within 60 days after a manager's .......

    Job Swaps 12 June 2015

  • Collateral management tool launched

    MUREX has released MX.3, a collateral management tool designed to support sell- and buy-side financial institutions in creating an effective pre- and post-trade collateral optimisation framework. The tool provides a single framework for the support of listed, OTC, OTC-cleared and securities finance margin processes.

    MX.3 introduces: a margin engine supporting pre-trade initial margin; a real time and settlement-aware collateral inventory; an optimisation .......

    News Round-up 12 June 2015

  • Sequoia structural innovations evaluated

    Redwood Trust's RMBS offering from April, Sequoia Mortgage Trust 2015-2, includes several new structural enhancements for the asset class (SCI 5 May). Fitch says that the features are intended to mitigate potential conflicts of interest, many of which are a plus, but could also introduce a new risk.

    The transaction wasn't rated by Fitch, as the agency says it is currently assessing the new structure. .......

    News Round-up 12 June 2015
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