Complete news archive

  • 'Unique' SME CLO touted

    GIAC Gestion's recent cashflow CLO is an example of a viable way forward for European SME CLOs in the context of increased bank disintermediation in Europe, suggests Moody's. GIAC OLT II is backed by bonds issued by French SMEs and mid-caps.

    "GIAC OLT II illustrates how securitisation can finance SMEs and mid-caps without the direct involvement of an originating bank .......

    News Round-up 3 June 2015

  • Rewriting the rules

    Spanish law change boosts securitisation

    Spanish legislators have adopted a new securitisation law, bringing the market more in line with the rest of Europe (SCI 28 April). While the changes are positive and should boost the Spanish ABS market, change on a broader level is also required.

    "The new law 5/2015, published on 28 April 2015, explicitly acknowledges the key role in funding that the .......

    News Analysis 3 June 2015

  • US CLOs slow

    The US CLO secondary market is experiencing a slow start to the month.

    "It's very slow this week so far with not a lot of volume in the calendar for the days ahead," says one trader. "It feels like the continuation of the recent pattern of declining BWIC volumes - $10bn in April, then $6.5bn in May - and follows on .......

    SCIWire 2 June 2015

  • Risk management proposals issued

    The Joint Forum has published a report on developments in credit risk management across sectors. The report provides insight into the current supervisory framework around credit risk, the state of credit risk management at firms and implications for the supervisory and regulatory treatments of credit risk.

    A number of recommendations have been put forward in the report, including the Joint Forum's .......

    News Round-up 2 June 2015

  • ABSPP purchases revealed

    The ECB yesterday (1 June) published for the first time a detailed breakdown of the ABS holdings under the ABSPP, showing the amount purchased in the primary and secondary markets for each month. Such additional information has been welcomed for bringing the level of disclosure to that the CBPP3, although Barclays Capital European securitisation analysts note that it remains below .......

    News 2 June 2015

  • ETD debt burden lightens

    Moody's reports that new Spanish electricity tariff deficit (ETD) debt for year-end 2014 fell to a 10-year low, at €465m. The agency says this drop could mark a turning point in the Spanish electricity sector's tariff deficit trajectory, helping it to achieve sustainability in the medium term.

    "This figure is merely one-tenth of the yearly deficit levels in preceding years, considering the .......

    News Round-up 2 June 2015

  • Alamo Re upgraded on reset

    Fitch has removed from rating watch positive and upgraded, with a stable outlook, the US$400m Alamo Re series 2014-1 class A notes to single-B plus from single-B. The move follows the resetting of the catastrophe bond's modelled attachment probability to 2.09% from its initial annual attachment probability of 3.80%. The crossover point between single-B and single-B plus on Fitch's insurance-linked .......

    News Round-up 2 June 2015

  • Daily returns index launched

    FTSE Group and the National Association of Real Estate Investment Trusts (NAREIT) have launched the FTSE NAREIT PureProperty index series, which provides daily real estate price and total returns at the level of both property and equity investments. The index series' values are inferred from price appreciation and income distributions generated by portfolios of properties owned by listed US equity REITs.

    Values .......

    News Round-up 2 June 2015

  • QM underwriting scrutinised

    By reviewing QM originator guidelines and evaluating how they address approximately 70 crucial aspects of underwriting, Morningstar says it has identified a benchmark for what it considers to be industry standards. To demonstrate differences and similarities across guidelines, the agency focused on 10 of the more active originators and aggregators of QM loans. It notes that each company's guidelines have .......

    News Round-up 2 June 2015

  • Israeli RMBS approach finalised

    Moody's has published its approach to rating Israeli RMBS transactions, using its MILAN model framework. The agency plans to use the proposed approach in conjunction with its existing methodologies to rate RMBS and covered bonds in Israel.

    Benchmarking the Israeli residential real estate market to other jurisdictions that also use MILAN was the key driver behind the calibration of MILAN .......

    News Round-up 2 June 2015

  • Nordstrom card ABS affirmed

    Nordstrom's recent agreement to sell its existing US Visa and private-label consumer credit card portfolio to TD Bank Group has no immediate impact on the rating of notes issued by the Nordstrom Credit Card Master Note Trust II, according to Moody's. The portfolio currently totals approximately US$2.2bn in receivables.

    Under the agreement, TD Bank USA will become the exclusive US .......

    News Round-up 2 June 2015

  • Sabine credit event called

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in respect of Sabine Oil & Gas Corporation (formerly known as Forest Oil Corporation). The firm filed a Form 8-K on 22 May in respect of its entry into a forbearance agreement and third amendment to the credit agreement, dated 20 May.

    The Committee .......

    News Round-up 2 June 2015

  • SIMM licensing launched

    ISDA has launched a licensing programme for its proprietary and patent-pending standard initial margin model for non-cleared derivatives, offered commercially under the name ISDA SIMM. The aim is to establish a single model that meets regulatory standards, which all authorised licensees can use to exchange collateral in a manner that is consistent with margin requirement rules.

    By using a single .......

    News Round-up 2 June 2015

  • CMBS upgrades turn the corner

    The annual number of upgrades among S&P-rated North American CMBS exceeded the number of downgrades in 2014 for the first time since 2007. The upgrade-to-downgrade ratio reached 1.28, which is up from 0.79 in 2013.

    In total, of the North American CMBS ratings that were outstanding at the beginning of 2014, S&P lowered 244 during the year and raised 312. .......

    News Round-up 2 June 2015

  • Mid-market vet moves

    The Carlyle Group has hired Dan Cohn-Sfetcu as md to originate and execute middle market credit investments for Carlyle GMS Finance, as well as its affiliated investment vehicle NF Investment. Cohn-Sfetcu joins from American Capital, where he was a md, responsible for coverage of middle market private equity firms and executing credit investments throughout the capital structure.

    .......

    Job Swaps 2 June 2015

  • Elian extends SF footprint

    Elian has opened a new office in New York in an attempt to grow its corporate services, which include corporate structuring, structured finance and asset finance. The firm has hired John Wallace to run the office as md and be responsible for developing a network of clients and intermediaries in the Americas.

    Wallace arrives as a founding member of Guardian Director .......

    Job Swaps 2 June 2015

  • TRACE reporting underway

    Yesterday (1 June) marked the first day of ABS transaction data reporting via TRACE, which saw 213 trades with total volume of at least US$614m (original face) being reported, according to Bank of America Merrill Lynch figures. These trades consisted of 151 separate securities with an aggregate original face of at least US$412m and current face of at least US$367m.

    News 2 June 2015

  • CMBS delinquencies brake sharply

    The Trepp US CMBS delinquency rate dropped dramatically in May after six months of hovering within a 23bp band. From the start of 2015 through April, the rate inched down from 5.66% to 5.57%, but the delinquency rate for US CRE loans in CMBS is now at 5.4% in May and down by 17bp.

    In the last 25 months, the delinquency rate .......

    News Round-up 2 June 2015

  • Strong returns continue for CLOs

    The total amount of CLOs paid down in JPMorgan's CLO index (CLOIE) since the April rebalance through end-May was US$4.7bn in par outstanding, split between US$2.27bn and US$2.43bn of pre-crisis and post-crisis transactions. The post-crisis CLOIE added US$9.4bn across 110 tranches from 20 deals at the May rebalance.

    CLOIE posted a positive return of 0.5% overall, with the post-crisis index continuing .......

    News Round-up 2 June 2015

  • Euro ABS/MBS searches for direction

    With low levels of activity and spreads range-bound the European ABS/MBS secondary market is looking to new issuance for a direction.

    "Yesterday was very slow with most players sitting on the sidelines waiting for news on Greece," says one trader. "There is good activity in primary however and most people are looking there for some direction."

    The trader continues: "With .......

    SCIWire 2 June 2015

  • Trups flurry

    A flurry of US Trups CDO BWICs are circulating for trade this week.

    There are currently three Trups CDO auctions due in the next three days. As one trader says: "In a market with less obvious price activity seeing a few lists coming out together creates a decent buzz."

    The trader continues: "Last week we saw one of the large regional banks come .......

    SCIWire 1 June 2015
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