Complete news archive

  • 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

  • CMBS losses shift up

    Trepp reports that 105 US CMBS loans totalling US$1.25bn were liquidated with a loss in May, following three months of relatively few loans being disposed of with losses. However, the results were somewhat skewed by the US$80m Schron Industrial Portfolio's B-note that was written off in full, while the US$220m A-note paid off without loss.

    Another six loans totalling US$57.46m took .......

    News Round-up 1 June 2015

  • Transparency boost for loan reviews

    The US SEC's Rule 15Ga-2 takes effect for ABS on 15 June. The rule - which requires issuers or underwriters of transactions rated by NRSROs to publish the findings of due-diligence reports on loan quality undertaken by any third-party review (TPR) firms - is expected to increase transparency around credit quality.

    Moody's notes in its Credit Outlook publication that Rule .......

    News Round-up 1 June 2015

  • Lodging CMBS growing strong

    Trepp expects the volume of US CMBS backed by lodging assets to grow over the next several years as new loans are issued and maturing loans are refinanced. However, the sector faces several challenges, including slower global growth and a stronger US dollar, which could reduce hotel room demand in the US.

    Trepp estimates that US$11bn in lodging sector CMBS loans will mature in .......

    News Round-up 1 June 2015

  • SLABS acceleration feature added

    Nelnet's latest student loan ABS includes a structural feature that should help mitigate the negative effects of slow FFELP pay-downs, says Moody's in its recent Credit Outlook publication. The underlying collateral in the deal, Nelnet Student Loan Trust 2015-3, consists of FFELP non-consolidation, consolidation and rehabilitated student loans.

    Moody's notes that FFELP student loan borrowers are using repayment plans that reduce or .......

    News Round-up 1 June 2015

  • At a crossroads

    Auto ABS reaching an inflection point?

    The US auto ABS market appears to be approaching an inflection point in fundamentals, with prime auto losses beginning to rise from record lows and subprime losses declining. Such a normalising of credit could help address the negative perception of subprime auto ABS and facilitate investor appetite for the paper.

    "There has been some talk of a current inflection point .......

    News Analysis 1 June 2015

  • SCI Start the Week - 1 June

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

    Pipeline
    Several deals joined the pipeline during the holiday-shortened week, including a Chinese auto loan ABS. In total there were nine new ABS as well as two RMBS and three CMBS.

    The ABS were: €500m Driver France Two; US$750m Huntington Auto Trust 2015-1; US$747.76m Hyundai Auto Lease Securitization Trust 2015-B; CNY3.58bn Rongteng Individual Auto Mortgage-Backed Securitization 2015-1; .......

    News 1 June 2015

  • Trading duo reunited

    Brean Capital has hired Rich Barry and Reggie Fernandez as mds in its fixed income sales and trading team. The pair will focus on CLOs, CDOs and esoteric ABS.

    Barry arrives from KGS-Alpha Capital Markets, and was also previously head of securitised product sales and trading at Aladdin Capital. Fernandez joins Brean from Canaccord Genuity, but also has experience at KGS, as well as at UBS .......

    Job Swaps 1 June 2015

  • Europe chief hired

    MarketAxess has appointed Scott Eaton as coo for MarketAxess Europe and Trax. In this role, he will oversee business operations for Europe and assist clients in meeting evolving regulatory challenges, reporting to MarketAxess ceo Rick McVey.

    Eaton was most recently md and global head of emerging markets trading at UniCredit. He has also held various other senior positions, including head of .......

    Job Swaps 1 June 2015

  • Euro ABS/MBS stays positive

    The European ABS/MBS secondary market ended last week quietly and looks to be starting the month in a similar fashion, but market tone remains positive.

    In Friday's quiet as anticipated session core prime paper was the main focus for buying interest. The few BWICs there were, mainly revolving around UK bonds, also traded reasonably well.

    Meanwhile, peripherals seem to have .......

    SCIWire 1 June 2015

  • US CLOs tick over

    The US CLO secondary market continues to tick over into month-end.

    US CLOs have not seen the high secondary volumes of the weeks in the run up to the long weekend, but for a holiday-shortened month-end week the secondary market continues to tick over satisfactorily. At the same time, bonds have continued to trade, or at least cover, reasonably well .......

    SCIWire 29 May 2015

  • SFR market moves east

    While the single-family rental securitisation market continues to grow, the profile of the underlying properties is changing. Where earlier deals were overwhelmingly backed by properties from the western US, more recent deals contain heavier concentrations of eastern properties.

    SFR issuance this year has passed US$4.3bn and is on course to surpass last year's total, say Morgan Stanley analysts. It is .......

    News 29 May 2015

  • CMBS originations head named

    Wells Fargo has promoted Eric Gunderson to regional manager of US CMBS originations for the southwest US. He replaces Brad Wilmot, who has moved to Goldman Sachs in an undisclosed role.

    Gunderson is a director at Wells Fargo and was a senior commercial originator for the bank, prior to his new appointment. He has previously held senior roles at JPMorgan, RBS and Credit Suisse, .......

    Job Swaps 29 May 2015

  • Euro secondary subdued

    A distracted European securitisation secondary market looks to be closing the week in subdued manner.

    With traders distracted by a busy primary market and the large CDO liquidation, for which the results are yet to be released, yesterday's European secondary market was relatively quiet. Month-end today should ensure more of the same.

    Away from the big list the large ABS .......

    SCIWire 29 May 2015

  • Supply returns to US RMBS

    Pent up supply following the holiday weekend has burst on to the US RMBS secondary market.

    "It's a very busy week for month-end," says one trader. "We saw $500m in for the bid on Tuesday, which is high for the first day back from a long weekend, with large lists announced for today and tomorrow."

    Today's BWIC volume is sizeable .......

    SCIWire 28 May 2015

  • Call for clarity on repo eligibility

    Another 31 Spanish prime RMBS and SME ABS bonds were dropped from the ECB's repo-eligible list (SCI 6 March) last week. It appears that the move was due to non-compliance with the subordination rule, which requires that no tranche other than the eligible tranche is given priority over the receipt of principal and interest payments post a delivery of acceleration .......

    News Round-up 28 May 2015

  • Agency auction completed

    Freddie Mac has sold via auction 1,052 deeply delinquent Ocwen serviced NPLs from its mortgage investment portfolio, making it the GSE's third standard pool offering this year. The loans have an aggregate UPB of US$201m and the transaction is expected to settle in July.

    The loans were offered as a single pool of mortgages, with LSF9 Mortgage Holdings the winning .......

    News Round-up 28 May 2015

  • Corinthian Colleges exposure gauged

    Corinthian Colleges recently announced closures for the remainder of its 28 campuses (see SCI's CMBS loan events database). Morgan Stanley CMBS strategists identify five CMBS 2.0/3.0 loans totalling US$94m with exposure to the closures, potentially representing idiosyncratic risk.

    The largest of the loans is the US$47.4m Netpark Tampa Bay (securitised in COMM 2014-UBS4), where Corinthian Colleges is the .......

    News Round-up 28 May 2015

  • More of the same for European CLOs

    The European CLO secondary market is continuing to see strong demand for paper.

    "This week is seeing more of the same patterns we've been seeing in the past few weeks," says one trader. "Appetite is strong for paper and we continue to see investors with money to put to work in this sector."

    The trader continues: "There's still not as .......

    SCIWire 28 May 2015

  • Italian mortgage prepays rise

    Italian mortgages saw a sharp increase in annual prepayment rate to 3.2% in 1Q15 from 2.5% in 4Q14, according to Fitch's latest index results for the sector. The agency suggests that loan refinancing was the dominant factor in the rising wave of prepayments, while low interest rates and renewed lender appetite resulted in growth in new lending volumes.

    Fitch adds that lenders .......

    News Round-up 28 May 2015

  • Residual value risk examined

    Moody's says that European auto ABS are increasingly exposed to residual value risk through the securitisation of lease products as a means of financing vehicle sales. Residual value transactions will be ineligible for repo with the ECB from August, underlying the importance for investors to be aware of residual value risk (SCI 4 March).

    The growth of residual value exposure in securitisations .......

    News Round-up 28 May 2015
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