Complete news archive

  • 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

  • CMBS workouts exceed transfers

    Moody's reports that a total of 122 European CMBS loans were in special servicing at the end of April, securitised within 45 large multi-borrower and 36 single-borrower CMBS transactions. One European loan was newly transferred into special servicing in April, while six loans were worked out.

    The pace of workouts continues to exceed new transfers, with the Government Income Portfolio .......

    News Round-up 28 May 2015

  • Euro ABS/MBS sees weak peripherals

    While broader markets have been boosted overnight by news on Greece, the European ABS/MBS secondary market is still showing signs of peripheral weakness.

    "It's been a slow week but we are bit weaker in Portuguese and Greek names," says one trader. "As a result of peripheral concerns we're seeing customers bringing out more and more paper."

    At the same time, .......

    SCIWire 28 May 2015

  • US CLOs stay firm

    Despite a slower pace than recent weeks, US CLO secondary spreads are staying firm.

    "We started relatively slowly after the holiday yesterday and while there are a few more BWICs today it's still slower paced than the last couple of weeks," says one trader. "However, it also feels slower on the primary side, which will support secondary."

    Indeed, the trader .......

    SCIWire 27 May 2015

  • Reverse mortgage approach published

    Moody's has finalised its global rating methodology for rating reverse mortgage securitisations. The implementation will result in a number of rating changes, which the agency will publish as it completes its analysis of each affected transaction.

    Moody's global approach to rating reverse mortgage securitisations details the rating agency's assumptions for assessing whether the value of the underlying homes at their .......

    News Round-up 27 May 2015

  • Strategic partnership agreed

    Fortress Investment Group and Mount Kellett Capital Management have reached an agreement for an affiliate of Fortress to become co-manager with Mount Kellett with respect to the latter's investment funds and related accounts. Mount Kellett affiliates will continue to serve as general partner of the funds, with affiliates of Fortress becoming special limited partners.

    The transaction is subject to receipt .......

    Job Swaps 27 May 2015

  • ABS surveillance standard introduced

    Bishopsfield Capital has introduced a new standard for the surveillance of ABS investments in response to regulatory requirements. The standard entails a number of proposals that attempt to maintain formal monitoring procedures for ongoing, timely surveillance and stress-testing of securitisation investments, as well helping investors avoid stringent penalties for non-compliance.

    "Although guidelines have been set out, regulators have not been .......

    News Round-up 27 May 2015

  • FCA fines investment bosses

    The UK FCA has published notices setting out its decision to fine and prohibit three former members of Keydata Investment Services' senior management from performing any role in regulated financial services. Stewart Ford, Mark Owen and Peter Johnson have received the notices on the accusation of misleading investors, as well as the UK FSA, regarding the performance of certain investment products. The FCA has decided to .......

    Job Swaps 27 May 2015

  • Deutsche settles LSS charges

    The US SEC has charged Deutsche Bank with filing misstated financial reports during the financial crisis that failed to take into account a material risk for large potential losses on certain leveraged super senior (LSS) trades. The bank has agreed to pay a US$55m penalty to settle the charges.

    Results of an SEC investigation allege that Deutsche Bank overvalued a .......

    Job Swaps 27 May 2015

  • Credit recovery initiative set up

    A corporate credit recovery (CCR) initiative funded by HIG Capital affiliate Bayside Capital plans to invest in Italian mid-sized enterprises in distressed situations. Idea CCR, a platform managed by IDeA Capital Funds, aims to help such enterprises restructure and turnaround, and consequently to help banks maximise the recovery of their original loans.

    Idea CCR is currently in discussions with a number .......

    News Round-up 27 May 2015

  • Aircraft debt methodology released

    Kroll Bond Rating Agency (KBRA) has released its methodology for rating enhanced equipment trust certificates (EETC) and secured aircraft debt. The methodology reviews the key risk factors that KBRA considers in rating full-recourse secured aircraft debt instruments issued by airlines and aircraft lessors.

    Of the two corporate secured aircraft-debt types, EETCs are the most common form of publicly issued secured .......

    News Round-up 27 May 2015

  • Euro secondary stays stable

    European securitisation secondary markets are staying stable despite the broader credit market weakness of the past couple of days.

    "Macro noise is keeping investors on the sidelines and there's quite a bit of new issuance to distract from secondary too," says one trader. "However, the general tone remains unchanged and we're still experiencing the status quo of the past couple .......

    SCIWire 27 May 2015

  • Expanding horizons

    China seeking fresh growth opportunities

    The Chinese securitisation market continues to show promising signs of growth. The authorities are now exploring new ways to strengthen the market by involving foreign investment and reinvigorating secondary activity.

    Issuance in the Chinese securitisation market under the country's Credit Asset Securitisation (CAS) programme jumped to approximately CNY280bn in 2014 from CNY16bn in 2013 (SCI 3 March), according to Moody's. .......

    News Analysis 27 May 2015

  • Slow return for US CLOs

    The US CLO secondary market is taking its time to return after the long weekend.

    The frantic activity of last week may have introduced some buyer fatigue to cause the low levels of activity expected today in secondary CLOs. However, as more and more traders return after the holiday as this week wears on it is likely the pace will .......

    SCIWire 26 May 2015

  • Specially serviced loan values rising

    The average appraised value for specially serviced US CMBS loans has increased slightly by 1%, according to Fitch. While the increase is marginal, there is a considerable range between the average for increases in appraisal values and the average for decreases.

    Approximately 51%, or 330 of the 641 loans in Fitch's study, experienced an increase in appraised value from the previous appraisal, .......

    News Round-up 26 May 2015

  • Chinese ABS benefits anticipated

    Fitch suggests that the growth and development of China's ABS market should allow greater operational flexibility for banks in terms of liquidity and capital management, provided that the securitised assets are sufficiently transferred outside of the banking system. The Chinese government has placed increasing emphasis on asset securitisation as a means to free up idle assets within the banking system, .......

    News Round-up 26 May 2015

  • PartnerRe saga continues

    PartnerRe has responded to a letter from EXOR regarding its offer to acquire all of the outstanding common shares of PartnerRe for US$137.5 per share in cash. The company says that EXOR has effectively rejected its board's good faith offer (SCI 21 May) to engage in discussions on price and other terms for the improvement of EXOR's current offer to a more .......

    Job Swaps 26 May 2015

  • GSO co-founder steps down

    Doug Ostrover is stepping down as senior md of Blackstone and will become a senior adviser to the firm. Along with Bennett Goodman and Tripp Smith, Ostrover was one of the founders of GSO, Blackstone's alternative credit platform. Prior to this, he was chairman of the leveraged finance group of Credit Suisse First Boston.

    .......

    Job Swaps 26 May 2015

  • Euro secondary starts settled

    Last week ended quietly as anticipated for European secondary securitisation markets and, following the long weekend either side of the Atlantic, looks likely to begin this in settled form barring any interference from macro-driven volatility.

    Secondary spreads ended last week broadly unchanged on the day on the back of continued light flows. Meanwhile, the few BWICs there were on Friday .......

    SCIWire 26 May 2015

  • Performing maturity wave projected

    The US$64.2m Watergate loan - the fourth-largest in GSMS 2006-GG6 - is among some US$40.21bn of performing CMBS loans maturing this year, according to Morningstar. The agency says that this marks the start of a wave of loans securitised during 2005 to 2007 that are now approaching their maturity dates.

    Over an expected three-year wave, Morningstar says that US$264.63bn worth of performing CMBS loans .......

    News Round-up 22 May 2015

  • Broker-originated mortgages scrutinised

    Fitch expects new Spanish broker-originated residential mortgages to suffer much larger credit losses than prime loans over the medium term, if the economy deteriorates or interest rates rise sharply, despite improved underwriting standards since the financial crises. The agency says this is because it may be in some brokers' economic interest to submit weak loan applicants to the lender. Broker .......

    News Round-up 22 May 2015
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