Complete news archive

  • Euro ABS/MBS shows caution

    Some signs of caution are entering the European ABS/MBS secondary market, but it may not last.

    The quiet end to last week, which saw ABS/MBS spreads close unchanged has morphed into an even more cautious tone today with some signs of softening as broader credit edged wider on Greek concerns this morning. However, it is hoped that the building BWIC .......

    SCIWire 18 May 2015

  • Finding solutions

    Slowing SLABS payments prompts intervention

    Slower borrower pay-downs have increased the risk of default for a number of FFELP student loan ABS transactions. Bonds with shorter maturity dates are most vulnerable, prompting proposals to rescue these deals by re-accelerating payments.

    The percentage of US borrowers making any payments on their student loans declined to an average of 46% during the period between 2007 and 2014, .......

    News Analysis 18 May 2015

  • Revolving structures evaluated

    Despite revolving structures not yet emerging in the growing Chinese securitisation market, Fitch believes they are both necessary and desirable. This is particularly true for ABS transactions, where the underlying assets have a short tenor.

    The agency says that without the use of revolving structures - which would allow issuers to reinvest repaid receivables into purchasing new receivables - an ABS transaction that securitises short-term .......

    News Round-up 18 May 2015

  • Nomura given damages figure

    Nomura has been ordered by a US district court to pay US$806m to the US FHFA following a ruling that the financial holding company made false statements in selling MBS to Freddie Mac and Fannie Mae prior to the 2008 financial crisis (SCI 12 May). The court set out an order for the FHFA to submit a proposal for damages during .......

    Job Swaps 18 May 2015

  • Single security determinations issued

    The FHFA has published details of progress made on the single MBS that would be issued by Fannie Mae or Freddie Mac. Finalising the structure of the single security is a 2015 Scorecard item for both companies and for Common Securitization Solutions.

    The FHFA last year issued a request for input on all aspects of a proposed structure for the .......

    News Round-up 18 May 2015

  • Ocwen sells agency MSRs

    JPMorgan has agreed to purchase the mortgage servicing rights from Ocwen for 266,000 high-quality Fannie Mae loans worth an estimated US$45bn. The agreement follows a number of recent MSR sales by the servicer (SCI passim), as it continues in its attempt to raise capital.

    .......

    News Round-up 18 May 2015

  • US CLO performance stable

    US CLO performance remained stable in 1Q15, according to Fitch's latest index results for the sector. Only one newly defaulted name, Quicksilver Resources, was held by one CLO at the end of the quarter.

    While several leveraged energy issuers filed for bankruptcy or initiated debt restructuring in the beginning of the second quarter, CLOs tracked by Fitch's index are minimally impacted. The .......

    News Round-up 15 May 2015

  • Debut on-SEF MBS swap traded

    Tradeweb Markets has completed the first packaged MBS and US dollar swap transaction on a SEF. Axonic Capital executed the trade on the Tradeweb TW SEF prior to the US CFTC's no-action relief deadline (SCI 12 November 2014), with the trade clearing at CME Group.

    The CFTC extended no-action relief for made available to trade (MAT) swaps executed as part .......

    News Round-up 15 May 2015

  • CRE group bolstered

    Annaly Capital Management has beefed up its CRE investment team with a number of hires, including Jeffrey Thompson. He will serve as co-head of Annaly's CRE platform, along with current executives Michael Quinn and Robert Restrick.

    Thompson arrives from GE Capital Real Estate, where he was md - strategic capital group, leading the firm's CRE direct lending balance sheet programme. In this role, he focused .......

    Job Swaps 15 May 2015

  • Prudent valuations practices examined

    SCI is hosting a complimentary webinar exploring how IPV and prudent valuations practices are adjusting to new European regulatory requirements. The event is being held at 12pm UK time on 21 May, but will also be available to download from the SCI website afterwards.

    The webinar will attempt to define what constitutes a prudent valuation under the EBA .......

    News Round-up 15 May 2015

  • ABS CDO manager replaced

    Dock Street Capital Management has replaced Rabobank International as collateral manager for Solstice ABS CBO. Based on the terms of the restated collateral management agreement, Moody's says there will be no withdrawal, reduction or any other adverse action to any related ratings.

    For other recent CDO manager transfers, see SCI's CDO manager transfer database.

    .......

    Job Swaps 15 May 2015

  • Euro ABS/MBS looks ahead

    With a quiet end to the week likely the European ABS/MBS secondary market is looking ahead.

    As anticipated yesterday was a much quieter day in European secondary though a few more trades went through than first thought to be likely. On-BWIC the bonds that did trade did so broadly in line with recent levels and off-BWIC flows were constrained to .......

    SCIWire 15 May 2015

  • Old haunts

    'Grexit' concerns leave RMBS in doubt

    The spectre of redenomination risk has reappeared in the European RMBS market with the possibility of a Greek exit from the EU. Although transaction deleveraging is likely to provide some protection for investors in such a scenario, losses could potentially be severe.

    "The situation in Greece is certainly unreliable because any predictions are run completely on hypotheticals," says Barclays director .......

    News Analysis 15 May 2015

  • US RMBS active again

    The US RMBS secondary market has emerged from its relative slumber of recent weeks and activity is on the increase again.

    "Interest rate volatility has shaken some accounts out of their complacency," says one trader. "So we've had a much more active this week with a lot more BWICs going through."

    The trader continues: "We've seen good two-way flows with hedge .......

    SCIWire 14 May 2015

  • SME hybrid touted

    The European Covered Bond Council (ECBC) has unveiled a plan to create instruments to finance SME lending, in response to the European Commission's Green Paper on Building a Capital Market Union. The proposed instruments are called European Secured Notes (ESN) and blend covered bond and securitisation techniques.

    The ECBC has proposed two kinds of ESNs: an on-balance sheet format that .......

    News Round-up 14 May 2015

  • Marketplace lending event unveiled

    SCI is holding a marketplace lending securitisation seminar on 25 June in New York. The event will be hosted by Kaye Scholer, located at 250 West 55 Street.

    SCI's Marketplace Lending Securitization Seminar will provide an in-depth examination of the nascent marketplace lending securitisation landscape. Together with overviews of transaction structuring/credit considerations and the biggest platforms involved, panel discussions will .......

    News Round-up 14 May 2015

  • Bail-in valuation consultation begins

    The EBA has launched a public consultation on its draft regulatory technical standards (RTS) defining the valuation of derivative liabilities for the purpose of bail-in resolutions. The standards have been developed within the framework of the Bank Recovery and Resolution Directive, which sets procedures for the recovery and resolution of credit institutions across the EU.

    The draft RTS provide resolution .......

    News Round-up 14 May 2015

  • LMA voices STS concerns

    The LMA has responded to a number of criteria proposed by the EBA and BCBS/IOSCO for identifying simple, transparent and standardised (STS) securitisations, as well as a number of criteria put forward in the delegated acts of Solvency 2. The response states that the current proposals, if implemented, would exclude managed CLOs from being able to qualify as STS securitisation largely .......

    News Round-up 14 May 2015

  • CMBS 2.0 ratings boost

    S&P has upgraded the JPMCC 2012-C8 class B, C, EC and D notes by one notch each to double-A plus, single-A plus, single-A plus and single-A minus respectively. The move is believed to be the first rating action on a CMBS 2.0 bond rated by S&P and follows Moody's upgrading of two COMM 2010-C1 tranches last month.

    The latest upgrades .......

    News Round-up 14 May 2015

  • Euro CLOs keep momentum

    The European CLO secondary market is maintaining its positive momentum in the 2.0 space, though that could change.

    "2.0 paper continues to trade well on- and off-BWIC with double- and triple-Bs continuing to be the most active part of the stack," says one trader. "There's still strong demand for CLO paper more broadly as shown by another new deal pricing .......

    SCIWire 14 May 2015

  • Libor floor trade mooted

    CLO equity investors can sell long-dated Libor floors matching those embedded in CLO asset portfolios to monetise the time value in such embedded options. With a Fed hike possible this year, now may be the time to act.

    A Fed hike before the end of the year is increasingly expected, which could move Libor floors quickly out-of-the-money. Selling the floors .......

    News 14 May 2015
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