Complete news archive

  • CLO refis racking up

    US CLOs are being refinanced in ever greater numbers as the risk retention deadline draws nearer. While regulatory compliance and economic benefit provide incentive to equity holders, debt investors benefit through better transparency and performance, so demand for refinanced paper should remain high.

    The previous quarter saw six 2012-2013 vintage deals refinanced and another two in the market, bringing the number .......

    News 29 April 2015

  • Further loan disposal agreed

    RBS is set to sell a portfolio of US and Canadian corporate loans to Mizuho Bank, comprising US$5.6bn of loan commitments, including US$500m of drawn assets as of 28 February. This follows a previous agreement between the two banks for the sale of a portfolio of loans in February, with approximately two-thirds of RBS' North American corporate loan portfolio now .......

    News Round-up 29 April 2015

  • Euro secondary takes back seat

    Activity is on the rise in European securitisation secondary markets this week so far, but the primary market is still traders' main focus.

    "BWICs picked up a bit yesterday and flows were reasonable," says one trader. "ABS/MBS Secondary is still taking a little bit of a back seat to primary where the Warwick print was the main talking point yesterday .......

    SCIWire 29 April 2015

  • CMBS 2.0/3.0 watchlistings drop

    The volume of newly watchlisted US CMBS 2.0/3.0 loans fell in the April remittance to just over US$1bn, from US$2.1bn in February and US$1.9bn in March, according to Barclays Capital figures. The 2013 and 2014 vintages accounted for the bulk of the watchlistings, with some the result of pro-forma underwriting leading to low initial DSCRs.

    JPMBB 2013-C15 has US$100m of .......

    News Round-up 29 April 2015

  • US RMBS remains positive

    Secondary activity is still light in US non-agency RMBS, but the outlook for spreads remains positive.

    "BWIC volume today is pretty light even for a Tuesday," says one trader. "There's an element of people holding back waiting for some macro event to happen, but a bigger issue is that primary is still taking a lot of attention away from secondary."

    SCIWire 28 April 2015

  • Euro CLOs tighten

    The European CLO secondary market continues to see tightening spreads amid strong execution and healthy volumes on- and off-BWIC.

    Secondary spreads edged in further yesterday, particularly in 2.0 mezz, as the demand for European CLO product continued unabated. Narrower spreads are encouraging additional sellers to market, but for now at least are not discouraging buyers.

    There are three CLO BWICs .......

    SCIWire 28 April 2015

  • 'Green' securitisation supported

    The European Commission's Directorate-General on Climate Action has released a policy paper, entitled 'Shifting Private Finance Towards Climate-Friendly Investments', which considers using securitisation as a financing tool for green investments. The report focuses on mobilising institutional investors to provide capital for such investments.

    The study examines current demand for climate-friendly investment; current channels of supply for climate-friendly investment; barriers to .......

    News Round-up 28 April 2015

  • China SME securitisation 'credit positive'

    Moody's says that securitisation of Chinese SME and micro loans, a sector traditionally underserved by Chinese banks, is credit positive. Securitisation could diversify funding channels to SME and micro enterprises and pave the way for internet finance providers to grow into privately-owned commercial banks in China.

    Ant Micro Loan, an affiliate of Alibaba, in December 2014 became one of the .......

    News Round-up 28 April 2015

  • Distressed credit pro recruited

    Newfleet Asset Management has hired Edwin Tai as senior md and senior portfolio manager in distressed credit. He will be responsible for incorporating distressed credit capabilities, as well as managing the Virtus Credit Opportunities Fund, a new open-end mutual fund.

    Tai joins from Third Avenue Management, where he co-managed distressed and high-yield credit assets as the lead portfolio manager of .......

    Job Swaps 28 April 2015

  • Spanish law boosts ABS

    Spain's new securitisation law will provide a more flexible framework for transactions, observes Moody's. The agency believes that this will be beneficial for new Spanish issuance across the ABS and covered bond markets.

    "The new law seeks to consolidate existing securitisation regulation, bring the Spanish legal system in line with its European counterparts and bolster transparency and investor protection," says .......

    News Round-up 28 April 2015

  • Mortality cat bond issued

    AXA Global Life has closed its latest extreme mortality catastrophe bond - the €285m Benu Capital. Based on an indemnification mechanism, the transaction provides the sponsor with protection against the risk of extreme mortality events occurring in France, the US and Japan for a five-year period of coverage starting from 1 January.

    The deal comprises two classes of notes rated .......

    News Round-up 28 April 2015

  • Embedding liquidity

    eBond Advisors co-founder and managing partner Richard MacWi...

    Q: How and when did eBond Advisors become involved in the derivatives markets?
    RM: Mac McQuown and I founded eBond Advisors in 2010, with the goal to explore improvements in the structure of corporate bonds so they could be purchased by more investors. This effort was a direct outgrowth of the credit crisis where corporate bonds were unnecessarily affected by market .......

    Provider Profile 28 April 2015

  • Standardisation, transparency promoted

    The CFA Institute says that policy recommendations contained in its new study on shadow banking are particularly relevant for the EU's Capital Markets Union project in terms of facilitating markets-based finance to revive the economy (SCI 18 February). Of note, the study suggests that securitisation policy initiatives should focus on increasing standardisation and simplification of issuance structures, as well as .......

    News Round-up 28 April 2015

  • Euro ABS/MBS picking up again?

    The European ABS/MBS secondary market continues to keep one eye on primary, but there are signs that activity is beginning to pick up again.

    "It was very quiet again yesterday, but activity looks to be picking up today helped by a few more BWICs coming out," says one trader. "That said, there's still a strong focus on primary with the .......

    SCIWire 28 April 2015

  • Rock out?

    Granite buyer could take RMBS exit

    The UK government's desire to sell the mortgage loans it acquired bailing out Northern Rock - which are securitised in the Granite master trust - has fundamental implications for the RMBS market (SCI 23 March). While there is a chance the loans could exit the market completely, they also make a compelling candidate for resecuritisation.

    "Granite is not a bad .......

    News Analysis 28 April 2015

  • No immediate upswing for US CLOs

    Despite hopes of an upswing in activity after last week's conference diminished volumes, it looks like a slow start to this week for the US CLO secondary market.

    The BWIC schedule currently only shows three lists for this week, one of which is due today. Meanwhile, spreads are broadly unchanged on light volume this morning from the firm levels seen across .......

    SCIWire 27 April 2015

  • Aussie housing affordability steady

    Low mortgage interest rates have helped keep Moody's Australian housing affordability measure steady at the national level over the past year, according to the agency. This has offset the impact of higher property prices and relatively flat household incomes.

    However, the affordability measure deteriorated for Sydney and Melbourne, where house price rises have been more pronounced. "Furthermore, stress testing in .......

    News Round-up 27 April 2015

  • Euribor goes below zero

    Last week, three-month Euribor entered negative territory for the first time. As one-month Euribor was already negative, more than half of the available distributed European ABS market is now affected by negative interest reference rates.

    The three-month reference rate is now -0.002. One-month Euribor is -0.034, while six-month and 12-month both remain positive, at 0.066 and 0.173, respectively.

    As interest .......

    News 27 April 2015

  • GSE credit spectrum broadens

    Fannie Mae and Freddie Mac are continuing to expand the credit spectrum of loans included in their risk-sharing transactions, according to Fitch. The weighted average FICO score of borrowers in deals issued in 1Q15 was 752, down from the 765 seen in the inaugural transactions issued in 2013.

    Even with the inclusion of slightly weaker borrowers, agency mortgages included in .......

    News Round-up 27 April 2015

  • CLO stake purchased

    Fair Oaks Income Fund has acquired, on the primary market, US$21.5m notional of equity notes (representing 52% of the total equity) and US$11m notional of class F notes of TICP CLO IV. The manager of the CLO is TPG Institutional Credit Partners.

    The CLO's current target portfolio has a principal value of US$500m across an expected 125 unique bank loan .......

    Job Swaps 27 April 2015

  • CMBS 2.0 special servicing remains light

    Fitch says that the incidence of US CMBS 2.0 loans entering special servicing remains infrequent and will likely stay this way for the foreseeable future, at least until the loans approach maturity. This is because in-place cashflow is generally sufficient and 2.0 loans should continue to benefit from low interest rates.

    Currently 27 conduit loans, totalling US$282m from the 2010 .......

    News Round-up 27 April 2015
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