Complete news archive

  • SEF trading catching on

    More than half of interest rate derivatives (IRD) and over 70% of CDS index average daily notional volumes were traded on SEFs in 1Q15, reports ISDA. Analysis compiled using ISDA's SwapsInfo service shows that electronic trading has continued to grow as a proportion of overall trading activity, following the introduction of the first SEF trading mandates in the US in .......

    News Round-up 23 April 2015

  • Euro CLO BWIC boost

    The already active European CLO secondary market is being boosted by increased BWIC supply.

    "Secondary continues to be extremely busy and the appearance of lot of BWICs this week has injected to some very welcome supply," says one trader. "Most line items have traded strongly with 2.0 mezz in particular trading extremely well and moving much tighter."

    1.0 mezz has .......

    SCIWire 23 April 2015

  • Global liquidity pools fragmenting

    Global derivatives markets are continuing to fragment along geographic lines, as a result of divergent regulations across jurisdictions, according to ISDA. European interdealer volume in euro interest rate swaps (IRS) traded between European dealers dropped from 94.3% between July and October 2014 to 84.5% in December 2014, a potential reflection of a general decline in euro IRS trading activity between .......

    News Round-up 23 April 2015

  • Euro CLO issuance rising

    Total European CLO issuance to date in 2015 has exceeded the level observed during the same period in 2014, according to S&P. Nine new transactions totalling €3.75bn have priced, compared with €3.52bn from eight transactions last year.

    S&P expects total CLO issuance for 2015 to be between €15bn-€20bn, driven by greater average yields compared with other structured finance products, historic .......

    News Round-up 23 April 2015

  • CMBS 1.0 shortcomings tackled

    Fitch reports that progress is being made on addressing the more contentious structural weaknesses of European CMBS, but without delivering on calls for greater standardisation of documentation. With the sector set to remain dominated by complex large financings of secondary property portfolios, the agency believes vigilance is key to preventing deterioration in competition.

    Issuer profit extraction mechanisms that were skewed .......

    News Round-up 23 April 2015

  • SF team strengthened

    TMF Group has appointed Michael Adams as global head of structured finance. He is promoted from regional md for the UK, Ireland and the Channel Islands.

    Prior to TMF Group, Adams was md and business manager for BNY Mellon's corporate trust EMEA structured finance business. He was responsible for the business development, strategy and growth of ABS, MBS and CMBS. .......

    Job Swaps 23 April 2015

  • ILS broker poached

    TigerRisk Partners has appointed Paul Karon as vice-chairman. In his new role, he will be a senior leader, dealmaker, mentor and strategic advisor to the Tiger leadership team. This is the second high-profile hiring by the firm in the last week, following the appointment of Tony Ursano as chairman (SCI 17 April).

    Karon joins from AQR Re, where he was .......

    Job Swaps 23 April 2015

  • Direct lending exec moves on

    Carmen Alonso has joined Tikehau's private debt team, where she will lead direct lending activities in the UK, Spain, Germany and Scandinavia. She will also seek to further develop the group's interaction with private equity funds, direct lending funds and banks.

    Alonso was most recently md in Morgan Stanley's European leveraged finance team. Prior to this, she worked in leveraged .......

    Job Swaps 23 April 2015

  • Resolutions outpacing defaults

    €10.4bn of European CMBS loans are currently in special servicing, representing 31% of the outstanding market, according to Morgan Stanley figures. As loan maturities moderate and servicers continue working out legacy defaults, loans worth over €5bn have exited the special servicing bucket since January 2014.

    Loss severity of worked-out loans averaged 17% last year and the average time in special .......

    News Round-up 23 April 2015

  • Euro ABS/MBS BWICs trade well

    Yesterday saw another active day in European ABS/MBS BWICs with almost all line items trading well.

    "There were a lot of BWICs yesterday and everything traded well, with the big blocks of EPICP DRUM A and WINDM XIV-X B a particular highlight," one trader says. "At the same time, UK non-conforming is feeling softer but the BWIC execution levels of .......

    SCIWire 23 April 2015

  • Sprawling landscape

    SFR securitisation expands with multi-borrower option

    B2R Finance and FirstKey Lending this month became the first sponsors to launch multi-borrower single family rental (SFR) securitisations (SCI passim). A number of key structural differences relative to single-borrower transactions have left investors weighing the costs and benefits of the two deal types.

    The US$230m B2R Mortgage Trust 2015-1 was the first multi-borrower SFR securitisation to hit the market, .......

    News Analysis 23 April 2015

  • Stepping out

    European CMBS breaks new ground

    New European CMBS deals are increasingly deviating from the cookie-cutter mould established in the market's post-crisis revival. Both deal structures and collateral are branching out.

    "European CMBS is becoming more diverse. People are hunting for yield and looking for new ways to structure deals," says Jonathan Banks, director, Mount Street.

    An example currently in the market is RBS' £175m Antares .......

    News Analysis 23 April 2015

  • US CDO/CLO lists added

    After two days of being all but becalmed there are a growing number of lists being added to the US CDO/CLO calendar.

    Over the past two days secondary trades have been limited with many participants absent at this week's New York CLO conference. However, there are currently two CDO/CLO BWICs due today and seven already scheduled for tomorrow.

    Today's first .......

    SCIWire 22 April 2015

  • CLO trading gain use 'credit negative'

    The practice of treating trading gains as interest proceeds is on the rise among new CLOs in both the US and Europe, observes Moody's. The agency says this is credit negative, because it allows cash to 'leak' from the deal to equity holders, rather than be retained, used for reinvestment or used for note amortisation.

    While relatively common in European .......

    News Round-up 22 April 2015

  • Foreclosure timelines plateau

    The average amount of time it took to liquidate a distressed US mortgage loan rose again in 1Q15 to 42 months, according to Fitch's latest index report. However, while timelines on liquidated loans continue to increase, there are signs that the pace may soon begin to slow.

    Among loans still in foreclosure, the average amount of time since making a .......

    News Round-up 22 April 2015

  • Conduit credit quality weakening

    The credit quality of loans in US CMBS conduits is continuing to weaken, says Moody's. Conduit loan leverage as measured by Moody's LTV (MLTV) is increasing steadily and is now at 117.1%, only marginally below its pre-crisis peak of 117.5%.

    The credit enhancement level on super senior Aaa has consistently been at the 30% mark, but the average cushion between .......

    News Round-up 22 April 2015

  • EMEA CMBS stabilising

    EMEA CMBS performance stabilised in 1Q15 as CRE loans past their original maturities have remained flat since 4Q14, at just above 63%, says Fitch. Similarly, the number of loans in special servicing increased only slightly.

    The agency notes that two loans matured last quarter without being repaid. DECO 14's Cottbus Shopping Centre entered special servicing, while Hercules (Eclipse 2006-4)'s Cannon .......

    News Round-up 22 April 2015

  • Lending portfolio acquired

    A fund managed by Ares Management's commercial platform has agreed to acquire First Capital Holdings' asset-based lending portfolio. The transaction is expected to close during 2Q15.

    The acquisition will take the Ares Commercial Finance platform to US$700m of loan commitments and will expand the team through the addition of members of the First Capital investment team. Ares Commercial Finance was .......

    Job Swaps 22 April 2015

  • Europe focuses on BWICs

    Quiet bilateral activity and consequently static spreads are increasing European secondary market focus on BWICs.

    "It's generally pretty static," says one trader. "Greek paper is still drifting downwards but that's pretty much it on light flows."

    The trader continues: "The primary market continues to be active, but it's not having any impact on secondary. A new issue premium is in .......

    SCIWire 22 April 2015

  • Coal exposure eyed

    The deteriorating credit quality of four US coal companies is stressing some US CLOs with sizable exposures, Moody's reports in its latest CLO Interest. However, most US CLOs have small exposures to the credits, limiting the negative impact of the companies on the CLO universe.

    Moody's notes that Alpha Natural Resources, Arch Coal, Patriot Coal Corp and Walter Energy are .......

    News Round-up 22 April 2015

  • CLO 1.0 WARFs improving

    The median trustee-reported weighted average rating factor (WARF) of US CLO 1.0s rated by Moody's is improving as the deals amortise. This is not due to improving credit quality, but rather is a result of the exclusion of defaulted assets from WARF calculations, the redemption of CLOs with relatively high WARFs and the sale of high risk assets.

    The removal .......

    News Round-up 22 April 2015
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