Complete news archive

  • 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

  • Prepayment error for 2.0 loan?

    The latest trustee report for DBUBS 2011-LC1 shows that the US$55.3m Rookwood Commons loan has prepaid in full without penalty. Morgan Stanley CMBS strategists suggest that this may be an error, since prepayment prior to 1 May is only permitted with the greater of yield maintenance and 1%.

    The loan has never been delinquent, but was on the servicer watchlist, .......

    News Round-up 22 April 2015

  • Positive tone in US MBS

    Despite macro issues the tone in the US MBS secondary markets remains positive.

    "There continues to noise about Greece and so on, but when you bring it down to the sector level it feels pretty risk on right now", says one trader. "You only have to look at the primary market - there's just been a CMBS conduit price tight .......

    SCIWire 21 April 2015

  • Euro CLO BWICs building

    After a relatively quiet period the European CLO BWIC calendar is beginning to build once more.

    "We're seeing a few more BWICs appearing so there's bit more happening in that part of the market now," says one trader. "A lot of people have been sitting on the sidelines trying to figure out the impact of the huge pay-downs we've been .......

    SCIWire 21 April 2015

  • CDPC note ratings withdrawn

    Moody's has withdrawn its ratings on five senior subordinated and three subordinated notes issued by Athilon Capital Corp, affecting US$238m of debt securities. The rating action comes after the CDPC distributed capital from eligible investments to selected investors in connection with the cancellation and retirement of US$312m of notes in a manner that, in Moody's opinion, is not contemplated by .......

    News Round-up 21 April 2015

  • Due diligence trio added

    Houlihan Lokey has hired Richard Forgione as a director in its due diligence services practice. He joins from EY, where he was a senior manager in the firm's transaction advisory services practice. Forgione also previously worked in EY's structured finance advisory services practice, working with investment banking clients on securitised product issuances.

    Houlihan Lokey has additionally hired Carl Ashqar and .......

    Job Swaps 21 April 2015

  • Effective date process refined

    S&P has introduced a new alternative to its effective date rating agency confirmation process for CLOs. The update is intended to increase the transparency and predictability of the effective date process for collateral managers as they ramp up their CLO portfolios.

    The alternative effective date process relies on the non-model version of CDO Monitor introduced by S&P last year, which .......

    News Round-up 21 April 2015

  • Recoveries change RMBS landscape

    Investors can find value in non-investment grade senior and mezzanine Spanish RMBS bonds, particularly as recoveries switch deals to pro rata paydown. Certain investment grade names also make for attractive investment candidates.

    Citi RMBS analysts have estimated updated Spanish LTVs for 2005-2007 vintage deals. They find indexed LTVs for 2005 vintage deals range between 57% and 85%, while the range .......

    News 21 April 2015

  • Investor relations head named

    Ruth Lane has joined CIFC as head of investor relations. In the the newly created position, she reports to CIFC head of business development Spencer Potts.

    Lane joins CIFC from Mount Kellett Capital Management, where she was associate director of investor relations and marketing. At Mount Kellett, she was responsible for supporting the investor relations, marketing and business development activities .......

    Job Swaps 21 April 2015

  • ABS franchise strengthened

    SG has hired Daniel McGarvey and a team of senior ABS bankers from RBS. McGarvey will manage an expanded team of ABS and CMBS professionals with the objective of building a US ABS franchise, both in mortgage and non-mortgage ABS segments.

    McGarvey most recently headed RBS's non-mortgage ABS business. Prior to this, he marketed, structured and executed term ABS distribution .......

    Job Swaps 21 April 2015

  • Auto ABS collateral weakening

    US prime auto ABS collateral has been marginally weakening in recent months, says Fitch. This is due, in part, to heightened competition among auto finance companies.

    Since 2011, credit quality of the underlying pools has declined marginally, but remains stronger than pre-recessionary levels. Fitch explains that competition and low loss levels are encouraging slightly riskier loan attributes for auto ABS. .......

    News Round-up 21 April 2015

  • CMBS originator recruited

    Greystone has hired Steve Cho as md. Reporting to Robert Russell, head of production for Greystone's CMBS group, he will focus on building the firm's CMBS presence in the central US states through Texas.

    Prior to joining Greystone, Cho was md at RBS and the bank's sole CMBS originator in the US central region. Before that, he worked in the .......

    Job Swaps 21 April 2015

  • Risk retention views polled

    Among respondents to JPMorgan's 2Q15 CLO client survey, it is generally felt that only a minority of CLO managers have a clearly defined risk retention strategy. About half of those surveyed - and overwhelmingly investors - believe that a manager should contribute at least 51% of the retention, with the remainder suggesting that the contribution should be 10%-30% or even .......

    News 21 April 2015

  • Euro ABS/MBS holds up

    The European ABS/MBS secondary market was very quiet again yesterday and into this morning, but spreads are holding up.

    Activity varies by sector, according to one trader. "Most of the activity in prime over the last few days has been around small size BWICs, which have traded well including some Italian bonds."

    Away from BWICs, the trader adds: "We saw .......

    SCIWire 21 April 2015

  • US CLOs keep quiet

    The recent run of quiet days in the US CLO secondary market, last Thursday's blip excepted, is likely to continue this week.

    If anything, this week looks set to be even quieter than last. Both buy- and sell-side players appear to be taking this week's New York CLO conference as an opportunity to stay out of the market and sidestep .......

    SCIWire 20 April 2015

  • Two-tone CMBS

    SASB popularity grows as conduit concerns continue

    With around US$14bn of new issuance hitting the market last quarter, the single-asset/single-borrower (SASB) sector appears to be the sweet spot in US CMBS at present. In the conduit sector, meanwhile, deteriorating underwriting standards and the ratings impasse continue to concern investors.

    The recent SASB issuance spike is being driven by low interest rates and the desire to lock in .......

    News Analysis 20 April 2015

  • CLO pro swaps managers

    HIG Capital has hired Asmat Doza as a director. She was previously an executive director at CIFC Asset Management, where she was responsible for marketing corporate credit and structured credit strategies, including CLO debt and equity mandates. Doza has also held senior roles at Boutique Advisory Firm and PineBridge Investments.

    .......

    Job Swaps 20 April 2015

  • Loan terms examined

    Of the over 12,000 loans outstanding in Fitch-rated US CMBS transactions issued since 2010, approximately 65% of the loans were issued with 10-year terms, according to the agency. In contrast, approximately 8% of the outstanding universe were issued with loan terms of five years or less.

    Fitch-rated deals issued between 2010 and 2015 include 875 five-year loans and 8,157 10-year .......

    News Round-up 20 April 2015

  • Correlation trader reassigned

    HSBC has reassigned Billy Burke to its ABS trading desk. Burke is a vp in structured credit products and focuses on credit correlation trading. He reports to Mark Wirth, md at the bank.

    .......

    Job Swaps 20 April 2015

  • USDA programme boosted

    Ginnie Mae has enhanced its securitisation programme for US Department of Agriculture (USDA) Section 538 multifamily loans, allowing those with a maximum loan amount of 70% of total development costs to be eligible for pooling into Ginnie Mae MBS. This is an increase from the previous maximum loan amount of 50% of the total development costs, with the association seeking .......

    News Round-up 20 April 2015

  • Global RMBS recovering

    Moody's notes that US economic growth has driven RMBS arrears lower, while GDP growth and servicers' loss mitigation activities will support the performance of legacy subprime RMBS in 2015. In Europe, stabilising unemployment could help to steady collateral performance, as prime RMBS have seen double-digit decreases in severe arrears of more than 90 days.

    The credit quality of new private-label .......

    News Round-up 20 April 2015
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