Complete news archive

  • Oil causes Canada CMBS concerns

    The negatives of a sustained period of low oil prices seem likely to outweigh the positives for assets in Canadian CMBS, notes Fitch. Canadian CMBS conduit performance could diverge sharply between oil-focused areas in Alberta, such as the cities of Calgary, Edmonton and Fort McMurray, and the rest of the country.

    This is in contrast to US CMBS, where Fitch .......

    News Round-up 2 April 2015

  • Chinese auto ABS performance varies

    Chinese auto loan ABS delinquency rates increased in 4Q14 compared with 3Q14, but remain low, explains Moody's. However, the performance of China's eight auto loan ABS transactions under review varied, based upon a number of factors.

    The 30-day plus delinquency rate for Chinese auto loan ABS increased to 0.21% in 4Q14, compared with 0.12% in 3Q14. The 60-day plus delinquency .......

    News Round-up 2 April 2015

  • ESMA targets data centralisation

    ESMA has launched two projects at the request of a number of National Competent Authorities (NCAs), focused on centralising data collection and accessibility. ESMA will attempt to provide a central facility for instrument and trading data and the calculation of MiFIR transparency and liquidity thresholds, and will also provide a single access point for trade repositories data under EMIR.

    ESMA .......

    News Round-up 2 April 2015

  • Post-crisis CLOs still outperforming

    The total amount of CLOs paid down in JPMorgan's CLO index (CLOIE) between the February rebalance and end-March was US$1.46bn in par outstanding, split between US$1.12bn and US$340m of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$8bn with 114 tranches from 18 deals at the March rebalance.

    Last month, the CLOIE experienced positive returns across all tranches, led by .......

    News Round-up 2 April 2015

  • Irish residential regs evaluated

    Irish lenders believe that recently announced mortgage lending regulations could stabilise the property market in the long run, says Moody's. However, certain aspects are expected to increase rent costs and could see first-time buyers renting for longer.

    "One set of rules limits the LTV ratio for owner-occupied and buy-to-let (BTL) mortgages, while another protects borrowers when unregulated entities purchase their .......

    News Round-up 2 April 2015

  • CMBS delinquency rate flattens

    The Trepp US CMBS delinquency rate was unchanged in March, interrupting the recent string of falling delinquencies which saw the rate fall four consecutive months and for 20 months in the last two years. The delinquency rate for US CRE loans in CMBS remains 5.58% and is 96bp lower than a year ago.

    Almost US$1.1bn in loans became newly delinquent .......

    News Round-up 2 April 2015

  • Euro BWICs busy

    European secondary securitisation markets are closing out the holiday shortened week with a busy BWIC calendar.

    "The market is continues to be generally positive, though we've mostly traded sideways this week," says one trader. "Flows have primarily been from BWICs and today looks to be the same and a busy one going into the Easter break."

    Today's current BWIC schedule .......

    SCIWire 2 April 2015

  • NPL pools auctioned off

    Freddie Mac has sold via auction 5,398 deeply delinquent non-performing loans, with an aggregate unpaid principal balance of US$985m, from its mortgage investment portfolio. The transaction is expected to settle in early May.

    The loans were offered as three separate pools and investors had the flexibility to bid on one or more pools, or bid on the aggregate of all .......

    News Round-up 1 April 2015

  • US CLOs remain robust

    The US CLO secondary market remains robust in the face of continuing supply.

    "Secondary spreads are holding firm across the board as both BWIC and primary supply keeps coming," says one trader. "For now, people are really only looking to colour on the macro level as the likely destabiliser."

    The BWIC calendar remains heathy despite the holiday shortened week and .......

    SCIWire 1 April 2015

  • Portuguese servicing partnership agreed

    Arrow Global Group and CarVal Partners have partnered to jointly originate and service Portuguese loan portfolios over a five-year period. The agreement includes the purchase of €565.6m in face value of portfolios for €37m by Arrow Global, of which 61% of the purchase price is underpinned by secured assets. The portfolio purchases principally comprise the acquisition of securitisation notes.

    In .......

    Job Swaps 1 April 2015

  • Irish multifamily faces challenges

    Fitch says high ratings on CMBS backed by Irish multifamily housing (MFH) assets will be difficult to achieve, given the lack of investment track record and the limited historical data on the sector. In the agency's view, bonds rated above single-A need to survive stresses significantly above those experienced in the recent residential downturn, including a slowing economic recovery.

    MFH .......

    News Round-up 1 April 2015

  • Boom-and-bust housing 'overvalued'

    Several US cities synonymous with the housing boom-and-bust environment nearly a decade ago are now emerging as some of the most overvalued housing markets in the country, according to Fitch. Austin and Houston remain the top two most overvalued MSAs, per Fitch's sustainable home price model.

    However, Las Vegas, Phoenix, Riverside and Miami have all vaulted into the top 10. .......

    News Round-up 1 April 2015

  • Greek sovereign ceiling lowered

    Fitch has downgraded 19 tranches from eight Greek structured finance (SF) transactions, covering one ABS and seven RMBS. The agency has assigned a negative outlook to all 18 RMBS tranches.

    In addition, Fitch downgraded five covered bond programmes and maintained their ratings on rating watch negative. These rating actions follow the agency's recent downgrade of Greece's issuer default ratings from .......

    News Round-up 1 April 2015

  • Centralised trading principles promoted

    ISDA has published a set of principles aimed at promoting regulatory consistency in the development and application of centralised trading rules for derivatives. Among the principles set out, ISDA says the trading liquidity of a derivatives contract should be determined by reference to concrete, transparent and objective standards, so that market participants have a clear understanding of when swaps will .......

    News Round-up 1 April 2015

  • Divergent impact from criteria updates

    S&P has published separate methodologies and assumptions for rating Irish and Portuguese RMBS. This follows the agency's request for comments on rating RMBS in the respective jurisdictions (SCI passim).

    The changes align both criteria closely with S&P's global RMBS criteria and aim to increase the transparency of the ratings analysis. On application of the criteria, the agency expects to raise .......

    News Round-up 1 April 2015

  • NPL platform purchased

    Clayton Holdings has acquired Red Bell Real Estate and its affiliate Main Street Valuation. The move is expected to serve as the foundation for new initiatives within the broader real estate market.

    Red Bell offers advanced technology solutions that help investors monitor loan portfolio performance and direct loss mitigation activities; acquire and track NPLs; and value and sell REO properties .......

    Job Swaps 1 April 2015

  • Euro CLOs on the rise

    Euro CLO secondary activity is on the rise though BWIC volumes remain limited.

    "Activity has picked up quite a bit over the last few days," says one trader. "Pretty much all 2.0 paper is in demand and there isn't enough supply."

    At the same time, the trader says: "Demand also continues for 1.0 at the triple-B and under level, but .......

    SCIWire 1 April 2015

  • Trading duo added

    Commerzbank has hired Colin Webb as a director in its financials trading team. Webb previously worked for Deutsche Bank, where he traded investment grade financial credit swaps.

    The bank has also recruited Donal Golden from Legal & General Investment Management. He will serve as a director in Commerzbank's high yield trading team.

    .......

    Job Swaps 1 April 2015

  • Montpelier Re acquired

    Endurance Specialty Holdings is set to acquire Montpelier Re Holdings for a consideration of 0.472 shares of Endurance and US$9.89 in cash for each Montpelier common share. This represents US$40.24 per Montpelier common share, or US$1.83bn in aggregate, based on Endurance`s closing price on 30 March.

    As a result of the transaction, Endurance expects to achieve meaningful transaction synergies through .......

    Job Swaps 1 April 2015

  • Senior sales pro recruited

    Vanessa Bradford has joined RBS as a senior sales person on asset-backed product (ABP) sales. She reports to Patricio Silva, head of ABP sales for EMEA.

    Bradford arrives from Cantor Fitzgerald, where she worked in fixed income sales, focusing on structured credit. Prior to this, she worked for Lehman Brothers as head of hedge fund sales for European structured products.

    .......

    Job Swaps 1 April 2015

  • Broadening the field

    Diverse issuance signals deepening primary market

    The European securitisation market has witnessed an influx of diverse primary issuance in recent weeks. Supply has bumped Q1 volumes up by nearly 50% over the same period last year and underlines the increasing depth of the sector.

    Notable recent transactions include Australian RMBS, UK buy-to-let RMBS, Dutch RMBS, Italian consumer ABS, Portuguese future flow ABS, European CLOs and the .......

    News Analysis 1 April 2015
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