Complete news archive

  • Euro CLOs stay slow

    The European CLO secondary market is continuing to see limited activity this week.

    "There's still not much going on," says one trader. "What is trading revolves around 2.0 paper, plus some senior 1.0 and junior mezz 1.0."

    The trader continues: "Everything else is at an impasse. That's primarily because we've reached a price versus DM point that means investors realise .......

    SCIWire 10 March 2015

  • Fast-track ILS framework introduced

    The Isle of Man Insurance and Pensions Authority has introduced a regulatory framework for insurance SPVs (ISPVs). The framework has been developed in close consultation with the industry and the Isle of Man's Department of Economic Development for the purpose of facilitating ILS transactions.

    The rules state that an ISPV must only have (re)insureds and investors that are suitably sophisticated .......

    News Round-up 10 March 2015

  • OTC operations tool launched

    SunGard is launching a new tool for post-trade futures and cleared OTC derivatives operations. The tool seeks to enable derivatives brokers, including futures commission merchants (FCMs), to achieve greater efficiency, reduce operational risk and total cost of ownership by leveraging economies of scale in middle and back office processing and technology. The platform will cover more than 160 cleared derivatives .......

    News Round-up 10 March 2015

  • Peripheral risk expectations improve

    Many securitisations in Spain, Italy, Portugal and Ireland have benefited from an update to Moody's country risk ceiling methodology (SCI 26 January), says the agency. Risk expectations for senior ABS and RMBS tranches with assets located in these countries have improved, reflected by an uplift of the maximum achievable ratings for the affected securitisations.

    Moody's notes that 86% of the .......

    News Round-up 10 March 2015

  • Exchangeable tranches upgraded

    Moody's has upgraded by one notch the ratings of exchangeable classes in 11 US CMBS that were securitised in 2012 and 2013. The move reflects an error correction.

    The affected notes are EC, PEZ or PST tranches issued by: COMM 2012-CCRE2 and 2012-CCRE3; JPMCC 2012-LC9; GSMS 2013-GCJ14; MSBAM 2012-C5, 2012-C6, 2013-C9, 2013-C10 and 2013-C11; and UBSBB 2012-C2 and 2013-C5. The .......

    News Round-up 10 March 2015

  • Focus returns to European ABS/MBS secondary

    After a quiet few days, the European ABS/MBS secondary markets could see a pick-up in activity today as focus shifts away from primary.

    "ABS continues to grind tighter although secondary volumes have been low," says one trader. "The focus has mainly been on primary in the last few days, but that could end up having some impact - talk on .......

    SCIWire 10 March 2015

  • SCI Start the Week - 9 March

    A look at the major activity in structured finance over the past seven days

    Pipeline
    Deals stayed in the pipeline a little longer last week. At Friday's end there were 10 new ABS as well as an ILS and five RMBS.

    The ABS were: US$219.3m American Credit Acceptance Receivables Trust 2015-1; US$350m Chase Issuance Trust 2015-1; US$1.4bn Chase Issuance Trust 2015-2; A$500m Crusade ABS Series 2015-1; US$712m Drive Auto Receivables Trust 2015-A; US$453.53m .......

    News 9 March 2015

  • India law change 'positive' for lenders

    Recent proposals to designate Indian non-banking finance companies (NBFC) with assets of more than INR5bn as 'financial institutions' under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act is credit positive for lenders of loans against property (LAP), says Moody's. RMBS backed by LAPs originated by these NBFCs would also benefit from speedier loan recovery.

    News Round-up 9 March 2015

  • CLO controlling stakes surface

    It's already ramping up to be another busy week in the US CLO secondary market, but unusually the auction calendar includes a notable number of controlling equity stakes.

    "Unusually there's a decent amount of controlling equity on the schedule for this week," says one trader. "There's a total of around $205m of 1.0 and 2.0 equity in for the bid .......

    SCIWire 9 March 2015

  • US CMBS sectors stabilise

    The US CMBS office and retail sectors are stabilising, with moderate improvement in overall fundamentals, says Fitch. Additionally, hotel and multi-family sectors continue to have stable outlooks as they have shown strong income growth over the past five years.

    The rating agency says the office sector continues to show moderate improvement due to a number of factors including job gains .......

    News Round-up 9 March 2015

  • Mexican RMBS faces challenges

    The Mexican RMBS market faces an uneven outlook for 2015 within its various sectors, which could limit growth in employment and household income levels, says S&P. Transactions from most sectors are expected to continue performing solidly but a good portion of the transactions from non-bank financial institutions (NBFIs) will be challenged in 2015 by Mexico's still-weak macroeconomic environment.

    Notwithstanding these .......

    News Round-up 9 March 2015

  • Esoteric ABS firms combine

    Springleaf has agreed to acquire OneMain for US$4.25bn, creating a potential market leader for the unsecured consumer ABS sector. The transaction is expected to close in 3Q15.

    The two brands will be kept separate initially, before migrating to the OneMain brand in mid-2016. JPMorgan notes that both firms are active in the unsecured ABS market, as Springleaf issued US$559m of ABS .......

    Job Swaps 9 March 2015

  • CMBS 2.0 properties auctioned

    Auction.com and RealCapitalMarkets.com data indicates that 66 CMBS properties with US$475m in balance and 23 distressed loans with US$95m in balance are up for auction in March and April. Among these loans, the US$14.7m The Hills property securitised in GSMS 2011-GC5 is one of the first 2.0 distressed properties to be auctioned.

    The loan turned delinquent and became REO in .......

    News Round-up 9 March 2015

  • TRACE expansion delayed

    FINRA has delayed the implementation of CUSIP-level TRACE dissemination for non-mortgage ABS trades until 1 June, from the originally planned start date of 27 April. Prices for trades in SEC-registered public securitisations and private 144a transactions will be disseminated.

    Assuming that CUSIP-level dissemination begins on 1 June, there will be an 180-day transition period, in which trade prices and sizes .......

    News Round-up 9 March 2015

  • SME-backed CDO criteria updated

    Fitch has updated its global rating criteria for CDOs backed by loans to SMEs. The updates particularly affect Spanish collateral and default probabilities.

    In the latest criteria, Fitch has decreased the average annual default rate expectation for Spain to 5% from 6.25%. The revised benchmark results from a reduction in Fitch's expected annual default rate for the real estate and .......

    News Round-up 9 March 2015

  • Property prices outpacing income

    Post-crisis property prices have risen considerably more than effective gross income for core commercial and apartment properties in major US markets, according to Moody's. This is due to cap rate compression, driven in large part by historically low interest rates.

    "The top performer for commercial was San Francisco, where prices were up more than 90% and effective gross income was .......

    News Round-up 9 March 2015

  • Servicer termination 'credit neutral'

    Wells Fargo's recent decision to terminate two RMBS servicing agreements with Ocwen Loan Servicing (see SCI 2 March) is likely to have a neutral credit impact on these transactions, says Moody's. The agency pins this on strong participant incentive to implement an orderly transfer of servicing responsibilities from Ocwen to the desired successor servicer, Select Portfolio Servicing (SPS), as well .......

    News Round-up 9 March 2015

  • Euro ABS/MBS unmoved

    The European ABS/MBS secondary market was broadly unmoved at today's open despite wider market declines late Friday and into this morning.

    The secondary market looks set to stay that was today with another very quiet day in prospect. Players' attention will undoubtedly be drawn toward broader credit markets thanks to the first day of QE as well as the ABS/MBS .......

    SCIWire 9 March 2015

  • Whole loan pool acquired

    Distressed Capital Management (DCM) has purchased approximately US$207.57m of whole loans from RBS' RBSHD 2013-1 A, B1, B2, B3 and trust certificates. The portfolio consists of two sub-pools: seasoned fixed/adjustable-rate fully amortising and balloon reperforming and non-performing mortgage loans, secured by first liens on one- to four-family residential properties; and REO properties.

    "This acquisition represents high investor value on multiple .......

    Job Swaps 6 March 2015

  • CMBS workout pattern shifts

    European CMBS loans worth more than €5bn have exited special servicing since January 2014, while new additions have totalled around €1.2bn. Last year was the first since the crisis in which resolutions outpaced transfers and they should outpace new defaults this year as well.

    The maturity pipeline for 2015 is modest, with less than €3bn outstanding set to mature. Almost .......

    News 6 March 2015

  • US secondary stays bullish

    US secondary securitisation markets, particularly CLOs, are ending a strong week in bullish mood.

    "We're seeing better buying from all types of investor from banks to real money," says one trader. "As a result, spreads are tighter across the board and everything feels as if it will stay positive for now, whether that's CLOs, CMBS or RMBS."

    The positive tone is .......

    SCIWire 6 March 2015
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