Complete news archive

  • 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

  • Duration changes weighed

    US CLO structures that experiment with duration parameters are emerging ahead of the risk retention effective date. A recent JPMorgan research note looks at the pros and cons of shortening non-call periods and including delayed draw notes in transactions.

    A number of early 2015-vintage US CLOs have been structured with non-call periods ending before the effective date to provide equity .......

    News 6 March 2015

  • CCP location policy nullified

    The EU General Court has ruled on the ECB's location policy for central counterparties. The court's judgement annuls the Eurosystem Oversight Policy Framework published by the ECB, in so far as it sets a requirement for CCPs involved in the clearing of securities to be located within the eurozone.

    In its judgement, the court considered that the ECB location policy .......

    News Round-up 6 March 2015

  • Risk retention uncertainties remain

    Fitch suggests that many small US CLO managers will find it difficult to comply with new risk retention rules. While several strategies are emerging to assist CLO managers with the rules, their effectiveness in satisfying regulatory requirements remains uncertain.

    In one strategy, banks that arrange CLO collateral provide financing by taking vertical strips. In another, a majority owned affiliate with .......

    News Round-up 6 March 2015

  • Law firm beefs up in SF

    Jeffrey Stern has joined Winston & Strawn as a partner in its structured finance practice in New York. Stern arrives from Pillsbury Winthrop Shaw Pittman, where he served as a partner and head of structured products. He has previously worked in developing and refining new and emerging forms of domestic and cross-border structured financings, credit derivative structures, structured funds, asset-based .......

    Job Swaps 6 March 2015

  • Subprime auto ABS weakening

    US subprime auto loan ABS performance continues to weaken, according to S&P. However, the agency expects ratings to remain stable due to credit enhancement keeping pace to offset additional risk and outstanding securitisations benefitting from robust structural features.

    The 2014 yearly average net loss rate for the sector increased by 17.5% from the 2013 level, with delinquencies also continuing to .......

    News Round-up 6 March 2015

  • CLO shop taps lawyer

    Eagle Point Credit Management has hired Daniel Wohlberg as vp. He will assist the senior investment team in all facets of the investment process, focusing primarily on the analysis and negotiation of CLO trade documentation.

    Previously, Wohlberg was an associate at Dechert, where he advised financial institutions, hedge funds, underwriters, issuers, institutional investors, asset managers and sponsors in structured finance .......

    Job Swaps 6 March 2015

  • Limited tender take-up

    Mizuho has accepted for purchase €11m of Proventus European ABS CDO bonds via its tender offer (SCI 24 February). €2m of class D notes (with an accrued interest payment of €215.33 per €50,000), €4.5m of class Es (€614.08) and €4.5m of class Fs (€885.95) were validly tendered.

    The expiration deadline for the offer was 4 March, with settlement expected on .......

    News Round-up 6 March 2015

  • Countrywide appeal approved

    The Appellate Division of the New York Supreme Court yesterday approved the Countrywide trustee's proposed US$8.5bn rep and warranty settlement in its entirety. The court concluded that as a trustee, BNY Mellon properly exercised its discretion in settling all the claims, including repurchase claims against loan modifications that were previously excluded by Judge Kapnick's decision from early 2014 (SCI passim).

    News 6 March 2015

  • BWIC composition changes analysed

    With the growth of US CMBS supply over the last five years, secondary activity has transitioned from being dominated by legacy conduit paper into a more even mix of post-crisis conduit, agency and single-asset/borrower bonds. So far this year, 40% of BWICs have been concentrated in legacy conduit paper, 22% in post-crisis conduit bonds and 38% in other deal types, .......

    News Round-up 6 March 2015

  • RadioShack results in

    The final price of the RadioShack Corp CDS auction has been determined at 11.5. At yesterday's auction, 11 dealers submitted initial markets, physical settlement requests and limit orders to settle trades across the market referencing the entity.

    .......

    News Round-up 6 March 2015

  • More of the same for European ABS/MBS

    Yesterday saw another positive but quiet day in the European ABS/MBS secondary market as broader credit was boosted by the ECB's QE announcement.

    Trading continued to be slow yesterday and into this morning, but remains strong in still patchy activity around the usual key areas of prime, UK non-conforming and selected peripheral paper. However, there was some softening in German .......

    SCIWire 6 March 2015

  • Stricter eligibility causes casualties

    The ECB has removed 11 Spanish bonds from its repo-eligible ABS bond list due to non-compliant payment waterfalls following enforcement or accelerated amortisation. Such a stringent interpretation could have far-reaching implications, according to European securitisation analysts at Barclays Capital.

    The Spanish bonds that have lost ECB repo-eligibility over the last month are: Bancaja 4, Bancaja 5, Bancaja 6, Bankinter 3, .......

    News 6 March 2015

  • US RMBS disrupted but still strong

    This morning's storm in the Northeastern US has disrupted activity in the non-agency RMBS secondary market, but it continues to trade strongly.

    "It was a fairly light start to the month though activity was picking up a head of steam as the week went on, but that's changed today because of the weather," says one trader. "One larger list has .......

    SCIWire 5 March 2015

  • Hurdle ahead for US CLOs

    The broad-based US CLO secondary rally is continuing, but will face its biggest hurdle so far later today.

    "We've seen continued tightening across the capital structure and that's brought out a lot of sellers trying to take advantage of the strength," says one trader. "As a result, it's been a busy week with a lot of BWICs, but that hasn't .......

    SCIWire 5 March 2015

  • Bankruptcy rule 'credit negative'

    The initiation of Spain's second chance rule is credit negative for covered bonds and securitisations backed by loans to individuals, suggests Moody's. RMBS and SME ABS are the most affected asset classes, as the rule allows for debt forgiveness of mortgage debt left outstanding after property repossession.

    The rule aims to assist individuals struggling with bank debt, facilitating debt forgiveness .......

    News Round-up 5 March 2015

  • Refinancing target missed

    The second refinancing instalment of the restructured Dutch CMBS transaction Leo-Mesdag, due last month, was missed. While the CMBS classes are not expected to face principal losses, it does appear that the sponsor will struggle to meet its refinancing business plan.

    The CMBS was restructured last year (see SCI's CMBS loan events database) and exceeded its .......

    News 5 March 2015

  • Business development director added

    First Names Group has appointed Joanne McEnteggart as business development director, focusing on the corporate, trust and structured finance areas. She will be based in Dublin.

    McEnteggart joins First Names following a number of senior roles for Capita, most recently as director of business development of debt solutions. She has also held roles at Michael Page, NCB Stockbrokers and Ernst .......

    Job Swaps 5 March 2015

  • Ratings-driven tiering continues

    The pricing of two US CMBS on the same day last month indicates continued investor sensitivity to which rating agencies are rating bonds across the CMBS 2.0 capital structure. Indeed, a recent Morgan Stanley analysis finds that CMBS 2.0 LCF triple-A bonds that are rated by both Moody's and Fitch are pricing nearly 3bp tighter on average than those that .......

    News 5 March 2015

  • Long/short mutual fund debuts

    Collins Capital has launched the Collins Long/Short Credit Fund, a mutual fund that attempts to generate absolute returns over a complete market cycle by primarily investing in a portfolio of long and short investments in credit-related securities with active management of net exposure. Investors can use the fund as a substitute for long-only high yield, as a risk managed supplement .......

    News Round-up 5 March 2015

  • CRE vet hired

    John Scheurer has joined American Capital as md and cio for its CRE group, where he will be responsible for developing a CRE platform alongside md Doug Cooper and the existing CRE group. American Capital may fund its CRE investments by incubating a commercial mortgage REIT, which it would manage.

    Prior to joining American Capital, Scheurer was president and ceo .......

    Job Swaps 5 March 2015
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