Complete news archive
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Game changer
Resolution regulation to transform covered bond approach?
Scope Ratings has dubbed the implementation of the European Resolution and Recovery Directive and similar regimes in other European countries as a "game changer" for the covered bond market. The improved credit characteristics and lower probability of default for covered bonds have been reflected in the agency's proposed new rating methodology for the sector, as a result.
In its proposed .......
News Analysis 24 February 2015
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CMBS sub debt proliferating
Subordinated commercial real estate loans have emerged as a compelling alternative for investors seeking higher yields while targeting specific credit opportunities. Coupled with looser underwriting standards, this has driven an increase in the volume of US CMBS 2.0 conduit loans with subordinated debt - a trend that is expected to continue.
Of the 49 CMBS 2.0 conduit deals issued in .......
News 23 February 2015
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Belle Haven list circulating
It's a quiet start to the week for the US CDO/CLO BWIC market, but today does include a list consisting of four pieces of a Belle Haven CDO.
Due at 16:00 New York time today the list represents $349.17m of current face from the multi-sector ABS CDO. It is made up of two first pays and two second pays - .......
SCIWire 23 February 2015
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SCI Start the Week - 23 February
A look at the major activity in structured finance over the past seven days
Pipeline
Several new deals have been announced in the wake of the recent conference. Last week there were 10 ABS transactions added to the pipeline, as well as one ILS, one RMBS, two CMBS and two CLOs.The ABS were: US$330m Ascentium Equipment Receivables 2015-1; C$250m CNH Capital Canada Receivables Trust Series 2015-1; US$800m CNH Equipment Trust 2015-A; A$500m ......
News 23 February 2015Premium Content
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UKNC opportunity eyed
The latest Eurosail restructuring and remarketing of debt tranches provides investors with an interesting route into UK non-conforming RMBS. ESAIL 2007-4BL's shorter-dated A2a tranche, in particular, appears to offer a rare opportunity in the asset class.
ESAIL 2007-4BL originally issued securitisation liabilities in euros, while the loans were all denominated in pounds. Cross-currency swaps were entered into with Lehman Brothers, .......
News 23 February 2015
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Euro P2P securitisations awaited
Peer-to-peer (P2P) lending - also known as marketplace lending - could expand the universe of potential investors in the European securitisation market, Moody's suggests. As with any other receivables, P2P loans can be securitised through the sale of the loans to SPVs that issue corresponding securities sold to investors.
P2P lending is one of the few alternative funding mechanisms that .......
News Round-up 23 February 2015
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Ocwen-serviced RMBS downgraded
Fitch has resolved the negative rating watch on 280 US RMBS classes from 127 transactions. All of the classes were previously rated above single-A and are collateralised with mortgage loans serviced in part by Ocwen Loan Servicing.
In all, 273 classes have been downgraded to single-A and assigned a stable outlook by Fitch, while seven classes have been affirmed at .......
News Round-up 23 February 2015
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Altisource appoints ceo
Altisource Asset Management (AAMC) has hired George Ellison as ceo, succeeding current ceo Ashish Pandey. Effective upon Ellison's appointment, Pandey became AAMC's executive chairman and will remain in his position as ceo of Altisource Residential.
Prior to joining the firm, Ellison had been at Bank of America and its predecessor Nationsbank. He held several roles at the bank, most recently .......
Job Swaps 23 February 2015
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Arranger league tables - 2014
1 January to 31 December
Arranger league tables 23 February 2015
Euro secondary stays strong
European secondary securitisation markets continue to trade well despite the Greek rollercoaster impacting other markets.
A flurry of BWICs added to the calendar on Friday took market attention, but further strong prints were seen across deal types and jurisdictions. There has even been an upswing for some Greek RMBS names - for example, dealer quotes for GRIF 1 A have .......
SCIWire 23 February 2015
Positive sentiment drives Renault tighter
Five-year CDS on Renault have firmed by 22% over the past month to price at the tightest levels observed since 2008, according to Fitch Solutions. After consistently pricing in the triple-B minus space for much of the past year, credit protection on Renault's debt is now pricing one notch higher, in line with triple-B levels.
The equity market has echoed .......
News Round-up 20 February 2015
CMBS metrics diverging
New issue and legacy US CMBS metrics continue to diverge, says Fitch. New issue metrics continued to decline in 4Q14, while the metrics of legacy US CMBS improved.
The percentage of new issue full and partial interest-only loans in Fitch-rated transactions rose by 5% last quarter. The increase was driven by an approximately 4% increase in full IO loans. In .......
News Round-up 20 February 2015
GFI agreement mulled
BGC Partners says it is engaged in discussions with GFI Group and expects to reach a consensual agreement related to its tender offer to purchase the shares of GFI for US$6.10 per share. The proposed agreement would satisfy all of BGC's previously disclosed tender offer conditions.
The offer for stockholders to tender their shares expired on 19 February. BGC's financial .......
Job Swaps 20 February 2015
US CLOs see direction
US CLO secondary activity picked up after a slow start yesterday and found some direction for oil-related assets.
"In the end, yesterday was pretty active in terms of lists as it has been over the previous few days," says one trader. "We're seeing a lot more double-Bs out there and getting a lot more prints on those with high energy .......
SCIWire 20 February 2015
CMBS best practices released
CREFC has published new best practices addressing a variety of issues in the CMBS market. Effective immediately, the standards have been developed in conjunction with industry participants in the interest of further enhancing data consistency, transparency and efficiency across the market.
The six new best practices include promoting the reporting of consistent and timely details by special servicers regarding loan .......
News Round-up 20 February 2015
Fraud charge for CDO liquidations
The US SEC has charged VCAP Securities and its ceo Brett Graham with fraudulently deceiving other market participants while conducting auctions to liquidate CDOs. The agency's investigation found that VCAP and Graham improperly arranged for a third-party broker-dealer to secretly bid at these same auctions on behalf of their affiliated investment adviser in order to acquire certain bonds to benefit .......
News Round-up 20 February 2015
CRE performance positive
All US CRE sectors performed well in 4Q14, according to Moody's. The agency says performance was supported by the country's economic recovery and stable inflation.
Moody's base expected loss for conduit/fusion CMBS transactions fell to 7.6% in 4Q14 from 8.2% in 3Q14. The overall share of specially serviced conduit loans decreased by 5bp to 7.32% in 4Q14 from 7.37% in .......
News Round-up 20 February 2015
Caesars auction results in
Final results of the Caesars Entertainment Operating Company Inc CDS and LCDS auctions have been published. The final price for CDS referencing the entity was determined to be 15.875, with 11 dealers submitting initial markets, physical settlement requests and limit orders to yesterday's auction. The final price for LCDS on the name was determined to be 96, with eight dealers .......
News Round-up 20 February 2015
Euro secondary closes quietly
European secondary securitisation markets continue to remain insulated from broader market volatility and after a busy week look set to close it out quietly.
BWIC activity dominated across the board yesterday with bilateral trading taking a back seat. The majority of ABS, CLOs and MBS on lists saw strong execution once more.
Today's European auction schedule is considerably quieter with only .......
SCIWire 20 February 2015
Positive pattern for US RMBS
Activity in US non-agency RMBS is developing something of a pattern, which is positive for the market.
"As with previous weeks, the market is focused on a big list, which on this occasion looks like it's from a GSE," says one trader. "It's due today and is around $1bn but could be upsized to about $2bn as there is the .......
SCIWire 19 February 2015
US CLOs slow down
After a busy couple of days, activity in the US CLO secondary market has slowed today.
"There's still a bit of activity today, but things are on the slower side," says one trader. "Nevertheless, bonds are likely to continue to trade well and the tone remains positive."
There is no main reason for the quieter day today, the trader suggests. .......
SCIWire 19 February 2015