Complete news archive

  • 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

  • Competing pressures

    Future of GSE g-fees weighed

    The US FHFA is set to conclude a review of GSE guarantee fees by quarter-end. Execution levels on Freddie Mac's most recent risk transfer RMBS imply that there's room for a drop in g-fees, yet FHFA return-on-equity assumptions indicate a bias towards increasing them.

    ABS analysts at Bank of America Merrill Lynch outline two approaches to evaluating g-fees: one is .......

    News Analysis 19 February 2015

  • Transparency consultation broadened

    ESMA has published a consultation paper that complements the transparency section of the paper on MiFID II/MiFIR published in December (SCI 19 December 2014). The new consultation covers non-equity asset classes, including credit derivatives.

    For each asset class, two sections are provided. The first section presents an analysis on the definition of a liquid market and the second includes calculations .......

    News Round-up 19 February 2015

  • Traditional lending 'positive' for SMEs

    In order to ease access to credit for European non-financial corporations and SMEs, multinational and national authorities have implemented policy initiatives that encourage either direct lending by banks or the development of disintermediation. Moody's says that traditional bank lending provides credit benefits for European SMEs because of larger lending volumes and their highly bespoke nature in terms of minimum size, .......

    News Round-up 19 February 2015

  • Surveillance errors under review

    S&P says it is assessing the impact of potential error corrections relating to the use of lower default rate assumptions for certain current-paying pre-2009 US residential mortgage loans in its cashflow model than those prescribed by its RMBS surveillance criteria for pre-2009 originations. The agency's preliminary assessment suggests that between 300 and 400 ratings may be affected. It expects to .......

    News Round-up 19 February 2015

  • Euro CLOs keep coming

    Today sees another healthy chunk of European CLOs in for the bid.

    Yesterday again saw strong BWIC execution levels across the vast majority of bonds on offer. Today, the market is already scheduling another three lists including a mixed list at 15:00 that also includes two CRE CDO tranches.

    The line 15:00 list consists of: €3m CADOG 4X E, €3m .......

    SCIWire 19 February 2015

  • US CLOs on the up

    Activity is picking up in US CLO secondary today with a strong bid for the right deals.

    "There are a lot of lists out today, primarily revolving around the triple-B to double-A sector," says one trader. "Bids are aggressive, especially for what most buyers are really looking for to achieve some price delta over the next few sessions - the .......

    SCIWire 18 February 2015

  • CMU consultation underway

    The European Commission has launched its landmark Capital Markets Union (CMU) project, which aims to unlock funding for Europe's businesses and to boost growth in the EU's 28 Member States with the creation of a single market for capital (SCI 2 February). A complementary consultation on high-quality securitisation has also been launched as part of the initiative.

    The first stage .......

    News Round-up 18 February 2015

  • OTC reporting rules amended

    The Australian Securities & Investment Commission (ASIC) has amended its 2013 OTC derivative transaction reporting rules. The changes include the introduction of end-of-day reporting instead of intraday reporting as a permanent reporting option, as well as the introduction of a 'safe harbour' from liability for reporting entities using delegated reporting, if certain conditions are met.

    ASIC is also expanding the .......

    News Round-up 18 February 2015

  • Poor vintage?

    Caution urged on recent Australian mortgages

    Australian RMBS issuance has increased, but so too have concerns regarding the underlying loans. House prices continue to rise unchecked, while underwriting standards are also coming into question, suggesting that investors should focus on more proven vintages.

    Two Australian RMBS have already been issued this year - the A$344m PUMA Trust 2015-1 and A$750m Series 2015-1 Harvey Trust - while .......

    News Analysis 18 February 2015

  • Infrastructure team beefs up

    Standard Life Investments has hired Alex Campbell and Marianne Froude to its infrastructure debt team. The pair will report to Jeremy Allcock, head of infrastructure debt, with the team reporting to head of credit Craig MacDonald.

    Campbell joins the firm as investment director for infrastructure debt and will be responsible for the sourcing, negotiation, preparation and review of infrastructure debt .......

    Job Swaps 18 February 2015

  • EMEA losses better US rate

    The estimated total losses from European securitisation bonds are small relative to those of the US, according to Fitch. Total losses on Fitch-rated EMEA securitisations issued from 2000 to 2014 are expected to be 0.7%, compared to 4% globally.

    Fitch says that a breakdown of the overall figures provides further evidence that securitisations have not performed as a homogenous investment .......

    News Round-up 18 February 2015

  • CMBS production strengthened

    Ted Nasca has joined Greystone as md, focusing on establishing a stronger CMBS presence for the firm in the central states through Texas. He will report to Robert Russell, head of production for Greystone's CMBS group.

    Nasca joins Greystone from Guggenheim CRE, where he was responsible for originating life company, CMBS and agency loans in the central region of the .......

    Job Swaps 18 February 2015

  • APAC loss rate falling

    Fitch says that losses on rated Asia Pacific structured finance (SF) transactions issued between 2000 and 2014 are falling. The agency assigned ratings to nearly US$520bn of APAC SF bonds during the period and estimates that realised losses plus future expected losses will total 0.6% of the original note balance. This is marginally lower than the 0.7% total losses estimated .......

    News Round-up 18 February 2015

  • Marginal decrease in maturity defaults

    The 12-month rolling European CMBS loan maturity default rate for S&P's rated universe decreased slightly to 29.9% from 30.5%, as of end-January. However, the overall senior loan delinquency rate increased to 51.4% from 50.8%.

    The delinquency rate for continental European senior loans increased to 64.9% from 63.2% in January. The rate for UK loans decreased to 22.8% from 23.8%.

    The .......

    News Round-up 18 February 2015

  • Euro secondary remains robust

    European secondary securitisation markets are staying robust despite continuing broader volatility around Greece.

    "The ABS/MBS market is strong," confirms one trader. "The core space continues to grind tighter and it's almost impossible to buy paper - the UK and euro is extremely well bid. At the same time, peripherals are unchanged to slightly better."

    Overall, ABS/MBS flows are increasing, albeit .......

    SCIWire 18 February 2015

  • Great divide

    ABS eligibility gap sparking investor rotation

    The ECB ABSPP-inspired rally has resulted in significant spread tiering between eligible and ineligible European ABS bonds. As investors are increasingly priced out of eligible assets, a trickle-down effect is spurring a dash for euro-denominated and ineligible bonds.

    A number of key moments occurred for European ABS spreads in 2H14, beginning with a 5bp tightening effect after ECB president Mario .......

    News Analysis 18 February 2015

  • US CLOs strengthen

    The US CLO secondary market has returned from the Vegas conference and yesterday's public holiday with a strengthening tone.

    "New issue spreads are tightening thanks to the demand for risk retention structures and with that people are scrambling for paper in secondary, particularly at the top end of the stack," says one trader. "Bonds are now scarce as it seems .......

    SCIWire 17 February 2015

  • Loss trends continue to improve

    Loss trends on pre-crisis global securitisations continue to improve, Fitch reports. The agency says this is due in large part to the recovery of the US housing market.

    Total losses on securitised bonds issued between 2000 and 2008 have dropped to 4.9% from 5% in last year's study. Total losses include both realised and expected future losses.

    "Loss performance on .......

    News Round-up 17 February 2015

  • Call for comments on TRACE expansion

    The comment period on FINRA's proposal to expand TRACE trade reporting to include CMBS securities, as well as CMOs and CDOs, began last week. The proposal calls for trades to be reported 15 minutes after execution on a CUSIP basis with price information, similar to reporting for consumer ABS.

    However, only trades sized at below US$1m would be reported in .......

    News Round-up 17 February 2015

  • Islamic finance head hired

    Fitch has appointed Bashar Al Natoor as global head of Islamic finance, based in Dubai. In this new role, he will coordinate all Islamic finance activities and expertise across Fitch's sovereign, financial institutions, corporate, structured finance, infrastructure and insurance teams.

    Since joining the agency, Al Natoor has overseen Fitch's sukuk criteria and Islamic finance practices, undertaken research and written numerous .......

    Job Swaps 17 February 2015
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