Complete news archive

  • Distressed debt exec moves

    Ray Costa has joined Benefit Street Partners as md. He will lead the firm's event-driven/distressed investing platform, reporting to Thomas Gahan, founder and ceo of BSP.

    Costa arrives from Deutsche Bank, where he was also an md. His responsibilities at the bank ranged from the global head of distressed debt trading to co-head of credit fixed income trading in North .......

    Job Swaps 6 February 2015

  • CMBS pay-offs bounce back

    The percentage of US CMBS loans paying off on their balloon date rebounded in January after a sharp drop in December, according to Trepp. The latest reading is about 25 points higher than the December rate of 49.6%, which was the lowest reading since July 2012.

    The January rate was 71.9%, which is above the 12-month moving average of 66.1%. .......

    News Round-up 6 February 2015

  • Trade repository prepped

    In response to bank demand, SIX is to establish a central trade repository for derivative transactions in Switzerland. The service will use the reporting technology of London Stock Exchange Group's UnaVista platform.

    The repository will be operated and hosted by SIX and will allow Swiss clients to fulfil their reporting obligations under the Swiss Financial Market Infrastructure Act (FMIA), which .......

    News Round-up 6 February 2015

  • Euro SME CLOs outperforming

    Fitch reports that European SME CLOs are showing better asset performance than originating banks' loan books, albeit this performance may be distorted by the repurchase or refinancing of delinquent and defaulted loans or by positive selection common in collateral portfolios.

    The number of 90 to 360 days delinquencies as of end-3Q14 across Italian, Portuguese and Spanish SME CLOs averaged 2.9% .......

    News Round-up 6 February 2015

  • Floorplan criteria finalised

    S&P has published its rating methodology and assumption criteria for global non-diversified auto dealer floorplan (ADFP) ABS. The agency has added qualitative factors relating to the relevant auto manufacturer to be considered in its analysis.

    These factors include consideration of the stand-alone credit profile (SACP) of the manufacturer, which is S&P's opinion of the manufacturer's creditworthiness in the absence of .......

    News Round-up 6 February 2015

  • Risk management recommendations issued

    The Basel/IOSCO Joint Forum has published a report on developments in credit risk management across sectors, covering current practice and recommendations. The report surveys supervisors and firms in the banking, securities and insurance sectors globally in order to understand the current state of credit risk management, given the significant market and regulatory changes since the financial crisis.

    A number of .......

    News Round-up 6 February 2015

  • Quality considerations

    Concentration risk has resurfaced in the legacy European CLO space, following a recent spate of optional redemption notices, coupled with high repayment rates for non-called deals. Based on an analysis of the sector, European securitisation analysts at Bank of America Merrill Lynch note that a minority of transactions now only have a small number of assets left in their portfolios.

    News 6 February 2015

  • Reset ABS affirmed

    Fitch reports that the credit enhancement levels of six Indian auto ABS have been reset with no rating impact since the Reserve Bank of India released guidelines on CE reset in July 2013. The agency expects the volume of CE resets in Indian transactions to rise as the sector matures.

    CE reset refers to the removal of credit enhancement from .......

    News Round-up 6 February 2015

  • ABS CDO manager replaced

    Rabobank International has resigned from its role as collateral manager for Vermeer Funding II and designated the replacement collateral manager as Dock Street Capital Management (DSCM). Fitch notes that the terms of the amended and restated collateral management agreement remain almost identical to the original collateral management agreement, with minor differences that are not material to the ratings of the .......

    Job Swaps 6 February 2015

  • Euro ABS/MBS holds firm

    Away from Greece secondary European ABS/MBS spreads are holding firm.

    Core bonds continue to grind tighter and peripheral spreads are holding up well on the back of broad-based demand. Areas of focus remain Dutch prime, UK non-conforming and Italian RMBS.

    The BWIC calendar so far today is again relatively light with a fair number of line items only offered in small .......

    SCIWire 6 February 2015

  • Mixed reception for mortgage limits

    Limits on mortgage lending announced by the Central Bank of Ireland last week are positive for the health of the banking system in the long term, as they should support more sustainable and prudent lending by Irish banks, Fitch suggests. But in the short term credit demand and supply may be reduced, which could slow house price growth and NPL .......

    News Round-up 5 February 2015

  • Unusual sectors for US RMBS

    Secondary US non-agency RMBS activity is quieter this week overall, but two sectors of the market are unusually busy.

    "We've seen a slowdown in advance of the conference in Vegas next week," says one trader. "However, there has been a lot of activity in two areas where we don't often see high volumes trading - wrapped bonds and re-REMIC structures."

    SCIWire 5 February 2015

  • Cat bond innovation expected

    A flurry of activity in 4Q14 resulted in record 144A P&C catastrophe bond issuance that exceeded US$8bn for the year, according to GC Securities' latest ILS update. This followed one of the slowest third quarters to date for issuance.

    Total risk capital outstanding equalled US$22.868bn, the highest level of outstanding risk capital the market has ever supported. GC says that .......

    News Round-up 5 February 2015

  • Rating requirements pose questions

    The US SEC's decision to bar S&P from rating new issue conduit CMBS until next year (SCI 22 January) presents a conundrum, as many money managers require either an S&P or a Moody's rating. Moody's comparatively high subordination requirements in order for an AS tranche to be rated Aaa could therefore affect how future deals are structured.

    Moody's last week .......

    News 5 February 2015

  • Sharp widens on profit warning

    Sharp's five-year CDS have widened by 80% over the past month to price at the widest levels observed since February 2014, according to Fitch Solutions. After consistently pricing in the double-B plus to double-B space for much of the past year, credit protection on Sharp's debt is now pricing in line with single-B minus levels.

    "CDS widening for the Japanese .......

    News Round-up 5 February 2015

  • Call for market 'restart'

    A healthy securitisation market can confer important financial benefits and revitalising this source of financing has emerged as a key area of focus for policymakers, IMF economists observe in the institution's latest Survey Magazine. In its analysis, the IMF offers a comprehensive suite of measures targeting both supply- and demand-side reforms to strengthen securitisation and mitigate risk.

    "Restarting and expanding .......

    News Round-up 5 February 2015

  • Italian expansion for investment firm

    Tikehau Capital is developing its direct investment activities and its asset management liquid funds solutions in Italy. Ignazio Rocco di Torrepadula, senior advisor at The Boston Consulting Group, has been appointed senior advisor at Tikehau Capital Italy.

    Furthermore, Luca Bucelli will relocate to the firm's new offices in Milan. Bucelli and Torrepadula will both work closely with Jean-Pierre Mustier, who .......

    Job Swaps 5 February 2015

  • CLO pricing to reflect sector views?

    Energy-related credits continue to diverge from loan index returns, in conjunction with the drop in oil prices. With increased attention being paid to sectors, JPMorgan CDO strategists examined a sample of US post-crisis CLO exposures across 21 sectors as categorised by the JPMorgan leveraged loan index.

    The sample comprised 461 deals totalling US$217bn in assets. The analysis shows that healthcare, .......

    News 5 February 2015

  • Hearing scheduled for Citi settlement

    The New York Supreme court last week signed a show cause order in the Citi RMBS rep and warranty case, scheduling the first oral hearing for the case for 19 May. Investors who oppose the deal have until 17 April to file their objections and trustees have 17 days after that to file their response to the objections.

    The trustees .......

    News Round-up 5 February 2015

  • Greek RMBS hit again

    Volatility in broader markets has fed through into Greek RMBS this morning, but elsewhere in European ABS/MBS spreads are steady.

    Sellers are outnumbering buyers in Greek RMBS this morning on the back of the ECB implementing further funding restrictions to the country's banks. GRIF 1 A is currently quoted at 65 bid - down over two points today and a .......

    SCIWire 5 February 2015

  • Lull for US CMBS

    The secondary US non-agency CMBS market is currently going through something of a lull.

    "Yesterday was slow and today is reasonably quiet, though a few more BWICs are coming out now," says one trader. "There doesn't appear to be any significant reason why."

    At the same time, CMBS spreads are holding steady with no dramatic drivers to disturb them. "Right .......

    SCIWire 4 February 2015
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