Complete news archive

  • Ratings probe settled

    The US SEC, in conjunction with the New York and Massachusetts Attorneys General, has fined S&P US$77m and banned it from rating new issue conduit CMBS for one year. The move is expected to have a minimal effect on the CMBS market, however.

    The settlement resolves an investigation into six US conduit CMBS that S&P rated in 2011 and two .......

    News 22 January 2015

  • Euro ABS/MBS settles down

    The European ABS/MBS secondary market saw a brief hiccup yesterday before settling down to wait on the ECB this afternoon.

    Prices softened yesterday morning before reports appeared speculating that today's announcement would see higher than expected QE buying volumes. Bids immediately strengthened and core paper ended the day unchanged.

    Since then, trading has been has been even quieter, albeit across .......

    SCIWire 22 January 2015

  • Follow by example

    Italy in the NPL spotlight

    Italian NPL disposals have been disappointing so far, despite significant growth of the assets within the country's banking system. Panellists at SCI's annual London conference last month discussed the challenges that face emerging NPL markets, as well as ways to support their evolution.

    Vittorio Savarese, head of credit risk transfer at Banca IMI, describes Italy as a "hot spot" for .......

    News Analysis 21 January 2015

  • Energy concerns weigh on US CLOs

    Energy price concerns among others could hinder US CLO secondary trading today.

    As noted yesterday, a highlight of today's US CLO BWIC schedule is the $112.68m six line equity list due at 11:00. However, one trader says: "Investors seem to be happy to sit on the sidelines for this one. They are good bonds with very good managers and on average .......

    SCIWire 21 January 2015

  • Airline sector taking flight

    Kroll Bond Rating Agency reports that the airline sector is enjoying the benefits of lower fuel prices, but is also experiencing stress due to rising concerns about sovereign risk and the strength of the dollar. It adds that the overall credit quality of aircraft lessors will continue to strengthen in the year ahead, supported by improving credit profiles of airlines .......

    News Round-up 21 January 2015

  • Third tariff defecit ABS closed

    StormHarbour has acted as sole placement agent, arranger and lead manager on a €229m sale of electricity receivables owned by EDP Distribuição - Energia to the TAGUS vehicle. The purchase of the receivables was financed through a private placement of pass-through notes in December.

    The deal is the third tariff deficit transaction for which StormHarbour has acted as arranger and .......

    News Round-up 21 January 2015

  • Housing initiatives to drive Indian RMBS

    Housing policies initiated by the new Indian government are expected to encourage growth in the country's mortgage finance sector and provide a catalyst for the development of its emerging RMBS market. However, Moody's warns that the tax environment may hamper some investor participation in the sector.

    In 2014, RMBS issuance in India increased by 75% to INR53bn, but this growth .......

    News Round-up 21 January 2015

  • Mortgage tightening stumps Dutch RMBS

    Despite an expected further strengthening of the macro economy in the Netherlands, stricter maximum loan-to-income (LTI) ratios will likely decrease the speed at which there is a more wide-spread bottom-up recovery of larger residential properties and regional markets, says Moody's. The agency believes this is credit negative for existing Dutch RMBS and covered bonds.

    "Over the past 12 months, the .......

    News Round-up 21 January 2015

  • Sukuk set for solid year

    S&P believes that the global sukuk market is primed for another solid year in 2015, even though some emerging headwinds could slow its progress compared to 2014. Sukuk issuance reached US$116.4bn last year, compared with US$111.3bn in 2013, and the agency expects volumes to cross the US$100bn mark again this year.

    Supporting sukuk issuance is the still-positive economic performance of .......

    News Round-up 21 January 2015

  • Japan RMBS approach updated

    Moody's has updated its approach to rating Japanese RMBS, following an analysis of Japanese mortgage loan defaults over the past 30 years. The approach aligns with its global RMBS rating methodology, but takes into account the unique characteristics of the Japanese market. The changes are also expected to bring greater transparency, as market participants will be able to more easily .......

    News Round-up 21 January 2015

  • ABS BWICs bounce back

    US ABS bid-list activity was up yesterday as traders returned to their desks, with student loan and auto ABS paper driving supply. Total BWIC volume was around US$125m, with SCI's PriceABS data capturing 24 unique line items.

    In the student loan space, the COELT 2005-A B tranche was covered at high-82. It had only one previously .......

    Market Reports 21 January 2015

  • Headwinds for LatAm ABS

    Despite potential for growth in some of the smaller Latin American structured finance markets, issuance volumes and collateral performance across the region will face headwinds in 2015, according to S&P. Brazil once again led issuance volume in 2014, followed by Mexico and Argentina.

    Issuance in most of the region's structured finance markets decreased last year, except for Brazil and Colombia. .......

    News Round-up 21 January 2015

  • Positive implications for EMEA ratings

    Moody's has updated a number of its ABS and RMBS rating methodologies, as well as its approach to local currency country risk ceilings. The move is expected to have positive implications for ABS and RMBS ratings in a number of euro area countries, including Spain, Portugal, Italy and Ireland.

    The updated ABS and RMBS methodologies reflect changes to the minimum .......

    News Round-up 21 January 2015

  • Caesars auctions on the cards

    Creditex and Markit have confirmed that credit event auctions will be held to settle the credit derivative trades for Caesars Entertainment Operating Company CDS and LCDS. Dates for the auctions will be announced in due course.

    .......

    News Round-up 21 January 2015

  • BMS president promoted

    BMS Capital Advisory has named Andrew Bustillo, president and ceo of BMS Intermediaries, as a principal of the firm effective immediately. Currently serving as chair of BMS Capital Advisory, in his new leadership role Bustillo will leverage his extensive network among insurance underwriters, risk distributors and capital providers to originate and execute opportunities in the market.

    Together, BMS Capital Advisory .......

    Job Swaps 21 January 2015

  • STACR programme enhanced

    Freddie Mac has made a number of enhancements to its STACR programme, coinciding with the announcement of its first STACR offering for 2015. The enhancements aim to reduce credit risk, as well as promote programme liquidity and provide diverse investment options for investors.

    Programme enhancements as showcased by STACR 2015-DN1 include transferring 100bp of the first loss credit risk tranche .......

    News Round-up 21 January 2015

  • Europe's waiting game continues

    It's still an ECB waiting game in European secondary markets but sentiment remains positive.

    "It's still mainly about waiting on some ECB action tomorrow," says one trader. "But sentiment is good, albeit on quite thin flows, so we're seeing a continuation of the tightening trend especially in UK and Dutch prime."

    UK non-conforming RMBS is also continuing to attract interest, .......

    SCIWire 21 January 2015

  • US CLOs steady

    The US CLO secondary market is making a steady start to the week.

    "It's fairly quiet so far as it's a holiday week," says one trader. "Away from the oil and gas heavy deals things seem to be trading reasonably well."

    However, the BWIC schedule is beginning to build for the next few days. As was the case last week .......

    SCIWire 20 January 2015

  • US RMBS keeps tight

    First day back from a long weekend the US non-agency RMBS market is seeing a continuation of last week's themes.

    "It's pretty sluggish today," says one trader. "There are BWICs, but volume is light." So far, around $200m of current face is circulating for auction today.

    Last week's themes are already in evidence today, says the trader. "Spreads are staying .......

    SCIWire 20 January 2015

  • ILS to maintain momentum

    Following a record-breaking year for ILS issuance in 2014, 2015 is set to reach new heights, according to Willis Capital Markets & Advisory (WCMA). These positive projections are attributed to the growth of investor interest in insurance catastrophe risk.

    Non-life catastrophe bond issuance in 4Q14 totalled US$2.1bn, capping a record year that saw over US$8bn of non-life catastrophe bonds issued. .......

    News Round-up 20 January 2015

  • CDO claims set for distribution

    Cambridge Place Investment Management (CPIM) has disclosed that all claims relating to its allegation that certain financial institutions mis-sold approximately 140 US RMBS bonds to the Camber 3 ABS CDO have now been settled. In respect of these settlements, a distribution amount of US$13.09m is currently held for the account of the transaction. A reconciliation amount of approximately US$420,106 may .......

    Job Swaps 20 January 2015
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