Complete news archive

  • ILS merger discussions begin

    XL Group is in discussions with Catlin Group regarding a potential transaction to acquire the company and form a combined entity. The transaction would require approval by the boards of directors of each company and would be subject to various shareholder and regulatory approvals.

    The combined entity would be a leader in the global speciality and property cat markets. However, .......

    Job Swaps 19 December 2014

  • CMBS origination metrics deteriorate

    Differences among US CMBS originators are continuing to emerge in recent months as IO loans proliferate and leverage metrics deteriorate, according to Fitch. In addition, collateral mix and loan quality continue to show declines.

    The agency's latest sample analysis of CMBS conduit loans shows a 42.4% increase in partial IO loans, while originators are also increasing leverage. Fitch says the .......

    News Round-up 19 December 2014

  • Is this it?

    First ABSPP purchases underwhelm market

    Purchase volumes in the first few weeks of the ECB's ABSPP have disappointed market participants. The utility of the purchase programme is also in question unless the mezzanine buyer base can be expanded.

    Last week, ABSPP purchases dropped to €187m, bringing the ECB's total settled ABSPP volume to €788m since the programme started last month. "So far, purchase volumes have .......

    News Analysis 19 December 2014

  • US RMBS eases off

    The US non-agency RMBS market remains busy by December standards, but even here there is sense of a market easing off for the year.

    There is $600m scheduled on BWIC for today, matching the volumes seen over the last few days, but expectations are volumes will now begin to drop. "Like some other markets our BWICs are currently driven by .......

    SCIWire 18 December 2014

  • US CLOs cleaning up

    Today sees another strong BWIC schedule in the US CLO market with five lists already circulating.

    "My sense is today is a lot of cleaning up rather than managed accounts having to sell," says one trader. "I suspect it will be the last full trading day of the year and yes there are number of lists, but total size is .......

    SCIWire 18 December 2014

  • Derivatives vet switches regulator

    Gary Barnett, director of the division of swap dealer and intermediary oversight at the US CFTC, will leave the regulator in January to become a deputy director in the US SEC's division of trading and markets. He will be responsible for the office of broker-dealer finances and the office of derivatives policy and trading practices.

    Before joining the CFTC, Barnett was .......

    Job Swaps 18 December 2014

  • Further STACR risk transferred

    Freddie Mac has obtained a number of insurance policies under its Agency Credit Insurance Structure (ACIS), which has attracted commitments of private capital from non-mortgage guaranty insurers and reinsurers. The policies, underwritten by a panel of insurers and reinsurers, cover up to a combined maximum of approximately US$155m of losses for a portion of the credit risk associated with a .......

    News Round-up 18 December 2014

  • Trustees targeted in NCUA suit

    The NCUA has filed suit in federal court against US Bank and Bank of America, alleging the banks violated state and federal laws by failing to fulfill their duties as trustees for 99 RMBS trusts. The agency's suit seeks damages to be determined at trial.

    Five corporate credit unions - US Central, WesCorp, Members United, Southwest and Constitution - purchased .......

    News Round-up 18 December 2014

  • Borrower attributes drive loss variability

    Freddie Mac's recently disclosed loan-level loss data reveal that loss severities on liquidated Freddie Mac mortgages are higher than those on prime jumbo and lower than those on Alt-A non-agency loans, according to Fitch. The differences can be attributed to specific borrower attributes, such as property values, and the presence of mortgage insurance.

    Freddie Mac last month enhanced its single .......

    News Round-up 18 December 2014

  • Mixed expectations for LatAm SF

    The credit quality of Mexican structured finance transactions will strengthen in 2015, according to Moody's. However, Argentine and Brazilian deals are expected to deteriorate.

    In Mexico, the credit quality of new and existing RMBS transactions should remain strong, helped by improving macroeconomics and a more dynamic lending environment. Additionally, higher job and price stability could positively affect RMBS by increasing .......

    News Round-up 18 December 2014

  • Loan trading team bolstered

    Cantor Fitzgerald has expanded its whole loan sales and trading team with the appointments of Gary Wang and Karl Partch as mds. Wang and Partch will focus on portfolio disposition, evaluation and structuring advisory. They will be based in Los Angeles and report to Cass Tokarski, senior md and head of mortgage and ABS sales and trading.

    Wang previously served .......

    Job Swaps 18 December 2014

  • Euro ABS/MBS close to shut down for the year

    The European ABS/MBS secondary market has all but shut down for year-end as from today.

    "This look like it's pretty much it for the year," says one trader. "Spreads haven't moved this morning, but that's theoretical anyway as there has been no visible trading."

    A few very small clips in recently popular names are understood to have changed hands, but .......

    SCIWire 18 December 2014

  • US CLOs stay busy

    Unlike most other securitised markets, year-end is driving business in US CLOs rather than hindering it.

    "We're busy and still seeing people looking to liquidate stuff," says one trader. "Our sense is that that's not a result of macro vol, but just people squaring up portfolios."

    That sense is confirmed by the high proportion of DNTs being seen rather than .......

    SCIWire 17 December 2014

  • XVA service unveiled

    Numerix has launched a single platform for enterprise level risk management and front office risk calculations, including pre-trade XVA pricing and profitability measures. Numerix XVA aims to provide solutions for real-time counterparty credit risk exposures, funding and capital costs. In addition, pre-trade pricing adjustments can be calculated, assessed and managed from the platform, with the goal of providing cost transparency, .......

    News Round-up 17 December 2014

  • Analytics tool updated

    Quantifi has released the latest version of its software platform. Quantifi Version 12.1 updates include significant enhancements to product coverage, model library, functionality and usability.

    The enhancements span across technology, data management, trading, risk management and reporting. Equipped to support the latest regulatory and market changes, V12.1 aims to improve client analytics, trading and risk management capabilities, profitability and operational .......

    News Round-up 17 December 2014

  • ESAIL restructuring inked

    Fitch has withdrawn its ratings on Eurosail-UK 2007-4BL's class A3a, A3c and B1a notes and assigned triple-A, double-A, double-A minus and triple-B plus ratings to the new class A3, A4, A5 and B1a notes. The agency has also upgraded the class A2a, C1a and D1a notes and affirmed the class E1c, following the restructuring of the transaction.

    Following the bankruptcy .......

    News Round-up 17 December 2014

  • C&E ABS gaining traction

    The growing US economy is set to support good performance in US ABS backed by a range of commercial and esoteric (C&E) asset types, says Moody's. At the same time, recent legal, regulatory and legislative developments could affect transactions in several C&E sub-sectors.

    Economic improvements should particularly support the performance of small-ticket, construction and trucking equipment, along with railcar and .......

    News Round-up 17 December 2014

  • Auto ABS to 'modestly deteriorate'

    Loosening underwriting standards and a greater proportion of borrowers with weaker credit characteristics will cause the quality of US auto ABS pools to modestly deteriorate in 2015, says Moody's. The improving economy and increasing competition among auto lenders has led to the easing of strict underwriting criteria that were adopted in the wake of the financial crisis.

    "Our expectations for .......

    News Round-up 17 December 2014

  • LatAm outlook solid

    Fitch foresees a stable credit environment for Latin American structured finance (SF), despite slowing domestic growth. On average, Fitch-rated Latin American SF transactions are expected to perform within base-case assumptions, reflecting strong structures and seasoned underlying asset portfolios.

    The outlook is stable for cross-border future flow securitisations originated in Latin America, as well as cross-border government-backed securities used to finance .......

    News Round-up 17 December 2014

  • Tesco spikes on profit fall-out

    Tesco five-year CDS widened by 37% last week to price at the widest levels observed since 2008, according to Fitch Solutions. After trading in line with triple-B to triple-B minus levels for much of the past year, credit protection on Tesco is now pricing in the high yield space.

    "Growing market concern for the supermarket giant is likely attributed to .......

    News Round-up 17 December 2014

  • Economy to support private SLABS

    The strengthening US economy is positioning private student loan ABS for a more stable performance next year, according to Fitch. Collateral performance is expected to stabilise further as unemployment drops, while the prospect of rising interest rates should have little more than a negligible effect on ratings.

    "Performance of private student loan deals issued post-crisis is benefiting from more stringent .......

    News Round-up 17 December 2014
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