Complete news archive

  • 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

  • LCR, LR reporting consultation underway

    The EBA has launched two consultations on two draft implementing technical standards (ITS) amending the European Commission's implementing regulation on supervisory reporting with respect to the liquidity coverage ratio (LCR) and the leverage ratio (LR), which was adopted on 10 October. The consultation on the amendments to the LCR reporting will run until 10 February, while the one on the .......

    News Round-up 17 December 2014

  • Eminent domain move welcomed

    SIFMA has welcomed the US government's new spending bill, which contains a provision preventing the federal government from supporting state and local efforts to use eminent domain to acquire mortgages. The association encourages communities considering this form of eminent domain to reconsider and work to find alternatives that help homeowners and protect taxpayers and investors.

    "SIFMA applauds Congress and the .......

    News Round-up 17 December 2014

  • Stable outlook for APAC

    Fitch expects the ratings and asset sector performance of Asia-Pacific structured finance (SF) transactions to remain stable over the course of 2015. Most public long-term ratings for the sector are likely to remain at their current level throughout next year, largely similar to the situation in 2014. Of the 12 outlooks that were not stable at end-3Q14, six were positive .......

    News Round-up 17 December 2014

  • US RMBS remains active

    Monday's quiet US non-agency RMBS session threatened to set the tone for a slow week, but bid-list activity picked up sharply yesterday across nearly all collateral segments to inject life back into the market. Tuesday's session saw almost US$750m of BWIC volume, with SCI's PriceABS data capturing a variety of pre-crisis names.

    The contrast between the .......

    Market Reports 17 December 2014

  • Mortgage settlement progress reviewed

    Joseph Smith - monitor of the US national mortgage settlement (NMS), the Ocwen national servicing settlement and JPMorgan RMBS settlement - has released updates on six mortgage servicers' compliance with the NMS servicing standards, as well as Ocwen's and JPMorgan's progress towards fulfilling their consumer relief requirements. The report indicates that the servicers failed three tests, while internal review issues .......

    News Round-up 17 December 2014

  • European secondary struggles on

    Year-end illiquidity in European secondary markets is being exacerbated by volatility in broader markets.

    "The macro-economic environment isn't helping, but it's very slow anyway," says one trader. "Bid-offers are much wider but there's not a lot of trading, which in one way is good as it means we're not seeing any capitulation - there's no client selling."

    There is however, .......

    SCIWire 17 December 2014

  • Man adds to CLO stable

    Man Group has entered into a conditional agreement to acquire Silvermine Capital Management, the Connecticut-based leveraged loan manager with US$3.8bn of funds under management across nine active CLOs. The acquisition is expected to complete in 1Q15, subject to certain approvals being obtained.

    Silvermine is wholly-owned by the firm's founders and senior staff members. The team of 17 focuses exclusively on .......

    Job Swaps 17 December 2014

  • Testing time for US CLOs

    On- and off-BWIC the US CLO market is currently being tested.

    There has been a surge in BWICs circulating for trade today and tomorrow with 62 line items currently out for bid in that timeframe. However, one trader explains: "The lists are primarily from fast money and they appear to just to be trying to get levels to see just .......

    SCIWire 16 December 2014

  • US CMBS keeps calm

    Healthy BWIC volumes in US non-agency CMBS are continuing into this week and appear to be driven by year-end activity rather than macro volatility.

    "For the most part the selling we're seeing is from money managers and it's high quality assets, which suggests re-balancing rather than forced selling," says one trader. "We have seen some hedge funds selling a little .......

    SCIWire 16 December 2014

  • ILS reinsurer launched

    Sequant Re has launched as a new global collateralised reinsurer. It will combine ILS and Bermuda's unique segregated account structure to offer a flexible platform for the transfer and securitisation of insurance risks.

    Reinsurance brokers and buyers of reinsurance will be provided with a platform to underwrite, structure and model risk transfer transactions. They will also be able to transform .......

    Job Swaps 16 December 2014

  • ESMA releases CRA findings

    ESMA has released a report on the findings of its investigation into the way credit rating agencies (CRA) conduct surveillance of their structured finance ratings. The investigation - which took place between October 2013 and September this year - was prompted by the high outstanding volume in issuance and focuses on the four largest agencies providing SF ratings in the .......

    News Round-up 16 December 2014

  • Monoline SF exposure gauged

    Both Assured Guaranty and MBIA have shrunk their legacy structured finance (SF) exposures significantly from peak levels since the financial crisis. Moody's suggests that these exposures have become less of a credit risk for Assured, but remain a serious risk factor for MBIA's subsidiary, MBIA Insurance Risk Corporation.

    Although both Assured and MBIA's structured exposures are amortising rapidly, reducing uncertainty .......

    News Round-up 16 December 2014

  • CMBX.8 credit quality examined

    Markit has released a preliminary list of constituents for the CMBX.8 index. The sub-indices for CMBX.8 comprise AAA, AS, AA, A, BBB- and BB, each of which will reference 25 bonds from the same 25 most recently issued conduit CMBS that meet inclusion criteria.

    Bank of America Merrill Lynch CMBS strategists note that it makes most sense to analyse the .......

    News Round-up 16 December 2014

  • Strong outlook for US RMBS

    Strong underwriting standards, third-party reviews and the implementation of risk retention rules will bolster the credit quality of new post-crisis US private-label RMBS in 2015, says Moody's. In addition, single-family rental (SFR) securitisations could expand into more markets and new multi-borrower and smaller single-borrower SFR issuers will likely bring deals to market.

    "New regulations setting strict standards for origination of .......

    News Round-up 16 December 2014

  • Trups default rate unchanged

    The number of US bank Trups CDO combined defaults and deferrals remained at 22% at end-November, according to Fitch's latest index results for the sector. One bank with total notional of US$10m in two CDOs was closed by FDIC, but there were no new cures or deferrals in the month.

    Across 78 Fitch-rated Trups CDOs, 237 bank defaulted issuers remaining .......

    News Round-up 16 December 2014

  • Broker tie-up announced

    BGC Partners has acquired the UK assets and subsidiaries of RP Martin Group. The firm expects to acquire further businesses and assets of RP Martin in Sweden and the Netherlands in 2015, subject to regulatory approvals and certain closing conditions.

    The assets that BGC has acquired, and expects to acquire next year, generated unaudited revenues in excess of US$50m in .......

    Job Swaps 16 December 2014

  • Adjustment cap 'credit negative'

    The Low Chamber of the Mexican Congress last week approved a bill aimed at capping loan-balance adjustments to mortgages originated by Infonavit and Fovissste. Moody's notes in its latest Credit Outlook that these changes are credit negative for RMBS sponsored by the institutions because they will reduce the collateral value backing transactions.

    "The cap on the mortgage balance adjustment creates .......

    News Round-up 16 December 2014

  • CLO energy exposure quantified

    WTI oil prices moved below US$60 a barrel last week, with energy sector fundamentals increasingly being called into question. JPMorgan CLO strategists measure broadly-syndicated US CLO exposure to the segment in the context of the JPMorgan loan index, which has a concentration of 4.1% in energy.

    Their findings suggest that US CLOs have slightly less exposure to the energy sector .......

    News Round-up 16 December 2014

  • China rising

    Regulators fuel Chinese issuance boom

    Chinese securitisation issuance has rocketed this year as regulatory restrictions have been relaxed. A diversification of issuers and asset types is also boosting issuance as part of a virtuous circle of growth, although the strength of potential investor appetite is yet to be tested.

    Moody's puts Chinese issuance year-to-date in 2014 at CNY213bn. That is up from just CNY16bn in .......

    News Analysis 16 December 2014

  • ICG pair to lead credit effort

    Jeff Boswell and Garland Hansmann are to join Investec Asset Management to lead its efforts in global credit, with a primary focus on the developed markets. Both arrive from Intermediate Capital Group (ICG), where they were directors at the firm.

    Boswell's role was head of portfolio management in Europe at ICG, while Hansmann was head of high yield. They will both join .......

    Job Swaps 16 December 2014
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