Complete news archive

  • CLO squeeze

    Risk retention puts manager consolidation in the spotlight

    CLO manager consolidation is expected to re-emerge as risk retention requirements bed down in the US. However, the process is unlikely to replicate the last wave of consolidation seen in 2010 and 2011.

    Oliver Wriedt, co-president at CIFC Asset Management, believes that CLO manager consolidation needs to occur in some capacity, but questions whether the opportunity is as compelling as .......

    News Analysis 12 December 2014

  • Collateral management tools integrated

    Broadridge Financial Solutions has enhanced its CollateralPro solution through a new partnership with AcadiaSoft. Under the agreement, AcadiaSoft's MarginSphere service has been integrated with CollateralPro, offering an in-house or Broadridge-hosted solution to financial institutions.

    MarginSphere is a margin confirmation community that streamlines communications between counterparties engaged in collateral management. It is the result of a collaboration between AcadiaSoft and several .......

    News Round-up 12 December 2014

  • Securitisation risk weights hiked

    The Basel Committee has issued revisions to the securitisation framework that aim to address a number of shortcomings in the Basel 2 securitisation framework and to strengthen the capital standards for securitisation exposures. This framework, which will come into effect in January 2018, raises the risk weight floor for securitisation exposures to 15%.

    The most significant revisions with respect to .......

    News Round-up 12 December 2014

  • Long/short credit fund launched

    Palmer Square Capital Management has launched the Palmer Square Long/Short Credit Fund, with the objective of achieving absolute returns over a market cycle through a portfolio of long and short credit investments. The fund will primarily invest long and short in corporate bonds, loans, convertible bonds, structured credit (most notably, CLOs) and derivatives.

    "We believe that the fund offers investors .......

    News Round-up 12 December 2014

  • US RMBS boosted by vol

    The US non-agency RMBS secondary market has been boosted by the broad market volatility seen this week.

    "It's been a very busy week with $600-$700m on BWIC every day after Monday," says one trader. "Those aren't exorbitant levels, but it's rare for each day to be so consistently busy."

    The trader attributes the volumes to the volatility seen in broader .......

    SCIWire 11 December 2014

  • CCP transitional period extended

    The European Commission has adopted an implementing act that will extend the transitional period for capital requirements for EU banking groups' exposures to central counterparties (CCPs) under the Capital Requirements Regulation (CRR). The original transitional period was set to expire on 15 December.

    The CRR introduced a capital requirement for the exposures of EU banks and their subsidiaries to a .......

    News Round-up 11 December 2014

  • Secondary ABS supply accelerates

    US ABS bid-list activity yesterday rebounded from the prior session to reach total volume of around US$266m. By far the dominant product type out for the bid was auto ABS.

    SCI's PriceABS data captured 13 unique auto ABS tranches. While they were all from deals issued in 2012 or later, the earliest-vintage tranche out for the bid was .......

    Market Reports 11 December 2014

  • Enhanced CMBS approach finalised

    Moody's has finalised an enhanced approach to rating North American conduit/fusion CMBS, which further differentiates credit quality among transactions (SCI 10 October). The agency has also unveiled its approach to sustainable net cashflow and value for CMBS and CRE CDO collateral in the Americas and Asia.

    Moody's says the methodologies complement each other, with the conduit/fusion methodology detailing its approach .......

    News Round-up 11 December 2014

  • Euro ratings outlook positive

    Fitch says that its rating outlook for European structured finance (SF) transactions is stable, with 86% of its rating outlooks across the region being stable or positive. Performance in the large majority of asset market sectors across the region also has a stable outlook.

    Fitch's expectations for stability for both SF ratings and the underlying asset markets have improved substantially .......

    News Round-up 11 December 2014

  • Spread compression to support issuance

    Scope Ratings expects an increase in European structured finance (SF) issuance volumes in 2015, supported by ECB-driven spread compression. However, the agency suggests that the low spreads will partially mask the variable credit risk levels of the individual issuances.

    Scope observes much wider differentiation of credit risks than the credit spreads would indicate. Investors will therefore need more transparency and .......

    News Round-up 11 December 2014

  • Euro ABS, RMBS collateral stable

    Collateral quality will remain stable for European RMBS and ABS transactions in 2015, owing to the slow but continued economic recovery in the eurozone, says Moody's. However, certain barriers to further growth still exist, indicating that a substantial recovery of the European securitisation market will take time.

    The agency forecasts GDP growth of 0.9% and 1.3% in 2015 and 2016 .......

    News Round-up 11 December 2014

  • Trustee litigation gaining traction?

    Progress appears to be being made in the latest US RMBS litigation front - lawsuits against trustees (SCI 8 August). The first-ever settlement between investors and trustees was reached last month in the US district court in Manhattan, when Bank of America and US Bank settled a US$69m class action challenging their conduct as trustees overseeing Washington Mutual deals.

    The .......

    News Round-up 11 December 2014

  • 'Simple and transparent' criteria released

    The Basel Committee and IOSCO have published a consultative document on criteria for identifying simple, transparent and comparable securitisations. The purpose of the criteria is to assist the financial industry's development of simple, transparent and comparable securitisations structures, as well as to help parties involved in a securitisation evaluate the risks of a particular transaction as part of their due .......

    News Round-up 11 December 2014

  • Ratings hit on Genworth downgrade

    S&P has lowered its ratings on 61 tranches of Australian and New Zealand RMBS and affirmed the ratings of a further 82 tranches. All 143 tranches have been removed from credit watch with negative implications, where they had been placed last month (SCI 12 November). An additional five tranches remain on watch negative, pending further assessment.

    The rating actions follow .......

    News Round-up 11 December 2014

  • European ABS/MBS patchy

    European ABS/MBS secondary continues to see patchy trading as year-end and broader macro concerns reduce risk appetite.

    Major UK and European names continue to see two-way interest, but elsewhere bids are weaker. Even Italian RMBS is generally quiet despite the talk of ABSPP buying in the sector.

    Meanwhile, the highlight of the BWIC schedule today is a four line €119.5m .......

    SCIWire 11 December 2014

  • Large liquidation list circulating

    A 55 line item US structured credit BWIC is circulating for trade at 10:00 New York time tomorrow.

    The $290.4+m list, brought by a CDO liquidation agent, includes ABS CDOs, CLOs and CLNs. The paper on offer ranges across the rating curve from double-A to double-B.

    23 of the bonds on the list are CLOs, of those one is a .......

    SCIWire 10 December 2014

  • US CLO activity edges up

    After a quiet start to the week the US CLO secondary market is seeing a little more activity today with the hope that it will continue to increase over the next few trading days.

    "There are a few more lists today, but it's not huge and they are mainly from smaller accounts - a few hedge funds and a liquidation .......

    SCIWire 10 December 2014

  • Rate hike weighs on SF

    With regulatory clarity now in place, the US structured finance (SF) markets are set for continued stability in 2015 after holding firm this past year, according to Fitch. However, the prospect of rising rates is weighing on the sector.

    Global regulators finalised many outstanding regulatory issues this year, chief among them risk retention, Regulation AB 2 and Basel 3. "With finalised .......

    News Round-up 10 December 2014

  • China ABSP clarity requested

    Fitch says that it remains uncertain if securitised assets under China's Asset Backed Specific Plan (ABSP) can achieve bankruptcy remoteness from project managers. This is despite the China Securities Regulatory Commission (CSRC) publishing new provisions relating to the ABSP, effective in November (SCI 20 November).

    The new provisions in the ABSP, previously known as Special Asset Management Plan (SAMP), attempt .......

    News Round-up 10 December 2014

  • Underwriting slippage to continue

    Weaker US CMBS underwriting standards will cause the credit quality of new loans to slip in 2015, according to Moody's. However, loan quality should remain above its pre-crisis peak.

    "Issuers have loosened underwriting standards as the recovery in the commercial property markets has advanced, increasingly securitising loan pools of poorer credit quality with higher credit enhancement," says Tad Philipp, director .......

    News Round-up 10 December 2014

  • BGC bid re-extended

    BGC Partners has extended the expiration date of its tender offer to acquire all of the outstanding shares of GFI Group that it does not currently own. The offer is now scheduled to expire on 6 January 2015, having previously been extended to 9 December (SCI 24 November).

    The company also reaffirms that it has satisfied the regulatory closing condition .......

    Job Swaps 10 December 2014
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