Complete news archive

  • Dutch RMBS in for the bid

    After a Dutch RMBS flash BWIC yesterday, the market sees two prime lists today.

    Yesterday afternoon's three line flash auction came on the back of healthy off-BWIC trading in Dutch RMBS. The list covered as follows: €3m of DUTCH 2012-17 A2 at 102.91, €400,000 of SAEC 10 A2 at 101.50 and €21.4m of SAEC 12 A2 at 102.64.

    Today sees two .......

    SCIWire 9 October 2014

  • Forest Oil hits wides ahead of vote

    Forest Oil Corporation's five-year credit default swaps have widened by 34% over the past month and 109% since the start of the year, according to Fitch Solutions in its latest case study. The contracts are now trading at their all-time wide levels.

    "Souring market sentiment for Forest Oil can be partly attributed to ongoing merger discussions with Sabine Oil & .......

    News Round-up 8 October 2014

  • Areas for improvement remain

    There are many favourable aspects to the general health of the US CMBS sector, but some areas could still be improved, Fitch says. This is according to its US CMBS progress report, the first in a series that the agency plans to publish globally, discussing significant changes a sector has undergone since the financial crisis.

    Underwriting declines have been in .......

    News Round-up 8 October 2014

  • European ABS tiering continues

    Tiering between eligible and non-eligible ABSPP ABS/MBS assets has become increasingly evident this week and in to this morning's session.

    For non-eligible assets spreads have been driven wider on end-accounts selling to take as much profit as possible as prices move seemingly ever lower. Those profits are being utilised in eligible asset positions in the hope of further tightening and .......

    SCIWire 8 October 2014

  • Bank performance under consideration

    Given the proposed changes to its bank rating methodology, Moody's is considering adjusting how it reflects risk of bank performance in rating securitisations globally. These risks coincide with various roles banks play in structured transactions.

    The proposed changes to Moody's bank rating methodology aim to improve insight into how different regulatory approaches to bank resolutions may impact a bank's ability .......

    News Round-up 8 October 2014

  • Aircraft engine sale affirmed

    Blade Engine Securitization intends to sell a CFM56-3C1 aircraft engine out of the trust to a third party. Fitch notes that the move is unlikely to impact its ratings on the ABS transaction.

    The agency says that the engine in question is currently grounded. Therefore, its sale would provide cashflow to the trust from an asset that is currently not .......

    News Round-up 8 October 2014

  • Bankruptcy-remote approach explained

    Moody's has published its methodology for assessing the bankruptcy remoteness of SPEs in global structured finance transactions. Under the methodology, the agency notes that if an SPE is bankruptcy-remote, the risk of bankruptcy is so low that it has no rating impact. If it determines that an SPE is not bankruptcy-remote, it evaluates whether the risk of bankruptcy has a .......

    News Round-up 8 October 2014

  • Sears exposure tallied

    Morningstar estimates that about US$373.3m in loans across nine US CMBS could potentially be affected by Sears' most recently announced store closures. The effect on more recent CMBS deals is expected to be minimal, but three malls backing pre-2010 loans will face increased default risk, as these loans are already on the Morningstar watchlist for performance issues.

    Sears is closing .......

    News Round-up 8 October 2014

  • RMBS activity ratchets up

    US non-agency RMBS BWIC volume approached US$600m yesterday, with another large bid-list of around US$1bn due to trade today. While secondary supply is high, yesterday's session suggests execution is weakening, with bonds covering below price talk and SCI's PriceABS data listing a number of DNTs.

    PriceABS shows many tranches which were successfully traded, such as the .......

    Market Reports 8 October 2014

  • Agency vet joins originator

    American Financial Resources has hired Timothy Yanoti as president and appointed him as a board member. He will assist with the mortgage originator's overall strategy, strategic partnerships and regulatory oversight.

    Yanoti was previously at Fannie Mae, where he was head of securitisation and worked on the common securitisation platform. He has also served as head of global securitisation for GE .......

    Job Swaps 8 October 2014

  • CLO diversity surveyed

    CDO strategists at JPMorgan have examined single name exposures within and between pre- and post-crisis US CLOs to gain a sense of diversification across the sector. They surveyed 357 1.0 and 325 2.0 broadly-syndicated CLOs issued from 2001 to 2014, representing over US$220bn in loan collateral.

    When comparing the top 50 names between 1.0 and 2.0 CLOs, there are 22 .......

    News Round-up 8 October 2014

  • Only loans

    Loan-only CLOs defy convention

    This summer's €525m Harvest CLO IX and €415m Avoca CLO XII were each backed by loan-only portfolios. The European CLO market's traditional reliance on bond buckets now appears to be subject to re-evaluation.

    The Volcker Rule has spurred the rise of CLO 3.0 structures, with loan-only deals following one path to regulatory compliance in the US. The fact that European .......

    News Analysis 8 October 2014

  • Spanish mezz focus

    The European ABS and MBS BWIC pipeline is ramping up once more for today with a Spanish mezz list due at 14:00 London time attracting most investor attention.

    The nine line €41.972m list consists of: BVA 3 B, CAJAM 2006-1 C, HIPO HIPO-7 D, HIPO HIPO-8 C, LUSI 4 B, LUSI 4 C, RHIPO 8 C, TDAC 5 B and .......

    SCIWire 8 October 2014

  • Technicals drive US RMBS

    Spreads are staying firm in the US RMBS market thanks to its strong technicals and the resultant two-way trading.

    "Secondary spreads have held in well unlike other markets such as high yield," says one trader. "That's primarily thanks to our market's current technical strength - you've got a trillion dollar market with only US$8bn of new issuance in total this .......

    SCIWire 7 October 2014

  • Springleaf nears mortgage wind-down

    Springleaf Holdings has completed the sale of US$1bn performing and non-performing mortgage loans to Credit Suisse under its mortgage liquidation plan. The company's real estate portfolio totaled approximately US$9bn on a historical accounting basis, as at 31 December 2013. By 30 June, the company had closed on the sale of approximately US$1.5bn of real estate loans backed by securitisation interests.

    Job Swaps 7 October 2014

  • Downgrades expected on sovereign update

    S&P has updated its methodology for rating single-jurisdiction securitisation tranches above the underlying sovereign rating, following a year-long consultation process (SCI 15 October 2013). The main change from the previous criteria is the reduction of the maximum rating differential between securitisations and sovereign to four notches from six notches, unless the tranches meet certain conditions based on structural features and .......

    News Round-up 7 October 2014

  • Trups CDOs stay sparse

    It looks to be a quiet week again on-BWIC in the US Trups CDO space this week with only one list currently scheduled and that is another auction on behalf of FDIC. The tenth list from the agency also looks likely to meet with the same complaints as last week - it's all senior paper in small size.

    Due at .......

    SCIWire 7 October 2014

  • Peripheral RMBS push resumes

    Heightened activity in the European secondary RMBS market continued as the week began. Italian and Spanish names continue to be in demand, while Portuguese paper and more commonly-seen bonds from the core were also out for the bid.

    Italian and Spanish paper has seen an up-tick in investor interest after the ECB's ABSPP update (SCI 3 October) and the Italian .......

    Market Reports 7 October 2014

  • EPD losses made whole

    US$42m of subsequent recoveries was paid to the MLMI 2007-MLN1 RMBS in September's remittance, most of which comprised make-whole loss payments on loans that were liquidated prior to 2009. The recoveries were paid on Group 2 loans and represent about 8% of the lifetime losses expected for the deal, according to Barclays Capital figures. As a result, the A2A tranche .......

    News Round-up 7 October 2014

  • JPMorgan settlement hearing scheduled

    Trustees involved in the JPMorgan rep and warranty settlement released their decision for the 28 RMBS deal groups for which they had sought a deadline extension. The trustees accepted the US$4.5bn offer on 18 deal groups and rejected it for the remainder.

    Barclays Capital RMBS analysts note that the trustees have now reached their decision on all 330 trusts and .......

    Job Swaps 7 October 2014

  • Board changes at Markit

    Edwin Cass has joined Markit's board of directors. He was nominated by the Canada Pension Plan Investment Board, where he is the senior md and chief investment strategist, leading the global capital markets, corporate securities and tactical asset allocation groups within the public market investments department.

    Cass joins the Markit board as a Class III director and has been appointed .......

    Job Swaps 7 October 2014
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