Complete news archive

  • Deeper data

    Aligning loan-level disclosure requirements

    The US SEC last month approved the final Regulation AB 2 rules, significantly changing asset-level data disclosure requirements (SCI 28 August). The rules will not come into force for a couple of years, but their effects could be felt sooner and will further align the US market with what is already common in Europe.

    In Europe, loan-level disclosure through the .......

    News Analysis 18 September 2014

  • No demand for eclectic list

    The 40 line €185m eclectic BWIC list of ABS, CDOs, CFOs, SME CLOs, CMBS and RMBS failed to find investor demand this afternoon with 32 of the bonds on offer not trading.

    A further six bonds were only revealed to have traded - BBVAR 2007-2 A2, BCJA 5,CSTNA 2007-1 A, DEKAE II-X E, EMERM 4 B and SANFI 2006-1 E. .......

    SCIWire 17 September 2014

  • Latest FDIC auction on the block

    Results of the seventh FDIC auction of Trups CDOs were released late yesterday and the eighth has already been scheduled.

    The seventh FDIC auction completed in line with expectations - all bonds traded around talk levels. The next auction is scheduled for tomorrow at 11:00 New York time.

    The eighth FDIC list consists of 11 lines totalling $55.5m. It is .......

    SCIWire 17 September 2014

  • Large lists lift non-agencies

    US non-agency RMBS secondary activity was up sharply yesterday, as BWIC volume comfortably exceeded US$1bn. Much of the supply came from a pre-announced US$727m legacy list.

    SCI's PriceABS data captured a range of price talk and cover prices on tranches from deals issued between 2003 and 2013. Many of the bonds out for the bid came from subprime .......

    Market Reports 17 September 2014

  • PDVSA underperforms on uncertainty

    Five-year credit default swaps on Petroleos de Venezuela (PDVSA) have widened by 31% during the past month and 16% over the past week, according to Fitch Solutions. The name has significantly underperformed Fitch's Global Oil & Gas CDS Index, which firmed by 5% during the same period.

    The one- and five-year CDS referencing PDVSA have inverted, indicating that the market .......

    News Round-up 17 September 2014

  • Amortisation waiver anticipated

    Natixis Factor expects the senior funding base for its FCT Factoring Asset Securitisation Transaction (FAST) to fall below the outstanding class A1 note balance this month, due to a combination of seasonality and temporary effects. A waiver of the class A1 note amortisation is therefore being contemplated.

    Should such a waiver be accepted by the noteholders and the management company .......

    News Round-up 17 September 2014

  • Subprime auto 'domino risk' outlined

    Fitch notes that rising US subprime auto lender competition and an increase in start-ups means problems at one lender could quickly spread to others. The agency examines in a new report why 'domino risk' is higher in subprime auto lending than in other ABS sectors.

    In Fitch's view, the risks to the sector mean that most subprime auto transactions would .......

    News Round-up 17 September 2014

  • Servicing continuity risk highlighted

    The rapid growth of several US mortgage servicers means that a small group of entities control the vast majority of legacy loans in need of a work-out. Fitch suggests that this could present risks for some private label RMBS.

    The top-five non-agency mortgage servicers - Ocwen, Nationstar, Bank of America, JPM Chase and Select Portfolio Servicing - together service approximately .......

    News Round-up 17 September 2014

  • Taberna settlement agreed

    RAIT Financial Trust has agreed in principle to resolve a US SEC investigation concerning its subsidiary Taberna Capital Management (TCM). The investigation concerned exchange transactions conducted by TCM between March 2009 and November 2012 and on restructuring fees from issuers of securities held by Taberna securitisations relating to these transactions.

    Under the terms of the agreement, TCM will not admit .......

    Job Swaps 17 September 2014

  • KRIS adds CDS data

    Credit default swap trading volumes have been added to the Kamakura Risk Information Services (KRIS) default probability service, comprising the weekly number of contracts traded and the notional principal traded on 1,214 reference names. Provided by the DTCC, the data begins with the week ended 16 July 2010 and complements Kamakura's implied CDS spread history and corresponding confidence levels. The .......

    News Round-up 17 September 2014

  • Rationalisation for cat bond market?

    Continued demand from hedge funds and institutional investors has pushed outstanding catastrophe bond volumes approximately 12% higher so far in 2014 than as at end-2013, to reach a total of US$22.9bn, according to Moody's latest Reinsurance Monitor. Peril coverage continues to widen across a range of risk types and geographies, while there are signs that a more rational marketplace is .......

    News Round-up 17 September 2014

  • Credit card criteria updated

    Moody's has updated its global methodology for rating credit card and revolving consumer loan ABS, following an earlier RFC on the proposal (SCI 29 April). The new approach more explicitly incorporates the credit quality of the sponsor into the agency's rating analysis and also reflects other modifications to assumptions about credit card portfolio performance under stress.

    "Credit cards and revolving .......

    News Round-up 17 September 2014

  • Special servicer transfers surveyed

    Although US CMBS loan delinquencies have been trending steadily lower, the past spike in defaults, coupled with declines in collateral values has led to more frequent erosion of first-loss outstanding principal and consequently changes in controlling-class bondholders and ultimately named special servicers. This has sparked concern that the volatility caused by these changes in the special servicer negatively impacts both .......

    News Round-up 17 September 2014

  • Strong trading in European RMBS

    Yesterday saw strong execution on European RMBS bid lists and continued bilateral buying. More of the same is expected over the rest of the week.

    Yesterday's dollar-denominated list went well with all bonds trading, but there was even stronger execution on the peripheral mezz and Dutch RMBS BWICs later in the afternoon. However, investor demand continued on the follow and .......

    SCIWire 17 September 2014

  • Better off single?

    Unified GSE security could provide PLS boost

    FHFA director Mel Watt last week reaffirmed the agency's intention to create a single TBA market for GSE securities. Although the industry has voiced concerns over the proposal, it could be a step towards rebuilding the private-label RMBS market.

    Watt's remarks were made during a speech at the North Carolina Bank Association's American Mortgage Conference. However, the agency's position does .......

    News Analysis 17 September 2014

  • Value add

    Rajat Rohailla, executive director at Molton Street Capital, answers SCI's questions

    Q: How and when did Molton Street become involved in the structured finance markets?
    A:     We are a young firm, but all of our backgrounds are in trading, securitisation and risk management. We have been focused on structured finance since our inception and the firm brings together deep structured credit experience.

    Personally, I qualified as a .......

    The Structured Credit Interview 17 September 2014

  • Triple-A days

    The past week has seen healthy demand in triple-A CLOs in Europe, particularly as a result of the ABSPP announcement, but high grade paper has also been trading strongly in the US. To feed that demand there is one triple-A CLO list out for bid later today and four scheduled for tomorrow.

    At 13:00 New York time today, as part .......

    SCIWire 16 September 2014

  • Eclectic euro list circulating

    The market's continuing appetite for all things European seemingly irrespective of deal type could meet its match tomorrow with a large eclectic BWIC list currently circulating. The 40 line €185m list due for trade at 14:00 London time includes ABS, CDOs (including ABS CDOs, CBOs and Trups CDOs), CFOs, SME CLOs, CMBS and RMBS.

    Talk appears to be thin on .......

    SCIWire 16 September 2014

  • Negative correlation offers diversification

    US consumer ABS spreads are wider and more volatile in the post-crisis period. However, a recent Wells Fargo study of the distribution of correlation coefficients indicates a less correlated and more diversified market than in the past.

    ABS strategists at the bank calculated correlation coefficients for a variety of ABS sector pairs. For the 2004-2007 period, 90% of the correlation .......

    News 16 September 2014

  • RBS restructures DCM, client teams

    RBS has restructured its UK and EMEA debt capital markets and client coverage teams. The restructure includes combining structured finance and corporate finance, with Andrew Blincoe leading the new unit as head of infrastructures and structured corporates.

    Blincoe was previously head of secured debt, which included securitisation. His new role is part of the client coverage team for UK and .......

    Job Swaps 16 September 2014

  • Euro CLOs enjoy ECB boost

    The 'ECB effect' is pulling European CLO spreads tighter, with BWICs last week trading very well. Further bid-lists are scheduled to trade today and tomorrow, with good execution expected again.

    "Last week really exceeded expectations because bid-lists were trading at very good levels. Significant tightening was seen on the back of the ECB's recent purchase programme announcement," says one European .......

    Market Reports 16 September 2014
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