Complete news archive

  • European ABS/RMBS edge tighter

    Trading activity seen so far this morning in European ABS and RMBS indicates a further move tighter following on from the post-ECB rally seen at the end of last week.

    Traders expect the market to remain solid overall until the next ECB announcement on the ABSPP scheduled for October. However, some profit taking from fast money accounts is expected this .......

    SCIWire 8 September 2014

  • Weaker bounce for CMBS

    The European CMBS market remains fairly quiet, despite the better than expected announcement from the ECB yesterday (SCI 5 September). However, prices have been creeping up since last week and further moves are expected.

    "CMBS has not been very active over August but we started to see a little more last week. Prices have moved up but there has not .......

    Market Reports 5 September 2014

  • ECB sparks RMBS rally

    European RMBS has rallied on the back of the ECB's confirmation that it will commence ABS purchases. The rally has been particularly pronounced in the periphery and in non-conforming RMBS.

    "Spanish RMBS has been very active since the announcement and even Portugal, which was starting to look tight, has traded up quite a bit. Non-conforming mezz was trading well even .......

    SCIWire 5 September 2014

  • ECB plan exceeds expectations

    Following yesterday's meeting of the Governing Council, ECB president Mario Draghi confirmed that the Eurosystem will purchase a broad portfolio of simple and transparent ABS with underlying assets consisting of claims against the euro-area non-financial private sector under an ABS purchase programme (ABSPP). The announcement has exceeded market expectations.

    In parallel, the Eurosystem will also purchase a broad portfolio of .......

    News Round-up 5 September 2014

  • More CLO taps mooted

    Fitch expects more managers to tap CLO 2.0 deals after Dryden XXVII Euro CLO 2013 (SCI 19 August) became the first European post-crisis transaction to tap its ability to issue additional notes. The Dryden tap has now priced, yielding net proceeds of €194m with the note terms remaining the same.

    The additional issuance is not only more economical for the .......

    News Round-up 5 September 2014

  • Incapital makes securitisation hire

    Incapital has hired Lawrence Schechter as capital markets md. He will lead the firm's securitisation efforts.

    Schechter was previously at London-based Schechter & Co, where he oversaw all aspects of debt finance, equity-linked finance, lease finance and financial and strategic advice. He has also served as head of debt capital markets at Bear Stearns and worked in equity derivatives at .......

    Job Swaps 5 September 2014

  • Subprime list disappoints

    The US$1.5bn RMBS BWIC the market had been waiting for came out yesterday but met with weak execution. The list consisted mainly of subprime collateral and accounted for almost the entirety of the session's supply.

    Two of the 18 line items on the list did not trade, while another five covered at or below minimum dealer price talk. The only .......

    SCIWire 5 September 2014

  • Industry vets form ILS firm

    A new firm has launched to change how catastrophe risk is syndicated in the reinsurance and capital markets. Rewire Holdings intends to form a highly specialised team of capital markets and insurance professionals to originate, structure and distribute reinsurance risk.

    Rewire will focus on increasing the transparency, efficiency and execution of capital markets based transactions by developing a web-based closed-end .......

    Job Swaps 5 September 2014

  • REIT adds mortgage vet

    Two Harbors Investment Corp has appointed Beth Mlynarczyk as policy and strategy vp. She has previously worked as an assistant trader at Soros Fund Management and as an associate at Lehman Brothers on the non-agency trading desk.

    Mlynarczyk was most recently at the US Treasury, where she served as a senior advisor to the counselor on housing finance policy. Before .......

    Job Swaps 5 September 2014

  • CCP systemic importance explored

    The new regulatory environment mandating clearing of OTC derivatives is creating a structural shift in the global exchange and clearinghouse industry, Moody's reports. By ensuring that an increased share of the OTC derivatives market activity falls under the umbrella of central counterparties (CCPs), mandatory clearing elevates the systemic importance of these entities.

    "Mandatory central clearing of OTC derivatives is also .......

    News Round-up 5 September 2014

  • CMBS pay-off rate drops

    The percentage of US CMBS loans paying off on their balloon date sank sharply in August to 59.3%, the lowest reading since June 2013, according to Trepp. The 12-month moving pay-off average is 70.2%.

    Trepp suggests that the lower August reading - and the lower trend over the last few months - may reflect the fact that many borrowers have .......

    News Round-up 5 September 2014

  • Reporting deadline extended

    The ECB is to modify the loan-level reporting requirements for ABS backed by auto loans, leasing receivables, consumer finance loans and credit card receivables that are used as collateral in Eurosystem monetary policy operations and are unable to satisfy the timeline announced on 27 November 2012. As of 1 October, bonds for which the mandatory level of compliance with reporting .......

    News Round-up 5 September 2014

  • SF vet nets top role

    The Investment Industry Regulatory Organization of Canada (IIROC) has appointed Andrew Kriegler as incoming president and ceo. He will also become a member of the IIROC Board of Directors.

    Kriegler currently serves as Deputy Superintendent of the Office of the Superintendent of Financial Institutions (OSFI), an executive position he has held since August 2013, with responsibility for the supervision of .......

    Job Swaps 5 September 2014

  • Non-conforming optionality supported

    Five UK non-conforming RMBS have cured their pro-rata triggers since May, taking the total number of deals in the segment paying on a pro-rata basis to 23, according to Morgan Stanley figures. Given continued improvement in arrears performance, the sustainability of these cures is believed to be high.

    Four of the recently-cured deals are from Kensington programmes - MPS 2, .......

    News 4 September 2014

  • CLO BWIC circulating

    The first CLO BWIC of the day, scheduled to trade at 15:00 New York time, has begun circulating.

    The four line list consists of $500,000 of BACUS 2006-1A A, $2m of CORNR 2007-1A A1S, $3m of RACEP 2006-3 A and $3m of STNY 2007-1A A1. STNY 2007-1A A1 is the only bond to previously trade on BWIC in the last .......

    SCIWire 4 September 2014

  • Strong growth expected for sovereign sukuk

    Moody's expects the strong growth momentum in the sovereign sukuk market to be sustained, as both Islamic and non-Islamic governments aim to tap increased demand for Shariah-compliant financial assets and further support their policy goals for Islamic finance. The agency says that demand and liquidity in the market should improve as the sector attracts more global investors.

    "The year 2014 .......

    News Round-up 4 September 2014

  • Tightening seen for European financials

    Five-year credit default swaps on the European banking sector have tightened significantly over the past month, following a bout of widening earlier this summer, according to Fitch Solutions' latest case study. Banks domiciled in Spain, Portugal and Italy were at the forefront of the tightening, with their spreads firming by 26%, 25% and 22% respectively during the period.

    "On average, .......

    News Round-up 4 September 2014

  • Floorplan ABS set for strong performance

    Profitable auto dealer networks supported by healthy demand for and sales of new and used vehicles are helping to position US dealer floorplan ABS for strong performance headed into next year, according to Fitch's annual portfolio review. The agency projects solid asset trust metrics for the sector, including stable monthly payment rates and agings, together with virtually zero trust losses.

    News Round-up 4 September 2014

  • Basel 3 'impediment' highlighted

    Capital charges for securitisation exposures under the latest Basel 3 proposals represent an impediment to the development of a confident investor base underlying a healthy European securitisation market, Fitch says. The agency notes that while the proposed Basel securitisation framework involves lower capital charges than under the first exposure draft, the proposals for the external ratings-based approach would still significantly .......

    News Round-up 4 September 2014

  • Reg AB 2 to increase data integrity

    Moody's says that the US SEC's adoption of Regulation AB 2 will enhance transparency in publicly offered ABS, which is credit positive for RMBS and auto ABS but credit neutral for CMBS. Overall the agency expects the requirement for loan-level data to result in more scrutiny by sponsors, thereby increasing data integrity.

    Third-party diligence firms currently review key loan-level data .......

    News Round-up 4 September 2014

  • Springleaf subs acquired

    Chimera Investment Corp has acquired the rights to approximately US$4.8bn of seasoned residential mortgage loans through the purchase of subordinate notes and trust certificates in Springleaf Mortgage Loan Trusts 2011-1, 2012-1, 2012-2, 2012-3, 2013-1, 2013-2 and 2013-3. By purchasing these securities, the REIT may over time terminate the securitisation trusts by redeeming all outstanding bonds at par and obtain the .......

    News Round-up 4 September 2014
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