Complete news archive

  • CLO firm adds RBS pair

    CIFC Corp has boosted its capital markets and distribution group with the appointments of Matt Andrews as md and Mark Sanofsky as executive director. They both join from RBS Securities.

    Andrews was head of CLO origination and structuring for RBS' CLO business and had previously worked in RBS' asset-backed finance group. Sanofsky was a senior member of RBS' US CLO .......

    Job Swaps 13 August 2014

  • Rates impact weighed

    With FN 4.5s prices nearing their all-time highs, the US agency RMBS sector appears to be at a tipping point from a rates perspective. So far, mortgage production and refinancing concerns have remained well contained, but Morgan Stanley MBS strategists believe that market dynamics could change if rates rally by another 25bp.

    "Although any overall pick-up in refinancing activity is .......

    News 12 August 2014

  • End-user reliance on derivatives underscored

    ISDA has published a new research study, entitled 'Dispelling myths: end-user activity in OTC derivatives', which challenges the assumption that only a small fraction of derivatives activity relates to hedging that benefits the real economy. BIS data reveals that 65% of OTC interest rate derivatives market turnover involves an end-user on one side and a reporting dealer on the other. .......

    News Round-up 12 August 2014

  • RMBS activity centres on seniors

    It was a fairly quiet session across the board yesterday, although US non-agency RMBS bid-list supply did reach around US$131m. After some weakness for lower-rated legacy names last week, Interactive Data notes that dealer offering levels yesterday were mostly unchanged.

    SCI's PriceABS data picked up around 20 non-agency names out for the bid in yesterday's session. .......

    Market Reports 12 August 2014

  • BBVA distressed loans understated

    Fitch has downgraded 10 and affirmed three tranches from three BBVA RMBS deals, after it found that the volume of distressed loans in the underlying portfolios was understated in the regular reporting for the transactions. The notes were placed on rating watch negative in May, pending analysis of the information provided by the management company Europea de Titulizacion (EdT).

    The .......

    News Round-up 12 August 2014

  • Positive CLO rating trend continues

    Around 85% of rating changes for European CLOs so far this year have been upgrades. The positive rating trend has been in force since 2011 and means that many tranches are now at or close to their original ratings once more, particularly at the top of the capital structure.

    From a list of 180 outstanding legacy European CLOs, Bank of .......

    News 12 August 2014

  • LMA enhancements highlighted

    Credit Agricole recently amended its ABCP programme LMA by adding the capacity to issue structured notes with interest paid at fixed or floating rates, becoming the first bank-sponsored conduit outside of the US to do so. Enhanced liquidity coverage tests ensure that LMA investors will still receive full and timely repayment on their CP up to the final maturity date, .......

    News Round-up 12 August 2014

  • RFC issued on RPL approach

    Fitch is inviting feedback on its approach for rating RMBS backed by re-performing loan (RPL) collateral. Under the proposed criteria, the agency expects to analyse the key risk drivers of the RPL asset class using its mortgage loan loss model and existing representation and warranty and due diligence review criteria. However, it notes that since the existing methodologies were developed .......

    News Round-up 12 August 2014

  • Succession event for BES

    ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a succession event occurred with respect to Banco Espirito Santo, following the bank's bail-out by the Portuguese central bank (SCI 4 August). Banco de Portugal confirmed that over 75% of all bonds and loans - which the DC decided would constitute relevant obligations - had been transferred to Novo Banco.

    The .......

    News Round-up 12 August 2014

  • Firm builds alternative investment team

    Richey May & Co has made three senior hires for its alternative investment division. The group will now be led by Daniel O'Connor, Stephen Vlasak and Jonathan Sharon.

    O'Connor was previously at Rothstein Kass. He joins as an audit partner and becomes the firm's alternative investment service line leader. He specialises in ABS and RMBS and has experience across securities, .......

    Job Swaps 12 August 2014

  • Refi activity set to continue

    The average US CLO triple-A spread for transactions rated in July 2014 was 1.51%, similar to the average triple-A spread for 2012 vintage transactions that are currently exiting their non-call periods, according to S&P. The agency notes that although current triple-A spreads would appear to limit opportunities for refinancing, it has received a steady stream of such requests, even just .......

    News Round-up 11 August 2014

  • MSA payments drop

    Fitch has completed its annual ratings review of tobacco ABS, accounting for the amount of Master Settlement Agreement (MSA) payment received by each trust in 2014. The agency reports that this year the aggregate MSA payment is 18.46% lower than the amount in 2013.

    This drop is due to the one-time settlement payment received by 20 settling states and territories .......

    News Round-up 11 August 2014

  • US CDS ETFs rolled out

    ProShares has launched two funds that aim to provide exposure to the credit component of the US high yield bond market uncoupled from the interest rate component. ProShares CDS North American HY Credit ETF (TYTE) and ProShares CDS Short North American HY Credit ETF (WYDE) are listed on the BATS exchange.

    TYTE and WYDE invest in index-based credit default swaps. .......

    News Round-up 11 August 2014

  • SMB completes debut SLABS

    Sallie Mae has completed its first student loan ABS as a standalone consumer banking business, as well as the definitive agreement for its first loan sale. Dubbed SMB Private Education Loan Trust 2014-A, the securitisation was secured by approximately US$380m of Smart Option student loans. All securities - including the entire residual interest in the loans - were privately placed .......

    News Round-up 11 August 2014

  • CMBS 2.0 take-outs continue

    The lending environment remains strong for CRE and take out activity continues to be seen in CMBS 2.0 collateral, says Fitch. Some early payoffs are taking place shortly after expiration of the lock-out period, with borrowers paying the premium of yield maintenance to take advantage of the persistent low interest rate environment.

    Cash-outs raise the question of sustainability, although prepay .......

    News Round-up 11 August 2014

  • Association urges PLS support

    SIFMA has responded to a request for comment from the US Treasury on the development of a functioning private-label securities (PLS) market with a series of high-level suggestions. It has also responded to an RFC from the FHFA on GSE guarantee fees, including how they might impact PLS.

    SIFMA applauds the Treasury's efforts to boost PLS (SCI 1 July) and .......

    News Round-up 11 August 2014

  • Origination activity mooted

    Recent developments in the market may potentially allow Fair Oaks Income Fund (or vehicles seeded by it) to act as originator of European CLOs managed by unaffiliated managers, in line with the active investment approach described in its prospectus, the company says. As originator, the master fund or its affiliates could hold the risk retention investment required by current regulations .......

    Job Swaps 11 August 2014

  • RFC issued on trustee role

    SEBI has released for comment a concept paper regarding the introduction of a standardised term sheet for securitisation transactions. The aim is to rationalise, clarify and enhance various aspects of the Indian market, such as eligibility criteria, roles and responsibilities associated with securitisation trustees.

    Schedule III of the country's Securitised Debt Instruments Regulations states that it is the duty of .......

    News Round-up 11 August 2014

  • SCI Start the Week - 11 August

    A look at the major activity in structured finance over the past seven days

    Pipeline
    The pace of deals joining the pipeline slowed down last week. There were four ABS, two RMBS and four CMBS added.

    The ABS were US$1.4bn Applebee's Funding/IHOP Funding Series 2014-1, US$275m Miramax Series 2014-1, US$501m South Carolina Student Loan Corporation (1996 Indenture) 2014 Series and US$1bn Volkswagen Credit Auto Owner Master Trust Series 2014-1.

    The RMBS were US$342.67m .......

    News 11 August 2014

  • Element beefs up SF team

    Element Financial Corporation has appointed a team of structured finance veterans in Stamford, Connecticut, who previously worked at Credit Suisse. The members of the team specialise in structuring, investing and syndicating rail and aviation equipment finance deals.

    The team is led by Scott Corman. He is joined by Imran Hussein - who has been named md - as well as .......

    Job Swaps 11 August 2014

  • Subprime auto investigation widens

    Santander Consumer USA disclosed in its latest 10-Q filing that it has been issued a civil subpoena by the US Department of Justice requesting documents relating to the underwriting and securitisation of non-prime auto loans since 2007. This follows the subpoena of GM in connection with a DOJ investigation in contemplation of a civil proceeding for potential violations of the .......

    News Round-up 11 August 2014
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