Complete news archive

  • Six European CLOs transferred

    BNP Paribas Asset Management has replaced BNP Paribas as collateral manager on six CLOs. The affected deals are Leveraged Finance Europe Capital I, Leveraged Finance Europe Capital II, Leveraged Finance Europe Capital III, Leveraged Finance Europe Capital IV, Neptuno CLO I and Versailles CLO M.E. I.

    Moody's says the move will not impact the CLOs' ratings but does not express .......

    Job Swaps 8 July 2014

  • Jumbo cat bonds drive record issuance

    Last quarter saw the largest-ever issuance volumes in the history of the non-life catastrophe bond market, with US$4.5bn of capacity issued through 17 tranches, according to Willis Capital Markets & Advisory's latest ILS market update. This compares with US$3.3bn issued via 17 tranches in 2Q13 and the previous quarterly record of US$3.5bn issued in 2Q07.

    The record issuance volume was .......

    News Round-up 8 July 2014

  • Covenant waive requested

    Further details have emerged about the delay in Hertz's 1Q14 Form 10-Q filing (SCI 4 July). Due to a number of accounting errors, the firm is to restate its 2011 financial statements and review the corporate financial statements for 2012 and 2013.

    The nature of the accounting issues appear to be primarily non-cash items and do not seem to be .......

    News Round-up 8 July 2014

  • SRT guidelines released

    The EBA has published a final set of guidelines designed to support both originator institutions and competent authorities in the assessment of significant risk transfer (SRT) for securitisations. The guidelines aim to ensure a more consist approach in the assessment of significant risk transfer across the EU and to achieve a level playing field in this area.

    The EBA says .......

    News Round-up 8 July 2014

  • Structuring pro brought in

    Natixis has appointed Sachin Patel as a senior structurer in London. He joins from Credit Agricole, where he was a senior portfolio manager and focused on the workout of distressed US and European structured credit assets. Patel has also worked at Moody's Wall Street Analytics and Morgan Stanley.

    .......

    Job Swaps 7 July 2014

  • Location boosts CRE performance

    Over 26,000 loans collateralising US conduit CMBS deals issued since 2005 - representing US$363bn or about 80% of the conduit universe - have so far reported full-year 2013 cashflow data. Bank of America Merrill Lynch CMBS analysts have aggregated this data across vintages, property types and property locations to glean a better understanding of commercial real estate performance over the .......

    News 7 July 2014

  • Manager adds CLO pair

    Apollo Capital Management has strengthened its team with two appointments. Albert Huntington and Matt Roesler will both be based in New York.

    Huntington joins as principal. He was previously at Bank of America Merrill Lynch and Narricot Industries, while Roesler joins from Citigroup.

    .......

    Job Swaps 7 July 2014

  • Rating actions for Irish RMBS

    Fitch has upgraded ten, affirmed 23 and downgraded four tranches across 12 Irish RMBS. At the same time, outlooks on 14 tranches were revised to stable from negative and the rating watch positive on five tranches has been resolved.

    Fitch placed five tranches of Irish RMBS on RWP in April, following a revision in the rating cap on structured finance .......

    News Round-up 7 July 2014

  • FIGSCO rating approach explained

    The rating of Goldman Sachs' latest secured funding product - dubbed Fixed Income Global Structured Covered Obligation (FIGSCO) - would most likely be equalised with that of the total return swap provider, says Fitch. The transaction is secured by a wide range of fixed income assets, including securitised debt, with overcollateralisation (OC) levels that are marked to market daily.

    Fitch .......

    News Round-up 7 July 2014

  • Alternative asset manager adds two

    Premium Point Investments has appointed Ivan Chee to oversee trading in non-agency mortgage bonds. He is based in New York.

    Chee was previously at Morgan Stanley, where he was most recently desk strategist for agency RMBS. Before joining Morgan Stanley he was a software design engineer for Expedia and has also worked at IBM.

    Premium Point has also appointed Mark .......

    Job Swaps 7 July 2014

  • SCI Start the Week - 7 July

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

    Pipeline
    Several deals joined the pipeline last week as the market prepared for the US Independence Day holiday. The new entrants included four ABS, three ILS, two RMBS, three CMBS and one CLO.

    The newly-announced ABS comprised: €800m Bavarian Sky German Auto Loan 2, E-Carat Compartment 7, NZ$150m MTF Valiant Trust 2014 and US$250m Sierra Timeshare 2014-2. The ILS consisted of .......

    News 7 July 2014

  • Amlin ups interest in ILS manager

    Amlin has reached a non-binding agreement in principle to increase its existing interest in Leadenhall Capital Partners (LCP), which Amlin established in joint venture with LCP's individual partners in 2008. Under the terms of the agreement, Amlin will increase its current 40% interest in the business to 75%.

    The consideration will be determined by the profitability of the business, subject .......

    Job Swaps 7 July 2014

  • Further settlement deadline extended

    The trustees for the RMBS that fall under Citibank's US$1.125bn rep and warranty settlement have exercised their right to extended by 45 days the deadline to respond to the offer. The new deadline is 14 August.

    Barclays Capital RMBS analysts note that the trustees for the 68 deals that are part of the Citibank settlement - Deutsche Bank, HSBC,US Bank .......

    News Round-up 7 July 2014

  • MPOR standards published

    The EBA has published its final draft regulatory technical standards (RTS) specifying the minimum margin periods of risk (MPOR) that institutions acting as clearing members may use for the calculation of their capital requirements for exposures to clients. To incentivise the use of CCPs, the Capital Requirements Regulation (CRR) introduces special treatment for centrally cleared derivatives.

    In particular, these draft .......

    News Round-up 7 July 2014

  • HUD auction sees three firsts

    Lone Star on 11 June became the first single bidder to win each of the pools offered in a HUD single family loan sale. The 2014-2 Part 1 auction comprised 16 different pools of geographically diverse non-performing FHA loans, with US$3.9bn of aggregate UPB and a US$3.3bn aggregate BPO.

    Loan Star's weighted average bid was 77.6% of BPO (65.8% of .......

    News Round-up 4 July 2014

  • Clean-up call candidates identified

    The ECB's TLTRO operation entitles banks to initially borrow up to €400bn for four years at a fixed rate of 25bp. The availability of this low-cost funding increases the likelihood of originators exercising clean-up calls in European ABS and RMBS deals, according to Citi securitised product strategists.

    Issuers generally have the right to call outstanding notes at par once the .......

    News 4 July 2014

  • Recoveries surprise to the upside

    MSAC 2006-HE3 and SVHE 2006-WF1 bondholders last month received significant pay-outs related to subsequent recoveries. The trustee for both RMBS is Deutsche Bank and the pay-outs are believed to be due to individual rep and warranty-related settlements with one of the originators or related pay-outs at the loan level.

    MSAC 2006-HE3 group 2 bonds saw a subsequent recovery of about .......

    News Round-up 4 July 2014

  • Pricing in prepayment protection

    Tightening loan margins and note spreads have increased the likelihood of European CMBS 2.0 prepayments. However, prepayment protection appears not to have been fully priced in for certain bonds.

    CMBS prepayment protection affects how much bond prices can rise above par when spreads tighten. Barclays Capital CMBS analysts note that deals have employed various ways to treat early redemptions at .......

    News 4 July 2014

  • New contender for worst-performing postcode

    Fitch reports that Budgewoi on the Central Coast of New South Wales has become the worst performing postcode in Australia for missing housing loan payments, with a 30+ days delinquency rate of 3.7%. The suburb has been among the 20 worst performing postcodes each March and September over the five years since March 2009, with the exception of September 2012. .......

    News Round-up 4 July 2014

  • Investor confidence underscored

    Efforts to improve the functioning of the European securitisation market will not be successful without a confident investor base, Fitch suggests. The agency says that investor confidence is limited by the lack of clarity and consistency in the regulatory treatment of securitised paper and that issuing additional or alternative ratings which ignore some credit risks present in securitisations could ultimately .......

    News Round-up 4 July 2014

  • CMBS pay-offs drop

    The percentage of US CMBS loans paying off on their balloon date slipped noticeably in June to 67.3%, about 10 points lower than the May reading of 77.1%, according to Trepp. In comparison, the 12-month moving average stands at 71.7%.

    By loan count as opposed to balance, 74.1% of loans paid off last month - marking a slight decrease from .......

    News Round-up 4 July 2014
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