Complete news archive

  • Analytics service enhanced

    Lewtan has released an enhanced version of its structuring and analytics platform, ABSNet Modeler, which is geared to all sectors of the new issue securitisation market. The enhancements consist of updated rating agency liability model criteria for CLOs (Moody's, Fitch and S&P), with the inclusion of multiple matrix point inputs.

    In addition, the deterministic loan and global level assumptions now .......

    News Round-up 9 June 2014

  • Technology driving servicer ratings

    Technology was the main driver of changes in servicer ratings across the EMEA structured finance market last year, reflecting its status as an increasingly important component of a servicer's capability, Fitch says. Of the agency's key rating drivers in the segment, technology was cited in 22 rating actions - 19 positive and three negative - in 2013.

    Risk management/governance contributed .......

    News Round-up 9 June 2014

  • CMBS pay-offs jump

    The percentage of US CMBS loans paying off on their balloon date jumped sharply in May to 77.1%, according to Trepp. The rate is more than 13 points higher than the April reading of 63.6% and breaks a string of five straight months in which the pay-off rate fell (from 81.3% in November).

    The May pay-off percentage was well above .......

    News Round-up 9 June 2014

  • AOFM unloads bonds

    The Australian Office of Financial Management (AOFM) last week sold four of the RMBS bonds it holds, with a total amortised face value of A$341m. The agency says it is disclosing the details of the transactions in the interests of secondary market transparency.

    The securities sold comprise: A$75.5m Pinnacle 2010-1 class A2 notes (original face value was A$96.5m); A$37.4m GBS .......

    News Round-up 9 June 2014

  • CMBS disposition times lengthening

    Fitch reports that inventories and disposition times for US CMBS assets in special servicing as of year-end 2013 modestly increased compared to year-end 2012. The agency says that its highest-rated servicers continue to maintain younger REO portfolios on average compared to lower-rated servicers.

    Highly-rated servicers (in the CSS1 category) held REO assets in special servicing for an average of 32.6 .......

    News Round-up 9 June 2014

  • SCI Start the Week - 9 June

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

    Pipeline
    Many more deals joined the pipeline last week than had been added in the week before. They consisted of four ABS, an ILS, an RMBS, two CMBS and seven CLOs.

    The newly-announced ABS were: US$726.9m GEET 2014-1; US$200m Hilton Grand Vacations Trust 2014-A; US$850m NALT 2014-A; and US$93.1m Rhode Island Student Loan Authority Series 2014-1. The ILS was .......

    News 9 June 2014

  • CRE firm opens Boston office

    CCRE has opened an office in Boston. It will be led by Tom Sullivan, who will focus on loan origination and servicing CCRE's clients across the greater New England area.

    Sullivan joined CCRE in 2012 and reports to co-heads of origination and capital markets Peter Scola and Lawrence Britvan as well as coo Michael May. Before joining CCRE, Sullivan worked .......

    Job Swaps 9 June 2014

  • RFC issued on g-fees

    The FHFA has released a request for input on GSE guarantee fee policy and implementation. Among the areas the agency is seeking comments on are: alternatives to risk-based pricing; the effect of increasing g-fees based on credit scores/LTVs; g-fee levels that would improve private-label RMBS economics; and the effect on loan originations, should g-fees increase.

    Wells Fargo RMBS analysts believe .......

    News Round-up 9 June 2014

  • MSR transfer expectations revised

    Addressing new regulations and internal and external controls remains the theme for US residential mortgage servicers in 2014, S&P suggests. The agency says that these companies have been focusing on compliance with Consumer Financial Protection Bureau (CFPB) rules that went into effect on 10 January, which aim to provide better disclosure to consumers of their mortgage loan obligations and to .......

    News Round-up 6 June 2014

  • Malaysian sukuk market still growing

    Moody's expects sukuk issuance in the Malaysian market to see steady growth of around 10% during 2014-2015. Given the deep local capital markets and strong support from the government, the country will remain the world's largest sukuk market for the foreseeable future, although regional and global competition is likely to develop over the next two to three years.

    "Some two-thirds .......

    News Round-up 6 June 2014

  • US CMBS market rallies

    The US CMBS market rallied yesterday as spreads tightened. Trepp reports that secondary volumes reached the highest level of the week, at about US$300m, as banks took down large blocks of CMBS 2.0 and 3.0 bonds.

    "Legacy super seniors and new issue triple-As were a basis point or two tighter for the most part. The GSMS 2007-GG10 A4 bond was .......

    Market Reports 6 June 2014

  • Access to ABS docs offered

    EuroABS is releasing its database of European ABS documentation, dubbed EADReD, to the market for no charge. The move is in response to the BoE and ECB's recent consultation document, in which they raise the question of whether the "availability of prospectuses and standardised investor reports in a single location" would be helpful to securitisation markets, as well as the .......

    News Round-up 6 June 2014

  • Hedge fund performance 'rebounding'

    Hedge fund performance was positive in May, rebounding from a slight decline in April, according to eVestment. The industry returned 1.23% during the month and is up by 2.2% year to date, on pace for an annualised return of 5.36% for 2014.

    Credit funds posted their ninth consecutive positive month in May, returning 1.03%, and are the second best performing .......

    News Round-up 6 June 2014

  • Peripheral price recovery diverging

    House prices in the worst-hit peripheral eurozone mortgage markets are beginning to recover, but at different paces, Fitch says. The Irish market is now past its trough, the Portuguese market has stabilised but remains fragile and the Spanish market is likely to reach its low point at around the start of 2015. The Italian and Greek markets - which fell .......

    News Round-up 6 June 2014

  • Foreign borrower adjustment raised

    The performance of Italian and foreign mortgage borrowers in Italian RMBS transactions has diverged to the point where default risk is over three times higher for non-Italians, Fitch reports. This is reflected in the agency's most recent update to its Italian RMBS criteria.

    Analysis of eight transactions with higher-than-average exposure to foreign borrowers shows that their default rates are on .......

    News Round-up 6 June 2014

  • RMBS lawsuits return to state courts

    A US federal court has granted a motion by several states to remand back to state court 17 lawsuits against S&P. The suits concern ratings of RMBS where the states allege that the rating agency misled their citizens by not disclosing conflicts of interest.

    The cases had been moved to federal court and consolidated. However, a Lowenstein Sandler memo notes .......

    Job Swaps 6 June 2014

  • First-quarter loss severities examined

    The weighted average loss severity for US CMBS loans liquidated at a loss rose marginally in 1Q14, increasing to 41.9% from 41.5% quarter-over-quarter, according to Moody's. From 1 April 2013 to 31 March 2014, US$16.2bn of CMBS loans liquidated, approximately the same as in the prior 12-month period.

    Two liquidations with high dollar losses occurred during the quarter. The Two .......

    News Round-up 6 June 2014

  • Court clears way for settlement

    The US Court of Appeals for the Second Circuit has vacated an order by a US district judge which refused to approve a settlement between the SEC and Citigroup Global Markets. The underlying dispute concerns SEC allegations that Citi sold a US$1bn CDO called Class V Funding III without disclosing that it had bet US$500m against the assets in the .......

    Job Swaps 6 June 2014

  • CMBX losses projected

    KBRA has released its inaugural research publication on vintage US CMBS deals, leveraging data and information from its new KBRA Credit Profile (KCP) surveillance service (SCI 12 May). The latest report highlights the agency's projected losses on CMBX Series 1 through 5.

    KCP reports feature property valuations under concluded, conservative and optimistic scenarios. The concluded scenario is what KBRA analysts .......

    News Round-up 6 June 2014

  • ECB furthers support for ABS

    The ECB has announced measures to support lending to the real economy, including intensifying preparatory work for outright purchases of ABS. The bank also intends to conduct a series of targeted longer-term refinancing operations (TLTRO).

    Marking an important step in shifting attitudes towards the asset class, the ECB will consider purchasing simple and transparent ABS, with underlying assets consisting of .......

    News 6 June 2014

  • Manager adds RMBS team

    Alternative investment manager GAM has purchased specialist US RMBS business Singleterry Mansley Asset Management. Gary Singleterry and Tom Mansley, along with their investment team, are expected to join GAM this month.

    Singleterry Mansley Asset Management specialises in evaluating RMBS based on an analysis of macroeconomics, yield curves and underlying collateral structures. The acquisition expands GAM's capabilities with a distinct new .......

    Job Swaps 6 June 2014
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