Complete news archive

  • ABS CDOs on the block

    Auctions for the Kleros Preferred Funding and Trainer Wortham First Republic CBO V deals have been scheduled for 20 June. The collateral shall only be sold if the proceeds, together with other available redemption funds, are at least equal to the total senior redemption amounts. The collateral manager for the former transaction, although it may not have been the highest .......

    News Round-up 2 June 2014

  • SFR snapshot debuts

    Kroll Bond Rating Agency has published the inaugural issue of its Single-Family Rental Performance Snapshot, which aims to provide the market with a timely synopsis of the performance of securitised transactions in this emerging asset class. The move is part of an effort to provide more transparency around the performance of SFR transactions.

    This first report highlights the Invitation Homes .......

    News Round-up 2 June 2014

  • Timeshare delinquencies normalising

    Total US timeshare ABS delinquencies for 1Q14 stood at 3.19%, down from 3.27% in 1Q13 and 3.38% in 4Q13, according Fitch's latest index results for the sector. This marks the seventh straight quarter of year-over-year improvement, with delinquencies having largely normalised at their historical levels, following the dramatic increases of 2008 and 2009.

    The quarterly and year-over-year improvement is also .......

    News Round-up 2 June 2014

  • Central bank discussion paper welcomed

    AFME has welcomed the Bank of England and ECB's discussion paper on revitalising the European securitisation market (SCI 30 May), noting that the report "helpfully acknowledges" the strong performance of high‐quality transactions in the region. The association adds that the concept of 'qualifying securitisations' fits well with recent calls by the European Commission to revive a sustainable market for high‐quality .......

    News Round-up 2 June 2014

  • UK RMBS criteria updated

    Fitch has updated its criteria assumptions for assessing credit risk in UK residential mortgage loan pools. The updated assumptions are expected to have a limited impact on existing UK RMBS ratings and no effect on covered bond or SME CLO ratings. Potentially affected ratings will be reviewed within six months.

    Under the updated assumptions, Fitch applies the sustainable loan-to-value ratio .......

    News Round-up 2 June 2014

  • SCI Start the Week - 2 June

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

    Pipeline
    Bank holidays on either side of the Atlantic contributed to a relatively quiet week. Four ABS, four RMBS and four CMBS deals were added to the pipeline.

    The newly-announced ABS were US$1bn Fifth Third Auto Trust 2014-2, US$728m MMAF Equipment Finance 2014-A, US$612m PHEAA Student Loan Trust 2014-2 and €1.4bn Sunrise series 2014-1. Fosse Master Issuer series 2014-1, .......

    News 2 June 2014

  • Fixed income analyst added

    Aite Group has appointed John Mangano as an analyst in its institutional securities and investments team. He is based in Boston and will focus on fixed income products, technology and market structure.

    Mangano spent 15 years at Fidelity Capital Markets, where he held a range of fixed income sales and trading roles, including in structured debt. More recently he was .......

    Job Swaps 2 June 2014

  • CMBS delinquency improvements continue

    The Trepp US CMBS delinquency rate improved for the twelfth consecutive month in May, with a 17bp decline. It now stands at 6.27%, 280bp lower than the May 2013 rate. The delinquency rate has fallen by 407bp since the all-time high of 10.34% in July 2012.

    Loan resolutions totalled over US$1bn in May, up from about US$850m in April. Removing .......

    News Round-up 30 May 2014

  • Aussie soft-bullet bonds gaining traction

    Recent exploration of a broader range of bullet-payment structures - including master trust structures - by issuers of Australian RMBS may pique the interest of investors, particularly offshore accounts, according to S&P. These structures offer issuers the potential to diversify their funding options, reduce swap and funding costs, and appeal to a wider investor base.

    S&P notes that there are .......

    News Round-up 30 May 2014

  • Pre-trade platform enhanced

    Traiana has enhanced its CreditLink platform with new functionality designed for buy-side market participants trading on swap execution facilities (SEFs). The service now includes streamlined post-trade processing of SEF trades, management of the allocations process for bunched orders and the ability to monitor limits across the entire trade lifecycle.

    Over 6050 buy-side client organisations have managed their pre-trade clearing certainty .......

    News Round-up 30 May 2014

  • Portuguese ratings upgraded

    Moody's has upgraded to Baa1 six notes in five Portuguese ABS and eight notes in seven RMBS transactions. At the same time, the agency placed on review for upgrade three notes in three ABS and 42 notes in 22 RMBS. It has also placed on review direction uncertain one note in one RMBS deal.

    The rating actions follow the upgrade .......

    News Round-up 30 May 2014

  • Auto ABS structuring trends surveyed

    Moody's notes in the second report of its four-part series on the global auto ABS sector that transactions in North America, Europe, Asia Pacific and South America benefit from the use of common legal and operational protections, such as back-up servicing arrangements and true sale mechanisms. While new deals will continue to feature similar types of capital structures and credit .......

    News Round-up 30 May 2014

  • Euro ABS policy options outlined

    The Bank of England and the ECB have published their joint discussion paper on the revitalisation of European securitisation, building on the report published last month (SCI 14 April). The paper discusses the reasons for the shortcomings and the opportunities for improvement of the ABS market, and is designed to stimulate discussion among stakeholders on the impediments identified and the .......

    News Round-up 30 May 2014

  • RMBS secondary supply jumps

    US non-agency RMBS BWIC volume picked up yesterday to reach around US$410m. A variety of bonds were out for the bid, including a handful of post-crisis non-performing loan tranches.

    Among the Alt-A names circulating during the session, a couple of bonds appeared for the first time in SCI's PriceABS data. The IMM 2007-A M1 tranche was talked at .......

    Market Reports 29 May 2014

  • CMBS liquidations, loss severity up

    US CMBS liquidated loan volume reached US$1.02bn in May, up from US$844.16m the previous month, according to Trepp. Of the loans that were liquidated, 84% by balance fell into the greater than 2% loss severity category.

    Loss severity registered 48.94% in May, up by nine percentage points from April's 39.77% and just above the 12-month moving average of 47.62%. The .......

    News Round-up 29 May 2014

  • Risk management requirements welcomed

    The China Bank Regulatory Commission (CBRC) recently issued risk management requirements that should help to establish a better foundation for China's securitisation market. The requirements apply separately to trust companies and financial leasing companies.

    "The new rules provide additional support to China's developing securitisation market because trust companies often provide trustee services to securitisation transactions and there is growing interest .......

    News Round-up 29 May 2014

  • Collateral management trends surveyed

    Sapient Global Markets has released the results of a new survey examining trends, issues and requirements for efficient collateral management across global market participants. The research - conducted throughout March - reveals three significant trends: evolution towards the front office; efficiency gains required to deliver increased automation; and the systems and processes needed to support these substantial structural changes.

    The .......

    News Round-up 29 May 2014

  • Green Tree test failures eyed

    Moody's says in its latest ResiLandscape publication that Green Tree Servicing's failure in its first testing period to meet error rate thresholds for eight of 29 National Mortgage Settlement (NMS) servicing metrics is credit neutral for existing private-label RMBS. Nevertheless, the failure underscores the challenges non-bank servicers face in handling servicing acquisitions from larger banks, according to the agency.

    "The .......

    News Round-up 29 May 2014

  • Longevity swap relief granted

    The CFTC has addressed for the first time its definition of a swap as it applies to a specific insurance transaction. Law firm Sutherland notes in a recent client memo that no action letter 14-67 allows US life insurers - via a Bermuda cell insurer - to provide a reinsurance hedge to banks active in protecting non-US pensions against the .......

    News Round-up 29 May 2014

  • BPO assessments examined

    Moody's notes in its latest ResiLandscape publication that broker price opinions (BPOs) can provide fair assessments of home values for single-family rental (SFR) securitisations, if BPO providers follow detailed and thorough processes and procedures. An analysis undertaken by the agency of data from two BPO providers showed that, on average and in the current environment, BPO values approximated the eventual .......

    News Round-up 28 May 2014

  • Sidecars proliferating

    New capital invested in reinsurance sidecars reached US$1.92bn in 1Q14, the highest level of quarterly growth in the segment since 2009, according to Moody's. New capital has surged even as reinsurance rates fall, suggesting that reinsurers have different motivations for sponsoring sidecars now than they did the last time there was a sharp increase in new capital in 2005-2006.

    Following .......

    News 28 May 2014
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