Complete news archive

  • Low-quality retail assets eyed

    Moody's expects low-quality retail assets securitised in UK CMBS to be more vulnerable to future changes in technology and consumer behaviour than higher-quality retail assets. The rise of e-commerce, the growth of retail destinations with superior leisure and catering options, and the use of technology to assess the optimal tenant mix and layout of properties are set to influence the .......

    News Round-up 12 May 2014

  • ILS allocations set to rise

    Catastrophe reinsurance capacity is expected to double and reach US$100bn over the next few years, driving more institutional investors to allocate to the ILS sector. The search for yield is pulling ILS instruments towards mainstream investment tools, presenting new challenges for investment managers, according to a new report from Clear Path Analysis.

    On average, ILS investments represent 1%-3% of pension .......

    News Round-up 12 May 2014

  • RMBS market vet recruited

    Cello Capital Management has appointed Nicholas Letica as md and senior portfolio manager. He has 27 years of RMBS experience and has previously worked at Bear Stearns, Deutsche Bank, HSBC and Bankers Trust.

    .......

    Job Swaps 12 May 2014

  • Radian buys to boost RMBS capabilities

    Radian Group is set to boost its RMBS capabilities by purchasing Clayton Holdings. The acquisition is expected to close in the summer, after which Clayton will become a Radian Group subsidiary.

    Radian will pay US$305m to purchase all of the outstanding equity interests in the mortgage solutions provider. The figure includes repayment of Clayton's outstanding debt.

    .......

    Job Swaps 12 May 2014

  • SCI Start the Week - 12 May

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

    Pipeline
    Just nine new deals were added to the pipeline last week. These consisted of three ABS, an ILS, two RMBS, a CMBS and two CLOs.

    The newly-announced ABS comprised US$1.03bn Ally Auto Receivables Trust 2014-1, US$488.3m Porsche Financial Auto Securitization Trust 2014-1 and US$503.1m Wheels SPV 2 Series 2014-1. The ILS was US$100m Aozora Re Series 2014-1, while .......

    News 12 May 2014

  • 'Fresh' surveillance tool launched

    Kroll Bond Rating Agency has launched a new monthly CMBS surveillance product -KBRA Credit Profile (KCP) reports. The new service aims to provide the CMBS industry with transparency, accuracy and a "fresh perspective" on CMBS monthly surveillance.

    The KCP platform is the only product utilising a multi-valuation approach, providing full transparency of valuation assumptions and forecasting both default and resolution .......

    News Round-up 12 May 2014

  • Delinquency rate remains stable

    US CMBS delinquencies ticked down by 3bp in April to 5.13% from 5.16% a month earlier, according to Fitch's latest index results for the sector. This marks the smallest drop in over a year, after declines of 10bp or more in nine of the past 12 months.

    The largest new delinquency recorded in April was for the US$80m 1111 Marcus .......

    News Round-up 12 May 2014

  • CMBS pay-offs inch lower

    The percentage of US CMBS loans paying off on their balloon date was 63.6% in April, just one point lower than the March reading of 64.6%, according to Trepp. The April pay-off percentage was lower than the 12-month moving average of 69.5%.

    By loan count as opposed to balance, 67% of loans paid off last month, compared to 64.8% in .......

    News Round-up 12 May 2014

  • Container redemptions picking up

    Container ABS investors face a tight technical environment, driven by a slower primary market and a pick-up in redemptions. Container lessors have called 10 deals since end-3Q13, including four year-to-date.

    Textainer is the latest lessor to follow the trend, announcing last week that it will redeem three deals - widely expected to be its 2005, 2011 and 2012 transactions. The .......

    News Round-up 9 May 2014

  • Pharma CDS spreads diverging

    Takeover speculation involving AstraZeneca and Pfizer has resulted in a divergence of sentiment with respect to the firm's credit default swap spreads, according to Fitch Solutions' latest CDS case study. Five-year CDS on AstraZeneca have tightened by 21% in the past month, but Pfizer's have widened by 28%.

    "Credit protection for both pharmaceutical giants is still pricing strong, though market .......

    News Round-up 9 May 2014

  • Mexican cat bond affirmed

    S&P has affirmed its single-B rating on the US$140m MultiCat Mexico series 2012-1 class A notes. The move comes after Swiss Re submitted an event notice to the calculation agent, AIR Worldwide Corp, following the 18 April earthquake in the state of Guerrero.

    The MultiCat ILS programme is sponsored by Swiss Re, which reinsures AGROASEMEX, a state-owned insurance institution set .......

    News Round-up 9 May 2014

  • Liquidity rules could 'hurt demand'

    S&P says that upcoming rules governing bank liquidity could hurt demand for European securitisations. The agency also notes that the treatment of securitisations is less favourable than that of some other debt securities, such as covered bonds and corporate bonds, which could significantly reduce banks' incentives to hold securitisation tranches.

    "Historically, banks have been one of the largest investor constituencies .......

    News Round-up 9 May 2014

  • Positive post-crisis performance continues

    Post-crisis US RMBS collateral is performing well, according to Fitch's latest prime jumbo RMBS trends report. However, the agency notes that the pace of new issuance this year remains scarce, with no near-term change likely.

    Fitch calculates that 48 prime RMBS deals have come to market since 2010, though only five have been completed in 2014. "The still-dominant presence of .......

    News Round-up 9 May 2014

  • ILS vehicle debuts

    Jardine Lloyd Thompson Capital Markets has closed a US$10m private placement catastrophe bond, Market Re 2014-1. The Market Re vehicle has been established with the aim of making the capital markets more accessible to issuers seeking to issue smaller-sized ILS transactions.

    "We have worked closely with our strategic service partners to build a scalable vehicle that will open up a .......

    News Round-up 9 May 2014

  • Aussie credit risk highlighted

    Fitch says that APRA's recently released discussion paper, 'Simplifying the prudential approach to securitisation' (SCI 29 April), may affect RMBS transaction structures and credit risk profiles in the future. In particular, the agency suggests that the proposed APRA requirement for a two-class structure will leave the current triple-A rated AB note orphaned, requiring it to be either merged into the .......

    News Round-up 9 May 2014

  • Duke CDO manager replaced

    Dock Street Capital Management has been appointed as successor collateral manager for Duke Funding High Grade III. Dock Street replaces Cairn Financial Products, effective as of 19 May.

    The terms of the proposed replacement collateral management agreement have remained almost identical and Fitch says what minor differences there are will not affect the ratings of the transaction. The most senior .......

    Job Swaps 9 May 2014

  • Euro investors watching CLO equity

    European CLO investors are largely waiting on the sidelines and observing as secondary market activity has slowed considerably. CLO 2.0 equity paper - both secondary and new issue - is proving most popular with investors.

    "A few concerns continue to hang over the market and that has slowed activity down. For me, the largest worry is the arbitrage, but a .......

    Market Reports 9 May 2014

  • Origination differences emerging

    Important differences are emerging among US CMBS originators, Fitch says. This observation is based on the agency's analysis of over 2,000 conduit loans included in 2013 and 1Q14 Fitch-rated transactions, comparing 19 originators across 17 key metrics.

    "This analysis will help investors determine whether anecdotal impressions of originator quality are supported by hard data," says Fitch md Stephanie Petosa.

    The .......

    News Round-up 9 May 2014

  • Demica adds SF specialist

    Demica has appointed Sarah Gannon as business development director. She reports directly to ceo Phillip Kerle and takes responsibility for establishing key customer relationships as well as developing strategic business plans to maximise sales opportunities, including driving sales for the company's trade receivables securitisation products.

    Gannon was previously commercial director for structured finance services and hedge funds administration at TMF .......

    Job Swaps 9 May 2014

  • Stuy Town expectations revised

    The outlook for the Stuyvesant Town-Peter Cooper Village loan, securitised in five CMBS, has improved. Losses are no longer expected and the property could be sold later this year.

    The Manhattan apartment complex backs a US$3bn senior loan split between WBCMT 2007-C30, MLCFC 2007-5, CWCI 2007-C2, WBCMT 2007-C31 and MLCFC 2007-6, as well as US$1.4bn of mezzanine loans (SCI passim). .......

    News 9 May 2014

  • XA spread compression over?

    The strength of US CMBS XA tranche BWIC execution last month caught the market by surprise, leading to a sharp rally in select IOs. New issue XAs are now trading through their historical tights, suggesting that the potential for further upside is limited, especially for bonds from the 2012-2013 vintage.

    A US$1.7bn bid-list consisting of 13 block-sized 2011-2012 vintage conduit .......

    News 8 May 2014
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