Complete news archive

  • 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

  • CLO performance prompts forecast rethink

    Despite the high level of uncertainty the CLO market has faced, JPMorgan has increased its issuance estimates for the US. Supply in 2013 was US$97.4bn, of which US$87.1bn came from the US and the remainder from Europe.

    Issuance trends so far this year have been stronger than expected and last month saw 26 CLOs price. It was the second-highest all-time .......

    News 8 May 2014

  • Credit drives hedge fund returns

    Hedge fund performance was positive in April, rebounding from its decline in March, according to eVestment. Returns rose by 0.16% during the month and are up by 1.35% year-to-date, on pace for an annualised return of only 4.12%.

    Credit strategies appear to have benefited from a decline in rate markets since the beginning of 2014 and are now the best-producing .......

    News Round-up 8 May 2014

  • US ABS secondary supply picks up

    US ABS BWIC activity picked up to around US$177m yesterday - up from just US$58m the day before - with a mix of auto and student loan bonds driving supply. SCI's PriceABS data shows 15 unique US ABS tranches out for the bid.

    Among the auto names were several DriveTime tranches, including DTAOT 2011-2A D, which was talked .......

    Market Reports 8 May 2014

  • QM amendments considered

    The Consumer Financial Protection Bureau (CFPB) is proposing several changes to the qualified mortgage (QM) rule, which it is hoped will allow more loans to meet the definition. Specifically, the proposals provide more flexibility for loans to meet QM status, despite its cap on points and fees and its restrictions on debt-to-income ratios.

    Additionally, the CFPB plans to allow more .......

    News Round-up 8 May 2014

  • 'Type 1' capital charges lowered

    EIOPA has updated its technical specifications for the Solvency II preparatory phase. The proposal includes lower capital charges for Type 1 securitisations.

    Proposed capital charges for triple-A, double-A, single-A and triple-B rated Type 1 bonds now stand at 2.1%, 4.2%, 7.4% and 8.5% per year of duration respectively. Type 1 securitisations are defined as those backed by residential mortgage loans, .......

    News Round-up 8 May 2014

  • Additional settlement proceeds projected

    US RMBS investors could receive an estimated US$11.5bn-US$24.2bn in additional proceeds, if other rep and warranty settlements are announced with similar payments to the recent Gibbs & Bruns agreements with Citi and JPMorgan (SCI 24 April). To quantify the potential universe of settlement payments remaining, Bank of America Merrill Lynch RMBS analysts have calculated cumulative collateral loss and settlement projections .......

    News 8 May 2014

  • CLO research analyst added

    Citigroup has added Maggie Wang to its CLO research team in New York. She joins as a director and will start in June.

    Wang was most recently head of US CLO and CDO research at JPMorgan, where she also closely followed the ABS, CMBS and high yield markets. She has also worked for EMC and Siemens.

    .......

    Job Swaps 8 May 2014

  • Positive credit card trends continue

    Fitch's Prime Credit Card Charge-off Index increased slightly to 3.04% for the March collection period, after declining for the past two months. The index has declined by 24% year-over-year (YOY) and is now 74% below its historic high of 11.52% reached in September 2009.

    Meanwhile, Fitch's Prime Credit Card 60+ Day Delinquency Index fell by 6bp to 1.17% in March, .......

    News Round-up 7 May 2014

  • CFO update finalised

    Moody's has published an update to the methodology it uses to rate transactions backed by hedge fund investments (SCI 13 March). The move will have a negative impact on the rating on one hedge fund CFO.

    The methodology updates include: changing to a multivariate t-distribution from a Gaussian distribution to simulate the underlying fund returns; updating the volatility and correlation .......

    News Round-up 7 May 2014

  • Trading platform launched

    SuperDerivatives has launched a multi-bank multi-asset trading platform. Called SDeX, the service allows users to request tradable prices from all of their counterparties on any trade they can price in SDX and execute at the best price. Having priced the potential trade in SDX, users can get live quotes on SDeX and then negotiate, execute and book all the trades .......

    News Round-up 7 May 2014

  • CLO lawyer added in New York

    Meagan Signoriello has joined Lowenstein Sandler's mortgage and structured finance group as an associate. She counsels collateral managers in CLO transactions and also has experience in ABCP and RMBS. Signoriello was previously at Seward & Kissel and will be based in New York.

    .......

    Job Swaps 7 May 2014

  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI PriceABS market prices for securitised products. SCI PriceABS is a daily secondary market colour and price service that includes pre- and post-auction price talk and covers/traded prices for ABS, CMBS, RMBS and CDO/CLO bonds across Europe and the US.

    The SCI .......

    News Round-up 7 May 2014

  • Call for increased trustee responsibilities

    The Association of Institutional Investors last week requested in a letter to the Senate Banking Committee that Congress establish clear fiduciary standards for trustees of non-agency RMBS. Additional trustee duties being lobbied for include ensuring that initial collateral conforms to representation and warranties, put-back rights under a securitisation's R&Ws are exercised properly and all loan documentation is properly executed and .......

    News Round-up 7 May 2014

  • New chief for swap trading platform

    Javelin Capital Markets, the parent company of Javelin SEF, has appointed John Sullivan as ceo. Previous ceo James Cawley will continue to serve on Javelin's board.

    Sullivan previously founded Pulse Trading, which was subsequently sold to State Street. At State Street he helped launch a large print crossing platform.

    .......

    Job Swaps 7 May 2014

  • Improved performance seen across CRE

    Delinquency rates continued to decline quarter-over-quarter due to improving economic conditions and a further drop in the share of loans in special servicing, according to Moody's 1Q14 US CMBS and CRE CDO surveillance review. The agency's commercial mortgage metrics (CMM) base expected loss for conduit/fusion transactions fell to 8.6% in the first quarter from 8.9% in 4Q13. Moody's CMM weighted .......

    News Round-up 7 May 2014

  • Californian SF capabilities boosted

    Opus Bank has added Anthony Papadakis and Kevin Joseph to its structured finance division. Papadakis will expand Opus' structured finance client base throughout Northern California, while Joseph will focus on Southern California.

    Papadakis joins from Inside Valuation. He has also worked at Wrightwood Capital, Union Bank of California, DaimlerChrysler Capital, JPMorgan, USL Capital and Consolidated Capital Equities Corporation.

    Joseph joins .......

    Job Swaps 7 May 2014

  • RMBS supply ticks up

    US non-agency RMBS bid-list volume was moderate again yesterday at a little under US$500m. Supply was dominated by adjustable rate and subprime bonds, while derivatives supply was non-existent.

    SCI's PriceABS data captured a number of tranches out for the bid during the session, including several cover prices. Supply was concentrated in the 2005-2007 vintages, although a couple of .......

    Market Reports 7 May 2014

  • RFC issued on Trups CDOs

    Moody's is seeking comments on proposed updates to its rating approach for Trups CDOs. If adopted, the changes are expected to have a generally positive impact of up to four notches on the ratings of senior tranches and up to three notches on mezzanine and junior tranches.

    The proposed changes include: removing the current 25% macro default probability stress for .......

    News Round-up 7 May 2014

  • Processing JV progressing

    Euroclear and the DTCC are finalising negotiations to establish a joint venture to deliver a collateral processing infrastructure that leverages and integrates both companies' capabilities and efforts to date (SCI 15 May 2013). Both Euroclear and the DTCC are industry owned and governed and the firms will collaborate with market participants as solutions are developed.

    The JV will initially focus .......

    Job Swaps 7 May 2014

  • Servicer performance compared

    In its latest 'Servicer Dashboard' publication, Moody's continues its comparison of Nationstar Mortgage, Ocwen Financial Corporation and Walter Investment Management Corporation. By focusing on key differences in their operations, technology, staffing and servicing, the aim is to gain a more nuanced understanding of their servicing performance and loss mitigation outcomes.

    For example, in their operations, Ocwen and Nationstar both focus .......

    News Round-up 7 May 2014
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