Complete news archive

  • Cards lead ABS rebound

    US ABS BWIC volume surged to US$241m yesterday, up from just US$77m the day before. Supply was skewed towards credit card and auto bonds, where offering levels were mostly unchanged.

    SCI's PriceABS data captured a range of names during the session, including CHAIT 2012-A3 A3, which was talked at plus 15 - having been talked last month at .......

    Market Reports 13 February 2014

  • Seasonality affects auto valuations

    There can be significant month-to-month changes in US auto loan ABS prepayment speeds. This degree of seasonality introduces valuation considerations that some investors may not have considered.

    An analysis by Wells Fargo consumer ABS analysts suggests that traders should pay particular attention to the calendar when buying and selling auto loan ABS. They note that short-run changes in prepayment speeds .......

    News 13 February 2014

  • Shadow banking constraints examined

    S&P suggests that a number of factors could constrain the growth of shadow banking in Western Europe. This is despite evidence of a growing need for alternatives to bank financing.

    In the eurozone, the cumulative shrinkage in bank balance sheets between the peak and October 2013 stood at €3.5trn, or 10% of the aggregated balance sheet of eurozone banks. In .......

    News Round-up 12 February 2014

  • Mod claims delay Countrywide settlement

    Approval of the US$8.5bn Countrywide RMBS settlement (SCI 3 February) has been stayed by Justice Saliann Scarpulla of the New York State Supreme Court. On the appeal of objectors including AIG, 19 February has been set as the date for oral arguments on the issues raised by Judge Kapnick's decision.

    In addition to uncertainty over how to handle modification claims, .......

    News 12 February 2014

  • Net loss anticipated for Beacon Seattle

    BACM 2007-2 has become the first CMBS containing a pari passu part of the US$1.3bn Beacon Seattle & DC Portfolio loan to report a pay-down this month. The move follows the recent sale of the Plaza Center & US Bank Plaza buildings for US$186.5m (see SCI's CMBS loan events database).

    As well as BACM 2007-2, the Beacon Seattle portfolio is .......

    News Round-up 12 February 2014

  • Legacy lists lead CMBS supply

    Generic US CMBS spreads were unchanged yesterday as BWIC volume climbed to US$260m. SCI's PriceABS data shows supply concentrated on legacy and agency bonds, with 2.0 tranches harder to come by.

    Covers were rare for 2005-vintage paper, although the CGCMT 2005-C3 AJ tranche traded in the high-200s. The tranche had previously been covered at 275 on 24 January .......

    Market Reports 12 February 2014

  • Chinese pilot programme assessed

    A well-operated securitisation market could contribute to funding diversification and balance sheet management in China, according to S&P. It could also facilitate economic reforms and further development in the country in the near future.

    The aggregate issuance amount under China's credit asset securitisation pilot programme reached RMB24.13bn between 2012 and September 2013, according to the People's Bank of China. This .......

    News Round-up 12 February 2014

  • Stable outlook for Russian SF

    Moody's outlook for the performance of Russian RMBS and ABS in 2014 is stable. The agency's view is underpinned by robust collateral performance, continued - albeit slower - economic growth and stabilised house prices.

    Moody's expects the performance of Russian RMBS and ABS transactions to remain relatively stable, even though economic indicators have weakened and portfolio composition in recent transactions .......

    News Round-up 12 February 2014

  • Shortfalls expected for Queen Street ILS

    S&P has respectively lowered to double-C from double-B minus and single-B plus its ratings on the US$100m Queen Street II Capital and the US$150m Queen Street III Capital catastrophe bonds. At the same time, the agency removed the ratings from credit watch, where they were placed with negative implications in November (SCI 25 November 2013).

    The notes were issued under .......

    News Round-up 12 February 2014

  • Quieter start for US RMBS

    Bid-list activity eased off in the US RMBS market yesterday, with total non-agency BWIC volume of around US$240m. Dealer offering levels were mostly unchanged and the only non-agency market segment to see an increase in activity was fixed-rate mortgages.

    "One notable list is in focus, consisting mostly of strong performing, relatively clean prime senior fixed-rates, with guidance ranging from the .......

    Market Reports 11 February 2014

  • Liquidation proceeds hit BACM 2008-1

    The February remit report for BACM 2008-1 shows that proceeds from the sale of a property identified as part of the CWCapital auction have been applied to the CMBS trust. Overall a total of US$76.2m of principal proceeds was received for the transaction, resulting in the full pay-off of the A2 class and a US$52.4m payment to the A3s, reducing .......

    News Round-up 11 February 2014

  • Package transactions granted relief

    The CFTC has announced measures to promote trading on swap execution facilities (SEFs) and support an orderly transition to mandatory trading of swaps, which begins for certain interest rate swaps on 15 February. In order to protect the identities of counterparties trading on SEFs and incentivise anonymous trading on regulated platforms, the Commission yesterday issued an interim final rule clarifying .......

    News Round-up 11 February 2014

  • CRA3 consultation underway

    ESMA has published a consultation paper setting out the draft regulatory technical standards (RTS) required for the implementation of the CRA3 regulation. The draft RTS - which complements the existing regulatory framework for credit rating agencies (CRAs) - cover: disclosure requirements on structured finance instruments (SFIs); the European Rating Platform (ERP); and the periodic reporting on fees charged by CRAs.

    News Round-up 11 February 2014

  • UK lender adds SF pro

    Paul Levy has joined Hayfin Capital Management, with a focus on structured credit investment. He was previously md at GreensLedge Capital Markets (SCI 11 September 2012) and has also worked at UBS, Prytania Investment Advisers, Merrill Lynch, Deutsche Bank and Morgan Stanley.

    .......

    Job Swaps 11 February 2014

  • Regulator joins as PCS observer

    The European Banking Authority has become a permanent observer of the Prime Collateralised Securities Association. It is the first regulator to do so and as such is a healthy indicator of high-level European institutional support for the securitisation industry.

    The EBA joins other observers such as the ECB, European Bank for Reconstruction and Development (EBRD), the EIB, the EIF and .......

    Job Swaps 11 February 2014

  • CMBS note sales scheduled

    An estimated US$465m of delinquent CMBS loans are due for sale via Auction.com next month. JPMCC 2007-LDPX (serviced by C-III) has the largest exposure to the sale, according to Barclays Capital figures, with US$136m of assets out for the bid.

    The deal with the second largest exposure - at US$65m - is CSFB 2002-CP5 (serviced by LNR), representing a majority .......

    News Round-up 11 February 2014

  • LatAm trade finance CLO debuts

    IIG Trade Finance has completed an innovative securitisation of non-bank Latin America-based trade finance loans. Dubbed Trade Finance Funding I, the US$220m CLO was structured, arranged and placed by Deutsche Bank and will be managed by The International Investment Group.

    The transaction focuses on the Latin American agriculture and soft commodity industries, with the aim of creating a new source .......

    News Round-up 11 February 2014

  • RFC issued on CRA code

    IOSCO has published a consultation report on its 'Code of Conduct Fundamentals for Credit Rating Agencies', which proposes significant revisions and updates to the current CRA code. The organisation proposes to revise the code to take into account the fact that CRAs are now supervised by regional and national authorities.

    The goal is to create an updated IOSCO CRA code .......

    News Round-up 11 February 2014

  • Higher recovery rates boost auto ABS

    Moody's expects UK auto ABS to benefit from higher recovery rates on defaulted contracts and reduced numbers of voluntary terminations (VTs). Both these credit-positive elements are a function of higher used car values in 2014, driven by increasing demand for UK vehicles, and the limited supply of newly used cars following lower new car sales in previous years.

    High used .......

    News Round-up 11 February 2014

  • Impatiently waiting

    CLO market seeking Volcker compliance

    US CLO volume totalled US$2.5bn last month, markedly down from the US$9.8bn reached in January 2013. Uncertainty about the Volcker Rule has contributed to this reduction in issuance, but it has also impacted the structure of the deals that have launched.

    Much of the confusion in the market derives from uncertainty about key Volcker Rule definitions, such as 'covered fund' .......

    News Analysis 11 February 2014

  • CMBS vet takes leadership role

    Situs has named md Andrew Serling as head of its registered investment advisor, Ranieri Partners Asset Management. He will provide strategic direction for Ranieri and present Situs with business development opportunities as they pertain to CMBS bond investors.

    Serling has more than 20 years of experience in real estate capital markets and investments and has previously worked at Berkadia Commercial .......

    Job Swaps 11 February 2014
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