Complete news archive

  • CLO credit quality to remain strong

    The total number of US CLOs in 2013 increased by 56% on the previous year, according to Appleby. The 182 CLOs in aggregate issued last year represents a total value of US$86bn, eclipsing the total issuance for 2012 by US$33.5bn.

    "The CLO market in the second half of 2013 continued to expand as the low interest rate environment has pushed .......

    News Round-up 8 January 2014

  • Indian trade reporting mandated

    As part of its efforts to improve transparency in the Indian securitisation market, the Securities and Exchange Board of India (SEBI) has issued a circular requiring reporting and clearing of trades to be implemented by 1 April. Reporting platforms will provide data to include issuer name, ISIN number, face value, maturity date, current coupon, last price reported, last amount reported .......

    News Round-up 8 January 2014

  • European NPLs and the advantages of securitisation

    Dennis Buckley, director at Credit Mediation Limited, discus...

    Estimates from reports compiled by PwC and EY put the current volume of non-performing loans (NPLs) made by banks within the EU at between €1.2trn and €1.5trn, with these levels expected to rise further in the next few years. The market has seen a number of high-profile sales of large NPL portfolios, the most recent being Lloyds' sale of its .......

    Talking Point 7 January 2014

  • Two more sidecars announced

    Two further collateralised sidecars have been established for the 2014 accident year (see also SCI 6 January). ACE has established the US$95m Altair Re II, while Argo Group has renewed and upsized its Harambee Re vehicle.

    The capital from Altair Re II will be used to support ACE Tempest Re's global property catastrophe reinsurance portfolio, providing additional quota share capacity .......

    News Round-up 7 January 2014

  • Recourse reduced in statute of limitations case?

    A unanimous ruling by a four-judge bench of the Supreme Court of the State of New York holds that the six-year statute of limitations on representation and warranty breaches applies to private label securitisations from the date of a deal's closing. If it stands, the move could reduce investor recourse for both legacy and new issue RMBS.

    There had previously .......

    News 7 January 2014

  • ABS bid-lists reappearing

    Auto and credit card bonds dominated supply in the US ABS secondary market yesterday, as BWIC volume begins to pick up following the seasonal break. SCI's PriceABS data also shows a number of timeshare ABS tranches out for the bid, with bid-list volumes totalling just over US$100m for the session.

    The auto ABS bonds circulating yesterday included the .......

    Market Reports 7 January 2014

  • WaMu lawsuit filed

    JPMorgan last month filed suit in the US District Court of the District of Columbia against the FDIC in connection with the Washington Mutual estate. The bank is seeking to recover payments to the FHFA to repurchase loans sold to the GSEs by WaMu, as well as payments made to private investors under securities law claims on RMBS deals originated .......

    Job Swaps 7 January 2014

  • Improving CMBS delinquencies continue

    The Trepp US CMBS delinquency rate dropped by 23bp to 7.43% in December, marking the seventh straight month of improvement. The delinquency rate ended the year 228bp better than where it stood at end-2012. Since reaching a peak level of 10.34% in 2012, it has dropped by 291bp.

    About US$1.3bn in previously delinquent loans were resolved with losses last month. .......

    News Round-up 7 January 2014

  • Second IABF sale underway

    The Dutch State Treasury Agency (DSTA) has announced its intention to continue a competitive auction process to sell the non-agency RMBS underlying the ING Illiquid Assets Back-up Facility (IABF). BlackRock Solutions will execute the sale of the securities via a competitive auction process through a number of selected broker-dealers.

    A short-list of broker-dealers will be selected based on the competitiveness .......

    News Round-up 7 January 2014

  • CLO investors seek evolution

    Further structural evolution remains a priority for the US CLO market, with respondents to JPMorgan's Q1 client survey highlighting time tranching and senior/junior tranching as the two triple-A features they would most like to see. The managers, investors and other respondents also identified step-up coupons and fixed rate tranches as interesting triple-A structural features.

    Triple-A CLO spreads are generally expected .......

    News 7 January 2014

  • SLM servicing disruptions eyed

    As Sallie Mae transitions certain assets and functions under its reorganisation (SCI 30 May 2013), both newly created entities - SLM BankCo and NewCo - could see some short-term servicing disruptions. Indeed, Sallie Mae disclosed during its third-quarter earnings call that an increase in delinquency from the previous quarter was caused by the transition of the company's private credit portfolio .......

    News 6 January 2014

  • ABS CDO liquidation due

    Cairn Capital North America has been retained to act as liquidation agent for Altius I Funding. A public sale of the collateral - comprising 14 2005-vintage ABS, CDO, CLO, RMBS and CMBS bonds - is due on 14 January. The move comes after an EOD occurred last month, following a default in respect of the payment of interest due and .......

    News Round-up 6 January 2014

  • Quota share sidecar launched

    SCOR has placed a fully collateralised sidecar, Atlas X Reinsurance, which will provide the firm with an additional three-year capacity of US$55.5m from a new panel of investors. Atlas X - an Irish-domiciled special purpose reinsurance vehicle - and SCOR Global P&C have entered into a quota share retrocession agreement, under which Atlas X will reinsure a proportional share of .......

    News Round-up 6 January 2014

  • CMBX rally continues

    The CMBX index rallied for the sixth consecutive month in December, spurred by better than expected economic data, the Fed's tapering announcement and investor positioning for the roll into Series 7 at end-January. Indeed, the rally is expected to extend into early 2014.

    CMBX prices rose by an average of 1.46% in December, according to Morgan Stanley figures, compared to .......

    News Round-up 3 January 2014

  • Solvency revisions still strict

    EIOPA has recalibrated the proposed Solvency 2 spread risk charges for securitisations to increase differentiation between ABS asset classes (SCI 20 December 2013). However, securitisation remains heavily penalised under the current proposals, with the capital charges potentially making it more efficient to invest in the underlying assets than in a securitised bond.

    While proposed capital charges for some bonds are .......

    News 3 January 2014

  • Development head rejoins firm

    NewOak Capital has appointed Neil McPherson as head of business development. He was part of the original business development team when NewOak launched in 2008 and returns to the firm to take responsibility for coordinating NewOak's client development efforts across all its business lines.

    McPherson joins from Markit, where he was global head of structured finance. As well as his .......

    Job Swaps 3 January 2014

  • Make-whole payments accelerating

    Last month's remittance reports show that a number of US non-agency RMBS received make-whole payments. At the same time, forbearance recognition continues apace.

    Early indications suggest that at least three FFML deals received over US$2m as make-whole payments in December, continuing the trend of the past 12 months. Subsequent recoveries in FFML 2006-FF12, FFML 2006-FF14 and FFML 2006-FF10 are US$4m, .......

    News 3 January 2014

  • Strong ILS demand to continue

    As investor demand has continued to grow for catastrophe bonds, sponsors have been able to offer deals at considerably lower coupon rates and with increasingly favourable structures that suit individual company requirements, Fitch notes. The agency suggests that continued strong demand for a diversifying set of risks remains the key driver of the ILS market.

    The cat bond sector experienced .......

    News Round-up 3 January 2014

  • ABS CDO RFC issued

    Moody's is seeking comments from market participants on proposed changes to its rating approach for ABS CDOs. If implemented, these changes will have a generally positive impact of roughly one notch on senior tranches of certain outstanding ratings.

    The proposed changes include lowering the resecuritisation stress factors for RMBS, CDOs exposed to investment grade corporate assets and ABS backed by .......

    News Round-up 3 January 2014

  • CMBS liquidations inch higher

    US CMBS liquidation volume registered US$1.28bn in December, up slightly from US$1.21bn in November and in line with the 12-month moving average of US$1.18bn, according to Trepp. Of the loans liquidated, 90% fell into the greater than 2% loss severity category.

    Last month's loss severity came in at 50.36%, up from November's 48.1% and considerably higher than October's 38.58%. The .......

    News Round-up 3 January 2014

  • CRA examination report issued

    The US SEC has issued its annual staff report on the findings of examinations of the 10 credit rating agencies registered as NRSROs. Among the areas examined are whether each NRSRO conducts business in accordance with its policies, procedures and methodologies, as well as how an NRSRO manages conflicts of interest and whether it maintains effective internal controls.

    The 2013 .......

    News Round-up 2 January 2014
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