Complete news archive

  • Strong credit quality forecast for global CLOs

    Moody's expects the credit quality of new CLOs in the US, Europe and Asia-Pacific to be strong in 2014. The agency says that the CLO 2.0 template will underpin strong performance in US balance sheet and SME transactions in particular.

    Increased subordination across the two segments is anticipated to offset the negative effects of newly issued loans of lower average .......

    News Round-up 9 December 2013

  • Tunisian RMBS downgraded

    Moody's has downgraded the global scale ratings of the senior FCC BIAT-CREDIMMO 1 and FCC BIAT-CREDIMMO 2 notes, as well as the global and national scale ratings of the junior FCC BIAT-CREDIMMO 2 notes. The agency has also affirmed the national scale ratings of the senior notes in both transactions and the global and national scale ratings of the junior .......

    News Round-up 6 December 2013

  • JCP CDS outperform retail index

    Five-year J.C. Penney credit default swap spreads have tightened by 31% and are currently quoted at 1,149bp, after reaching a high of 1,665bp on 25 October, according to Fitch Solutions. The move outperformed a 5% firming for the broader North America Retail CDS Index over the same time period.

    The tightening reflects the 0.9% improvement in comparative store sales in .......

    News Round-up 6 December 2013

  • Innovative longevity deal minted

    SCOR Global Life has entered into an innovative longevity transaction with Aegon. The transaction covers underlying longevity reserves in the Netherlands of €1.4bn and has a maturity of 20 years, with a commutation covering exposures that run for longer than 20 years.

    RMS provided the medically-based model of longevity risk that underpins the structure of the transaction. At the 20-year .......

    News Round-up 6 December 2013

  • Credit fund tie-up announced

    Franklin Square Capital Partners has partnered with GSO/Blackstone to launch the FS Global Credit Opportunities Fund, an unlisted closed-end fund that invests primarily in global credit. The fund seeks to generate an attractive total return - while also focusing on capital preservation - by investing in loans, bonds and other credit instruments of public and private companies, with a strong .......

    Job Swaps 6 December 2013

  • CMBS loss severities dip

    The weighted average loss severity for all loans backing US CMBS that liquidated at a loss was 41% in 3Q13, down from 41.5% in the previous quarter, according to Moody's. The weighted average loss severity for all liquidated loans excluding those with losses of less than 2% was 52.7%, down from 53.5% in the previous quarter. Loans with losses of .......

    News Round-up 6 December 2013

  • Pay-off percentage hits highs

    The percentage of US CMBS loans paying off on their balloon date hit 81.3% in November, the second highest rate since Trepp began tracking the number in August 2008. The highest reading was 84.9% in December 2008.

    The November pay-off percentage is well above the 12-month moving average of 66.1%. By loan count as opposed to balance, 79.1% of loans .......

    News Round-up 6 December 2013

  • Multifamily CMBS origination trending up

    Kroll Bond Rating Agency expects the US multifamily CMBS sector to continue benefitting from household formation and low homeownership. As long as multifamily fundamentals continue to outperform the rest of the commercial real estate market, both investors and lenders will feel comfortable expanding their allocations to the sector, the agency suggests.

    On the lending front, this trend has been evident .......

    News Round-up 6 December 2013

  • Minimal Euro default rate underlined

    Only 1.5% by original issuance volume of European structured finance notes outstanding in mid-2007 had defaulted by end-3Q13, according to S&P's latest quarterly transition study. The quarterly transition study analyses cumulative rating transitions and defaults from the beginning of the financial downturn - which is assumed to be mid-2007 - until end 3Q13, aggregating by issuance volume.

    "The 12-month rolling .......

    News Round-up 6 December 2013

  • Euro ABS market still active

    The European ABS and RMBS secondary markets continue to witness strong BWIC supply. SCI's PriceABS data shows a number of covers from yesterday's session, while one trader reports that next week is also expected to be busy.

    "There have been a lot of bid-lists lately and those are mainly coming from hedge funds rather than legacy accounts. What .......

    Market Reports 6 December 2013

  • RFC issued on non-QM approach

    Kroll Bond Rating Agency is proposing to extend its existing methodologies for rating RMBS to address additional risks for pools backed by non-Qualified Mortgage loans. The agency has released for comment a methodology relating to non-QM loans that are prime credit quality mortgage loans.

    The key components of KBRA's non-QM rating methodology consist of: loan originator and servicer reviews; loan .......

    News Round-up 6 December 2013

  • RMBS credit quality to vary

    New issue private-label US RMBS credit quality implications will vary next year, according to Moody's. The agency expects new transactions in 2014 to be of lower credit quality because originators will likely have trouble maintaining volume in loan pools as refinancing activity decreases.

    This will lead originators to relax underwriting standards, resulting in further deterioration of the credit quality of .......

    News Round-up 6 December 2013

  • Broadly stable outlook for CDOs

    Moody's expects the credit quality of most existing US SF CDOs to be stable in 2014, but to improve for CLO-squared transactions because of CLO tranche amortisations and optional redemptions. Structural features in US cashflow SF CDOs are also generally credit positive for the senior-most tranches.

    The credit quality of existing European SF CDOs will depend on the extent of .......

    News Round-up 6 December 2013

  • Stable performance forecast for CLOs

    US CLO issuance surpassed US$66bn through October 2013 and loan fund inflows were above US$56bn, increasing the visible demand for leveraged loans by US$122bn, according to Fitch. The agency notes that issuers of more than 81% of loans held in Fitch-rated CLOs maintain stable rating outlooks, indicating an expectation of stable rating performance over the next one to two years.

    News Round-up 6 December 2013

  • CMBS unresolved

    Euro CMBS questions unanswered as maturities loom

    S&P announced this week that over €10bn of loans backing European CMBS transactions that it rates could need refinancing next year (SCI 3 December). About €3bn of the €13bn of loans scheduled to mature in 2014 has been prepaid, with sizable question marks hanging over many of the transactions that are approaching maturity.

    Although loan maturities will continue to come .......

    News Analysis 6 December 2013

  • Even keel for ECP

    The ABCP market has this year seen a rebalancing of issuance towards the ECP sector, which now accounts for roughly 50% of volume. With outstandings expected to increase slightly in 2014, the market appears to have successfully returned to its core function.

    EMEA ABCP volume declined to approximately US$70bn as of September 2013, versus US$524bn in July 2007, according to .......

    News 6 December 2013

  • Greek country ceiling lifted

    Fitch and Moody's have implemented positive rating actions on a number of Greek securitisations. The move follows an uplift in the Greek country ceiling by both agencies.

    Moody's upgraded 16 notes and affirmed six notes in nine Greek transactions, after the agency raised its country ceiling on Greece to B3 from Caa2 and upgraded Greece's sovereign rating to Caa3 from .......

    News Round-up 5 December 2013

  • Steady RMBS performance predicted

    Fitch's 2014 outlook for US RMBS is stable, with home price growth and stable macro conditions expected to support steady performance across most vintages. Post-crisis transaction performance remains exceptionally strong with no downgrades to date and this trend is expected to continue into next year.

    Past rating actions, combined with improving credit trends and positive momentum in the housing market, .......

    News Round-up 5 December 2013

  • CRE CDOs tipped for growth

    US CMBS financing will expand on 2013 levels, according to Fitch's 2014 Outlook report for the sector.

    The agency notes that mortgage interest rates have increased rapidly from their early 2013 lows and, while the outlook on interest rates is largely benign in 2014, the expectation is that they will continue to rise slowly. That may impact the ability of .......

    News Round-up 5 December 2013

  • Broadly stable outlook for US ABS

    Moody's and Fitch have published their expectations for the US ABS market in 2014. While both rating agencies anticipate stable to positive credit card and auto performance, there is some disagreement on student loan ABS.

    The exit of weaker card accounts from trusts during the recession and the improving wider economy will support the credit quality of the collateral backing .......

    News Round-up 5 December 2013

  • Higher loss severities for non-QM RMBS

    US RMBS backed by non-qualified mortgages will incur higher loss severities on defaulted loans than those backed by qualified mortgages. Non-QM loans will therefore increase risk in new RMBS.

    Moody's notes that the higher loss severities will be driven by the higher legal costs and penalties for non-QM securitisations, where a defaulted borrower can more easily sue a securitisation trust .......

    News Round-up 5 December 2013
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