Complete news archive

  • BRRD to have neutral counterparty impact

    Fitch does not expect its counterparty criteria for structured finance (SF) and covered bonds (CVB) to change if the European Bank Recovery and Resolution Directive (BRRD) is implemented as currently drafted by the European Council. The agency says it considers the proposed directive to have a largely neutral impact upon the seniority of counterparty exposures.

    Fitch believes that eligible rating .......

    News Round-up 3 December 2013

  • CMBS criteria updated

    Moody's has updated its approach for rating EMEA CMBS, following a request for comments period (SCI 14 October). The methodology includes a newly incorporated element of minimum yields in the analysis. It is not expected to have a rating impact on currently outstanding ratings, however.

    .......

    News Round-up 3 December 2013

  • Subprime starts RMBS reawakening

    Secondary market activity was sluggish across the board to start the week as traders returned to their desks. US non-agency RMBS was one of the more active markets, with around US$225m in BWIC volume and a range of names captured by SCI's PriceABS data.

    Subprime and option ARM paper dominated supply yesterday, with Countrywide bonds accounting for a .......

    Market Reports 3 December 2013

  • Economic improvement to boost esoteric ABS

    The improving US and global economies will generally boost collateral performance of US commercial and esoteric (C&E) ABS in 2014, Moody's says. Real estate values, technological obsolescence and idiosyncratic factors are also expected to drive credit performance across the sector.

    "Collateral performance of securitisations backed by equipment loans and leases will benefit the most from the modestly improving US economy," .......

    News Round-up 3 December 2013

  • CMBS liquidations return to form

    After two months of relatively low US CMBS liquidation volume, November brought a return to average levels, according to Trepp. Liquidation volume came in at US$1.2bn last month, up from US$960m in October and US$870m in September.

    Volume registered on par with the 12-month moving average of US$1.18bn. Further, the majority of liquidated loans fell into the greater-than-2% loss severity .......

    News Round-up 3 December 2013

  • Stable outlook for global ABCP

    ABCP market participants remain focused on evolving regulatory requirements, meaning that growth in outstandings is unlikely in any meaningful magnitude next year, according to Fitch. The agency has a stable outlook for global ABCP in 2014.

    US ABCP outstandings stood at US$248bn through last month, 18% lower than year-end 2012 levels and 80% lower than the US$1.2trn peak seen in .......

    News Round-up 3 December 2013

  • High DSCRs to support CMBS

    Moody's expects the credit quality of loans backing US conduit CMBS to decline in 2014. However, high debt service coverage ratios (DSCR) and recovering property markets should keep performance from dropping to the low levels of loans originated in 2007.

    Although weaker underwriting standards caused Moody's loan-to-value (MLTV) ratio to increase during 2013, it will end the year 15% below .......

    News Round-up 3 December 2013

  • Aspen forms sidecar

    Aspen Reinsurance's capital markets division has established Silverton Re, a Bermuda domiciled special purpose insurer formed to provide the firm with additional collateralised capacity. Silverton Re will be capitalised initially at US$65m, with US$15m of funding provided by Aspen Re and additional funding secured from third-party investors.

    Silverton Re will enter into a quota share retrocession agreement with Aspen, under .......

    News Round-up 3 December 2013

  • Dutch IO exposure to decline

    The exposure of the Dutch RMBS market to full interest-only (IO) loans is moderate, Moody's says. Moreover, the agency expects the percentage of full interest-only loans in the Dutch RMBS market to decline, with amortising loans becoming the market standard.

    Moody's notes that the limited vulnerability of the Dutch RMBS market to full IO loans stems from the small contribution .......

    News Round-up 2 December 2013

  • SCI Start the Week - 2 December

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

    Pipeline
    The market finally took a breather last week as Thanksgiving arrived. The number of deals joining the pipeline was markedly lower, amounting to three ABS, one RMBS and one CLO.

    The ABS entering the pipeline comprised Atlantes Finance 6, €268m Bee First Finance Compartment Edelweiss 2013-1 and €657m FCT Ginkgo Sales Finance 2013-1. The RMBS was A$250m RESIMAC .......

    News 2 December 2013

  • Euro ABS fund launched

    SCIO Capital has launched the Partners Fund II, with initial commitments from European pension funds, targeting a total size of €100m. The fund aims to take advantage of the dislocation in the European ABS market.

    As Europe's 'bad banks' continue to de-lever their balance sheets for non-economic reasons, they are offering attractive investment opportunities for experienced buyers. SCIO works with .......

    News Round-up 29 November 2013

  • BofE signals support for securitisation

    The Bank of England's Financial Policy Committee (FPC) signalled its support of the securitisation market in its latest Financial Stability Report. The committee says it intends to "assess and, where necessary, act to develop approaches to promote a better functioning securitisation market in the UK".

    In particular, the FPC says it will examine impediments to market-based finance, including securitisation markets .......

    News Round-up 29 November 2013

  • APAC CPT covered bonds mulled

    Fitch believes that conditional pass-through (CPT) covered bond programmes could become a feature of established APAC covered bond markets. This is contingent on strong ongoing investor appetite, however.

    CPT programmes generally have lower overcollateralisation and, by eliminating liquidity gap risk, they also facilitate higher ratings than would otherwise be the case (SCI 21 October). In addition, they allow for a .......

    News Round-up 29 November 2013

  • Statistics portal launched

    IOSCO has launched a statistics web portal that provides the public with a global overview of specific securities markets. The objective of the new portal is to provide a centralised point for monitoring global trends, risks and vulnerabilities within these markets.

    The portal allows access to key statistics, charts and indicators on a number of securities markets, including: covered bonds; .......

    News Round-up 28 November 2013

  • CLO attention turns to triple-Bs

    Thanksgiving has all but shut down secondary market activity on both sides of the Atlantic, but European CDO trading appeared to already be winding down. One bright spot is emerging in the form of CLO triple-B paper, however.

    "The number of BWICs has certainly decreased. There have been some ABS CDO lists, but in general the prices there are now .......

    Market Reports 28 November 2013

  • New home for Euro ABS trader

    Daniel Turner has joined Ellington Management Group as md in London. He takes responsibility for European ABS.

    Turner was previously a partner at Chenavari Investment Managers, where he focused on European ABS and RMBS. He has also worked at European Credit Management, ING and Capital Economics.

    .......

    Job Swaps 28 November 2013

  • CDO trio on the block

    Auctions for three CDOs - Trainer Wortham First Republic CBO V, Kleros Preferred Funding and Libertas Preferred Funding I - have been scheduled for 19 December. The securities will only be sold if the proceeds are greater than or equal to the senior redemption amount.

    .......

    News Round-up 28 November 2013

  • Spanish severities highest in tourist belt

    Moody's loss severity calculations on repossessed Spanish properties show highest loss severities on the Mediterranean coast, Andalucia and the Canary Islands - albeit within its assumptions for defaulted loans. While this is not expected to lead to any rating actions on Spanish RMBS, high loss severities on repossessed mortgaged properties are credit negative, the agency notes.

    Moody's compared the prices .......

    News Round-up 28 November 2013

  • CRA supervisory colleges inaugurated

    The supervisory colleges for S&P, Moody's and Fitch held their inaugural meetings on 5-6 November in New York. The colleges for S&P and Moody's are chaired by the US SEC and the college for Fitch is chaired by ESMA.

    The establishment of the colleges follows recommendations that IOSCO made in its final report on Supervisory Colleges for Credit Rating Agencies .......

    News Round-up 28 November 2013

  • Driving disintermediation

    Credit availability facing further headwinds?

    Global regulatory initiatives are fostering bank disintermediation in the securitisation market. But creeping oversight of the shadow banking system could also further reduce the availability of credit.

    The recession has played out unequally, according to Tamara Box, head of structured finance at Reed Smith. "If a borrower is in prime territory, they're fine; otherwise, they're not. Current monetary and economic .......

    News Analysis 28 November 2013

  • Trade identifier service offered

    Traiana has launched a comprehensive unique trade identifier (UTI) management solution using the Harmony network. The service facilitates the exchange of UTIs between counterparties, thereby allowing both parties to a trade to report using a common trade identifier, to the same or different trade repositories. Reporting using the same trade identifier is the responsibility of both sides of the trade .......

    News Round-up 27 November 2013
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