Complete news archive

  • Asset-based lender accelerates growth

    Visio Financial Services (VFS) has closed US$40m in institutional debt capital, which will be used to expand its loan portfolio and help build an innovative online lending platform. The firm expects to more than triple its outstanding loan balance over the next nine months.

    VFS' asset-based lending model enables it to originate, close and fund a loan in as little .......

    News Round-up 1 November 2013

  • CLO risk retention alternative mooted

    The LSTA has submitted comments to federal regulators objecting to the re-proposed risk retention rules on CLOs. The association has suggested alternative solutions that would prevent the harmful consequences the current re-proposal poses to the CLO market and the broader economy.

    A survey of top CLO managers has indicated that the imposition of risk retention would reduce CLO formation by .......

    News Round-up 1 November 2013

  • Waiting for Watt?

    Representative Mel Watt's nomination as FHFA director suffered a setback yesterday as a motion to bring his nomination to a vote was defeated. Watt is not out of the running completely and several possible outcomes remain.

    "This may be only a temporary reprieve for MBS vulnerable to changes in HARP and other FHFA policies. The Obama administration now can go .......

    News 1 November 2013

  • CMBS delinquencies drop again

    For the first time since early 2010, the Trepp US CMBS delinquency rate fell below the 8% level in October, marking the fifth consecutive month of improvement. The rate dropped by 16bp over the course of the month, bringing the 30+ day delinquency rate to 7.98%. The percentage of loans seriously delinquent now stands at 7.69%.

    Almost US$1bn in CMBS .......

    News Round-up 1 November 2013

  • Ringing the changes

    CLO risk retention to open door for BDCs

    Risk retention proposals for US CLOs will bring significant changes in the market. The regulatory requirements are set to affect not only the issuer base, but also how deals are structured.

    "The risk retention requirements are not perhaps being embraced by investors, but they are understood. In some ways CLOs are collateral damage here, but regulators have decided that by .......

    News Analysis 1 November 2013

  • SFR securitisation debuts

    The much-anticipated debut single-family rental (SFR) securitisation has hit the market, with the senior tranche carrying triple-A ratings from three rating agencies. The US$479.14m Invitation Homes 2013-SFR1 is secured by the income streams and values from 3,207 leased properties owned by Blackstone subsidiary Invitation Homes.

    The transaction comprises six classes of notes: US$278.7m class As rated Aaa/AAA/AAA (Moody's, Morningstar and .......

    News Round-up 1 November 2013

  • Euro CLO 1.0 upside eyed

    European CLO 1.0 bonds are generically priced to a 20% CPR scenario, but significant return upside could emerge from higher realised repayment rates. Deleveraging in the sector is anticipated to run well into 2014 and continue to enhance returns for senior and senior mezzanine tranches.

    Tighter loan spreads and CLO 2.0 ramp activity are expected to support high loan repayment .......

    News 1 November 2013

  • Class A EoD for Euro CMBS

    The class A notes of the Titan Europe 2006-3 CMBS experienced an interest shortfall last week, constituting a note event of default (see SCI's CMBS loan events database). Class A notes have not previously experienced an interest shortfall in such a large European CMBS.

    The event of default at the issuer level was confirmed on 30 October, following .......

    News 1 November 2013

  • Variety on show in US CLOs

    Yesterday proved a varied session for the US CLO secondary market, as the 2005-2013 vintages and all parts of the capital structure were represented. SCI's PriceABS data shows that prices remain slightly higher than in previous weeks.

    At the top of the stack, tranches such as BLACK 2005-1A A1 were talked at 98 handle, 99 handle, around 99, .......

    Market Reports 31 October 2013

  • Structured credit desk expands

    Cantor Fitzgerald Europe has further expanded its European structured credit desk with the appointment of Sheil Aggarwal as md. Based in London, he will focus on ABS, MBS and CLOs.

    Aggarwal joins Cantor from Pamplona Credit Opportunities, where he was a partner (SCI 25 June 2008). Before that, he was a senior md at Bear Stearns, overseeing the trading and .......

    Job Swaps 31 October 2013

  • Auction exposure quantified

    Morgan Stanley CMBS strategists have decoded three common attributes of the 67 loans included in the upcoming CWCapital Asset Management auction (SCI 16 October), which they assert serve as a road map for special servicer behaviour going forward. The loans are primarily REO, securitised in deals with higher losses and of a larger size.

    Of the properties up for sale .......

    News 31 October 2013

  • CLO pro takes structuring role

    Peter Melichar has joined Deutsche Bank as a senior structurer, based in London. He has 13 years of experience in ABS, CDOs and CLOs and was most recently at Maybird Consulting.

    Melichar was md at Maybird, focusing on European CLOs and corporate credit. He has also served as head of structured products at Key Capital and in structuring roles at .......

    Job Swaps 31 October 2013

  • Retention refinements recommended

    CRE Finance Council and SIFMA have submitted comments to federal regulators in response to the re-proposed rulemaking on credit risk retention. The associations express support for many of the changes that have been made to the proposed rules, but believe that further refinement of the rules is required.

    SIFMA notes that the re-proposal represents a significant improvement over the original .......

    News Round-up 31 October 2013

  • Guidance requested on Footnote 513

    ICAP is said to have asked the CFTC to issue formal guidance on Footnote 513 of its swap rules. Some dealers have interpreted the rule to mean that swaps with foreign clients are exempt from the rules, providing the deals are booked through a US bank's overseas affiliates, according to a SFIG memo.

    "The banks' assertion is focused on what .......

    News Round-up 31 October 2013

  • HAMP mods to be securitised

    Freddie Mac has begun securitising performing HAMP modified mortgage loans held in its mortgage-related investments portfolio under the Modified Fixed Rate PC and Modified Step Rate PC monikers. To be eligible for securitisation, modified loans must be current for at least six consecutive months at issuance of the related PC.

    Step-rate HAMP modified loan PCs will have 'HA-HD' prefixes under .......

    News Round-up 31 October 2013

  • FHFA suit set for bankruptcy court

    The judge overseeing Lehman Brothers Holdings' liquidation has told attorneys for Freddie Mac and the FHFA that they are unlikely to succeed in their bid to have their claim against the estate heard in a federal court, which the FHFA had argued for on the basis that the case rests on a federal statute (SCI 24 October). US Bankruptcy Judge .......

    Job Swaps 31 October 2013

  • Generali ruling sets precedent

    ISDA's EMEA Determinations Committee has ruled that certain Assicurazioni Generali Solvency 2 bonds can be used as reference obligations for the group's sub CDS, thereby solving a deliverable problem at the group. Previous legal guidance indicated that Solvency 2 bonds were not deliverable into sub CDS due to the contingent nature of their maturity date.

    When Generali called its €6.9% .......

    News Round-up 31 October 2013

  • Exchange union delayed

    IntercontinentalExchange (ICE) and NYSE Euronext have postponed the closing date of their agreed merger (SCI 21 December 2012) from 4 November to a later date which is yet to be announced. The postponement will allow additional time for European regulators and ministries to process and issue their approvals.

    ICE and Euronext anticipate closing the proposed transaction within two business days .......

    Job Swaps 31 October 2013

  • RMBS vet to lead agency effort

    Brian Cohane has joined Société Générale as an agency RMBS trader, reporting to head of MBS trading Tae Park. He will lead the agency desk in New York, which has been launched to complement the bank's existing RMBS and CMBS trading capabilities. Cohane has previously served as head of RMBS trading at UBS and at its affiliate Dillon Read Capital .......

    Job Swaps 31 October 2013

  • Under-rated opportunity?

    RRBs continue to offer compelling relative value

    Rate reduction bonds (RRBs) continue to offer spreads that are comparatively wide for the credit risk they represent. Volumes have declined recently, but the sector still provides a natural home for total return accounts.

    RRB spreads are consistently wider than credit card ABS spreads, which have typically been a gateway bond into the sector. "If you are new to ABS, .......

    News Analysis 31 October 2013

  • Italian RMBS recoveries examined

    Some Italian residential mortgage loans that defaulted as long ago as 2004 are still not resolved, highlighting the long recovery times compared with other jurisdictions, Fitch reports. An analysis undertaken by the rating agency shows the impact of the higher expected loss assumptions that result from long recovery times.

    Historical data provided by the nine originators of ten Fitch-rated Italian .......

    News Round-up 30 October 2013
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