Complete news archive

  • 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

  • 'Milestone' set for Chinese securitisations

    The Alibaba SME CLO - which securitised a large number of the small loans on Alibaba's books through a revolving mechanism (SCI 24 October) - set an important milestone for China's renewed interest in securitisations, Moody's says. The transaction was novel in the sense that it was underwritten by a securities firm, Orient Securities, and the senior tranches are traded .......

    News Round-up 30 October 2013

  • Liquidity aggregator introduced

    BNY Mellon has rolled out what it calls the Liquidity Aggregator via its Liquidity DIRECT portal. The tool is designed to help clients gain a new level of insight into their investments, by monitoring and helping to control liquidity risk exposures, as well as manage funding needs. Clients can leverage the new dashboard across their entire investment portfolio to view, .......

    News Round-up 30 October 2013

  • Trups CDO on the block

    An auction has been scheduled for the Libertas Preferred Funding I CDO on 20 November. The collateral shall only be sold if the proceeds are greater than or equal to the total senior redemption amount.

    .......

    News Round-up 30 October 2013

  • Credit swaps submitted for MAT

    Tradeweb's TW SEF has submitted to the CFTC a self-certification determination for interest rate and credit default swaps to be made available to trade (MAT), becoming the first applicant to cover CDX.NA.IG, CDX.NA.HY, iTraxx Europe and iTraxx Crossover five-year contracts. The list of swaps also includes a range of tenors in interest rate derivatives for US dollars, euros and sterling.

    News Round-up 30 October 2013

  • Autos lead ABS volumes higher

    US ABS BWIC volume rose yesterday to over US$60m. Much of the supply came from auto names, but credit card bonds and a pair of whole business tranches were out for the bid as well.

    SCI's PriceABS data displays tranches from five auto deals issued in the last two years, with covers for each. AMCAR 2013-4 A2 and .......

    Market Reports 30 October 2013

  • SFR deals critiqued as debut progresses

    Fitch says that insufficient history, along with a number of structural challenges, prevent it from considering triple-A ratings on single-family rental (SFR) securitisations at this time. The agency's comments come as the debut SFR transaction is expected to begin road-showing this week.

    Fitch notes that it would more likely cap its ratings on such deals at the single-A level. Among .......

    News Round-up 30 October 2013

  • New manager appointed

    Cairn Capital North America has been appointed successor collateral manager for Neptune CDO 2004-1. The transaction was originally managed by Fund America Management Corporation.

    Moody's notes that the agreement does not alter the responsibilities, duties and obligations of the collateral manager in a meaningful way. Having considered the experience and capacity of Cairn to perform these duties, the agency has .......

    Job Swaps 30 October 2013

  • Disintermediation driving reallocation

    New research conducted by Bishopsfield Capital Partners highlights that disintermediation is firmly underway, with less liquid assets becoming more acceptable to fixed income investors. Private placements and structured credit are the main winners under this investment reallocation and sovereigns the main loser, according to the report.

    "The results of our survey clearly illustrate that in the search for yield investors .......

    News Round-up 30 October 2013

  • Local heroes

    Private placements revitalising Asian securitisation

    A pair of innovative structured financings closed this month that demonstrate the growing appetite for privately-placed local currency bonds among Asian investors. The deals are expected to help revitalise the securitisation market in the region.

    The two transactions are the US$250m-equivalent Courts ABS - originated by Courts Asia via HSBC - and the S$300m Orchis Capital condominium-backed deal, which was .......

    News Analysis 30 October 2013

  • PROUL 1 basis highlighted

    The sale of three assets from the LCP Proudreed CMBS portfolio will result in a £9.17m partial prepayment of the transaction at the November IPD (see SCI's loan events database). This is the latest development in a series of recent actions that suggest the borrower is preparing to refinance the larger of the two loans backing the deal .......

    News 29 October 2013

  • Spread tightening boosts AMs, AJs

    US CMBS spreads narrowed last week, with the GSMS 2007-GG10 A4 bond ending Friday at 164bp over swaps. The big gainers were AM and AJ tranches, with plenty of covers for both types of bonds observed yesterday, as spreads continue to grind tighter.

    For the AMs, SCI's PriceABS data shows that BACM 2006-2 AM was covered in the .......

    Market Reports 29 October 2013

  • Zenith refinancing completed

    Weil, Gotshal & Manges has advised Zenith on the refinancing of its senior credit facilities and associated securitisation financing. The refinancing is the result of a rapid deleveraging of Zenith's business over the last three years, following the acquisition by Morgan Stanley Global Private Equity (MSGPE) of a stake in the company in 2010.

    Weil's structured finance team in 2011 .......

    News Round-up 29 October 2013

  • CDO auctions due

    Auctions have been scheduled for the Crystal Cove CDO and Margate Funding I deals on 18 and 19 November respectively. The collateral shall only be sold during the two sales if the proceeds are greater than the respective auction call redemption amounts.

    .......

    News Round-up 29 October 2013

  • Italian, Spanish RMBS downgrades likely

    S&P has requested comments on proposed changes to its methodology and assumptions for rating Italian and Spanish RMBS. The agency says the aim is to increase the comparability of RMBS ratings globally and across sectors, as well as to enhance the rating analytics.

    The key aspects of the proposed criteria are: to adopt the global framework and methodology for analysing .......

    News Round-up 29 October 2013

  • ABS downgrades hit post-crisis low

    Fitch has published a study analysing US credit card, auto and student loan ABS rating performance through the first half of 2013. Downgrades affected 1% of the universe, the lowest level seen in over five years, while 3% of ratings were upgraded during the period.

    Credit card ABS transactions were the lynchpin of stability, according to Fitch. For the second .......

    News Round-up 29 October 2013

  • Decline in CMBS default rate continues

    Fitch's cumulative default rate for US fixed-rate CMBS declined by 2bp in the third quarter to 13.7%, as new issuance remains healthy and defaults stabilise. During 3Q13, 93 loans totalling US$1.1bn were newly defaulted, compared to 97 loans (US$1.4bn) in the previous quarter and 119 loans (US$2.2bn) in 3Q12.

    Larger balance loans have defaulted less, according to Fitch, with 82 .......

    News Round-up 29 October 2013

  • Index tranche trades compressed

    TriOptima says it has worked with industry participants to implement an advanced triReduce compression methodology for legacy index tranche trades with non-standard coupons, as well as the more recent index tranche trades with standard coupons. Eliminating these trades reduces gross notional exposures and results in higher leverage ratios and lower capital charges, the firm notes.

    Compression cycles eliminated 25% (or .......

    News Round-up 29 October 2013

  • Telekom Austria CDS underperform

    The CDS market is signalling concern over Telekom Austria, whose spreads have widened by 17% over the past month, according to the latest case study from Fitch Solutions. This is in contrast to the firm's European Telecom CDS Index, which moved 9% tighter during the same time period.

    "This widening is likely due to Telekom Austria's recent debt-financed €1bn acquisition .......

    News Round-up 28 October 2013

  • Used vehicle values boost auto ABS

    US auto ABS performance continues to exceed expectations, even at a time when performance is historically weakest, according to Fitch's latest index results for the sector. The agency reports that an unexpected bounce in used vehicle values - up by nearly 2% versus September 2012 - last month supported higher recovery rates, contained loss levels and supported auto ABS asset .......

    News Round-up 28 October 2013

  • CMBS collateral quality 'barbelled'

    A decline in Moody's debt service coverage (MDSCR) has led to an increase in conduit credit risk in the US CMBS transactions the agency rated in Q3, it reports. MDSCR fell to1.59 in the third quarter from 1.68 in the second quarter, and is expected to continue falling in the fourth quarter.

    "The levels of debt service coverage are still .......

    News Round-up 28 October 2013
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