Complete news archive

  • Pubco swap offer 'credit positive'

    Spirit has made an offer to tender and swap its existing A1 and A3 bonds into newly-issued A6 and A7 bonds. The tender and swap offer is for up to 50% of the A1 bonds and 70% of the A3s, with the remainder left outstanding and amortising in line with the existing schedule.

    ABS analysts at Barclays Capital note that .......

    News 22 October 2013

  • Awaited BWIC hits Euro CLO market

    As expected, the focus of the European CLO market yesterday was on a large US credit hedge fund bid-list (SCI 18 October). Mezzanine paper accounted for the bulk of the supply, with several successful covers observed, but also a few DNTs.

    The highest cover seen during the session was at 95 for HARVT I-X D. SCI's PriceABS data .......

    Market Reports 22 October 2013

  • CPT covered bonds gain traction

    S&P says that the conditional pass-through (CPT) variation on NIBC Bank's recent covered bond is a positive development for the market, as it might enable covered bond refinancing for more diverse asset types while reducing ratings volatility and timely payment default risk. The €500m transaction - which was launched on 1 October - differs from traditional covered bond structures due .......

    News Round-up 21 October 2013

  • Revised Mexican reform bill welcomed

    Mexico's Lower House of Congress has passed the fiscal reform bill proposed by President Enrique Peña Nieto last month (SCI 16 September). Moody's suggests in its latest Credit Outlook publication that the Senate is likely to expedite approval of the bill, which would take effect next year.

    The fiscal reform bill approved by the Lower House differs significantly from the .......

    News Round-up 21 October 2013

  • APAC upgrades outweigh downgrades

    Upgrades (accounting for 3.7% of total rating actions) outnumbered downgrades (1.8%) across Fitch-rated Asia-Pacific structured finance deals in 3Q13. The agency reports that most ratings were affirmed during the period.

    There were five upgrades in Australia and three in Japan. Of the Australian upgrades, four were for tranches from an unsecured consumer loan transaction and were due to better-than-expected asset .......

    News Round-up 21 October 2013

  • KKR looks to buy Euro credit manager

    KKR is set to acquire Avoca Capital. Avoca ceo Alan Burke will lead KKR's European credit platform and work with Nat Zilkha to drive the growth of KKR's global credit business, reporting to Craig Farr, who has responsibility for KKR's global credit and capital markets businesses.

    Avoca's portfolio management roles, reporting lines, processes and credit committees below Burke will remain .......

    Job Swaps 21 October 2013

  • SEC says Octans CDO investors 'misled'

    The US SEC has charged Harding Advisory and its owner Wing Chau for misleading investors in a CDO and breaching their fiduciary duties. The SEC alleges Chau and Harding compromised their independent judgement as collateral manager on Octans I CDO in order to accommodate trades requested by a third-party hedge fund - Magnetar Capital - whose interests were not necessarily .......

    Job Swaps 21 October 2013

  • SCI Start the Week - 21 October

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

    Pipeline
    More deals joined the pipeline last week, with each of the asset classes represented. Four new ABS were announced, as well as one ILS, one RMBS, one CMBS and three CLOs.

    The ABS entrants comprise: €20m Auto ABS German Lease Master; US$100m China Funding Investment 2013-1; US$169.5m Fan Engine Securitization series 2013-1; and US$334.7m Tobacco Settlement Authority series 2013. The .......

    News 21 October 2013

  • Compression continues for Euro CLOs

    It has been a fairly eventful week for the European CLO market, with BWICs providing solid secondary supply. One mid-week list, in particular, captured the attention of traders.

    "The BWICs have been steady and there was one on Wednesday from a continental bad bank with a lot of double-A rated second-pay paper. The bonds on that list traded quite well .......

    Market Reports 18 October 2013

  • CLO pricing webinar scheduled

    SCI, in association with Bloomberg Valuation Service (BVAL), is hosting a webinar on CLO pricing methodology at 1.30pm UK time/8.30am Eastern on 24 October.

    Join SCI and BVAL as they discuss the different methodologies for pricing 1.0 and 2.0 deals. Panellists include BVAL global head of product development Cynthia Sachs, Jesse Knapp from Kanerai and CIFC head of capital markets .......

    News Round-up 18 October 2013

  • Greek repurchases 'artificially stabilising' arrears

    Sponsor bank repurchases of mortgage loans from Greek RMBS deals are reaching high levels, totalling up to 65% of the original pool in some transactions, according to Moody's latest Credit Insight publication. The move is artificially stabilising arrears levels, which masks the true extent of the deterioration of Greek RMBS collateral credit quality.

    As long as banks continue to provide .......

    News Round-up 18 October 2013

  • CMBS write-offs examined

    Trepp has published an analysis examining how much written-off US CMBS bonds received on average in the months before their balance is wiped out. Many tranches receive sizable cashflows from recovery of ASER amounts that flow through a deal's cashflow waterfall, paying back accumulated interest shortfalls along the way.

    To get a sense of what investors have been receiving from .......

    News Round-up 18 October 2013

  • Credit bureau move panned

    The South African government last month approved the removal of adverse credit information from the public records of borrowers with cured arrears. Moody's says in its latest Credit Insight publication that the move is credit negative for South African RMBS and ABS transactions because it will reduce the amount of information available to originators to assess the creditworthiness of new .......

    News Round-up 18 October 2013

  • Credit funds set for largest post-crisis inflow

    With concerns of a significant near-term taper by the US Fed removed, investors allocated the most to credit hedge fund strategies since August 2012, according to eVestment. The firm's hedge fund asset flow report for September shows that inflows to the sector surpassed US$60bn for the year in Q3, putting it on pace to see the largest annual inflow since .......

    News Round-up 18 October 2013

  • CMBS liquidations drop

    US CMBS loan liquidations totaled US$870m in September, relative to the 12-month moving average of US$1.26bn and 20% below the previous month's US$1.09bn, according to Trepp. Loss severities stood at 43.3% for the month, up from August's 40.9% but below the 12-month moving average of 43.99%.

    The number of loans liquidated in September was 92, resulting in US$376.78m in losses. .......

    News Round-up 18 October 2013

  • SME risk-sharing instruments discussed

    In preparation for next week's European Council meeting, the EU Economic and Financial Affairs Council of Ministers (ECOFIN) has considered parameters for the design of SME risk-sharing instruments to be co-financed by the European Commission and the EIB (SCI 28 June). Preparations are being made for the new instruments to be operational by January, at the start of the 2014-2020 .......

    News Round-up 18 October 2013

  • Nevada subprime settlement negotiated

    DB Structured Products will pay the state of Nevada US$11.5m as part of an agreement to resolve an investigation into its role in purchasing and securitising subprime and Alt-A mortgage loans. DB has also committed to changes in its securitisation practice.

    The settlement is the result of an investigation by Nevada Attorney General Catherine Masto into potential misrepresentations by New .......

    Job Swaps 18 October 2013

  • SEF differentiation

    Execution protocols, product offerings discussed

    Seventeen SEFs were granted CFTC registration by the 2 October go-live date. Liquidity is eventually expected to aggregate around a handful of these platforms, while the others carve out niches in specialist product areas. Given that each SEF has its own detailed rules, pricing structures and application procedures, end-users are being urged to do their homework before signing up.

    No .......

    News Analysis 18 October 2013

  • SF liquidity issues discussed

    Ahead of the eleventh-hour deal to raise the US debt ceiling, DBRS examined how outstanding structured finance transactions could be affected by a US default and whether there are measures that issuers can take in advance to insulate their transactions. The agency believes that the greatest risk would relate to liquidity and the requirement to pay timely interest.

    While structured .......

    News Round-up 17 October 2013

  • Theatre restructurings on the cards

    The main obstacle to a restructuring of the Theatre (Hospitals) No. 1 and No. 2 CMBS appears to have been removed. A short-term extension to 15 January 2014 has been agreed to by 50.1% of the class A noteholders in both transactions, to enable ongoing discussions in connection with a long-term solution.

    An earlier ruling regarding voting rights in the .......

    News 17 October 2013

  • Russian mortgage proposal welcomed

    The Russian Ministry of Economic Development recently proposed several amendments to certain articles of the Federal Law 'On Mortgages', as well as the National Tax Code. Moody's notes that the proposed amendments are credit positive for future Russian RMBS issuance, as they will reduce interest rates on mortgage loans, improve mortgage loan affordability and increase the frequency with which participants .......

    News Round-up 17 October 2013
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