Complete news archive

  • SCI Start the Week - 22 April

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

    Pipeline
    Five new deals remain in the pipeline from last week. These include one ABS, one CLO and three CMBS.

    The ABS is Auto ABS FCT Compartiment 2013-1, while the CLO is €404m Grand Harbour I. The CMBS comprise US$1.46bn FREMF 2013-K26, US$245m Global Tower Series 2013-1 and US$505m JPMCC 2013-FL3.

    Pricings
    Many of the deals that joined the pipeline last week .......

    News 22 April 2013

  • NPL investment trends examined

    Europe is emerging as a non-performing loan market in its own right, with an estimated €1trn of NPLs now on the balance sheets of the region's banks, according to a new Ernst & Young report. While the US NPL market also remained active in 2012, the opportunity appears to have a shorter timeframe than originally anticipated.

    Christopher Seyfarth, a partner .......

    News Round-up 19 April 2013

  • AS spreads tipped for tightening

    New issue Aa2 rated US CMBS bonds have tightened by 105bp over the past year and have continued tightening in 2013, even as new issue triple-A rated classes have widened. AS bonds have underperformed new issue Aa2 bonds by 7bp year to date, leading CMBS analysts at Wells Fargo to recommend them.

    The analysts expect AS spreads to tighten by .......

    News Round-up 19 April 2013

  • Cat bond momentum to continue

    Aon Benfield All Bond index investment returns for the annual period ending 31 March reached 12.69%. This compares with 5.9% a year earlier.

    For the quarter under review, all Aon Benfield ILS indices posted mark-to-market gains. The All Bond index rose to 3.13% (versus 0.54% in 2012), the BB-rated Bond index increased to 2.25% (0.53%), the US Hurricane Bond index .......

    News Round-up 19 April 2013

  • ABS mix makes for active session

    US ABS BWIC volumes reached US$181m yesterday, with auto and student loan paper accounting for most of the supply. SCI's PriceABS data also displays some credit card tranches circulating during the session.

    "Blocks of 2011 vintage senior auto loan bonds, along with a mix of senior and mezzanine student loans, have pushed BWIC volume higher," Interactive Data notes.

    Market Reports 19 April 2013

  • Credit fund of funds rolled out

    Stenham has launched a fund of hedge funds that invests in six to 10 high-conviction credit managers, with the aim of benefiting from the current market asymmetry. Dubbed Stenham Credit Opportunities, the fund targets 8%-12% annualised returns and allocates across the full spectrum of credit strategies, including credit long/short, structured credit and distressed debt strategies.

    Allocations to individual strategies are .......

    News Round-up 19 April 2013

  • Multifamily fundamentals continue to improve

    The ongoing decline in US home ownership rates is benefitting CMBS backed by multifamily properties, according to Moody's.

    "US home ownership has declined to near-record lows over the last five years because of the financial crisis and will remain low," comments Jay Rosen, a Moody's vp - senior analyst. "The decline is credit positive for multifamily CMBS because fewer owners .......

    News Round-up 19 April 2013

  • Volume boosted by pulling CLOs forward

    US CLO new issuance increased nearly five-fold in Q1 compared to the same period in 2012, though issuance is likely to level off as the year progresses, Fitch says. First quarter volumes stand at over US$26bn (compared to US$6bn in 1Q12), with the general consensus being that they will finish the year in the US$55bn-US$75bn range.

    Much of the first .......

    News Round-up 19 April 2013

  • Manager adds two in Europe

    CVC Credit Partners has appointed Stuart Levett as md focused on European trading activity and Julia Agafonova as director of fund administration and head of European operations. They will both be based in London.

    Levett specialises in sourcing, managing and trading performing, stressed and distressed credit assets. He has previously worked at UBS, Cantor Fitzgerald and Credit Suisse.

    Agafonova has .......

    Job Swaps 19 April 2013

  • Irish SF group launches

    The Irish Debt Securities Association (IDSA) has been established to promote Ireland as a European location for activities that support the global structured finance industry. Approximately €500bn of SPV assets are already resident in the jurisdiction, representing around 22% of all European SPV assets.

    IDSA membership includes corporate administrators, audit firms, legal advisors, listing agents and other parties involved in .......

    Job Swaps 19 April 2013

  • ASF, SFIG go toe-to-toe

    Further details have emerged on the wave of defections from the ASF and subsequent formation of the Structured Finance Industry Group (SFIG) (SCI 15 March). The associations appear to be going toe-to-toe, but one industry insider believes that the two can co-exist - although only if Tom Deutsch steps down from the ASF.

    The SFIG has scheduled its first conference, .......

    News 19 April 2013

  • Single surge

    Single-borrower CMBS sees heavy Q1 issuance

    At around US$9bn, US single-asset/single-borrower CMBS issuance in the first quarter almost equalled the total for all of 2012. However, it remains to be seen whether that pace of issuance can be maintained and what the effect will be on the conduit CMBS sector.

    Historically low interest rates have been a key driver of these single-borrower deals. Tad Philipp, Moody's .......

    News Analysis 19 April 2013

  • RMBS holders consider clean-ups

    Clean-up calls are back on the agenda for seasoned senior jumbo RMBS now that the search for yield has pushed the securities above par. So far there has been significant variation between sellers as to how often they call, with several economic factors needing to be taken into account.

    From a total of 2,729 issued jumbo deals that were eligible .......

    News 18 April 2013

  • Farallon pay-down welcomed

    The US$1.6bn Farallon Portfolio loan, securitised in four separate CMBS, has paid off. The pay-down has resulted in meaningful increases in credit enhancement levels for the related deals, which is expected to trigger rating agency upgrades.

    The Farallon Portfolio was one of the more complicated loans securitised during the 2005-2008 era, consisting of 45 notes (senior and subordinated), with fixed- .......

    News 18 April 2013

  • FDIC rules impacting CLO demand

    It has been a relatively slow start to the second quarter for the primary US CLO market on the back of recent high volumes and the FDIC regulation taking effect at the beginning of April. But the month has so far been noteworthy for the debut issuances from two new managers and some interesting spread movements lower down the capital .......

    News Round-up 18 April 2013

  • US SEF lands in London

    Javelin Capital Markets has opened an office in London. The company's EMEA operation will be led by Daniel Moon, who has over 15 years of experience in derivatives sales.

    Javelin reports that it has seen a spike in demand from end users on both sides of the Atlantic ahead of final mandatory trading regulations in the US. The strength of .......

    Job Swaps 18 April 2013

  • Wave of liquidations hits LBUBS 06-C7

    A recent spate of loan liquidations has wiped out nearly nine classes of the LBUBS 2006-C7 CMBS. The combined losses from the eight liquidations totals US$130m, equating to an average 80% severity, according to Barclays Capital CMBS analysts.

    One of the loans backing the transaction that liquidated recently is the US$86m Arizona Retail Portfolio, whose remaining four shopping centre properties .......

    News Round-up 18 April 2013

  • Franklin eyes Euro fixed income expansion

    Franklin Templeton Investments is working to build its European fixed income capabilities. David Zahn has been promoted to head of European fixed income to lead this development.

    Zahn has been managing European fixed income portfolios for more than a decade. He will work with a dedicated team of nine investment professionals in London and a further four based in San .......

    Job Swaps 18 April 2013

  • REIT acquisition moves closer

    Annaly Capital Management and CreXus Investment Corp have announced the final results of the tender offer whereby Annaly offered to purchase those share of CreXus which it does not already own (SCI passim). Annaly will purchase 55,225,336 shares for approximately US$720.8m.

    The shares are to be purchased through a newly formed subsidiary, dubbed CXS Acquisition Corporation. The shares purchased through .......

    Job Swaps 18 April 2013

  • Energy provider makes SF appointment

    SolarCity has appointed Jimmy Chuang as structured finance vp, reporting to cfo Bob Kelly. He will manage the structured finance group and help identify and build relationships with tax equity and debt investors.

    Chuang joins from GCL Solar Energy, where he was chief structured finance officer. He previously held senior structured finance roles at Fotowatio Renewable Ventures and MMA Renewable .......

    Job Swaps 18 April 2013

  • NHG-backed RMBS 'well protected'

    Fitch reports that NHG-backed RMBS are well protected if a downgrade of the Dutch sovereign and Waarborgfond Eigen Woningen, the provider of NHG, were to occur.

    "We believe the Dutch government is strongly committed to the NHG guarantee scheme and will continue to remain so, even if its own financial situation were to somewhat deteriorate," says Pierre Soens, Fitch's Dutch .......

    News Round-up 18 April 2013
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