Weekly Issue Archive »

Issue 537 - 28th April

  • News Analysis

    • CLOs

      • Self-syndication cost savings considered

        Demand for CLO debt remains high, fuelling suggestions that easy access to investors could encourage issuers to cut out arrangers. While CLO managers may find the idea of making savings through self-syndication attractive, it could prove to be a fals...

    • Capital Relief Trades

      • Basel 4 raises Dutch SRT prospects

        Higher capital requirements mooted under Basel 4 are likely to disproportionately affect Dutch banks, given their large mortgage exposures. This is expected to result in a flurry of Dutch capital relief trades. One industry source notes that a 90%-...

    • Marketplace Lending

      • Multi-seller ABS approach to flourish

        Marketplace loan ABS involving a multi-seller approach is expected to become more commonplace, due to the extra control that online lending platforms can exert over the securitisation process. Investors and loan sellers also benefit from a consistent...

  • SCIWire

    • Secondary markets

      • Euro secondary boosted

        The European securitisation secondary market has been boosted by the first round result in the Frenc...

      • Euro secondary stifled

        The hoped for boom in the European securitisation secondary market this week is be...

      • US CLOs still slow

        The US CLO secondary market is still slow thanks to a combination of factors. "So many bonds are t...

  • News

    • ABS

      • Wireless spectrum auction 'ABS positive'

        T-Mobile won the most number of licences in the US Federal Communication Commission's 600-megahertz spectrum auction earlier this month, spending US$8bn in the US$19.8bn auction. This win is credit positive for wireless tower ABS sponsored by America...

      • Debut issuer brings unusual ILS

        NMI Holdings has priced US$211.3m of 10-year mortgage insurance-linked notes. The ILS, Oaktown Re Series 2017-1, sponsored by NMI Holdings subsidiary National Mortgage Insurance Corporation (National MI), is being privately offered. National MI wil...

    • Structured Finance

      • Bill to repeal Dodd-Frank scrutinised

        Hearings are scheduled for today on a draft bill published last week by House Republicans which would repeal much of the Dodd-Frank Act. The Financial CHOICE Act would repeal risk retention rules for CLOs and all other asset classes except residentia...

      • SCI Start the Week - 24 April

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

        Pipeline Additions to the pipeline were focused on ABS and RMBS last week, with the former dominating. Among these is a US$1bn-plus ABS and a C$2bn RMBS. The ABS were: US$235.6m Ascentium Equipment Receivables 2017-1 Trust; US$900m Coinstar Fundin...

      • SFR composition trends analysed

        Fewer distressed buying opportunities for institutional investors in single-family rental houses has led to a shift of securitised properties from the southwest US to the southeast. A new Morningstar Credit Ratings analysis highlights that the compos...

    • Capital Relief Trades

      • Risk transfer round-up - 28 April

        Deutsche Bank closed its CRAFT CLO 2017-1 this week (see SCI's capital relief trades database). The US$371m seven-year notes reference a US$5.3bn corporate loan portfolio and have a three-year call. Sources also suggest that Nordea is prepping anot...

      • First EFSI risk transfer boosts SME lending

        The EIB Group has provided a mezzanine tranche guarantee of around €90m to Commerzbank in connection with the first deal under the European Fund for Strategic Investments (EFSI). Dubbed CoCo III-1, the risk transfer transaction references a...

    • CLOs

      • CLO refinancing capacity gauged

        New issue CLO spread tightening is expected to remain a key contributor to refinancing activity across the sector. US$50bn-US$60bn refinancing capacity remains for US CLOs under the SEC no-action letter (SCI 21 July 2015), according to Wells Fargo fi...

    • CMBS

      • Special servicing books creep down

        The three largest legacy special servicers - C-III Asset Management, CWCapital Asset Management and LNR Partners - accounted for 86% of US CMBS special servicing resolutions last year, according to Fitch. In a review of its rated...

      • Mall refi prospects mixed

        While many CMBS loans on regional malls are expected to struggle to refinance at maturity, Morningstar Credit Ratings has identified three such loans maturing this year which should be able to refinance successfully. These are the West Town Mall, Wes...

    • NPLs

      • Cypriot securitisation bill pending

        A new Cypriot securitisation framework is currently pending parliamentary approval. The bill is expected to address the restricted scope of eligible investors in the country's non-performing loan market. Current Cypriot securitisation legislation -...

    • RMBS

      • Ocwen actions could hit related RMBS

        The recent court actions against Ocwen Financial Corporation (SCI 21 April) are credit negative for the firm and could also negatively affect related RMBS, Moody's suggests. If the consequences of the legal actions are severe enough, the ratings agen...

      • GSE CRT value explored

        High-LTV GSE credit risk transfer (CRT) deals differ from low-LTV ones in more ways than just LTV ratio. While controlling for these differences shows worse delinquencies for high-LTV deals, loss severities are actually better, and therefore high-LTV...

      • Second SCRT 'worse credit quality'

        Freddie Mac is in the market with a securitisation of re-performing residential mortgage loans, its second RPL credit risk transfer deal. Moody's notes that the pay history of the transaction is worse than its predecessor (SCI 16 December 2016). Mo...

      • Specialist lenders driving UK RMBS

        The UK has accounted for an outsized share of the European RMBS market in 2016 and 2017 year to date, relative to 2014 and 2015 volumes. However, the spike in issuance has largely been driven by specialist lenders (SCI passim) and this seems set to c...

      • Mortgage market model outlined

        The Mortgage Bankers Association has released a whitepaper on GSE reform that outlines its vision for an 'end state' model that fulfills what it describes as an affordable housing/duty-to-serve mission. The report also attempts to shed light on two a...

  • Talking Point

    • Structured Finance

      • European hot spots highlighted

        CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Drivers include a broadening of the investor base for the former and continued bank deleveraging for the latter. AFME data for 1Q17 shows that pan-Eur...

  • Job Swaps

    • Structured Finance

      • Job swaps round-up - 28 April

        EMEA Ashurst has promoted Alex Biles and Malcolm Charles to its partnership in London. Biles advises on a broad range of debt capital market products, including structured finance. Charles is a member of the firm's corporate trust and agency practi...


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