Issue 423 - 4th February
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News Analysis
- Structured Finance
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Different strokes
HQS consultations reflect divergent approach
The HQS consultations being undertaken by the EBA and the Basel Committee/IOSCO joint taskforce appear to reflect the different motivations of European and US policymakers. Indeed, the former consultation could potentially be instrumental in shaping...
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- CMBS
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Floodgates open
Quelle case sparks further negligent valuation claims
The recent landmark Titan Europe 2006-3 ruling affirmed that an issuer can have a legal basis for a negligence claim against a property valuer. The decision may prompt further cases to come forward and encourage a fresh set of standards for CMBS 2.0...
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- Structured Finance
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Market Reports
- ABS
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Auto ABS names abound
SCI's PriceABS data captured 26 unique US ABS tranches yesterday as bid-list supply surged, after weather concerns had curtailed Tuesday's activity. Total BWIC volume was comfortably above US$360m. A considerable number of tranches on Wednesday's B...
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- CMBS
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Mixed signals in CMBS
The unexpectedly wide pricing of Taurus 2015-1 IT has raised some concerns in the European CMBS market. However, secondary market activity has been fairly strong this week. "The last fortnight has been more positive in the market, with activity pic...
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- ABS
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SCIWire
- Secondary markets
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US CLOs/CDOs in discovery mode
After a disrupted week the US CLO/CDO market is busy today, especially with many BWICs carried over...
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Euro ABS/MBS scope broadens
ECB-eligible ABS/MBS are mostly continuing their rise but non-eligible bonds are also finding buyers...
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US CLOs/CDOs stuck on repeat
The US CLO/CDO secondary market appears stuck on repeat this week. "There's not a great d...
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US RMBS back in full flow
Secondary liquidity in US non-agency RMBS was hit hard earlier in the week, but is now back to full...
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Euro secondary stays firm
Despite broader market volatility European secondary spreads held firm throughout yesterday and into...
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US CLOs edge in
Secondary US CLO spreads are edging in on the back of increased investor demand. "Secondary market...
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Positive tone continues in European ABS/MBS
The European ABS/MBS secondary markets held onto their positive tone into the end of last week and t...
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CDO/CLO BWICs burst into life
Today and tomorrow see a significant burst of CDO/CLO BWIC supply either side of the Atlantic that i...
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UK BTL stays strong
Three slices of UK buy-to-let seniors traded strongly on BWIC this afternoon. The results of the a...
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Euro ABS/MBS keeps steady
The European ABS/MBS secondary markets maintained their steady head of steam through yesterday and i...
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US CLOs continue double-B focus
US CLO secondary activity continues to lean toward double-B paper in both 2.0 and 1.0 form....
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INFIN SOPR trades up
A flash BWIC on INFIN SOPR A traded up this morning. The 10:00 London time auction saw €...
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- Secondary markets
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News
- Structured Finance
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SCI Start the Week - 2 February
A look at the major activity in structured finance over the past seven days
PipelineA mixed bag of transactions entered the pipeline last week, with all asset classes represented. ABS accounted for the largest number of deals, as US$667m AIM Aviation Finance Series 2015, US$327m Consumer Credit Origination Loan Trust 2015-1...
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- Structured Finance
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Job Swaps
- ABS
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Origen ABS acquired
HAS Capital has acquired interests in select ABS structured financings and manufactured housing-rela...
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- Structured Finance
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Moves made at Alcentra
Alcentra has made several executive leadership appointments, including Paul Hatfield returning to th...
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Securitisation head recruited
Opus Capital Markets Consultants has named William Shuey as director of securitisation. He will be r...
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Hires spark multi-asset initiative
Assenagon has made two appointments in an initiative to start offering multi-asset portfolio managem...
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Director swaps vendors
Paul Whitmore has joined Fitch Solutions as regional business manager for EMEA and a senior director...
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MBO for trading platform
The Guggenheim Global Trading (GGT) multi-strategy trading platform has been acquired by an investor...
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Valuation firm acquired
Duff & Phelps is set to acquire valuation and fixed asset management advisor American Apprai...
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Structured finance group poached
Alston & Bird has expanded its finance practice with the hiring of four new partners and fou...
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Sales team beefed up
Bryan Bushnell has joined TwentyFour Asset Management to help develop its sales capabilities with di...
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Record ratings settlement agreed
The US Department of Justice and 19 states and the District of Columbia have entered into a US$1.375...
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- CDS
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Market structure pros added
Tradition has hired three market structure professionals to bolster its hybrid and electronic busine...
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CME bid rejected
CME Group and GFI Group have each determined to terminate their merger agreement following a special...
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- CMBS
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CMBS franchise eyed
Sandler O'Neill and Partners has appointed David Cook and Andrew Flick as mds, focusing on building...
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Mass migration for new CMBS team
SG has launched a US CMBS business after hiring a team of seasoned CMBS professionals from RBS. The...
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CRE origination bolstered
CCRE has expanded its loan origination team with the appointment of Christof Laputka as director. He...
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Ratings group bolstered
Peter Simon has joined Fitch as a director in its CMBS ratings group in New York, with a focus on ne...
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- Insurance-linked securities
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'Banner year' for BSX
Bermuda has been the domicile of choice for 57% of ILS issued during 2014, according to the Bermuda...
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- ABS
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News Round-up
- ABS
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Savings provide 'buffer' for Chinese ABS
Moody's says that China's high household savings rate is credit positive for the country's fledging...
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Marketplace lending deal debuts
The inaugural rated securitisation of consumer instalment loans originated on the Prosper Funding P2...
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Auto performance to slow?
The shift away from smaller, more fuel-efficient vehicles could result in lower wholesale vehicle pr...
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Record lows for auto arrears
Fitch reports that European auto ABS performance continued to improve in 2014 as arrears reached rec...
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BPF undertakings transferred
The partnership between Banque PSA Finance (BPF) and Santander Consumer Finance (SCF) is expected to...
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- Structured Finance
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HQS boost for Europe
The European Commission last week began a project to create a capital markets union (CMU) for all 28...
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'Diversified' fund launched
Nomura Asset Management has launched its Global Dynamic Bond Fund, designed to provide investors wit...
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Securitisation to boost Indian economy?
Moody's says that India's securitisation market can provide funds needed to finance housing, infrast...
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CRA technical advice prepped
ESMA has released a call for evidence as part of the development of technical advice for the Europea...
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South Africa expectations 'stable'
Fitch believes the performance of assets backing South African structured finance (SF) deals will re...
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Appetite for restaurant securitisation
Highly franchised US restaurants are increasingly using securitisations to extract value for shareho...
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High demand for loan portfolios
European loan portfolios with a face value of €91bn were sold in 2014, up from €...
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- CDO
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Marginal decrease in Trups defaults
The number of combined US bank Trups CDO defaults and deferrals marginally decreased to 21.1% at end...
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- CDS
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Non-cleared OTC tool introduced
Calypso Technology has released a tool for calculating initial margin on non-centrally cleared deriv...
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- CLOs
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CLO FX risk examined
Fitch says liability currency hedges in European CLOs are less effective than perfect asset swaps (P...
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Covenants strengthened on liquidity concerns
The introduction of minimum obligor debt issuance covenants in recent European CLOs is likely to be...
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CLO administration tool unveiled
Deutsche Bank has launched a new collateral administration tool designed exclusively for CLO manager...
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Post-crisis CLO index outperforms
JPMorgan's latest CLO index (CLOIE) monitor report shows that US$2.8bn in par outstanding of CLOs pa...
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CLO par building examined
A Wells Fargo analysis of US and European post-crisis CLOs indicates that the 2012 vintage has poste...
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- CMBS
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GG9 auction relisted
Auction.com and RealCapitalMarkets.com data indicates that 45 properties backing US$417m distressed...
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RFC issued on global CMBS
S&P has requested comments on its proposed methodology and assumptions for rating CMBS trans...
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CMBS delinquencies down again
The Trepp delinquency rate for US CMBS loans is now 5.66%, down by 9bp in January and 159bp from the...
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Defeasance, prepays up for CMBS 2.0
CMBS 2.0 borrowers continue to take advantage of low interest rates and improving property performan...
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Conduit credit quality eyed
The credit quality of US CMBS conduit loans continued to decline, while conduit loan leverage expand...
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- Risk Management
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Pillar 3 standard finalised
The Basel Committee has issued its final standard for the revised Pillar 3 disclosure requirements,...
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'Pro-reform' swap framework proposed
CFTC commissioner Christopher Giancarlo has published a White Paper analysing what he views as flaws...
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RFC issued on ECL framework
The Basel Committee has issued, for consultation, guidance on accounting for expected credit losses....
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Exemption extension recommended
The European Commission has published a report that recommends granting pension funds a two-year exe...
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Clearing obligation opinion published
ESMA has published an opinion on the draft regulatory technical standards (RTS) on the clearing obli...
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- RMBS
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Master trusts to remain 'strong'
The performance of UK RMBS master trusts will remain strong in 2015, according to Moody's. This tren...
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Aussie postcode performance analysed
Fitch says that Kingston (4114), in the Logan City region of Queensland, was the worst performing po...
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Servicer ratings exposure examined
The number of US RMBS transactions likely to experience servicer EODs due to servicer rating changes...
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- ABS
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