ABS

  • SF head preps new firm

    Michael Millette is set to launch Hudson Structured Capital Management following his departure from Goldman Sachs. He will serve as managing partner for the new investment manager, as it looks to manage assets across multiple sectors, including reinsurance and transportation.

    Prior to his new venture, Millette was partner, md and global head of Goldman's structured finance group. He also served as co-chairman for the .......

    Job Swaps 17 August 2015

  • ILS unit revamped

    Munich Re has established a new unit within its special and financial risks division. Launched in July, Munich Re Capital Partners has taken over the firm's risk trading, ILS and catastrophe bond activities. It is led by August Probst, who previously headed Munich Re's corporate insurance partner unit.

    Munich Re says the move is an attempt to cater for an ever-increasing demand for .......

    Job Swaps 14 August 2015

  • Structured credit pro tapped

    Lloyds has bolstered its financial institutions business with the appointment of Thomas Sandberg as associate director. He will join the bank's relationship solutions team, which is responsible for delivering bespoke solutions to financial institutions, as well as providing strategic advice around navigating regulatory and economic change.

    Sandberg joins from Bank of America Merrill Lynch, where he was vp of the Nordic .......

    Job Swaps 14 August 2015

  • Euro secondary stays calm

    The European securitisation secondary market continues to stay calm in terms of both activity and price volatility.

    Summer illiquidity along with broader market volatility, albeit reduced, kept most market participants on the sidelines again yesterday. Activity continued in pockets with autos and a handful of CLOs being the main signs of life, though spreads overall remained unmoved.

    Nevertheless, with wider .......

    SCIWire 14 August 2015

  • Sirius sold off

    White Mountains Insurance Group has agreed to sell Sirius International Insurance to CM International, the investment arm of China Minsheng Investment. The amount of the purchase price will equal 127.3% of Sirius's closing date tangible common shareholder's equity, plus US$10m.

    Based on Sirius's tangible common shareholder's equity of nearly US$1.75bn at 31 December 2014, the price equates to over US$2.2bn. White Mountains .......

    Job Swaps 13 August 2015

  • Trade finance unit launched

    Vecron Lordstock Group has launched a new independent trade finance business. Vecron Exim is designed to provide companies with fast access to working capital for export, import and domestic trade by providing direct loans, including those aimed at structured trade finance.

    The firm will also will focus on providing loans related to pre-export/working capital finance, purchase order finance and factoring/accounts receivable .......

    Job Swaps 13 August 2015

  • Capacity gains

    ILW supply and demand picking up

    The ILS secondary market continues to see price volatility in non-peak risks, but certain peak catastrophe zones are witnessing some stabilisation. Insurance loss warranties (ILWs) are the latest product to be driven by a surge in demand as the US wind season kicks on.

    The past 18 months have seen approximately US$18bn of new capital entering the market through ILS .......

    News Analysis 13 August 2015

  • Euro secondary stays insulated

    The European securitisation secondary market remains quiet despite broader market volatility.

    "It's still pretty slow," says one trader. "We've remained insulated from the China news, but it's August so the market is illiquid."

    The latest THRONES deal remains the chief talking point. "Price talk on the new deal is weak and while that should have a knock-on impact in secondary .......

    SCIWire 13 August 2015

  • Greater supply, risks widen spreads

    New issue spreads for RMBS and CMBS deals are widening on either side of the Atlantic as supply remains higher than demand. It appears to be a trend that will last beyond the usual summer slump.

    "There is a very large pipeline of expected deals, but a shortage of investors lining up for them," says one European ABS trader. .......

    News 12 August 2015

  • FFELP fix?

    Market dialogue, transparency set to avert SLABS crisis

    Market participants appear confident that a fix for a significant portion of the US$36.8bn of FFELP student loan ABS bonds on review for downgrade by Moody's can be found during the comment period for its proposed criteria update, which closes on 7 September (SCI 10 July). At the same time, efforts are underway to increase transparency around the historically complex .......

    News Analysis 12 August 2015

  • Euro secondary limps on

    Despite broader market volatility the European securitisation secondary market continues to limp along on very thin volumes.

    "There's not a great deal happening with only a few BWICs and a couple of OWICs due all this week," says one trader. "We're fully into summer and the weaker macro picture isn't helping."

    So far, the European ABS/MBS market has been insulated .......

    SCIWire 12 August 2015

  • Credit manager brought back

    Terrence Matthews has rejoined Millenium Capital Partners as credit portfolio manager. He arrives after serving in the same role at Arrowgrass Capital Partners, as well as for Millennium during his first stint at the firm. Mathews has also been md at UBS and Toronto Dominion Bank, and has previous experience in structured products and credit derivatives.

    .......

    Job Swaps 11 August 2015

  • Counterparty risk approach finalised

    Scope has published its final rating approach for counterparty risk in structured finance transactions. The methodology analyses whether additional credit risk is introduced into a structured finance transaction by financial or operational counterparty exposures, and considers post-crisis realities that result in the limited likelihood of banks defaulting within a short timeframe.

    Scope notes that counterparties, being both financial institutions with .......

    News Round-up 11 August 2015

  • Guggenheim settles fiduciary breach

    Guggenheim has agreed to pay a settlement fee of US$20m to the US SEC following charges that it breached its fiduciary duty. The settlement is believed to be the culmination of a four-year probe into the firm's relationship with Michael Milken.  

    According to the SEC's charges, Guggenheim failed to disclose a US$50m loan that one of its senior executives received from an advisory .......

    Job Swaps 11 August 2015

  • FFELP trust trio called

    Navient has exercised call options on three FFELP student loan ABS trusts that represent a total of US$216m in bonds. The three trusts - SLM Student Loan Trusts 2002-6, 2003-8 and 2003-9 - will now be repaid on 15 September.

    "The exercise of our option represents our continued support of an active and liquid student loan ABS market," says Jack Remondi, president and ceo of .......

    News Round-up 11 August 2015

  • Euro secondary winds down

    The European securitisation secondary markets continue to wind down as seasonal factors hold sway.

    "We're really in summer mode now with not a lot of flows," says one trader. "Activity is down to a minimum with little BWIC supply and no major credit news to stimulate trading."

    One piece of relevant news did however come from the similarly quiet primary .......

    SCIWire 11 August 2015

  • ILS team formed

    Lombard Odier Investment Managers (LOIM) has recruited an ILS team that includes Gregor Gawron, Simon Vuille and Marc Brogli. Based in Zurich, the team will report to LOIM cio Jan Straatman.

    The team will pursue a wide-ranging approach, targeting different risk types and regions. Straatman says that the team will target cat bonds due to their higher starting yield and floating rate coupon .......

    Job Swaps 10 August 2015

  • Alternative finance growth predicted

    European institutional investors predict that the alternative finance market will grow by 23% over the next two years, according to a new study by Amicus Finance. This could be driven by the demand for expansion finance by SMEs, which is already generating momentum with a number of recent financing initiatives (SCI passim).

    In total, just under three-quarters (73%) of institutional .......

    News Round-up 10 August 2015

  • Timeshare delinquencies at record low

    US timeshare ABS delinquencies fell again this past quarter to their lowest level in eight years, reports Fitch. Total delinquencies for 2Q15 were 2.66%, down from 2.79% in 1Q15 and 2.92% observed in 2Q14.

    The trend continues a consistent year-over-year improvement since 2012, as defaults also decreased to 0.57% in 2Q15. This figure is down from 0.67% in 1Q15 and 0.66% a .......

    News Round-up 10 August 2015

  • Euro secondary limited

    Activity in the European securitisation secondary market remains limited as seasonal illiquidity prevails.

    Nevertheless, Autos alongside Dutch and UK prime continue to see some signs of life. At the same time, there is selective demand for Italian, Portuguese and Spanish paper.

    Today, currently sees one BWIC on the schedule - at 14:30 London time there is a single €700k line .......

    SCIWire 10 August 2015

  • Small strides

    Non-bank lending key to SME securitisation?

    SMEs continue to be billed as the backbone of the European economy, as a number of initiatives seek to remedy the lack of traditional bank support for the sector. Securitisation is expected to play a key role in this process, but a number of obstacles must be overcome if it is to make a significant contribution.

    "Although direct lending has .......

    News Analysis 7 August 2015
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