RMBS
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NPL recovery boost expected
Greek systemic banks are teaming up to create a platform that will manage and settle mortgage and retail non-performing loans to borrowers who have filed for protection under a much-abused law providing favourable restructuring terms (SCI 8 December 2016). Greek lenders have used this procedure for corporate loans, but not for mortgages, consumer and SME loans.
The arrangement .......
News Analysis 4 May 2018
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Market moves - 4 May
Acquisitions
Five Oaks Investment Corporation has acquired 100% of the equity interests of Hunt CMT Equity from hunt Mortgage Group for US$68m. Assets of Hunt CMT Equity include the junior retained notes and preferred shares of a commercial real estate CLO, a licensed commercial mortgage lender and eight loan participations. The assets of the CLO consist of performing transitional floating .......
Market Moves 4 May 2018
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Investor-led start-up targets capital market niches
Travis Miller, co-founder and joint md of iPartners, answers SCI’s questions
Q: How did iPartners become involved in the market?
A: We were observing a broad range of fintech firms launching with a technology and product focus which struck us as a “build it and they will come” approach; it was not obvious that any were investor focused.
The driver .......
The Structured Credit Interview 30 April 2018
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Market moves - 27 April
Australia
FIIG Securities has hired Anne-Marie Hunter-Brown to the role of markets business manager, Australia. She was previously at Deutsche Bank as IB markets coo and business manager across global credit including structured credit.
Assured Guaranty rebuttal
Hedge fund manager David Einhorn recently stated that he is betting on Assured Guaranty’s stock falling, and that it .......
Market Moves 27 April 2018
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Performance sparks RPL upgrades
Many post-crisis RMBS reperforming (RPL) loan transactions have performed better than expected, leading Fitch to upgrade 171 classes from 18 RPL deals. A dozen subordinate bonds were upgraded from double-B to investment grade, while 486 RPL ratings were affirmed.
The upgrades follow a review of RPLs, seasoned performing loans and one REMIC transaction, spanning 657 loans over 44 deals issued .......
News 27 April 2018
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ECB encourages action on NPLs
Gifford West, md, international operations and business deve...
At a recent NPL industry event, a banker credited with completing some of the largest European NPL sales observed: “The Irish and UK banks were distressed sellers. Now their banks are on the path to recovery. The Italian banks refused to be distressed sellers. Now they are mostly distressed banks.”
The ECB’s guidance published on 15 March 2018 is .......
Talking Point 26 April 2018
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CRT issuance boost expected
Total capital relief trade issuance this year should exceed 2017, believes alternative asset manager PAG Asia, one of the sector’s major investors. Issuance is expected to be accelerated by an end to accommodative central bank monetary policies, underlining the importance of investing experience and expertise.
James Parsons, portfolio manager at PAG Asia, says: “This year may be a pivotal year .......
News Analysis 25 April 2018
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Market moves - 20 April
Acquisitions
BlackRock has acquired Tennenbaum Capital Partners (TCP), complementing its global credit business at a time when clients are increasingly turning to private credit as a higher-yielding alternative to traditional fixed income allocations. A key element of the transaction – which is expected to close in Q3 - is the continuity of TCP's senior management team, including all five partners .......
Market Moves 20 April 2018
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Market moves - 13 April
Aircraft ABS on watch
Market Moves 13 April 2018
KBRA has placed the class A, B and C notes of the US$411m Prop 2017-1 ABS on watch for downgrade. The ABS represents the first securitisation from Elix Aviation Capital, with the proceeds being used to buy 63 aircraft on lease to 17 airlines in 12 countries. KBRA notes that one aircraft was not delivered to .......
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Mortgage 'institutionalisation' gains traction
The Dutch mortgage market continues to receive high levels of interest from investors, but RMBS faces stiff competition from other funding options like covered bonds and whole loan strategies. However, securitisation remains well-suited to funding the development of the fast-growing buy-to-let sector in the Netherlands, due to its lack of homogeneity and current light-touch regulatory regime.
Hans Starrenburg, .......
News Analysis 10 April 2018
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Market moves - 6 April
Europe
CSC has hired Robert Berry as chairman of its capital markets group in London and Debra Parsall as director, also in London. Berry was most recently global head of capital markets at Intertrust Group. Parsall was most recently a director of capital markets at SFM Europe.
The Bank of England has hired Antonio Guevara as an ILS specialist. Guevara .......
Market Moves 6 April 2018
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Market moves - 29 March
Europe
Man Group has hired Simon Finch as cio of credit at Man GLG, its discretionary investment management engine. In this newly created role, Finch will be responsible for Man GLG’s credit business and will have oversight of the credit portfolio management teams. He will report to Teun Johnston, ceo of Man GLG, and work closely with Man GLG’s cio, .......
Market Moves 29 March 2018
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Euro ABS/MBS busy
European ABS/MBS secondary market activity has picked up this week.
“It’s been a busy week this week after a quiet week last week,” says one trader. “Overall, March has been busy and month-on-month secondary spreads are a little wider, but not by much.”
The trader continues: “Everything is trading well, mainly at good levels with a generally .......
SCIWire 29 March 2018
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LoanDepot RMBS debuts
The first RMBS entirely backed by loans underwritten by marketplace lender loanDepot.com has hit the market. Mello Mortgage Capital Acceptance 2018-MTG1 is backed by a US$299.83m pool of 453 primarily 30-year fixed-rate QM loans.
The securitisation comprises 226 prime jumbo loans underwritten to loanDepot's underwriting guidelines (representing 59.3% of the pool by loan balance) and 227 high balance .......
News 28 March 2018
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Market moves - 23 March
CDS clearing developments
News 23 March 2018
Intercontinental Exchange has transitioned index CDS open interest from CME Group to ICE Clear Credit, follows CME Group’s decision to exit the CDS business and transfer client positions to an alternative clearing house. ICE Clear Europe has also launched clearing for North American investment grade and high yield index CDS instruments, thereby providing regional customers the ability .......
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Market moves - 16 March
EMEA
Citigroup has appointed Laura Coady to the newly created position of head of EMEA, structured finance syndicate desk and she will continue to report locally to EMEA co-heads of global structured finance and securitisation Peter Keller and Bob Liao, and report globally to Vikram Prasad, global head of credit syndicate desk, taking responsibility for distributing all products from the .......
Market Moves 16 March 2018
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Issuers urge goodwill on STS
European securitisation issuers are modelling new transactions and updating legacy deals, across a range of asset classes, to be STS compliant. However, there is agreement that an overly punitive regulatory environment could harm the chances of the framework’s success, with some issuers backing the implementation of a transition period.
Steve Gandy, md at Santander Global Corporate Banking, commented at a .......
News Analysis 15 March 2018
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Split-mortgage RMBS eyed
Securitisations of split mortgages could emerge in Ireland, according to DBRS, given improving fundamentals and the clear servicing regime for non-performing and re-performing loan portfolios in the country. However, the unusual features associated with such assets may prove challenging.
Split-mortgage restructuring is one method of resolving mortgage arrears provided for under the Irish Mortgage Arrears Resolution Process (MARP) .......
News 14 March 2018
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Mortgage ILS prepped
Essent Guaranty is marketing a mortgage insurance securitisation, only the second such transaction to be publicly rated since Arch Capital Group debuted the structure (SCI 14 November 2017). The US$360.75m transaction, entitled Radnor Re 2018-1, references a pool of mortgage insurance policies linked to 175,653 residential mortgage loans.
Morningstar has assigned preliminary ratings of triple-B to the US$161.277 .......
News 12 March 2018
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Servicing liquidity risk highlighted
The spring 2018 edition of the Brookings Papers on Economic Activity includes a report exploring how the funding and operational structure of the non-bank mortgage sector remains a significant channel for systemic liquidity risk in US capital markets. Entitled ‘Liquidity crisis in the mortgage market’, the paper suggests that the typical non-bank has few resources with which to weather .......
News 12 March 2018
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Market moves - 9 March
North America
Market Moves 9 March 2018
Anthony Orso has joined NKF Capital Markets as president of capital markets strategies. Orso will support the integration of Berkeley Point Capital with ARA, two companies recently acquired by NKF Capital Markets, an affiliate of the Newmark Group. He will work closely with Jeff Day, ceo of Berkeley Point Capital and Blake Okland, vice chairman and head of US multifamily. .......