News

Read the latest articles and press releases about securitization and structured finance.

Filter
SFA News

SFA Signs Letter Requesting Extension to FHFA Comment Period

On Tuesday, June 30, SFA joined 16 other organizations in signing a letter to Federal Housing Finance Agency (FHFA) Director Mark Calabriacalling for an extension to the comment period on the proposed regulatory framework for Fannie Mae and Freddie Mac.

Industry News

Experts Worry the Economic Downturn is Just Beginning

With the pandemic continuing to loom over the world, economists have become more concerned that the recent economic downturn could get significantly worse over the next few months.

Industry News

New TALF guidance could clear CLO blockage

Recent updates to the Federal Reserve’s (Fed) Term-Asset Backed Loan Facility (TALF) program could help clear some of the collateralized loan obligations (CLOs) stuck in limbo. The updates to the TALF program broadens the range of corporate loans CLOs can hold while still remaining eligible for the $100 billion in TALF.

Industry News

Fed kick-starting program to purchase corporate bond ETFs

Amid a boom in the corporate debt market, the Federal Reserve started its highly anticipated corporate bond program last Tuesday. The central bank will kick off its Secondary Market Corporate Credit Facility in which it will buy exchange-traded funds (ETFs) that track the corporate debt market. The facility will purchase ETFs that hold “fallen angel” bonds of companies that were investment grade and have been downgraded to “junk” bonds due to the coronavirus crisis.

Industry News

Fed not likely to consider negative interest rates

Federal Reserve (Fed) officials have decided that they will not likely use negative rates to encourage economic growth during the pandemic after concluding that the costs of doing so outweighed its undefined benefits. The Fed’s decision comes as investors in the futures markets began betting that the Fed’s benchmark federal-funds rate would dip below zero by the end of the year, which would send yields on two-year Treasury securities to a record low.

Industry News

CLO payments cut off due to COVID-19

As COVID-19 continues to damper the US economy, some investors are concerned that the safety found in Collateralized Loan Obligations (CLOs) are fleeting. The economic downturn had increased the risk of interest and principal payments being cut off for some of these investment-grade CLOs and the notes at risk have ratings as high as the A tier.

SFA News

SFA hosts webinar with Moody’s on COVID-19 impact

On Tuesday, May 5, SFA hosted a webinar with Moody’s Investor Services on the overall impact of COVID-19 on various asset classes. The webinar covered the macro outlook and ratings approach in turbulent times as well as the impact of COVID-19 on consumer and corporate credit asset classes.

SFA News

SFA Hosting COVID-19 Impact Webinar with Moody’s

Next Tuesday, May 5, SFA will be hosting a webinar with Moody’s Investors Services on COVID-19’s impact on various asset classes. The webinar will cover the macro outlook and ratings approach in turbulent times as well as the impact of COVID-19 on consumer and corporate credit asset classes.

Industry News

Phase 3.5 Completed, Lookahead to Phase 4

The president signed the Paycheck Protection Program and Healthcare Enhancement Act after the House passed the bill by a margin of 388-5 on April 23 and the Senate passed the bill by unanimous consent on April 21. The $484 billion package provided funding for the Small Business Association’s Paycheck Protection Program, as well as for hospitals and COVID-19 testing.

Industry News

Reach for yield endures COVID-19 market shock

According to bankers and investors, the demand for asset-backed securities is currently outpacing supply, a sign that the reach for yield has survived the coronavirus market shock. Portfolio managers are seeking out returns for bonds backed by U.S. auto loans, property leases, and other agreements. Last week Dell Technologies, Inc.…