Complete news archive

  • Boutique adds three in sales

    The PrinceRidge Group has hired three new team members to its structured products desk in the firm's newly opened Chicago branch.

    Tom Connors joins PrinceRidge as an md, structured products sales and the head of its Chicago branch. Connors brings over 25 years of experience to PrinceRidge, where he is responsible for covering institutional clients focusing on structured product sales .......

    Job Swaps 30 June 2010

  • Concerns continue

    Risk retention no solution for ABS

    The Senate and House bill requirements for securitisers to retain 5% of the credit risk from pools of securities along with the SEC's proposal in April to have firms hold 5% of each class of ABS is still causing debate among industry participants, according to panellists at an IQPC ABS Summit in New York.

    The 5% retention requirement made its .......

    Talking Point 30 June 2010

  • 1st Financial plans another ABS foray

    An ABS deal is in the planning stages for 1st Financial Bank USA for November, marking its second offering in 2010, says the firm's cfo Gregg Silver. The transaction is expected to between US$100m and US$150m, but most likely US$125m.

    A launch in the autumn will fit nicely into its maturity schedule, since the borrower prefers to ladder its maturity .......

    News Round-up 30 June 2010

  • Trups warfare

    Bank issuers face stiff buyback opposition from investors

    Banks are locked in conflict with investors in CDOs that pool their Trups as they seek to buy the securities back for discounts as steep as 80%. If they cannot buy the Trups back, then the banks say they will fail - and some already have - but a number of investors are refusing to sell.

    Bank default rates within .......

    News Analysis 30 June 2010

  • Balloon risk remains key for German MFH CMBS

    Fitch says balloon risk remains the key risk for large German multifamily housing (MFH) CMBS transactions. GRAND, German Residential Funding, Windermere IX (Multifamily) and Immeo Residential Finance No 2 - the four largest CMBS transactions entirely secured by MFH collateral - all have negative outlooks.

    The agency says collateral performance remains stable for all the large, institutionally managed portfolios, as .......

    News Round-up 30 June 2010

  • Application of structured finance identifier outlined

    S&P has announced the categories of debt instruments whose ratings will have a structured finance identifier, (sf), as required under the new European regulation on credit rating agencies. The agency says it will apply the symbol to all relevant structured finance ratings globally by early September.

    In making its decision, S&P says it considered both the definition of 'Structured Finance .......

    News Round-up 30 June 2010

  • US credit card performance improvement continues

    Moody's says US credit card charge-offs declined for the second consecutive month in May, finishing 20bp below April at 10.71%. The agency says the two-month decline represents a clear break from the rise in charge-off rates experienced during Q110.

    "Our base-case expectation that the unemployment rate will plateau at 10.1% in the second half of the year, combined with steady .......

    News Round-up 30 June 2010

  • Santander's auto loan purchase 'credit positive'

    Santander Consumer USA has agreed to purchase US$3.2bn in auto loans from CitiFinancial and to service US$7.2bn in auto loans retained by its parent Citigroup. The agreement is a credit-positive development for investors in CitiFinancial's outstanding auto loan ABS deal, CitiFinancial Auto Issuance Trust 2009-1 (CAIT 2009-1), according to Moody's in its latest Weekly Credit Outlook.

    "CitiFinancial's auto ABS investors .......

    News Round-up 30 June 2010

  • Trading revenues rebound in second-strongest quarter

    The US Office of the Comptroller of the Currency (OCC) reports that bank trading revenues in the first quarter bounced back from seasonally low fourth-quarter levels, while credit exposure from derivatives continued to decline. Commercial banks reported trading revenues of US$8.3bn.

    "We expected to see a sharp rebound in trading revenues from the seasonally weak fourth quarter, as client demand .......

    News Round-up 30 June 2010

  • Freddie Mac buyouts expected to pick up

    Freddie Mac's end-of-May delinquency rates suggest that roll rates and delinquency buyouts are likely to reverse their recent slowing trend and start picking up in the August prepayment report.

    "Although the 120+ DQs dropped again from last month, the magnitude was much smaller, at only 1%-2% on average," RMBS analysts at Barclays Capital explain. "More importantly, the 90 DQ bucket .......

    News Round-up 30 June 2010

  • US CLO default rates continue to decline

    US CLO default rates continue to retreat very rapidly. Principal-weighted LTM defaults were at 4.64% at the end of May, down a full percent from end-April and more than 6% since the 10.81% peak in November, according to structured credit analysts at Bank of America Merrill Lynch.

    "While we continue to expect the structural default lows for the cycle to .......

    News Round-up 30 June 2010

  • Fourth Tesco CMBS marketing

    Goldman Sachs and HSBC are in the market with Tesco's latest CMBS. Moody's, S&P and Fitch have provisionally assigned A3/A-/A- ratings to the £950.15m Tesco Property Finance 3 transaction.

    The deal is a true-sale credit-tenant-linked securitisation of one commercial mortgage loan backed by the long leasehold interest in a portfolio of 41 commercial properties located across the UK. All properties in .......

    News Round-up 30 June 2010

  • Pair of German auto ABS surface

    A couple of German auto ABS transactions hit the market last week. FCE Bank's €502.75m Globaldrive 2010-A priced, while a restructured Cars Alliance deal was marketing.

    Globaldrive 2010-A consists of three tranches; the senior one sold and the other junior tranches both retained. Deutsche Bank, HSBC and Royal Bank of Scotland served as joint lead managers.

    The €474.45m Aaa/AAA (Moody's/S&P) .......

    News Round-up 30 June 2010

  • Student Loan Corp due with FFELP deal

    Student Loan Corporation is due with a FFELP offering. It is expected to be rated triple-A by Fitch.

    The deal, called SLC Student Loan Trust 2010-1, features class A notes structured as either pass-throughs or three tranches paid in sequential order, notes Fitch. As of the statistical cut-off date, approximately 65.91% of the student loans were originated on or before .......

    News Round-up 30 June 2010

  • ABX remittances show improvement

    The June ABX remittance report indicates that CDRs are generally declining as timelines extend. The 06-1 index continues to buck the trend, however, and has proved the exception to many of the rules this month, according to ABS analysts at Bank of America Merrill Lynch.

    CDRs declined anywhere from 1.1 to 2.7 points across the ABX indices and delinquencies declined .......

    News Round-up 30 June 2010

  • HAMP trial modification backlog eases

    New HAMP trial modifications started in May declined by 36% from April to just 30,000 borrowers, according to a new report from Bank of America Merrill Lynch. New trials have slowed since their October 2009 peak when more than 158,000 trials were started.

    HAMP trial modifications have been offered to nearly 90% of eligible borrowers and BAML MBS analysts expect .......

    News Round-up 30 June 2010

  • CRE reform provisions finalised

    The House-Senate Conference Committee on financial reform legislation has finalised several provisions that the CRE Finance Council had made its top priorities. The finalised provisions are based on amendments authored by Senator Mike Crapo and will enable regulators to customise the new risk retention mandate for CRE finance. Another measure was offered by Representative Scott Garrett that requires regulators to .......

    News Round-up 30 June 2010

  • Fannie Mae gets tougher on borrowers

    In a new policy change announced on 23 June, Fannie Mae says defaulting borrowers who walk away - even though they had the capacity to pay or did not complete a workout alternative in good faith - will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure. But there .......

    News Round-up 30 June 2010

  • Guidelines released for tackling 'moral hazard' risks

    Financial Stability Board (FSB) chairman Mario Draghi has told the G20 leaders that good progress has been made towards global standards to strengthen bank capital and liquidity. But he called for a significantly higher quality and quantity of capital in the banking system to improve loss absorbency and resiliency.

    The authorities, Draghi says, "should provide transition arrangements that enable movement .......

    News Round-up 30 June 2010

  • Fed's coupon swap gives lift to 4.5s

    The Federal Reserve Bank of New York Open Market Trading Desk has commenced a limited amount of agency MBS coupon swap operations. It plans to swap unsettled Fannie Mae 30-year 5.5% securities for other agency MBS. The move helps facilitate delivery of about US$9.2bn in unsettled FN 5.5% pools due to the relatively short supply.

    The Fed will most likely .......

    News Round-up 30 June 2010

  • CarMax outlines issuance strategy

    Consumer demand for autos is just not back to where it was pre-recession since there is still a lot of uncertainty in all sectors of the market, according to CarMax executives on a conference call last week. The firm is in the market with the US$650m three-tranche CarMax Auto Owner Trust 2010-2.

    "There's some nervousness out there. Almost everything we .......

    News Round-up 30 June 2010
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