Complete news archive

  • Fleet Street 2 controlling creditor changed

    An appraisal reduction notice has been issued by UK CMBS Fleet Street 2, which is based on a revised valuation it has held since February. The €486.5m appraisal reduction results in the class A noteholders becoming the controlling creditor and, consequently, the only class to vote on any further restructuring of the transaction.

    European asset-backed analysts at RBS suggest that .......

    News Round-up 2 June 2010

  • Securitisation director appointed

    Allonhill has hired former Fidelity Southern executive Kathy Ireland as securitisations director. She has 30 years of banking and financial services experience and will manage the firm's core securitisation solutions.

    "Kathy's expertise in the challenges of securitised pools, working with ratings agencies and supervising loans reviews - all with a heightened focus on integrity and independence - will play an .......

    Job Swaps 2 June 2010

  • CLO haircut amended

    The ratings on the Neptuno CLO II deal will not be downgraded or withdrawn due to the issuer's entry into a second supplemental trust deed dated, according to Moody's. However, the rating agency does not express an opinion as to whether the amendment could have other, non credit-related effects.

    The amendment agreement includes a change to the definition of par .......

    News Round-up 2 June 2010

  • Replacement CLO managers announced

    The replacement of three CLO managers has been announced.

    WestLB has resigned its position as investment manager on Silver Birch CLO I and Alcentra has been proposed by the issuer as a replacement, in accordance with clause 10.4(a) of the investment management agreement. However, the controlling class and class F subordinated noteholders have the ability to veto this appointment acting .......

    Job Swaps 2 June 2010

  • Multifamily housing deal in works

    A multifamily CMBS offering, which is considered a "baby CMBS deal" since it is backed by collateral from a low number of units from apartment buildings, is marketing via Barclays. The deal, called Impact Funding Affordable Multifamily Housing Mortgage Loan Trust 2010-1, is coming via Impact Community Capital.

    A roadshow for the 144A deal occurred last week, while pricing is .......

    News Round-up 2 June 2010

  • RFC issued on counterparty risk criteria change

    S&P is requesting comments on the proposed changes to its methodology and assumptions for assessing counterparty risk, to be received before 30 June 2010.

    The ability to replace a counterparty in a structured finance security remains the overarching principle behind S&P's counterparty criteria. S&P believes that a counterparty rated below triple-A could support a security rated triple-A to varying degrees .......

    News Round-up 2 June 2010

  • Asset management team gets private equity boost

    Rizvi Traverse Management and the management of Ziegler Capital Management (ZCM) have signed a unit purchase agreement. Under the terms of the agreement, Rizvi and ZCM management have purchased 51% of the outstanding units of ZCM, which is a subsidiary of The Ziegler Companies.

    Rizvi co-founders Suhail Rizvi and John Giampetroni say combining their distribution expertise with ZCM's investment management .......

    Job Swaps 2 June 2010

  • Card charge-offs reach 'inflection point'

    Moody's reports that US credit card charge-offs declined month-over-month in April, finishing 30bp below March's level at 10.91%. The decline is seen as strong evidence that the charge-off rate peaked for the current cycle in Q110, with gradual improvements now expected throughout the year.

    "April's improved charge-off rate, combined with our base-case expectation for the unemployment rate to plateau at .......

    News Round-up 2 June 2010

  • Credit trading business continues expansion

    Samantha Wessels has been appointed as md and senior credit analyst at Jefferies. She is based in London and will work closely with Tom Jenkins, who joined in March as a senior credit analyst.

    Jefferies' global head of fixed income Tim Cronin and head of European credit sales and trading Jon Pliner comment: "Her significant experience in credit analysis, financial .......

    Job Swaps 2 June 2010

  • RFC issued on Australian servicing risk

    Moody's has published a report detailing its proposed approach to assessing servicing risk in structured finance transactions in Australia and is now calling for comment from market participants. The report examines the appropriate level of liquidity required to mitigate cashflow disruptions to bondholders as a result of a servicer transfer event for typical RMBS and ABS transactions.

    Richard Lorenzo, a .......

    News Round-up 2 June 2010

  • EM veteran hired as co-head

    Gleacher & Company Securities has hired Harry Wool as md. Along with Peter Carril, who joined in November (see SCI issue 161), he will be co-head of the emerging markets group.

    Wool joins the debt capital markets division with 23 years of credit trading experience, most recently as md at Miller Tabak Roberts Securities, where he started its EM debt .......

    Job Swaps 2 June 2010

  • Tougher approach brings re-REMIC rating stability

    Fitch says its rating stability for re-REMICs rated triple-A has improved significantly. After the mortgage crisis, the agency increased the amount of loss protection needed to achieve triple-A ratings and has declined to assign ratings to entire categories of re-REMICs or has put in place rating caps below the triple-A level because it says the risks in the collateral or .......

    News Round-up 2 June 2010

  • Strategic hires for alternative asset manager

    Structured Portfolio Management (SPM) has made four hires to expand its investment team. Mehdi Malaki joins from Glenview Capital Management and Yicheng Zhong comes from Deutsche Bank, while Qian Yang joins from Yale University and Kyle Johnson brings experience from SAC Capital Advisors.

    Malaki will concentrate on capital structure transactions as md within the SPM fixed income opportunity fund. He .......

    Job Swaps 2 June 2010

  • Auto RV risk approach explained

    Moody's has issued a new rating methodology report explaining its approach to rating UK auto lease securitisations exposed to residual value (RV) risk. The report examines the types of auto financing arrangements available to UK consumers and the key risks in those contracts exposed to RV risk.

    "The RV of a lease is defined as the initial financed amount, less .......

    News Round-up 2 June 2010

  • Veteran CMBS analyst recruited

    S&P has appointed Howard Esaki as md and head of its new global structured finance research department. To further strengthen S&P's analytical work and capabilities, the new research department will produce research and commentary that will complement the work of the structured finance ratings groups, as well as provide additional in-depth structured finance research for the investor community.

    "We are .......

    Job Swaps 2 June 2010

  • Spanish CDOs hit by sovereign downgrade

    Fitch downgraded 10 classes of CDO notes and affirmed 14 last week, following its downgrade of Spain's long-term foreign and local currency issuer default ratings (IDR) from triple-A to double-A plus. All notes are covered by an irrevocable and unconditional guarantee by the Kingdom of Spain.

    The agency downgraded the notes that did not have sufficient standalone credit protection to .......

    News Round-up 2 June 2010

  • Credit hedge fund adds five traders

    PVE Capital has added five new hires to its business on the back of growth in AUM and successful performance.

    Loren Remetta, an index trader most recently at UBS in London, joins as a portfolio manager to focus on liquid credit products within the trading platform at PVE.

    Alexei Garan, Melody Adams and David Yuen join from Credaris, where they .......

    Job Swaps 2 June 2010

  • Fair value concerns

    FASB proposal to weigh on banks amid volatile markets

    The Financial Accounting Standards Board's (FASB) exposure draft that would require banks to mark financial instruments to market instead of at an amortised cost could have far-reaching implications for banks. The concept of requiring positions to be marked to such volatile markets is, at present, anathema to many in the industry.

    FASB says the measure that is out for comment .......

    News Analysis 2 June 2010

  • SME ABS sweep shows significant stress

    Despite the number of transactions recently reviewed for possible downgrade and revised rating assumptions, after conducting a study of European ABS backed by loans to SMEs Moody's has noted the sector's resilience. The agency believes the sector will experience a sluggish economic recovery in 2010, with high business insolvencies remaining in line with 2009.

    Moody's conducted a comprehensive rating review .......

    News Round-up 2 June 2010

  • 'Anatomy' of recent CDS sell-off analysed

    Based on a panel of more than 1000 European and US CDS names, credit strategists at Goldman Sachs have undertaken a series of daily cross-sectional regressions of CDS total return indices since the beginning of the year to estimate the repricing of numerous characteristics across the market. These characteristics include credit rating, sector, subordination, region and the premium (or discount) .......

    News 2 June 2010

  • Australian RMBS delinquencies rise in Q1

    The ability of Australian borrowers to repay their mortgages - as measured by delinquencies rates - started to experience some constraint in Q110, according to Moody's. Specifically, prime mortgage delinquencies greater than 30 days increased to 1.34% from 1.10% in Q409. Meanwhile, non-conforming mortgage delinquencies greater than 30 days continued to rise to 13.02% from 12.13%.

    Ryan Lu, a Moody's .......

    News Round-up 2 June 2010
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