Complete news archive

  • Fleet Street Two downgraded again

    Moody's has further downgraded the class A CMBS notes of Fleet Street Finance Two to Baa2 from A3 and is keeping the notes on review for possible downgrade. The recently restructured transaction (SCI passim) is backed by a single commercial mortgage loan originated by Goldman Sachs Credit Partners.

    The latest downgrade comes off the back of uncertainties regarding the valid .......

    News Round-up 19 May 2010

  • Waterfall payment error corrected

    A regulatory filing on Kion Mortgage Finance has highlighted an error in the waterfall payments for the Greek RMBS, Kion 2006-1. The filing explains that performance criteria had been incorrectly shown as not met in respect of the sequential to pro-rata pay-down of the notes.

    This has occurred since the payment date in April 2009, resulting in an incorrect apportionment .......

    News Round-up 19 May 2010

  • CDS spreads finally tighten

    Fitch Solutions' weekly risk and performance monitor reports that global CDS spreads came in for the first time in a month, but that wider trading patterns remain for most issuers. After four consecutive weeks of widening, CDS spreads tightened last week by 7.4%.

    "Although initially calmed by EU and IMF bailout efforts, much uncertainty remains in the credit markets, making .......

    News Round-up 19 May 2010

  • Prices rebound for most subprime vintages

    Fitch Solutions' latest RMBS CDS indices results show US subprime prices continuing a significant rebound, although the 2007 vintage remains a stagnant outlier. The total market price index increased for the fourth consecutive month, improving by 7% month-on-month to 8.71 at the start of May.

    The 2005 and 2006 vintages have increased by 36% and 22% respectively since 1 January, .......

    News Round-up 19 May 2010

  • Primus in discussions over new CLO

    Primus Asset Management (PAM) is considering launching a new CLO, according to Thomas Jasper, ceo of Primus Guaranty, on a conference call on 13 May.

    "We believe PAM is well positioned to complete a new transaction and we're discussing opportunities with the dealers," Jasper said. PAM managed structured credit vehicles totalling US$19.9bn as of 31 March 2010, which included US$3.5bn .......

    News 19 May 2010

  • Sainsbury's CMBS ratings impacted

    S&P has affirmed and subsequently withdrawn its credit ratings for the Highbury Finance and Dragon Finance CMBS, which are credit-linked to J Sainsbury. At the same time, it lowered its rating to double-B on BL Superstore Finance's class C1 notes and affirmed its ratings on BL Superstore's other classes. Furthermore, it has affirmed the ratings on the Eddystone Finance and .......

    News Round-up 19 May 2010

  • BoE's DWF consultative paper analysed

    The deadline for submitting comments on the Bank of England's consultative paper entitled 'Extending eligible collateral in the Discount Window Facility and information transparency for asset-backed securitisations' was 30 April 2010, but the Bank has yet to release a statement on the feedback it has received.

    European ABS analysts at Barclays Capital have published an analysis of the BoE's ABS .......

    News Round-up 19 May 2010

  • European extension risk concerns reignited

    The non-call of CRSM 8 by First Active/Ulster Bank, although widely expected, represents the first failure to redeem an Irish RMBS transaction and marks a departure from the approach taken by all Irish sponsors up until now. European ABS analysts at Deutsche Bank note that five Irish transactions have been called since July 2007, including two Celtic deals.

    "However, the .......

    News 19 May 2010

  • Zero recovery rate expected for bank Trups

    S&P has published its revised assumptions for US bank trust preferred securities in Trups CDO transactions. The rating agency believes it is highly unlikely that, given current market conditions, holders of Trups issued by small and medium-sized US banks will realise any recovery after the security begins to defer payments, or after the FDIC intervenes with respect to an issuing .......

    News Round-up 19 May 2010

  • New IOS, PO indices offered

    Markit has launched three additional Markit IOS sub-indices: the IOS.FN30.550.08 - 5.5% coupon, IOS.FN30.600.08 - 6.0% coupon and IOS.FN30.650.67 - 6.5% coupon indices. These are synthetic total return swap indices referencing the interest component of 30-year fixed-rate Fannie Mae residential mortgage pools.

    Additionally, the company expects to launch the Markit PO index, a complementary index series to the existing IOS .......

    News Round-up 19 May 2010

  • Portfolio construction platform planned

    Cutwater Asset Management and Calypso Technology are to work together to build a unique asset/liability management (ALM) portfolio-construction solution. The new application is being designed as a response to the chaotic market conditions of 2008 and 2009, particularly those connected to funding risk and sharp volatility of returns. The platform will be designed to provide optimal trading and portfolio solutions .......

    Job Swaps 19 May 2010

  • Usury lawsuits to set precedent?

    A number of class-action lawsuits are underway in the US against RMBS trusts for alleged usurious loans made by now-defunct lenders. If the trusts are ultimately held liable, it could pave the way for other cases to be brought against securitisation trusts that may be perceived to have deep pockets, especially where the original lender is no longer viable.

    Moody's .......

    Job Swaps 19 May 2010

  • Senate passes rating agency amendment

    US Senator Al Franken's amendment to create a ratings board to be overseen by the SEC passed in the Senate on 13 May. The proposal, which passed in a 64-35 vote, calls for a board to assign credit rating agencies to provide initial ratings in what it says will eliminate conflicts of interest.

    The proposal is intended to end the .......

    News Round-up 19 May 2010

  • Call to move forward 'carefully' with regulatory reform

    Stephen Green, chair of the Institute of International Finance's (IIF) Steering Committee on Regulatory Capital (SCRC) and Group Chairman of HSBC Holdings has called on the industry to "get the principles right and start to move forward in practice" on reforming the global regulatory framework.

    "No-one disputes that capital and liquidity need to be strengthened, but the macro-economic effect must .......

    News Round-up 19 May 2010

  • BaFin bans 'naked' sovereign CDS

    In a move that has been described by analysts as "spectacularly ill-timed and poorly detailed", the German regulator BaFin has banned the trading of uncovered CDS on eurozone sovereigns until March 2011. BaFin says its decision is justified by the extraordinary volatility of debt securities and the considerable widening of sovereign CDS spreads in the region.

    "In this context, massive .......

    News 19 May 2010

  • US CMBS delinquencies continue climbing

    The delinquency rate on loans included in US CMBS increased by 60bp in April to 7.02%, according to Moody's Delinquency Tracker (DQT). The April increase was the second biggest jump in the history of the DQT, only 9bp short of the record 69bp increase in March.

    April saw a net increase of nearly US$3.7bn to the balance of delinquent loans, .......

    News Round-up 19 May 2010

  • US CLO OC performance analysed

    Structured credit analysts at JPMorgan have surveyed historical OC performance trends from senior (AAA/AA) to subordinate (double-B) US CLOs since mid-2009. The case study shows that CLO OC performance can be characterised by a nearly uninterrupted up-tick since around July 2009.

    According to the survey, senior OC cushions average around 8.2% currently, up by 2.9% from 5.3% in September 2009. .......

    News Round-up 19 May 2010

  • Latin CLO interest stirs

    As private equity shops in the US help give some life to the CLO new issue queue, those in Latin America may not be far behind. At least one such Brazilian company is in the planning stages for a distressed debt product by year-end that is shaping up to be a CLO structure.

    Vision Brazil Investments, an investment advisor based .......

    News 19 May 2010

  • Risk asset removal impacts CRE CDOs

    The removal of credit risk assets by asset managers resulted in lower US CREL CDO delinquencies last month but rising realised losses, says Fitch. Delinquencies decreased from 12.8% in March to 12.1% in April, but if loans that were removed from the index over the last year at a loss were included then the delinquency rate would increase to 16.9%.

    News Round-up 19 May 2010

  • Bouncing back

    European CLO market activity in the week to 13 May

    The European CLO market is showing positive signs of recovery this week, following its dramatic reaction to sovereign contagion issues late last week. Although spreads widened dramatically and trading levels were extremely thin by Friday 7 May, the ECB action taken on Sunday cleared the way for steady market improvements through the week and, some believe, improved sentiment moving forward.

    Market Reports 19 May 2010

  • Investment manager acquisition agreed

    Terms have been agreed for Man Group's acquisition of GLG Partners, which will create a diversified alternative investment manager with around US$63bn of funds under management. The acquisition values the fully diluted share capital of GLG at approximately US$1.6bn.

    Man's board says the move will bring many strategic and commercial benefits, such as the integration of sales, structuring and operations .......

    Job Swaps 19 May 2010
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