Complete news archive

  • New CRE broker-dealer minted

    NorthStar Realty Finance's wholly-owned subsidiary NRF Capital Markets has been registered with the US SEC and approved as a member of FINRA. The new broker-dealer is based in Denver, Colorado and will distribute certain NorthStar offerings, including the non-traded commercial mortgage REIT NorthStar Real Estate Income Trust, which will focus on commercial real estate debt investments.

    .......

    Job Swaps 5 May 2010

  • Arkle priced, Spanish Driver awaited

    Lloyds Banking Group launched the Cheltenham & Gloucester-originated Arkle 2010-1 RMBS late last week via joint book runners Lloyds, Citi and RBS. The £3.4bn transaction comprised nine sterling-, US dollar- and euro-denominated tranches, of which a couple were publicly placed. The closely-watched 4.78-year triple-A rated notes priced at 125bp over three-month Libor, in line with guidance.

    The spread levels closely .......

    News Round-up 5 May 2010

  • GSE to no longer securitise balloon loans

    As part of its new criteria for purchasing and securitising ARMs, Fannie Mae says it will no longer purchase or securitise balloon loans as it did in the past. The agency is also putting new standards in place for interest-only mortgages (IOs).

    The changes show more stringent criteria and a focus on sustainability to make sure when borrowers get these .......

    News Round-up 5 May 2010

  • Agency fires warning shot over Redwood collateral

    Redwood Trust's new private-label RMBS - Sequoia Mortgage Trust 2010-H1 - officially closed yesterday (28 April), having launched and priced late last week (see last issue). However, S&P - which did not rate the transaction - has issued a note in which it warns on various characteristics of the underlying pool and implies the deal would not necessarily have gained .......

    News Round-up 5 May 2010

  • New cell tower deal surfaces

    New Secured Cellular Site Revenue Notes 2010-1 and 2010-2 are marketing from Unison Ground Lease Funding, according to an investor and a syndicate source. The deal consists of US$154.5m seven- and 10-year fixed-rate tranches split evenly between 2010-1 class C notes and 2010-2 class C notes. It also has a US$41.5m 10-year fixed rate class F tranche.

    Price guidance on .......

    News Round-up 5 May 2010

  • Ambac auction scheduled

    The auction to settle Ambac Assurance CDS is scheduled for 2 June.

    .......

    News Round-up 5 May 2010

  • Foreclosures, delinquencies still loom large

    A new report by Lender Processing Services (LPS) shows a mixed picture for the US home loan market in Q110, with reductions in total new delinquencies and improvements in the number of loans curing to current being overshadowed by a large US$7.39m pool of non-current and REO loans.

    Many of the nation's most populous states showed foreclosure inventories at a .......

    News Round-up 5 May 2010

  • Change of focus for Punch investors

    WBS investor focus appears to be shifting from the Spirit to Punch A and B securitisations, following the recent publication of Punch Tavern's interim results. Disappointing trading results were set against management actions illustrating how the pub operator intends to avert near-term financial default in Punch A and B, while also indicating that future growth in the managed business should .......

    News Round-up 5 May 2010

  • Auto ABS criteria to reflect residual value volatility

    Fitch says it has revised its rating criteria for US auto ABS to reflect the residual value volatility seen over the last two years. The new criteria now places more emphasis on performance during historical downturns rather than the total historical experience in deriving stressed residual loss levels.

    Auto lease ABS residual realisation began to improve late last year and .......

    News Round-up 5 May 2010

  • Further Euro CMBS experience write-offs

    Junior tranches from a further two European CMBS have experienced write-offs: the class H and J notes of Cornerstone Titan 2006-1 have been written off in full, with the class G notes subject to a partial write-down; while the Windermere XI class E and D notes have been subject to full and partial write-offs respectively. These deals follow the Epic .......

    News Round-up 5 May 2010

  • Retranched CDOs rated

    Two CDOs - Gale Force 2 CLO and LCM II - have been retranched and renamed Gale Funding and Liston Funding 2009-1 respectively.

    S&P has assigned AAA/AA+ ratings to Gale Funding's US$68m class A and US$12m B floating-rate notes. The transaction is a retranching of Gale Force 2 CLO's class A first-priority, senior secured, floating-rate notes due 2018.

    The rating .......

    News Round-up 5 May 2010

  • NAIC RMBS analysis assessed

    A study of the National Association of Insurance Commissioners' (NAIC) RMBS Initiative results by Fitch has found that mortgage assumptions used to derive risk-based capital (RBC) charges are similar to those used in Fitch's US RMBS recovery rating analysis. The rating agency does not anticipate making significant adjustments to insurers' reported RBC amounts as part of its insurance company rating .......

    News Round-up 5 May 2010

  • CMBS delinquencies reach record high

    The delinquency rate for commercial real estate loans surpassed the 8% mark for the first time, according to Trepp. Delinquencies rose by 41bp in April to reach 8.02%; however, Trepp notes that the delinquency rate does show signs of easing, as the April increase was 40bp lower than the increase for March.

    The percentage of CRE loans considered to be .......

    News Round-up 5 May 2010

  • Eurosail case highlights currency swap risk

    The Class A3 noteholders and the trustee on Eurosail-UK 2007-3BL look set to end up back in court to determine whether an event of default has occurred on the transaction. Asset-backed analysts at RBS suggest that if the ruling goes in favour of the Class A3 noteholders, it would almost certainly result in junior note payments being suspended and the .......

    News Round-up 5 May 2010

  • Sovereign obligor concentration analysed

    S&P has reviewed the synthetic CDO (SCDO) transactions it rates as part of its investigation into the impact of the current credit environment's potential impact on US SCDOs. The review aimed to identify the most widely referenced sovereign entities in each transaction.

    The rating agency's review covered approximately 800 corporate US SCDOs and found that about 430 of them reference .......

    News Round-up 5 May 2010

  • Moody's updates on SEC rule implications

    Moody's has decided how it will conform to the amendment to Rule 17g-5 for credit rating agencies registered with the US SEC as Nationally Recognised Statistical Rating Organisations (NRSROs), which the agency began assessing in March (see SCI issue 178). Compliance with the amended rule is required from 2 June 2010 and the agency says it will comply with the .......

    News Round-up 5 May 2010

  • SEC revisions to benefit student loan analysis

    Moody's believes that the US SEC's proposal to require the disclosure of loan-level data and a computer programme that can be used to model securitisation cashflows would be helpful in the analysis of student loan ABS. The proposal would mean issuers having to provide loan-level data at the time of offering and periodic updates of loan-level performance (SCI passim).

    "The .......

    News Round-up 5 May 2010

  • Timing changes aid Aussie ADIs

    S&P says Australian authorised deposit-taking institutions (ADIs) are modifying expected maturity dates to when the balance of their RMBS falls below 10% of the initial transaction balance. The rating agency says in a new report that this change in redemption timing would enable the ADIs to avoid holding additional capital if the current balance exceeds 10% of the initial balance .......

    News Round-up 5 May 2010

  • Ambac tapped for RMBS workout hire

    Assured Guaranty has hired Gregory Raab as senior md, RMBS workouts. He reports directly to Dominic Frederico, the monoline's president and ceo.

    In his new role, Raab will lead the group responsible for RMBS loss mitigation and risk remediation, including enforcing Assured's rights to submit or 'put back' mortgage loans that have breached representations and warranties for repurchase and supervising .......

    Job Swaps 5 May 2010

  • CDO Evaluator error disclosed

    S&P says it has become aware of an error in its CDO Evaluator 5.0 credit model. The error is in connection with the recovery rates used for certain sovereign debt when assessing whether the credit enhancement for applicable CDO tranches satisfies the rating agency's criteria for triple-A and double-A liability ratings.

    S&P's published criteria provides that the recovery rates for .......

    News Round-up 5 May 2010

  • US ...

    Fitch says cumulative default rates for US CMBS now stand at 8.15% through to the end of Q110. There were 487 newly defaulted loans totalling US$8.43bn, with large loan underperformance.

    "Large loan defaults will continue to escalate, with the majority coming from recent vintage CMBS," says Fitch md Mary MacNeill. She also warns that high unemployment will cause limited demand .......

    News Round-up 5 May 2010
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