Complete news archive

  • Euro CDO outlook still negative

    The outlook for European structured credit transactions is still negative despite the pace of corporate credit deterioration slowing, says Fitch. The continuing economic recovery has helped slow the number of corporate loans moving into delinquency or default, but the agency says uncertainty remains about the viability of some companies and their ability to repay debt at maturity.

    The SME CLO .......

    News Round-up 28 April 2010

  • Guggenheim tapped for aviation securities team

    Jefferies has expanded its aviation team with the hire of Nolan Heske, James Palen and Evan Wallach - all previously with Guggenheim Securities - as mds in the high yield fixed income group. They will be responsible for building the firm's trading and sales effort in aviation and transportation-related securities and have prior experience in the trading, structuring and distribution of transactions .......

    Job Swaps 28 April 2010

  • Lending alternatives

    REITs to benefit from NAIC reserve increase

    The proposal by the National Association of Insurance Commissioners (NAIC) to increase capital reserve requirements for life insurers to 4% from 2.6% could cut a significant piece of commercial real estate lending. However, it is also driving mortgage REITs to pick up the slack.

    NAIC's proposal, which was released for comment last month and will be decided on by June, .......

    News Analysis 28 April 2010

  • Auto ABS prepayments spike in April

    Most US auto loan ABS deals backed by prime borrowers showed a significant jump in prepayments in April. According to ABS analysts at Wells Fargo, this was unexpected in light of the relatively slow speeds posted to date by the 2007-2009 vintages.

    In a recent report for the sector, the analysts conclude that voluntary prepayments, rather than defaults, appear to .......

    News Round-up 28 April 2010

  • Results published for 2010 ISDA surveys

    ISDA has released the results from its 2010 year-end market survey of privately-negotiated derivatives, as well as its margin survey and operations benchmarking survey. The results were released at the association's AGM in San Francisco.

    The notional amount of outstanding CDS was US$30.4trn at year-end 2009, down 3% from US$31.2trn at the year's mid-point and down 21% from US$38.6trn at year-end .......

    News Round-up 28 April 2010

  • Trigger happy?

    CDO litigation risk likely to remain stable post-Goldman

    The US SEC's complaint against Goldman Sachs appears not to have sparked a dramatic increase in CDO litigation risk - although this may change with any disclosure of evidence. Of all the potential litigation triggers identified in CDO documentation, the implication that the Abacus 2007-AC1 was deliberately structured to fail has surprised the market, however.

    One structured credit lawyer says ......

    News Analysis 28 April 2010

  • UK prime CMBS outlook improves

    A new Fitch EMEA CMBS report says the UK prime property market, primarily London office properties, has recovered best from the global crisis. Other UK and EMEA sectors remain vulnerable to further weakness and are at risk of further CMBS downgrades.

    "The low volume of UK prime properties that have come up for sale over the last 12 months have .......

    News Round-up 28 April 2010

  • California CDS trading volumes revealed

    California state treasurer Bill Lockyer has released data showing that since 2007 the top six fee earners among investment banks selling California muni bonds have completed more than US$27.5bn of CDS trades on state general obligation (GO) bonds. This figure includes buys and sells the banks completed for themselves or their clients, and represents 63.2% of the US$43.5bn of GO .......

    News Round-up 28 April 2010

  • Japanese CMBS collateral prices 'as expected'

    Sale prices of collateral property backing Japanese CMBS have generally matched estimated values, says Fitch. After assigning two types of values for each collateral property - revised Fitch values and Fitch stressed-sale values - research concluded last month has found that in many cases actual sale prices achieved are similar to Fitch's revised or stressed-sale values.

    The research included CRE transactions of .......

    News Round-up 28 April 2010

  • PPIP portfolios analysed

    The Office of the Special Inspector General for the Troubled Asset Relief Program (SIG-TARP) last week released its quarterly report to Congress, which contained an update on the US Treasury's PPIP programme. Of the roughly US$25bn in purchasing power available to the PPIP managers as of 31 March, approximately US$10bn had been invested in PPIP-eligible assets.

    "The US$15bn of remaining .......

    News Round-up 28 April 2010

  • Global SF downgrades moderate

    Fitch says the number of negative structured finance (SF) rating actions in Q110 was lower than the previous quarter and there were less downgrades than any quarter since Q407. Downgrades reduced in all sectors in all regions, with the exception of US ABS and CDOs. The rating agency says, however, that downgrades continue to outpace upgrades - a trend that .......

    News Round-up 28 April 2010

  • Servicing, operational risk in Euro ABS highlighted

    The issue of servicing and operational risk in EMEA structured finance transactions is becoming increasingly prevalent. Recent examples have included the back-up servicer in Kazakh MBS 2007-1 refusing to take up its role (see SCI issue 178) and, in the more mainstream ABS market, DSB - originator and servicer on several Dutch MBS and ABS - going bankrupt last year.

    News 28 April 2010

  • EMEA RMBS to take time to improve

    There will be some delay to a general improvement in asset performance for EMEA RMBS, says Fitch, despite a number of macroeconomic indicators pointing to stabilisation.

    "The overall reduction in interest rates that continues to benefit borrower affordability in a number of floating-rate mortgage markets throughout the UK and Eurozone is expected to be offset by rising unemployment and declining .......

    News Round-up 28 April 2010

  • New aircraft leasing deal surfaces

    Air transport equipment renter Premier Aircraft Leasing (EXIM) 1 Limited is issuing US$188m secured fixed rate notes sponsored by GE Capital Aviation Funding. The deal is guaranteed by Export-Import Bank of the United States.

    Ratings are expected to be AAA/Aaa. The deal matures in 2022 and has a six-year average life. Goldman, JPMorgan and Credit Agricole are bookrunners.

    The deal .......

    News Round-up 28 April 2010

  • CLO managers continue to snap up CLOs

    Several CLO managers have benefitted from a strategy of investing in other CLO tranches over the past year, with further managers expected to make a similar call. While the prices of secondary CLO tranches have increased substantially since the beginning of 2009, opportunities still exist, with double-A and single-A CLO tranches offering a better relative value opportunity than the underlying loans.

    "One .......

    News 28 April 2010

  • JAL auction results published

    Markit and Creditex have announced the auction results for Japan Airlines Corporation credit default swaps. Fourteen dealers submitted orders and requests during the auction.

    The final price was determined to be 20, with the inside market midpoint at 18. Of the inside markets submitted, JPM Securities Japan Co had one of the highest midpoints at 20, while Mitsubishi UFJ Securities Co .......

    News Round-up 28 April 2010

  • US CMBS loan defaults to top 11%

    US CMBS loan defaults will continue rising, with an additional 4.4% likely in 2010 and the overall rate for Fitch-rated deals set to exceed 11% by the end of the year, according to the rating agency. New CMBS loan defaults increased more than five-fold last year to 1,464 conduit loans totalling US$17.75bn, with 34% taking place in Q4.

    "Fourth-quarter default .......

    News Round-up 28 April 2010

  • Japanese law paints mixed ABS picture

    The Japanese government's proposals to mitigate some aspects of its revised Money Lending Business Law will have mixed results for the ABS market, says Moody's. The proposals are expected to include some exceptional rules to reduce the risk of default by allowing lenders to refinance and establish more favourable conditions for obligors' repayments.

    Under trust agreements for Japanese ABS, Moody's .......

    News Round-up 28 April 2010

  • Euro new issue pipeline builds

    Next month is - absent a macro shock - shaping up to be a post-crisis milestone in terms of primary European ABS volumes. At least three sizeable transactions are already gaining visibility in the new issue pipeline.

    Last week already saw Fortis's €4bn triple-A rated Dolphin RMBS print - noteworthy for being the largest placed deal post-crisis, albeit it was .......

    News 28 April 2010

  • ARS debt exchange offers gaining viability

    Debt exchange offers appear to be gaining viability as a way to refinance auction rate debt, particularly in the US student loan segment, as auction rate security (ARS) market activity remains limited.

    Brazos Student Finance Corp has become the latest issuer to refinance its ARS in this way, with the US$87m Brazos Student Finance Corp Series 2010-1. The 5.92-year triple-A .......

    News Round-up 28 April 2010

  • Strong interest anticipated for new CDO liquidations

    A number of ABS CDOs are due to be liquidated in the coming weeks, creating the largest amount of paper to hit the market at one time since last year's Victoria SIV auction. In particular, the anticipated supply of highly-rated CLO bonds is expected to garner strong interest among investors.

    The US$5bn Klio II CDO, for example, was scheduled to liquidate on 27 .......

    News 28 April 2010
×