Complete news archive
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US credit card charge-off rate to peak in Q2
Charge-offs on US credit cards increased marginally in March, finishing at 11.21%, just 13bp above the February rate, according to Moody's latest report for the sector. Although the first-quarter charge-off rate of 11.12% was the highest quarterly rate in the 20-plus year history of Moody's credit card index, the rating agency expects charge-offs to decrease moving forward.
Moody's expects this .......
News Round-up 28 April 2010
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Euro ABS data requirements prepped
The European Central Bank's governing council has confirmed that work will begin to establish loan-by-loan information requirements for European ABS. The ECB and 16 national central banks of the Euro area will proceed immediately with preparatory work to establish loan-level information requirements.
A public consultation on the issue was launched on 23 December 2009 and ended on 26 February, and .......
News Round-up 28 April 2010
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Seasonal benefits fuel US auto ABS improvements
US auto loan ABS experienced solid improvements in both delinquencies and annualised net losses (ANL) last month, which Fitch attributes to high recovery rates on repossessed cars and the seasonal benefits of tax refunds. The rating agency's 60-plus days delinquency index dropped by 20% between February and March to 0.64%, and losses improved to 21%, which is their lowest since .......
News Round-up 28 April 2010
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CDPC rating criteria upgraded
S&P is amending its methodology and assumptions for rating CDPCs, with most of the changes relating to corporate credit risk. The agency says it follows the September update to its CDO criteria which changed corporate default assumptions (see SCI issue 153) and also addresses the credit quality of securitised assets principles.
Under the amendments there are new assumptions for corporate .......
News Round-up 28 April 2010
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Symphony CLO marketing
Symphony CLO VII, which will be managed by Symphony Asset Management, is marketing via Bank of America. The CLO is part of a group of offerings slated to come to market in the coming sessions.
The deal is expected to be US$500m in size, including a triple-A rated US$317m tranche and a Ba2 rated US$113m tranche. To make economic sense, .......
News Round-up 28 April 2010
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Fitch extends scope of SF IR stresses
Fitch has broadened its recently-updated criteria for stressing interest rate risk with respect to existing and new structured finance transactions. The updated criteria have been extended to transaction cashflows indexed to interest reference rates for Japanese yen (JPY), Swiss franc (CHF), Swedish krona (SEK), Danish krona (DKK) and Norwegian krona (NOK).
Fitch has completed a review of the additional interest .......
News Round-up 28 April 2010
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Shipping loan ABS criteria updated
Moody's has completed its review of the methodology that it uses to rate and monitor ABS transactions backed by shipping loans in EMEA. Following the 90% collapse of the Baltic Dry Bulk Index, the rating agency gathered additional data on the industry over the last several years and used it to update its opinion.
The update of the shipping loan .......
News Round-up 28 April 2010
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Cross-border barriers
Australia appeals to Europe over ABS retention rules
The hard-line approach being taken by European regulators with regards to the 5% ABS issuer retention rule (SCI passim) is causing a headache for Australian structured finance issuers. While the number of new deals from the region is increasing, issuers still look to European investors for a large portion of their funding. Industry participants are therefore appealing to non-domestic regulators .......
News Analysis 28 April 2010
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19-Apr-10
Index Values CDR Liquid Indices 22 April 2010
ABS trader promoted
Deutsche Bank has promoted Pius Sprenger to head of trading for ABS and CDOs. He takes over from Greg Lippmann, who the bank says will remain a DB employee and be involved in the transition.
Sprenger was previously DB's head of European ABS trading, based in London, and worked for Morgan Stanley and Lehman Brothers before joining DB in 2004. .......
Job Swaps 21 April 2010
US CMBS rally accelerates
US CMBS market activity to 19 April
The secondary US CMBS market has experienced an escalating rally over the past few weeks with last week in particular being described as both 'extraordinary' and 'explosive' by market participants. However, as the tightening in prices causes investor interest to move down the capital structure, concerns over AG and AM tranches are beginning to mount.
In terms of pricing, a .......
Market Reports 21 April 2010
BlueMountain positions for post-crisis opportunities
While many credit hedge funds have failed to emerge from the financial crisis intact, those that have weathered the economic volatility are beginning to develop innovative strategies in order to adapt to the changed landscape. As previously reported in SCI, BlueMountain Capital Management has raised more than US$250m for three new funds in order to capitalise on what it sees .......
News 21 April 2010
DB hires in EM credit
Deutsche Bank's emerging markets business has made a number of hires in Sao Paulo and Mexico City. Rodrigo Rocha joins as director and head of credit syndication for Brazil within debt capital markets (DCM). He has 14 years of experience and joins from Credit Suisse, and will report to Nuno Correia. Also reporting to Correia, and jointly to Brad McKee, .......
Job Swaps 21 April 2010
Moody's analyst returns for new role
Moody's has rehired Andrew Jones, 17 years after he last worked there as a senior analyst for RMBS and home equity securitisation. He will be based in New York and is understood to be taking up a newly-created role enhancing structured finance research. Jones will report to Douglas Lucas, group md for research at the firm.
Since his first stint at Moody's .......
Job Swaps 21 April 2010
Strong rally
European ABS market activity in the week to 15 April
Sentiment within the European ABS market is overwhelmingly positive. A strong rally dominated the top half of the capital structure over the last week, with further new issuance expected within the next few months.
"There's definitely been a rally - everything is moving up," says one trader. He notes that Granite, for example, is trading at the highest levels since ......
Market Reports 21 April 2010Premium Content
LAMCO to go ahead
Lehman Brothers Holdings has gained US court approval to establish a new asset management firm, dubbed LAMCO. The move comes after its initial plan was slammed by eight dealers.
Under the restructuring, the Lehman estate will split into two businesses: LAMCO, which will manage its illiquid assets (real estate, private equity, derivatives and corporate loans) for five years; and the .......
Job Swaps 21 April 2010
CLO investor recapitalised, top staff replaced
Saratoga Investment Advisors and CLO Partners are to purchase a minority stake in GSC Investment Corp as part of a US$55m recapitalisation plan. GSC - an investor in leveraged loans, mezzanine debt issued by US middle-market companies, high yield bonds and CLOs - has been in default under its credit facility since last July.
According to GSC, the recapitalisation plan .......
Job Swaps 21 April 2010
Experience required
ABS recruitment trends assessed
As confidence gradually returns to the structured finance market, the associated job market is also seeing increased activity as banks look to rebuild in certain areas. However, demand is still centred on those with experience in structured finance or structured credit, rather than on fresh talent.
"At present, most demand in the structured finance field is focussed on valuations, structuring .......
News Analysis 21 April 2010
Cairn takes on credit fund and staff
London-based credit asset management and advisory firm Cairn Capital has assumed management of the Credaris Credit Fund, which pursues a liquid long-short strategy in European corporate credit.
The five-strong investment team managing the fund has also joined Cairn. The team members transferring are principal portfolio manager Sam Cowan, who worked for Cairn previously, the fund's principal architect Graham Neilson who .......
Job Swaps 21 April 2010
EM partner switches firm
Peter Darrow has joined DLA Piper's corporate finance practice as a partner in New York. He comes from Mayer Brown, where he was a banking and finance group partner for 25 years. He was also co-chair of Mayer Brown's Latin American practice.
Darrow will focus on New York and key Latin American markets, representing issuers, underwriters and placement agents in .......
Job Swaps 21 April 2010
Brigade Capital wins CLO mandate
Brigade Capital Management has taken on collateral manager duties for Camulos Loan Vehicle I, a CLO which had previously been managed by Camulos Capital since its inception in February 2008.
The New York-based asset manager has given written acceptance of the rights, title, interest and obligations of collateral manger to take on the US$731m deal, which in 2008 consisted of .......
Job Swaps 21 April 2010