Complete news archive

  • UK student loan ABS prospects re-emerge

    Prospects for UK student loan ABS are back on the radar following an announcement by the UK Department for Business Innovation and Skills that it is looking to appoint a financial advisor on the possible sale of £25bn of student loans. UK student loans have been securitised previously through the Thesis and Honours programmes. ABS analysts at Deutsche Bank suggest .......

    News Round-up 14 April 2010

  • Action taken on 153 CSOs

    Fitch has taken rating actions on 153 global synthetic corporate CDO transactions, downgrading 99 tranches (87 public ratings and 12 private), affirming 186 tranches (133 public and 53 private) and upgrading four tranches (all public).The agency has also assigned recovery ratings to the notes rated triple-C or below.

    The downgrades reflect continued portfolio credit quality deterioration, particularly in relation to .......

    News Round-up 14 April 2010

  • Call for clarity on 'significant risk transfer'

    AFME, the British Bankers' Association (BBA) and ISDA have written to the UK FSA outlining a number of questions and issues regarding the regulator's views on the treatment of tranche protection trades. The letter reiterates the associations' concern that discussions are progressing internationally on this issue on the basis of analysis that may not have fully taken account of all .......

    News Round-up 14 April 2010

  • Weak property income hurts Euro CMBS

    Fitch says property income weakness was a more significant driver of negative rating action for European CMBS than for UK CMBS over 2009. Following a review of non-UK European CMBS transactions, the rating agency notes that a majority of tranches remain on negative outlook as loan defaults are expected to rise in coming quarters, primarily because of upcoming maturity dates.

    News Round-up 14 April 2010

  • 1st Financial resurfaces with ABS card deals

    Two ABS credit card deals from 1st Financial Bank USA are due to price next week after initially being prepped as a TALF offering that did not materialise months ago. The transactions mark the borrower's first ABS issues this year.

    The offering will consist of a US$90m 1st Financial Credit Card Master Note Trust II 2010-A deal and a US$90m .......

    News Round-up 14 April 2010

  • Volte face on Fleet Street Two

    In contrast to previous guidance in February that it would not cut the ratings (see SCI issue 171), Fitch has downgraded Fleet Street Finance Two's class B, C and D notes to D and reassigned B/CCC/CC ratings respectively to the three tranches based on the revised transaction structure. The agency has simultaneously downgraded the class A notes to triple-B minus .......

    News Round-up 14 April 2010

  • EMEA ABS/RMBS call optionality analysed

    When swap counterparties in EMEA ABS or RMBS are downgraded below certain levels, assumptions about the optionality can have an effect on the valuation of a swap transaction and subsequent collateral posting, says Moody's in a new special report for the sector.

    Ivo Raschl, a Moody's avp, analyst and author of the report, explains: "Moody's framework for de-linking hedge counterparty .......

    News Round-up 14 April 2010

  • Positive secondary as multi-borrower CMBS prices

    Positive momentum was witnessed in the US secondary CMBS market late last week, following the successful launch of RBS Commercial Funding's multi-borrower CMBS - RBSCF 2010 MB1 (see last issue). The triple-A rated notes priced at 90bp over swaps, some 5bp tighter than initial expectations.

    According to CMBS analysts at Barclays Capital, spreads tightened across the capital structure in secondary .......

    News Round-up 14 April 2010

  • Singapore card ABS affirmed on extension

    Fitch has affirmed the ratings of the class A and B notes of Orchid Funding Corporation - Diners Singapore, a credit card receivables securitisation originated by Diners Club Singapore. The rating actions follow the agency's assessment of the proposed extension of the S$2m monthly reduction of the transaction's programme limit. The deal's revolving period ended on 29 January and was .......

    News Round-up 14 April 2010

  • Asia Pacific index prepped

    As first reported in SCI issue 176, Markit has confirmed it is to launch an iTraxx SovX Asia Pacific index, tracking investor perceptions of the credit risk of a range of countries in the region. The index will start trading in early May 2010.

    The index will be part of the iTraxx SovX family of CDS indices and is intended .......

    News Round-up 14 April 2010

  • New legislation to boost sukuk issuance

    Global issuance of sukuk looks set to benefit from legislative and regulatory developments over the next few years, but is likely to remain in line with last year's volumes for the time being. Most issuance is expected in the second half of the year, with supranational, sovereign and government-related issuers dominating the sukuk market in the first half.

    "A key .......

    News Round-up 14 April 2010

  • Distressed credit opportunities fund closed

    New York-based Atalaya Capital has closed its third fund offering with US$250m AUM. The firm says it intends to aggressively take advantage of special opportunity investments in the small and medium credit markets, targeting the distressed banking sector.

    Atalaya says its Fund III will, like the preceding Fund II, opportunistically purchase illiquid credit assets from banks, the FDIC, commercial finance .......

    Job Swaps 14 April 2010

  • Speculative-grade default rate declines

    Moody's says the trailing 12-month global speculative-grade default rate ended the first quarter at 9.9%, down from 13% at the end of 2009. A year ago, the global default rate stood at 7.8%. The rating agency now forecasts the global speculative-grade default rate will fall to 2.8% by the end of 2010 and edge lower to 2.4% a year from .......

    News Round-up 14 April 2010

  • Uncertainty in non-agency MBS over HAMP 2.0

    While the recent HAMP announcement has caused uncertainty in the non-agency RMBS space, technicals continue to show improvement, according to JPMorgan ABS analysts in a new report for the sector. Non-agency RMBS activity has seen a modest rally in recent weeks, with ABX triple-As rising by as much as 4-5 points since the Treasury's announcement of HAMP 2.0.

    The JPMorgan .......

    News Round-up 14 April 2010

  • Center Parcs CMBS restructuring agreed

    The class A1 noteholders of CPUK Mortgage Finance have agreed to restructure the underlying CMBS loan. Under the restructuring, the whole loan term will be extended by two years with a new loan repayment date on 5 October 2013, although the legal final maturity date of the notes (in 2018) remains unchanged.

    In addition, the margin payable under the A-loan .......

    News Round-up 14 April 2010

  • Fund of hedge funds adviser appointed

    Ramius Alternative Solutions and Perpetual Investment Management have agreed to create a partnership through which Ramius will advise Perpetual's Multi Manager Group on its hedge funds investment activities.

    Under the partnership, Ramius will work with Perpetual's Multi Manager Group to manage two separate customised fund of hedge funds products specifically designed to complement two multi-asset alternatives portfolios - the Perpetual .......

    Job Swaps 14 April 2010

  • Advisory boutique incorporated

    Evercore Partners has hired Martin Cicco as senior md and head of its real estate advisory practice. The move follows Evercore's acquisition of MJC Associates, a commercial real estate advisory boutique that Cicco founded in 2007. Greg Brooks also joins as md, while Robert Klein comes in as vp.

    "The addition of Marty and his team broadens Evercore's industry and .......

    Job Swaps 14 April 2010

  • Vintage disparity as US subprime prices increase

    A new Fitch Solutions report on RMBS CDS shows that while US subprime prices are continuing to strengthen across the board, disparity among recent vintages remains.

    Fitch's subprime RMBS total market price index increased month-on-month by 7%, up to 8.18 as of 1 April. All vintages increased in value, with the 2006 vintage growing 15% to reach its highest level .......

    News Round-up 14 April 2010

  • Structured credit consultancy minted

    Centerline Capital Group md and Centerline Financial coo Jack Chen has launched a new consultancy called Sophrosyne. The firm provides consulting services in structured finance (including CDOs, SIVs and CDPCs), credit derivatives and operations.

    In his previous roles, Chen was responsible for supporting the management of Centerline's affordable housing division, as well as for the daily operations of its CDPC. .......

    Job Swaps 14 April 2010

  • Multifamily delinquency rates rocket

    Fitch says US CMBS delinquencies rose by 85bp to 7.14% in March because of the expected foreclosure filing of the Peter Cooper Village and Stuyvesant Town loan, with Stuy Town alone contributing 61bp. Over 13% of the multifamily-backed loans that the rating agency rates are now delinquent, compared to 8.97% in February. They are second only to hotel-backed loans, which .......

    News Round-up 14 April 2010

  • Partnership to create securitisation market access

    The Business Development Bank of Canada (BDC) has formed a public-private partnership with TAO Asset Management to facilitate access to funding under the Vehicle and Equipment Financing Partnership (VEFP).

    The VEFP was announced in the federal government's 2010 Budget as part of the Business Credit Availability Program (BCAP). Funded and managed by BDC, it has an initial allocation of C$500m, .......

    Job Swaps 14 April 2010
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