Complete news archive

  • Increased clarity around CLO consolidations

    Increased clarity regarding the estimated market price of CLO management mandates has emerged due to the recent sale of CLO management contracts by Columbus Nova to Deerfield Capital (see SCI issue 177). Structured credit analysts at Citi note in a new report that the sale is a rare case of CLO management consolidation transaction details becoming public, due to Deerfield's .......

    News 7 April 2010

  • Processing platform completes clearing house links

    Tradeweb has confirmed its completion of electronic links to the major derivatives clearing houses. To date, the platform has integrated with ICE Trust and ICE Europe via ICE Link, and CME Clearing for the clearing of CDS. In addition to these interfaces built for its CDS business, Tradeweb has further developed connectivity to MarkitSERV, the electronic OTC derivative trade processing .......

    News Round-up 7 April 2010

  • Hybrid financing facility closes

    Consumer Portfolio Services (CPS) has entered into a new US$50m financing facility. The firm describes the facility as having a similar structure to an unrated term securitisation transaction with an extended pre-funding period. The facility will therefore allow for contribution of receivables over a period of time until US$50m in asset-backed notes have been issued or the end of 2010 .......

    News Round-up 7 April 2010

  • CMBX remittances raise concerns

    Credit deterioration within the CMBS sector remains a growing concern, according to ABS analysts at Barclays Capital.

    In their March report for the sector BarCap analysts say: "The pace of credit deterioration accelerated materially in March. We remain concerned that delinquent/specially serviced loan statistics may become more of a leading than a lagging indicator of credit performance."

    However, the analysts .......

    News Round-up 7 April 2010

  • Stable performance for golf course-backed deals

    The performance of Japanese transactions backed by golf courses is stable, according to a new report by Moody's. The rating agency expects the net operating income of its rated portfolios to be stable, as operators strive to maintain earnings and constrain costs.

    Over the medium term the number of rounds should be stable following a recent period of limited growth, .......

    News Round-up 7 April 2010

  • RBA rate hike won't wreck RMBS

    Moody's says the Reserve Bank of Australia's (RBA) decision on 6 April to raise official interest rates by 0.25 percentage points to 4.25% is unlikely to prompt large increases in delinquencies or any downgrades in the Australian RMBS market.

    "Indeed, it is fair to say that most mortgage borrowers can absorb much greater upside in interest rates," says Arthur Karabatsos, .......

    News Round-up 7 April 2010

  • Signs of Japanese CMBS recovery?

    A new report on Japanese CMBS shows that nine of the loans backing Moody's-rated transactions, amounting to Y124.2bn, were paid down or matured during March 2010. One (accounting for Y8.2bn) was paid down in full by its maturity date, five (Y7.1bn) defaulted and three (Y108.9bn) had their maturities extended.

    Three of the defaulted loans (Y24.4bn) had been resolved in March. .......

    News Round-up 7 April 2010

  • Negative outlook, despite Spanish SME stabilisation

    Fitch says Spanish SME delinquency rates are now showing signs of stabilisation, but maintains its negative outlook on all European SME CLOs. The rating agency has also published an SME tracker report on European CLOs and launched Fitch SME Compare, a new tool to compare transaction performance.

    The number of Spanish SMEs that are more than three months late on .......

    News Round-up 7 April 2010

  • New MBS fund launched

    DoubleLine Funds Trust has launched two open-end mutual funds - the DoubleLine Total Return Bond Fund and the DoubleLine Emerging Markets Fixed Income Fund. The funds will be managed by newly-established fixed income asset manager DoubleLine Capital, investment adviser to DoubleLine Funds.

    Ron Redell, president of DoubleLine funds, says: "The fund launch will bring to investors what I believe is .......

    Job Swaps 7 April 2010

  • Significant Euro CLO overlap noted

    S&P notes that portfolio characteristics determine the extent to which underlying collateral performance affects rating on CLOs. In a new report, it also says European economies are recovering and the default rate for leveraged loans in Western Europe has peaked and will decline throughout 2010.

    "Our study of a sample of 206 European CLO transactions indicates that the 'overlap' between .......

    News Round-up 7 April 2010

  • Demystifying the black box

    Jeremy Hintze, coo at ClearStructure, answers SCI's questions

    Q: How and when did ClearStructure become involved in the structured credit/ABS market?
    A:     ClearStructure started as the IT\systems group of Atlantic Asset Management (Atlantic) in Stamford, Connecticut, back in 1993. We built an internal portfolio management system to manage all of Atlantic's fixed income portfolios.

    In 1998 Atlantic issued its first CDO. When we were .......

    Provider Profile 7 April 2010

  • Distressed real estate funds closed

    Starwood Capital Group has closed an aggregate of US$2.8bn for its two newest funds: Starwood Global Opportunity Fund VIII (SOF VIII) at over US$1.8bn and Starwood Capital Global Hospitality Fund II (Hotel II) at US$965m. The closing of the new funds brings Starwood's total capital raised since January 2009 to more than US$4.4bn, including the successful closing of its Starwood .......

    Job Swaps 7 April 2010

  • CDO acquisitions confirmed

    GSO/Blackstone Debt Funds Management has completed its acquisition of the collateral management agreements for all nine CDO and CLO funds previously held by Callidus Capital Management, a portfolio company of Allied Capital. GSO first announced its plans to do so in January (see SCI issue 169).

    The funds invest primarily in leveraged loans and high yield bonds. Total assets within .......

    Job Swaps 7 April 2010

  • ISDA DC members named

    ISDA has announced the firms that will be members of its five regional Determinations Committees, which comprise the global decision-making structure around events in the CDS industry. Each regional Committee includes 12 dealer firms, two of which are consultative, non-voting firms and six are non-dealer members, of which one is consultative. Determinations are made in accordance with criteria set out .......

    Job Swaps 7 April 2010

  • New triple-A rated CDPC prepped

    Moody's has assigned a provisional triple-A counterparty rating to Martello Capital, a newly created CDPC that will be managed by Martello Capital Management (MCM). The rating agency has also assigned provisional ratings of triple-A to the senior secured capital obligations and Aa3 to the mezzanine secured capital obligations issued by the vehicle.

    Martello has been established in Ireland for the .......

    News Round-up 7 April 2010

  • Latest FDIC structured sale closed

    A RoundPoint Financial Group subsidiary has purchased a 50% stake in US$490.7m of residential loans from the FDIC via a competitive auction held in February, beating off competition from eight other groups. The bid was accepted as it was deemed to be the offer that resulted in the greatest return to the participating receiverships. The sale, which closed on 1 .......

    News Round-up 7 April 2010

  • HMBS potential

    Reverse mortgage securitisation hinges on housing

    The secondary market for reverse mortgages is still very much a negotiated market. However, participants suggest that growth in FHA's Home Equity Conversion Mortgage (HECM) programme - which is expected to take off over the next few years - could lay the groundwork for more securitisations to occur.

    As the older generation ages, reverse mortgages are expected to grow steadily .......

    News Analysis 7 April 2010

  • Headline risk still plagues CLO market

    CLO tranches continue to look cheap for their risk compared to similarly-rated corporates, according to structured credit strategists at Citi. However, they also comment that headline risk and the perception that CLOs remain illiquid are still putting off potential investors in the primary market.

    COA Tempus CLO, managed by WCAS Fraser Sullivan and arranged by Citi, became 2010's first US .......

    News Round-up 7 April 2010

  • Canadian credit card ABS stabilising

    Canadian credit card debt performance stabilised in Q409 as the charge-off rate index pulled back to 4.86%, according to a new Moody's report. This follows a record high of 4.92% in the previous quarter.

    Charge-offs are expected to continue to decline in 2010 as a result of fewer personal bankruptcies and lower unemployment. Bankruptcies in Q410 are predicted to be .......

    News Round-up 7 April 2010

  • Euro CDS clearing launch confirmed

    LCH.Clearnet has confirmed that it successfully cleared its first CDS index contracts on 29 March, following months of testing from member banks BNP Paribas, Societe Generale, Credit Agricole and Natixis (see last issue). Initially, the service will cover European indices, with the intention to expand the offering based upon market demand.

    .......

    News Round-up 7 April 2010

  • Cat bond sees good execution

    State Farm Fire & Casualty's new Merna Re II catastrophe bond (see SCI issue 177) saw "good execution" owing to its simple structure and tight pricing. The US$350m three-year offering, which has an indemnity quake trigger, was led by Aon Benfield Securities.

    The issuer actually had a larger offering rated but originally planned on issuing US$250m, says a source familiar .......

    News 7 April 2010
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