Complete news archive

  • Leverage ratio recommendations made

    The EBA has published its report on the impact assessment and calibration of the leverage ratio (LR), recommending the introduction of an LR minimum requirement in the EU. An LR requirement of 3% on the provision of financing by credit institutions would be relatively moderate, the EBA says, while still leading to more stable credit institutions.

    The recommendation of a .......

    News Round-up 4 August 2016

  • OTC legal expert poached

    Gibson, Dunn & Crutcher has recruited Carl Kennedy as of counsel in its New York office. He joins the firm's financial institutions practice group and will provide advice to clients on regulatory, legislative and investigative issues relating to commodities and derivative markets.

    He joins from JPMorgan, where he was an executive director and assistant general counsel. In this role, he .......

    Job Swaps 4 August 2016

  • Scope supervisory board named

    Scope Corporation has appointed a new supervisory board that comprises financial industry experts Martha Boeckenfeld, Georg Waldersee and Sebastian Canzler. They take over from Peter Gloystein, Hans Peters and Christoph Pape.

    The latter three will still support Scope as members of its advisory board, with Gloystein continuing as chair. The supervisory board meeting yesterday led to Boeckenfeld being appointed chair .......

    Job Swaps 4 August 2016

  • Spanish NPL portfolios purchased

    Bain Capital has acquired three Spanish NPL portfolios for €1.15bn, extending the firm's holdings to six Spanish portfolios. The purchases include a €415m pool from Banco Sabadell, which comprises defaulted first-lien bilateral Spanish loans to real estate developers, primarily secured on residential and commercial real estate assets.

    The largest purchase is a €511m portfolio from Grupo Cooperativo Cajamar, which holds .......

    News Round-up 4 August 2016

  • Tullett buys broking business

    Tullett Prebon is set to acquire Creditex's US hybrid voice broking business from Intercontinental Exchange. This includes a team of 14 brokers in New York specialising in hybrid voice broking and trading services for credit derivatives. Tullett Prebon also expects to acquire the ICAP global hybrid voice broking and information business later this year.

    .......

    Job Swaps 4 August 2016

  • MPL securitisations 'worth risks'

    Marketplace lending continues to grow, but so too do delinquencies and losses. Morgan Stanley notes that marketplace lending securitisations can provide important structural protections to investors in the context of performance deterioration.

    There has been a run of negative headlines for the marketplace lending industry and four securitisations have seen deterioration sufficient to breach triggers. While Morgan Stanley finds that .......

    News Round-up 3 August 2016

  • CDS platform launches

    ICE has launched a new platform for trading cleared single-name CDS in a central limit order book. ICE Swap uses the electronic trading technology of Creditex to consolidate orders from both buy- and sell-side players to create a liquidity pool for the derivatives product.

    The platform is the first to include both anonymous and 'name give up' execution in the .......

    News Round-up 3 August 2016

  • PACE acceptance is 'ABS positive'

    The Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) are to being to insure mortgages on homes encumbered by PACE obligations that meet certain requirements. Moody's believes the FHA's acceptance of PACE is credit positive for PACE ABS and will have mixed effects on RMBS.

    This is the first time that federal agencies involved in the US mortgage .......

    News Round-up 3 August 2016

  • Condominium price surge 'positive'

    Moody's says that rising condominium prices is positive for Japanese RMBS as it will increase recovery rates on transactions backed by investment loans. The average price of studio type condominiums in the Tokyo metropolitan area has increased to the highest level since 1995.

    These properties in the Japanese capital comprise between 60% to 70% of the collateral backing condominium loan RMBS in .......

    News Round-up 3 August 2016

  • SME CLO leverage worsens

    SME leverage has worsened since 2011, which is a credit negative for SME CLOs, says Moody's. The median total leverage for the 750 Moody's-rated US SME obligors in CLOs has increased to 4.6x in 2015 from 4.0x in 2011, leading to a deterioration in SME borrower credit quality.

    Although leverage increased only slightly among the 124 unique SME obligors in CLOs .......

    News Round-up 3 August 2016

  • CMBS delinquencies move up again

    Trepp's US CMBS delinquency rate moved higher for the fifth straight month in July to 4.76%, an increase of 16bp from June. The rate is now 61bp above its multi-year low of 4.15%, which was reached in February of this year.

    In July, CMBS loans that were previously delinquent but paid off with a loss or at par totalled about .......

    News Round-up 3 August 2016

  • RFC issued on PO strip ratings

    S&P is requesting comments on its proposed approach for the surveillance of ratings on US RMBS principal-only (PO) strip securities backed by pre-2009 originated mortgages. No rating impacts are expected if the criteria were to come into place as outlined.

    Historically, PO securities have been structured in various forms, with one such variety backed by discount mortgage loans whose coupons yield less .......

    News Round-up 3 August 2016

  • Aussie metrics approach crisis levels

    Delinquencies for Australian auto loan ABS and prime RMBS have risen steadily over the five months to May 2016, as well as year-on-year, notes Moody's. The auto loan delinquency rate is now similar to levels seen in 2009 and is edging towards its 2010 peak.

    For auto loan ABS, 30-plus day delinquencies worsened from 1.35% in January to 1.66% in .......

    News Round-up 3 August 2016

  • Brexit CRE impact gauged

    The UK's vote to leave the EU will be negative for the country's CRE market and, subsequently, UK CMBS transactions, reports Moody's. UK CRE values could decline by up to 10%, depending on the property type, quality and location.

    The figure is estimated by the agency from a base case scenario with a new UK-EU trade agreement and UK GDP growth .......

    News Round-up 3 August 2016

  • Colombian ABS risk highlighted

    The liquidation of non-bank financial institution (NBFI) Estraval and the losses related to privately sold pools of payroll deductible loans (PDL) with recourse to Estraval highlight risks risks potentially facing the Colombian consumer ABS market, says Fitch. The rating agency believes these risks include the limited regulation of Colombian NBFIs and risks to underlying PDLs, such as borrower unemployment, life .......

    News Round-up 3 August 2016

  • CLO refinancing scenario RFC issued

    Moody's has previously outlined proposed changes to how it examines refinancing scenarios in its rating analysis of combination securities secured by CLO or CDO debt tranches (SCI 22 April). In a supplemental request for comment, the agency now seeks feedback on how it will examine refinancing scenarios in the rating analysis of combination securities.

    For CLOs evaluated any time between closing and .......

    News Round-up 2 August 2016

  • SF pro switches law firms

    Latham & Watkins has hired Sanjev Warna-Kula-Suriya as a partner in the firm's corporate department. Based in their London offices, he will advise from a wide field of experience which includes CMBS, cash and synthetic CLOs, OTC and exchange-traded derivatives and cross-border structured finance.

    Warna-Kula-Suriya also has significant expertise in the sale and purchase of financial asset portfolios, distressed investments .......

    Job Swaps 2 August 2016

  • US CLOs stay robust

    The US CLO secondary market is maintaining robust activity levels so far this week after a strong July.

    "It was actually the busiest month we have had for a long time, not just in CLOs but across a number of our fixed income desks," says one trader. "It may be surprising to some, but there were a variety of factors .......

    SCIWire 2 August 2016

  • Pay-outs prompt potential upgrades

    S&P has placed 310 classes from 111 US RMBS deals on credit watch with positive implications. The transactions were all issued between 2004 and 2006, and reflect a potential increase in credit support to payments due as a result of Bank of America's US$8.5bn settlement with certain Countrywide RMBS investors (SCI passim).

    Following an order from the New York Supreme .......

    News Round-up 2 August 2016

  • Bail-in clause concerns raised

    AFME has published model clauses for the contractual recognition of bail-in for the purposes of satisfying the requirements of Article 55 of the EU Bank Recovery and Resolution Directive (BRRD). The association says that these clauses seek to support cross-border effectiveness of resolution and assist banks with complying with the requirements by providing model wording for inclusion in debt instruments .......

    News Round-up 2 August 2016

  • Loss risk improves for GSE CRTs

    Expected mortgage losses on seasoned GSE CRT transactions are trending positively, says Fitch. The loss projections are driven by strong loan performance to date, a shorter loss exposure window until deal maturity and steady home price growth.

    Coupled with bond deleveraging, the improvement in projected pool losses has resulted in positive rating momentum for the rated classes. Fitch has upgraded .......

    News Round-up 2 August 2016
×