Complete news archive

  • US CMBS values change course

    Property values for specially serviced US CMBS fell in 2015, says Fitch. Appraised values for the 495 loans in the Fitch-rated universe fell 0.5%, with retail leading the decline.

    The reduction in appraised values compares to a 1.5% increase in the year before. Retail valuations accounted for 10 of the 15 largest declines.

    Just over half of the loans - .......

    News Round-up 9 May 2016

  • Manager replacement in the balance

    The trustee for the Strawinsky I CLO has received notice from a class B noteholder disapproving the appointment of Dynamic Credit Partners Europe as successor investment manager (SCI 22 April). Pursuant to clause 10.5 of the master investment manager terms, the appointment of a replacement manager is subject to a simple majority of the controlling class (currently the class B .......

    Job Swaps 9 May 2016

  • Mixed energy effects for Euro RMBS

    While both Aberdeen and Groningen are affected by stress from the energy sector, mortgage arrears have surged in the former but stayed stable in the latter, notes Moody's. Aberdeen is affected by contagion from rising unemployment as oil prices plummet, while Groningen is affected by the prospect of earthquakes due to gas field operations.

    Aberdeen is the city in the UK most .......

    News Round-up 9 May 2016

  • NSR mapping approach updated

    Moody's has published its updated methodology for mapping national scale ratings (NSRs) from global scale ratings (GSRs), following a market consultation initiated via an RFC published on 22 June 2015. NSRs are derived from GSRs using country-specific correspondences. The updated methodology introduces specific guidelines for the design of new NSR correspondences, or maps, and changes to existing maps, as well .......

    News Round-up 9 May 2016

  • Distressed portfolio acquired

    TPG's special situations platform TSSP has acquired credit assets - including a part of Credit Suisse's distressed credit portfolio - for approximately US$1.27bn, utilising no portfolio leverage. The Credit Suisse portfolio comprises over 270 instruments across asset types and geographies relating to approximately 170 companies.

    The transaction reduces Credit Suisse's overall distressed credit exposure by US$1.24bn. In addition to the .......

    Job Swaps 9 May 2016

  • DC secretary sought

    ISDA has issued an invitation to tender for the secretarial role on its credit derivatives determinations committees. A role currently held by the association, the DC secretary is responsible for administrative duties, such as distributing questions submitted by eligible market participants to the relevant DCs, coordinating the timings of DC meetings and publishing the results of DC votes. The DC .......

    Job Swaps 9 May 2016

  • Lawsuit 'credit negative' for ABS

    A lawsuit filed against Lending Club is credit negative for ABS backed by consumer loans originated through online platforms using a partner bank model, says Moody's. While filed against Lending Club specifically, the outcome of the case could have wider consequences for ABS backed by marketplace loans originated by a range of platforms.

    The case, Bethune vs LendingClub Corporation et .......

    News Round-up 6 May 2016

  • UK prime RMBS 'stable'

    UK prime RMBS continues to perform in a stable fashion, according to Moody's latest index results on the sector. Between November and February, 90-plus day delinquencies increased slightly to 0.73% from 0.69%.

    Meanwhile, outstanding repossessions remained at 0.02%. In the same period, cumulative losses decreased to 0.07%, which was mainly due to the termination of Granite Master Trust from the Moody's .......

    News Round-up 6 May 2016

  • Spanish synthetics on the cards

    Moody's suggests that synthetic securitisations could become more popular for Spanish banks looking to bolster their capital buffers. With regulatory pressure building on lenders, many may see synthetics as a complement to tapping the equity market or retaining earnings.

    "Northern European players have dominated Europe's synthetic market so far, with the most recent deals originated by banks in the UK, Germany and .......

    News Round-up 6 May 2016

  • Matching product launched

    Sapient Global Markets had launched RegRecon, which is intended to enhance matching, reconciliation and resolution for regulatory reporting. It will be available as a standalone solution or as part of the CMRS reporting platform.

    RegRecon will provide automated trade matching and reconciliation, break management, and resolution workflow. It is intended to help firms to minimise reporting costs and deliver greater .......

    Job Swaps 6 May 2016

  • Subprime auto concerns surfacing

    The recent 20-year high in US subprime auto ABS delinquencies is not the main concern for investors in the asset class, according to Fitch. The agency says that the influx of new deals from less established names is a more profound issue right now.

    Investors are apparently concerned that these new deals are intensifying competition too much, which adds to .......

    News Round-up 6 May 2016

  • Aussie housing turns corner

    Australian housing affordability deteriorated over the 12 months to the end of March, requiring homeowners to spend a larger proportion of their income on monthly mortgage repayments, reports Moody's. However, the positive news for RMBS is that rating agency believes the worst may be over.

    Nationally, Australian households spent 27.6% of their monthly income to meet monthly mortgage repayments, up .......

    News Round-up 6 May 2016

  • ABCP stays stable

    US ABCP conduit collateral compositions, credit quality and performance measures remain strong and transaction structures are robust, says Fitch. ABCP conduits remain a significant source of funding for banks.

    Fitch affirmed 17 US ABCP programmes last month. Outstandings across those 17 programmes totalled US$102bn. Auto and commercial, trade receivables, credit cards and student loans account for most of the conduit .......

    News Round-up 6 May 2016

  • Post-crisis CLO returns keep momentum

    The total amount of CLOs that paid down in JPMorgan's CLO Index (CLOIE) in April was US$3.54bn in par outstanding, split between US$2.92bn of pre-crisis CLOs and a further US$620m in post-crisis deals. The post-crisis index added an additional US$2.2bn at the April rebalance, spread across 30 tranches and six deals.

    The return on the CLOIE Total Index stood at .......

    News Round-up 5 May 2016

  • Argentina RMBS set to emerge

    Argentinean RMBS prospects could be boosted by the creation of a new inflation-adjusted accounting unit, says Moody's. The agency believes that the unit will help increase mortgage origination, but says the RMBS market will not reach its full potential until the national government can rein in inflation.

    The Central Bank of Argentina recently announced the creation of the inflation adjustment unit, which will act as a .......

    News Round-up 5 May 2016

  • Marsh recruits risk pro

    Marsh has hired Abbey Sturrock for its political risk and structured credit practice, serving as svp within the firm's public agency group. In this role, Sturrock is responsible for delivering Marsh's advisory and placement capabilities for the public agency sector across the globe, working with entities such as multilateral development banks and export credit agencies. She joins from Berne Union, .......

    Job Swaps 5 May 2016

  • CDS market still shrinking

    The steady reduction in the size of the global CDS market continued in 2H15, according to the BIS. The notional amount of outstanding CDS contracts fell from US$15trn at end-June 2015 to US$12trn at end-December, a figure which is only one fifth of its peak of US$58trn at the end of 2007.

    The market value of CDS also continued to decline, .......

    News Round-up 5 May 2016

  • China vehicle guidance assessed

    China's new guidance on used vehicle sales will have a mixed impact on the recovery rates in auto loan ABS, says Moody's. However, the agency believes it will boost the used car market overall.

    The China State Council's new guidance on facilitating the ease of inter-city and inter-provincial used vehicle sales kicks in on 31 May. The rules will scrap current restrictions in .......

    News Round-up 5 May 2016

  • RPL RMBS hitting expectations

    The early performance signals from US reperforming loan RMBS deals reveal that they have matched expectations, according to Fitch. Deals rated by the agency have in fact slightly exceeded performance in comparison to their non-rated counterparts, which has stemmed largely from the different underlying collateral risk attributes.

    The rated RPL market has grown with more new issuers participating since the end of 2014. Fitch has .......

    News Round-up 5 May 2016

  • BlackRock names CLO head

    Josh Tarnow is taking over as head of BlackRock's CLO and bank loans business. This comes after Leland Hart's decision to step down from these roles to pursue other interests.

    A structural reorganisation within BlackRock's bank loans team in the US back in March 2015 saw it place Scott Snell and Adrian Marshall in charge of the day-to- day responsibilities .......

    Job Swaps 5 May 2016

  • Brexit risk to Euro CLO performance

    The European CLO market has seen €4.44bn in new issuance this year, slightly above the €4.39bn up to the same point in 2015, despite volatility in the secondary loan and wider financial markets earlier in the year, notes S&P. It is also despite the potential for further volatility due to geopolitical events such as the Brexit vote.

    CLO managers have .......

    News Round-up 5 May 2016
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