Complete news archive

  • Euro CLOs enjoy ECB boost

    The 'ECB effect' is pulling European CLO spreads tighter, with BWICs last week trading very well. Further bid-lists are scheduled to trade today and tomorrow, with good execution expected again.

    "Last week really exceeded expectations because bid-lists were trading at very good levels. Significant tightening was seen on the back of the ECB's recent purchase programme announcement," says one European .......

    Market Reports 16 September 2014

  • Corporate trust vet recruited

    Global Loan Agency Services has added another staffer to its roster, following the recruitment of Stuart Draper last month (SCI 29 August). Louise Moore joins the firm as a relationship manager, with over twenty years' debt capital market and corporate trust experience. She has held senior posts with Law Debenture, Deutsche Bank and Bank of New York Mellon in the .......

    Job Swaps 16 September 2014

  • RFC issued on updated SHP model

    Fitch has released an updated methodology for its Sustainable US Home Price (SHP) model as an exposure draft. The agency is soliciting market comments before incorporating the model into its rating methodology.

    While the foundation of the SHP model has not fundamentally changed, Fitch has expanded the dataset and introduced statistical techniques designed to enable the model to self-identify home .......

    News Round-up 16 September 2014

  • Stable performance predicted for ARS

    US student loan auction rate securities (ARS) appear to be entering a period of relative calm, following a volatile few years. Fitch expects this to translate into more stable performance across the segment.

    Many student loan ARS credit ratings were negatively affected by increased interest expenses, due to the failure of the auction market in early-2008. In some cases, downgrades .......

    News Round-up 16 September 2014

  • Cash-out impact examined

    Kroll Bond Rating Agency has published a research report delving into borrower equity cash-outs in the US CMBS market. Given increased competition among lenders, the agency sought to quantify the impact that equity cash-outs have had in driving its main stressed metrics into riskier territory.

    Slightly less than half of the loans in KBRA's top-20 rated universe have returned equity .......

    News Round-up 16 September 2014

  • B-piece liquidity increasing

    Secondary market liquidity for US CMBS B-pieces is increasing, with 162 bonds totalling US$1.2bn appearing on BWICs year-to-date, according to Morgan Stanley figures. CMBS strategists at the bank note that the majority of the B-pieces traded in the secondary market are primarily double-B and single-B rated bonds from deals issued in 2012 and prior. However, some unrated bonds are also .......

    News Round-up 16 September 2014

  • Securitisation valuation director joins

    Grant Thornton has appointed Adam Bareham as a forensic and valuation services director. He is based in New York and takes responsibility for valuing RMBS, CMBS, CDOs, CLOs, loan portfolios, CDS and derivatives, amongst other products.

    Bareham was previously at the DTCC. Before that he spent 17 years at Deloitte & Touche where he became a senior manager in the .......

    Job Swaps 16 September 2014

  • Large RMBS settlement agreed

    A group of underwriters for IndyMac Bank RMBS have agreed to settle class-action claims concerning underwriting misrepresentations for US$340m. The underwriters in the case are Credit Suisse, Deutsche Bank, JPMorgan, RBS, Morgan Stanley and UBS.

    The claims allege that offering materials for 50 RMBS offerings issued in 2006 and 2007 contained untrue statements which mischaracterised the underwriting practices used to .......

    Job Swaps 16 September 2014

  • CLO pro rejoins law firm

    Cadwalader, Wickersham & Taft has added David Quirolo to its global capital markets practice group in London as a partner. His practice covers securitisation and structured finance, with a particular focus on CLOs. Quirolo was previously an associate at the firm but left in 2004 to join Ashurst, where he was a partner.

    .......

    Job Swaps 16 September 2014

  • Euro RMBS stays BWIC focused

    European RMBS trading looks set to be focused around BWICs for the second day running today.

    Yesterday saw quieter trading off-BWIC in European RMBS where spreads held firm. However, on-BWIC yesterday prices were at or higher than talk.

    Today, there are already three lists scheduled. As mentioned yesterday there is a peripheral mezz list at 15:00 London time, which is .......

    SCIWire 16 September 2014

  • Peripheral mezz list circulating

    With European peripheral and mezzanine paper in demand it was only a matter of time before a BWIC capitalising on both aspects would appear. There is now a nine line peripheral mezzanine list doing the rounds for trade tomorrow at 15:00 London.

    The €25.2m list contains two CLOs and seven RMBS most of which are rarely seen bonds - only .......

    SCIWire 15 September 2014

  • Increasing US CMBS supply

    Spreads held steady in US CMBS into the end of last week, but with ever increasing bid list supply expectations are they will have to budge sooner rather than later.

    There are now six bid lists scheduled for today and a further two already on the slate for tomorrow. Among today's lists the most eye-catching is the 12:30 New York .......

    SCIWire 15 September 2014

  • Sears sentiment continues to sour

    Market sentiment continues to sour for Sears Roebuck Acceptance Corporation, with its five-year CDS having widened by 68% over the past six months, according to Fitch Solutions' latest CDS case study snapshot. Credit protection against a default on Sears' debt is now pricing at the highest levels seen since January 2012.

    CDS liquidity for Sears has rebounded over the past .......

    News Round-up 15 September 2014

  • Protocol adherence period extended

    ISDA has extended the adherence period for the 2014 Credit Derivatives Definitions Protocol until 17 September (SCI 22 August). The association says that the protocol has seen a high level of adherence globally, but - following member feedback - its Credit Steering Committee (CSC) recommended that the adherence period be extended to provide additional time for market participants to adhere .......

    News Round-up 15 September 2014

  • Punch exchange notes provisionally rated

    Moody's has assigned provisional ratings to four classes of notes to be issued by Punch Taverns Finance in line with the proposed restructuring of the securitisation. The issuance comprises £111.01m super senior hedge notes (rated Baa1), £67.5m A1(V) notes (Baa3), £45.79m A2(V) notes (Baa3) and £300m M3 notes (B2).

    The issuance of the class A1(V) and A2(V) notes will follow .......

    News Round-up 15 September 2014

  • Further FHFA suit settled

    The US FHFA has agreed a settlement of US$550m with HSBC North America Holdings, related companies and specifically named individuals. The settlement resolves claims in the lawsuit 'FHFA v. HSBC North America Holdings Inc., et al.', alleging violations of federal, Virginia and District of Columbia securities laws in connection with private-label MBS purchased by Fannie Mae and Freddie Mac during .......

    Job Swaps 15 September 2014

  • Acropolis calculation error corrected

    The US$19.5m Acropolis Gardens Realty Corp loan, securitised in WFRBS 2013-C15, has had its recently reported US$246,887 realised loss reversed (see SCI's CMBS loan events database). The loan was secured by a 612-unit cooperative residential building located in Astoria, New York.

    The loan was transferred to special servicing in March 2014 due to monetary default. The borrower had .......

    News Round-up 15 September 2014

  • Delinquencies off-set resolution gains

    US CMBS delinquencies fell by 2bp in August to 4.85% from 4.87% a month earlier, according to Fitch's latest index results for the sector, despite the highest volume of changes to the index since March. While resolutions rebounded strongly last month to US$1.075bn, delinquencies hit US$1.082bn, representing the largest volume of new delinquencies since February 2013.

    The surge in resolutions .......

    News Round-up 15 September 2014

  • CMBS origination platform prepped

    Principal Real Estate Investors and Macquarie Group are forming Principal Commercial Capital, a lending platform focused on originating and securitising commercial mortgages. Principal Real Estate Investors will source, underwrite, close and service loans while Macquarie will provide funding and capital markets expertise.

    Principal Real Estate Investors has a long track record as a CMBS loan originator and seller. Macquarie has .......

    Job Swaps 15 September 2014

  • SCI Start the Week - 15 September

    A look at the major activity in structured finance over the past seven days

    Pipeline
    A raft of US CMBS deals joined the pipeline last week, accounting for over half of all newly-announced transactions. Four ABS and two CLOs also began marketing.

    The newly-announced ABS consisted of US$1.028bn Chrysler Capital Auto Receivables Trust 2014-B, US$850m PILOT 2014-1, US$2.62bn SpringCastle Funding 2014-A and US$215m Westgate Resorts 2014-1. The CLOs, meanwhile, were €927.4m Atlantes SME .......

    News 15 September 2014

  • Euro mezz takes centre stage

    ECB president Draghi's comment on Friday that the ABSPP would be more effective if it were to include mezzanine paper has drawn market focus to that section of the capital structure.

    On Friday and into this morning investor demand has centred on mezz paper in European ABS, CMBS and RMBS, notably Dutch prime. Consequently, spreads have moved tighter across all .......

    SCIWire 15 September 2014
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