Complete news archive

  • Countrywide valuations eyed

    The Countrywide shelf could face the brunt of increased principal modification rates, if Bank of America pursues a strategy of aggressively modifying loans in RMBS deals to fulfil the requirements of its Department of Justice settlement (SCI 27 August). This is because the bank has sold the servicing rights for most of the BOAMS, BAFC, FFML, FFMER and MLMI shelves.

    News 29 August 2014

  • Corporate trust service beefs up

    Stuart Draper has joined Global Loan Agency Services as director, business development. He was previously a senior sales manager, client development at BNP Paribas Securities Services. His specialities include distressed debt funds, project finance and CDOs.

    .......

    Job Swaps 29 August 2014

  • SLR vote scheduled

    Similar to the US Fed, the FDIC is to hold an open meeting on 3 September to vote on final regulations implementing the liquidity coverage ratio (LCR) and to discuss margin requirements for covered swaps (SCI 28 August). But it also plans to discuss changes to the supplementary leverage ratio (SLR). Proposed changes to the SLR would assign a 20% .......

    News Round-up 29 August 2014

  • Mixed CMBS supply seen

    At around US$72m, US CMBS BWIC volume remained light yesterday ahead of the Labor Day holiday, although up from the previous session. A mixed bag of bonds across a variety of vintages was out for the bid.

    The vintage appearing most often in SCI's PriceABS data for the session was 2006. For example, CD 2006-CD3 AM was talked .......

    Market Reports 29 August 2014

  • Japanese, US CMBS enforcement weighed

    Japanese CMBS enforcement mechanisms (EMs) are weaker when compared with US CMBS in instances where representations and warranties (R&Ws) are breached, Moody's says in its latest Structured Thinking: Asia Pacific publication. While R&W conditions in Japanese and US CMBS transactions are similar, there is greater variation between deals in Japan, partly because the US CMBS industry has adopted standardised R&Ws.

    News Round-up 28 August 2014

  • Crossover tranche levels projected

    Markit is set to begin supporting trading in iTraxx Crossover tranches next month. The new tranches will be based on the Crossover Series 22 index, split across 0%-5%, 5%-10%, 10%-20% and 20%-100%.

    Credit derivative strategists at JPMorgan project a broad indication of the trading levels of the new tranches using the iTraxx Crossover Series 21 portfolio and a representative correlation .......

    News Round-up 28 August 2014

  • Lehman RMBS restructured

    Fitch has withdrawn its single-C rating on EMF-UK 2008-1's existing class A3 tranche and assigned triple-A, double-A and single-A minus ratings to the new replacement class A1a, A2a and A3a notes, following a restructuring of the non-conforming RMBS transaction. Up until July 2014, the issuer had received distributions in respect of stipulated claims totalling US$35m and the remaining claims were .......

    News Round-up 28 August 2014

  • Acropolis Gardens liquidation scrutinised

    The liquidation last month of the US$19.5m Acropolis Gardens Realty Corp loan, securitised in WFRBS 2013-C15, is being seen as an unwelcome precedent for the CMBS market. The loan was resolved with a 1.3% loss, while repaying US$1.5m of prepayment penalties to the XA tranche - about half of the US$3.2m yield maintenance penalty due, according to Barclays Capital CMBS .......

    News Round-up 28 August 2014

  • ECB purchases to support periphery

    ECB president Mario Draghi's Jackson Hole address enlivened the QE debate again last week. Confirmation that preparations for outright ABS purchases are progressing quickly is being seen as a clear positive for senior peripheral RMBS bonds, for which the summer correction has provided attractive levels for investors to re-enter the trade.

    Morgan Stanley's year-end target for Spanish senior RMBS is .......

    News 28 August 2014

  • Servicer scrutiny intensifies

    Ocwen disclosed in its 2Q14 10-Q that it had received an SEC subpoena related to its dealings with and interests in Altisource, HLSS and AAMC. The filing also stated that the SEC plans to issue the servicer with another subpoena related to the recent amendments to its financial filings (SCI 19 August).

    Barclays Capital RMBS analysts note that it appears .......

    News Round-up 28 August 2014

  • LCR vote scheduled

    The US Fed is to hold an open meeting on 3 September to vote on final regulations implementing the liquidity coverage ratio (LCR) requirement in the US. Proposed rulemaking regarding margin requirements for non-cleared swaps will also be discussed during the meeting.

    Together with the FDIC and the OCC, the Fed had initially proposed LCR regulations that would assign a .......

    News Round-up 28 August 2014

  • Reg AB, NRSRO rules finalised

    The US SEC yesterday unanimously adopted final rules under Regulation AB 2 that substantially revise the offering process, disclosure and reporting requirements for registered offerings of ABS. The rules implement several key areas of reform - while deferring action on other significant aspects of the original proposals - and aren't expected to be too onerous for auto ABS or CLO .......

    News 28 August 2014

  • Stable default rates for Japanese auto ABS

    Japanese auto loan ABS default rates are more stable than those for US prime auto loan ABS, according to Moody's latest Structured Thinking: Asia Pacific publication. The agency notes that this is because their loan pools comprise higher quality debtors that are less prone to unemployment during periods of economic weakness.

    "For example, default rates for Japanese auto loan ABS .......

    News Round-up 27 August 2014

  • CIFC names new director

    CIFC Corp has appointed Jeffrey Serota to its Board of Directors. He was previously a senior partner at Ares Management, until his retirement earlier in the year.

    Concurrent with the appointment, Frank Puleo resigned from the CIFC Board to focus on his other business activities.

    .......

    Job Swaps 27 August 2014

  • RMBS 2.0 deals to withstand quake losses

    The earthquake that struck Napa County will not have any material impact on the ratings of RMBS 2.0 transactions, according to Fitch. Loans on Californian properties comprise, on average, 45% of post-crisis new issue prime jumbo RMBS. However, just 0.36% of loans by balance are secured by collateral in Napa County.

    Fitch-rated RMBS deals have comparable exposure at approximately 0.45%, .......

    News Round-up 27 August 2014

  • Low Euro default rates continue

    The credit performance of European structured finance transactions continues to be resilient. Only 1.6% by original issuance volume of notes outstanding in mid-2007 had defaulted by end-2Q14, according to S&P.

    At end-2Q14, the 12-month rolling default rate declined to 0.16%, its lowest level since 1Q10. "At 14.8% at the end of 2Q14, the 12-month rolling downgrade rate has slightly declined .......

    News Round-up 27 August 2014

  • Staples exposure 'fairly limited'

    Staples confirmed in its 2Q14 earnings results that it expects to close approximately 140 stores in North America this year, 80 of which have already been closed during the second quarter. An official list of the affected properties has not been published, but Bank of America Merrill Lynch CMBS analysts have identified 83 Staples stores that have been or will .......

    News Round-up 27 August 2014

  • BofA consumer relief outlined

    Further information has emerged on the US$7bn consumer relief portion of Bank of America's recent RMBS settlement (SCI 22 August). Its scope includes principal forgiveness and forbearance, loan modification and targeted lending, as well as an additional US$490.16m for the payment of a borrower's federal income tax liability associated with any income recognised from the discharge of indebtedness.

    The US$7bn .......

    Job Swaps 27 August 2014

  • Reg AB 2 concerns highlighted

    Lewtan has published the results of a survey of securitisation professionals that aims to understand the market's readiness in adopting the US SEC's Regulation AB 2 proposal and re-proposal. The survey confirms that many issuers and investors are concerned by the potential risks introduced by the re-proposal, particularly regarding how 'potentially sensitive' data is to be provided and handled.

    Respondents .......

    News Round-up 27 August 2014

  • Credit vet recruited

    Hermes Fund Managers has appointed Zoë Shaw as head of fixed income, reporting to ceo Saker Nusseibeh. In this new role, she will build on the firm's fixed income and credit capabilities to create a range of specialist credit capabilities that leverage Hermes' unique ownership structure.

    Shaw joins from Promethion, where she was md since 2009. Prior to that, she .......

    Job Swaps 27 August 2014

  • Argentine auction rescheduled

    The auction to settle credit derivative trades for Argentine Republic CDS is to be held on 3 September. ISDA's Americas Determinations Committee has resolved the challenge received in respect of ISINs ARARGE03E667 and ARARGE03E659 (SCI 20 August).

    .......

    News Round-up 27 August 2014
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