Complete news archive

  • 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

  • SFR securitisations surveyed

    Five firms have so far completed eight transactions for US$4.4bn in the single-family rental (SFR) securitisation market's first year. Growth in the sector is slowing, however, as the stock of distressed properties lessens and foreclosure timelines in judicial states lengthen.

    Deutsche Bank ABS strategists note that the eight SFR deals issued so far have structurally been quite similar, with a .......

    News 27 August 2014

  • Aussie non-conforming credit quality compared

    Moody's reports that the underwriting standards and overall quality of borrowers in Australian non-conforming RMBS portfolios post-financial crisis are better than in comparable transactions in the Australian market pre-crisis and better than in subprime transactions in the US and the UK written pre-2008. The agency compared Australian non-conforming loans with pre-2008 US and UK equivalents due to the lack of .......

    News Round-up 26 August 2014

  • RFC issued on venture debt ABS

    Moody's is seeking feedback on its proposed approach to rating venture debt-backed ABS. The agency expects that adoption of the credit rating methodology would result in downgrades of up to one or two notches on its ratings of currently outstanding US venture debt transactions.

    The proposed approach includes assumptions about asset correlation, obligor default probabilities and recovery rates on defaulted .......

    News Round-up 26 August 2014

  • Originator fund uses over-allotment

    Blackstone/GSO Loan Financing (BGLF) has raised an additional €40.7m through the issue of 40.7 million shares pursuant to an over-allotment option. The company has now raised a total of €301.2m under its IPO (SCI 21 July).

    Since launch, BGLF has closed a €475m three-year revolving credit facility with a syndicate of four international banks and Phoenix Park CLO - which .......

    Job Swaps 26 August 2014

  • Minimal impact from Napa earthquake

    Barclays Capital CMBS analysts estimate that US$620m of US CMBS loan allocated balance is located around Sunday's earthquake zone, just south of Napa, California. The area has a high concentration of hotel and retail properties due to its popularity as a tourist destination.

    Significant damage was reported to several buildings and homes in and around the Napa area, following the .......

    News Round-up 26 August 2014

  • Sunshine Act meeting scheduled

    The US SEC is set to hold an open meeting tomorrow (27 August) pursuant to the provisions of the Sunshine Act. The topics slated for discussion include the new Regulation AB 2 and nationally recognised statistical rating organisations (NRSROs) rules.

    Specifically, the Commission will consider whether to adopt rules revising the disclosure, reporting and offering process for ABS. The revisions .......

    News Round-up 26 August 2014

  • FHFA agrees sixteenth settlement

    The FHFA has reached a settlement with Goldman Sachs, related companies and certain named individuals. The settlement addresses claims alleging violations of federal and state securities laws in connection with private-label MBS purchased by Fannie Mae and Freddie Mac between 2005 and 2007.

    Under the terms of the settlement, Goldman Sachs will pay US$3.15bn in connection with releases and the .......

    Job Swaps 26 August 2014

  • SEF recordkeeping relief issued

    The US CFTC has issued a no-action letter providing swap execution facilities (SEFs) time-limited conditional relief from certain data reporting and recordkeeping requirements in relation to confirmations required for uncleared swap transactions. The no-action relief will expire on 30 September 2015.

    Commission regulation 37.6(b) requires a SEF to provide each counterparty to a transaction entered into on or pursuant to .......

    News Round-up 22 August 2014

  • RFC issued on debt fund approach

    Scope Ratings is requesting comments on its recently-published debt fund rating methodology, which entails assigning a credit rating and a risk-return rating to funds invested in debt products. The agency anticipates further strong growth in this segment in Europe (SCI 29 July).

    In the real estate segment alone, the number of new debt funds increased sharply from six in 2012 .......

    News Round-up 22 August 2014

  • European operations spun off

    Institutional Financial Markets Inc (IFMI) is to sell its European operations for approximately US$8.7m to C&Co Europe Acquisition, an entity controlled by Daniel Cohen, president and chief executive of IFMI's European operations and IFMI vice-chair. The purchase price consists of an upfront payment at closing of US$4.75m and up to US$3.95m to be paid over the four years following the .......

    Job Swaps 22 August 2014

  • VM timing issues highlighted

    ISDA has sent a letter to the Basel Committee and IOSCO regarding timing issues for margin rules for uncleared derivatives. The letter outlines industry concerns about the market's ability to meet an implementation date of December 2015.

    This concern is based not only on the significant infrastructural changes required of market participants, but also due to the significant coordination effort .......

    News Round-up 22 August 2014

  • BWIC 'interface' launched

    DealVector has launched a central repository for daily BWIC information, which aims to improve liquidity in structured markets. Dubbed BWIC Board, it is a single interface that provides a simple overview of the entire market and notification linkages based on investor preferences.

    The platform says that brokers who contribute BWIC list data will maintain control of their relationships while receiving .......

    News Round-up 22 August 2014

  • New Definitions protocol launched

    ISDA has launched the ISDA 2014 Credit Derivatives Definitions Protocol as part of the implementation process for the 2014 ISDA Credit Derivatives Definitions. The Protocol is designed to enable market participants to apply the 2014 Definitions to certain existing credit derivative transactions, thereby eliminating distinctions between those transactions and new transactions entered into on the 2014 Definitions.

    By adhering to .......

    News Round-up 22 August 2014

  • Record settlement agreed

    Bank of America has reached a comprehensive settlement with the US Department of Justice, certain federal agencies and six states. The settlement includes releases on the securitisation, origination, sale and other specified conduct relating to RMBS and CDOs, as well as an origination release on residential mortgage loans sold to the GSEs and private-label RMBS trusts or guaranteed by the .......

    Job Swaps 22 August 2014

  • Auto ABS widening underlined

    US ABS bid-list supply rose to around US$95m yesterday, with a block of auto floorplan bonds making up about half of the volume. Auto loan tranches accounted for the majority of the remaining BWIC items and reflected the recent spread widening seen in the sector.

    The floorplan paper out for the bid yesterday was AMOT 2010-2 A, which was talked .......

    Market Reports 21 August 2014

  • Competitive environment driving Mexican prepays

    Fitch reports that declining interest rates for mortgage products, the halt of new housing construction in 2013-2014 and the importance of house acquisition lending in the banking sector have fostered a competitive environment for tenured borrowers and pushed prepayment rates up on Mexican securitised bank-originated mortgage portfolios. The agency estimates that the weighted average annual CPR of securitised mortgage loans .......

    News Round-up 21 August 2014

  • Impact of Argentinean default weighed

    Argentina's sovereign default increases the likelihood of rising inflation and falling employment and real wages, threatening the performance of certain ABS, Moody's says. Securitisations backed by unsecured consumer loans whose payments are not automatically deducted from borrowers' accounts will be hardest hit by the sovereign's default.

    "Borrowers who use automatic payment deduction typically have more stable jobs in the public .......

    News Round-up 21 August 2014

  • Chinese RMBS 'benchmark' welcomed

    Postal Savings Bank of China's recent RMBS (SCI 31 July) establishes an important benchmark for the Chinese securitisation market, according to Moody's. The agency suggests that the detailed level of disclosure provided by PSB will likely set the tone for future deals.

    China's securitisation market has historically been mainly concentrated in CLOs and auto ABS."If China's RMBS market grows, it .......

    News Round-up 21 August 2014

  • Auto ABS issuer fined

    The Consumer Financial Protection Bureau (CFPB) has taken action against First Investors Financial Services Group for distorting consumer credit records. The agency claims that the auto finance company failed to fix known flaws in a computer system that was providing inaccurate information to credit reporting agencies, potentially harming tens of thousands of its customers.

    A CFPB investigation found that First .......

    Job Swaps 21 August 2014

  • Call likelihood gauged

    US RMBS clean-up call activity picked up in 2Q14, with 10 deals called during the period versus six in the previous quarter. Together with lower rates, one factor that may be contributing to the up-tick is rising prices for non-performing/re-performing loans.

    "If rates stay range-bound and NPL/RPL markets remain strong, call activity will likely stay elevated," Barclays Capital RMBS analysts .......

    News 20 August 2014
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